North Carolina solar panels

Solar power in North Carolina is growing quickly, making it a leading state for solar energy production. According to the Solar Energy Industries Association (SEIA), the amount of solar energy North Carolina generates makes up more than 9% of the state’s total electricity — enough to power over 1 million homes.

Home solar panels can significantly reduce your monthly electricity bills. However, you should expect to pay approximately $31,590 for an average solar panel system in North Carolina. Solar incentives, such as tax credits and rebates, can help offset the initial cost.

Electricity rates have increased nationwide in recent years, while the cost of solar panels in North Carolina has decreased by 43% in the last decade. With falling solar costs in mind, now could be a good time to invest in NC solar panels. Keep reading to learn more about the costs, benefits, financing options, and other factors to consider before installing solar panels in NC.

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How much do solar panels cost in North Carolina?

The cost of home solar panels is measured in dollars per watt, but solar system sizes are shown in kilowatts (kW). One kW is equal to 1,000 watts. According to data from the Lawrence Berkeley National Laboratory, the average solar system in the U.S. is 8.6 kW and costs approximately $3.67 per watt, or about $31,558 total. Solar panel arrays are customized based on the usage and needs of a household — systems will vary in price, size, and components.

Solar panel prices and sizes vary by state. Data from Find Energy shows the average cost of solar panels for homes in North Carolina is $3.51 per watt for a typical 9 kW system. Based on these averages, solar panels in North Carolina cost around $31,590 before factoring intax credits and incentives. Here’s how we estimated the total cost:

($3.51 X 9 kW) X 1,000 = $31,590

While the average system size of solar panels in NC is slightly larger than the U.S. average, the state’s price per watt is lower. As a result, the total average cost of solar panels in North Carolina is comparable to the U.S. average. The following table shows the average system size and solar panel costs in North Carolina compared to the national average.

North Carolina households typically use more electricity in a month than the national average, which is why the state’s system size is larger than the U.S. average. Generally, larger solar systems cost more because they require more panel modules. The following table shows the estimated solar panel cost for a range of sizes using the average $3.51 price per watt from Find Energy.

*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.

How does North Carolina solar save money?

Electricity rates are on the rise, with a 10.7% increase nationwide from 2021 to 2022. North Carolinians’ electricity rates rose 6.7% from 2021 to 2022. Based on the average household’s monthly energy usage (1,063 kilowatt-hours per month), most North Carolina residents paid around $128 for their monthly electric bill in 2022, or $1,540 for the year.

If you invest in a solar panel system that completely covers your usage, you could almost entirely eliminate your monthly electric bill. You’ll still receive some utility connection fees if your system is connected to the grid (which most residents choose to do).

Solar panels typically last between 25 and 30 years. A well-maintained solar system can last even longer. Based on the annual energy bill savings in North Carolina, you could save more than $46,000 over the span of 30 years by investing in a solar panel system that covers your energy usage.

When your solar savings surpass the initial amount you paid for the system, you’ll have experienced a return on your investment. Based on the typical energy bill and cost of solar panels in North Carolina, the average payback period for solar panels is about 14 years. Here’s how we calculated the solar payback period:

(Total system cost – 30% tax credit savings) ÷ Annual electricity bill costs = Payback period

$22,113 ÷ $1,540 = 14.3 years

North Carolina solar incentives and rebates

Home solar panels are a major financial investment. Fortunately, many local, state, and federal government incentives reduce total system costs and encourage more homeowners to invest in solar panels. Federal incentives are available in every state, and North Carolina solar incentives are available to make solar more affordable.

The Residential Clean Energy Credit is a 30% federal solar tax credit for homeowners who purchase solar energy systems. With this incentive, you can offset 30% of the cost of your solar panels on your tax returns. The credit applies to systems purchased from the beginning of 2022 to the end of 2032. There is no cap on the amount you can claim, which means you can receive the full 30% credit regardless of the size or cost of your system. Learn more about how to apply for the federal solar tax credit.

The following table shows several other solar energy NC incentives to encourage residents to invest in solar panels for homes.

Net metering in North Carolina

Net metering is available in North Carolina through your utility company. Net metering programs let you send excess energy generated by your solar panels to the power grid in exchange for credits on your electricity bill. Your utility company sets the rate you receive for solar energy.

On March 23, 2023, the North Carolina Utilities Commission voted to change the terms of the state’s net metering program, lowering the rate Duke Energy customers receive by approximately 20%. If you install a solar system and apply for permission to operate (PTO) before Oct. 1, 2023, you can lock in the current net metering rates, which are favorable for resident savings. Dominion Energy net metering terms are not currently affected by this change.

Community solar in North Carolina

Community solar — sometimes called shared solar — lets you power your home with solar energy without installing panels on your property. Residents may choose community solar as an alternative because they rent their home, can’t afford the upfront cost of solar panels, or their roof isn’t ideal for solar, among many other reasons.

When you sign up for community solar in North Carolina, you’ll pay a subscription fee. In North Carolina, this is normally an annual fee. In exchange, you’ll receive a monthly credit on your energy bill from your utility. There are several community solar projects in North Carolina, including near major cities like Greensboro, Durham, and Raleigh. The NC Sustainable Energy Association offers a map showing shared solar projects by county.

Solar incentives in Raleigh

Raleigh has a streamlined process for obtaining permits for one- and two-family rooftop solar systems. Most applicants can receive same-day permitting through the online permit portal. This helpful incentive can shave weeks off of what is typically the longest part of the solar purchasing process.

• To apply for expedited permitting, you’ll need to submit a residential permit application with your plans, wiring schematics, and manufacturer’s specifications and installation instructions.
• You’ll also need to submit a sealed document verifying that a design professional has inspected and signed off on your installation, along with an owner exemption affidavit and a notice of lien agent.
• Ground-mounted systems may be subject to more stringent requirements.
• Check the full application instructions for more details. If you follow these instructions carefully and submit all required documents, you may be eligible for same-day permitting.

Why choose solar energy in North Carolina?

There are three common reasons why homeowners choose to invest in home solar panels: lower electricity bills, greater energy independence, and a decreased environmental footprint.

• Lower energy costs: One of the greatest advantages of solar power is reducing your monthly energy bills. Your solar panels capture sunlight and turn it into electricity for your home. Whenever your home is running on solar energy, you aren’t paying for electricity from the power grid. While the amount you can save depends on several factors, you could potentially cut costs by more than $1,500 each year.
• Increase energy independence: Using solar panels to create energy for your home allows you to reduce your reliance on fossil fuels and the electric grid. This supply of independent energy also reduces the impact of electricity rate hikes on your monthly power bills. If you install battery storage, your grid independence will increase even further as you may be protected from power outages. Solar batteries also allow you to use solar power when your panels aren’t generating electricity (like at night) or during times of high electricity demand when utilities often raise energy rates. If you want an off-grid solar system, solar batteries are a necessity.
• Go green: Solar energy is a renewable resource. Solar panels don’t emit greenhouse gasses, so powering your home with solar reduces your environmental impact and helps ensure a cleaner planet for future generations. Fill out the solar estimator or call us at the number on this page to take a step toward cutting your carbon footprint today.

Should I buy or lease my solar panels?

When you install home solar panels, you can choose to pay for your solar panels in a variety of ways. While each financing option has unique advantages, purchasing your solar panels is the most cost-effective long-term option for most households. For example, owning solar panels can alsoincrease your home’s resale value by $15,000 on average.

Buying solar panels up front will lead to the greatest energy savings in the long run, but this may not be a feasible option for everyone due to the initial cost. You can also take out a solar loan, lease your system, enter a power purchase agreement (PPA), or subscribe to a community solar program. Each option comes with its own benefits and drawbacks. Consider which option works best for you.

North Carolina solar companies

With nearly 100 NC solar installers, residents can easily find a reputable North Carolina solar company with quality service, efficient solar panels, and long-lasting equipment. Many installers are known for using high-quality solar materials. SaveOnEnergy partners with several competitive solar companies in the state. Enter your information or call the number on the page to receive details about solar options in your area. The following table provides a starting point to compare popular solar installers in North Carolina.

Solar installer	Year founded	Financing options	Warranty terms
	2011	Cash purchase or solar loan	25-year manufacturer warranty and production guarantee
	1985	Purchasing, financing, or leasing systems	25-year product, performance, and quality of work warranties
	2020	Cash payment, solar loan, or lease	25-year manufacturer warranty and 10-year quality guarantee
	2010	Cash purchase, solar loan, lease, or PPA	Minimum 12-year product warranty and 25-year performance guarantee
	2018	Cash payment or solar loan	30-year performance and 25-year panel warranties

How to find the right solar installer

A solar energy system can last 30 years or more. However, the system needs to be properly installed in order to last that long and run efficiently. A seamless installation starts with a reputable North Carolinasolar company. 

When searching for an installer, look for a licensed contractor offering top-of-the-line products with a strong track record and well-rounded warranties. Start your process by reading online reviews and asking local solar system owners about their experiences. We recommend getting quotes from multiple installers so you can compare your options.

Free solar panels in North Carolina scam

As solar rises in popularity across the U.S., solar panel scams are becoming increasingly common. Solar scams are designed to steal information, money, or both from unsuspecting residents. Scammers may contact you promising free solar panels in North Carolina. It’s important to remember that there are no legitimate programs offering free solar panels in North Carolina. If you are contacted over the phone or by a door-to-door salesperson promising solar panels for free, it is most likely a scam. Do not disclose any personal information or give money to solar scammers.

Some installers offer zero-down solar loans. These types of loans do not require upfront payment, but it’s important to remember that a solar loan is not the same as free solar panels. Zero-down solar loans may come with high interest rates or unfavorable terms. Review all the details of a loan before signing a contract.

Important solar installation factors to consider

Solar energy in North Carolina can be an excellent financial investment that helps lower your power costs and your home’s carbon footprint. However, installing solar panels is not necessarily the best option for everyone. 

Here are a few critical considerations before installing solar panels:

• Your roof: Solar power is best for south-facing roofs with a pitch of 15 to 40 degrees, according to the Department of Energy. It’s also important to consider the age and condition of your roof and when it needs to be replaced. You can have your roof independently evaluated or wait until the solar company completes an inspection.
• Access to sunlight: Solar panels generate the most electricity when they receive lots of direct sunshine. Consider removing any trees or other objects obstructing sunlight from your roof. Keep in mind seasonal tree changes when evaluating your shade coverage. 
• HOA regulations: Some homeowners associations (HOAs) have restrictions regarding the use of solar panels. If you have a neighborhood organization, you may be limited in the size or placement of the solar system or need to get approval. Thankfully, North Carolina recently limited HOAs’ ability to restrict solar installations. Your solar installer can also help you work through potential obstacles in your neighborhood.