Can You Get Free Solar Panels in North Carolina?

Key Takeaways

• While there are no completely free solar panel programs in North Carolina, there are several ways to significantly reduce the cost of going solar.
• Low-income households may qualify for special solar incentives and grants to make installing panels more affordable.
• Leasing options and power purchase agreements allow homeowners to go solar with little to no upfront costs.
• Net metering and solar renewable energy credits provide ongoing savings that help offset the cost of solar panels over time.

As a North Carolina resident, you may be wondering if it’s possible to get solar panels installed on your home for free. While there aren’t any programs that provide completely free solar panels, there are several ways you can save money and make going solar much more affordable. In this article, we’ll explore the options available to help you reap the benefits of clean, renewable energy without breaking the bank.

Solar Incentives & Rebates to help you save when going solar in North Carolina

One of the first things to consider when looking to save money on solar panels is the various incentives and rebates available to North Carolina homeowners. These programs can significantly reduce the upfront cost of your solar installation, making it much more affordable to go solar.

While it’s not common to get solar panels for free, there are several programs and incentives in North Carolina that can significantly reduce the cost of installing a solar energy system.

1. Solar for All Program: The North Carolina Department of Environmental Quality’s State Energy Office, in collaboration with Advanced Energy, the North Carolina Clean Energy Technology Center, and the North Carolina Clean Energy Fund, has applied for a grant to develop and execute a program enabling the rapid deployment of distributed solar and associated storage with meaningful benefits to over 20,000 low-income and disadvantaged communities across the state. You can check the program benefits and application process here.
2. Federal Solar Investment Tax Credits: This federal program can reduce the cost of a solar installation by 26%.
3. Duke Energy Solar Rebate Program: Duke Energy offers rebates to customers who install a home solar power system. The rebate is $400 per kilowatt, up to $4,000 for residential customers. Property owners can get a rebate of $0.40/Watt for systems up to 10 kilowatts.
4. North Carolina Net-Metering: Net-metering is a billing arrangement that credits solar panel owners for the excess energy they produce.
5. Piedmont Electric Corporation Renewable and Solar Energy Loan Program: This program provides loans for the installation of renewable energy systems.
6. State Solar Property Tax Exemption: This program exempts the added value of a solar panel system from the property tax assessment.

The specifics of these programs can change and not all homes may qualify. It’s best to contact a local solar provider or the North Carolina State Energy Office for the most accurate and up-to-date information.

The most notable incentive is the Federal Solar Tax Credit, which allows you to deduct 26% of your solar installation costs from your federal taxes. For example, if your solar panel system costs $20,000, you’d be eligible for a $5,200 tax credit. This incentive is available through the end of 2022, so it’s a great time to take advantage of this significant savings opportunity.

In addition to the federal tax credit, North Carolina offers its own Solar Rebate Program. This program provides rebates of up to $6,000 for residential solar installations, depending on the size of your system. To qualify, you must work with a certified solar installer and meet certain eligibility requirements.

Finally, many local utilities in North Carolina offer their own rebates and incentives for customers who go solar. These programs vary by utility, but they can provide additional savings on top of the federal and state incentives. Be sure to check with your local utility provider to see what options are available in your area.

By taking advantage of these incentives and rebates, you can significantly reduce the upfront cost of your solar panel system, making it much more affordable to go solar in North Carolina.

Applying for solar incentives and rebates in North Carolina

1. Federal Solar Investment Tax Credit (ITC): You can claim this incentive as a credit towards your federal tax bill when you file your federal income taxes. To qualify for the ITC, you need to purchase your system either with cash or a solar loan. If your tax bill isn’t high enough to claim the entire credit in one year, you can roll over the remaining credit year-to-year until the end of 2034 .You will need to complete IRS Form 56951. This form requires information about your system size, the installation location, your installer, and the total cost of your solar project
2. Duke Energy Solar Rebate Program: If you’re a Duke Energy customer, you can apply for this program after installing your solar panel system. You will need to provide details about your solar panel system, including the system size, installation date, and installer.
3. Piedmont Electric Corporation Renewable and Solar Energy Loan Program: You can apply for this loan program through Piedmont Electric Corporation. You will need to provide information about your renewable energy system, including the system size, installation date, and installer.
4. State Solar Property Tax Exemption: This exemption is applied automatically to your property taxes1.This exemption is applied automatically to your property taxes, so no additional documents are typically needed.
5. Solar for All Program: You can apply for this program through the North Carolina Department of Environmental Quality’s State Energy Office. The specific documents required for this program can vary, so it’s best to contact the North Carolina Department of Environmental Quality’s State Energy Office for more information.

Net Metering and Solar Renewable Energy Credits (SRECs)

One of the most significant ways to offset the cost of going solar in North Carolina is through net metering and Solar Renewable Energy Credits (SRECs). Net metering is a billing mechanism that allows you to receive credit on your utility bill for the excess solar energy your system produces and sends back to the grid.

In North Carolina, net metering is available to residential and commercial customers of the state’s major utilities, including Duke Energy and Dominion Energy. When your solar panels produce more electricity than you need, that excess energy is sent to the utility’s grid, and you receive a credit on your bill for each kilowatt-hour (kWh) of electricity you contribute.

Net metering essentially allows you to run your electric meter backwards, reducing the amount of electricity you need to purchase from the utility and potentially eliminating your electric bill entirely if your solar system produces enough energy to meet your needs.

 

In addition to net metering, North Carolina has a market for Solar Renewable Energy Credits (SRECs). SRECs are tradable certificates that represent the environmental benefits of generating one megawatt-hour (MWh) of electricity from a solar energy source. For every 1,000 kWh of solar energy your system produces, you earn one SREC, which can then be sold on the SREC market to utilities or other buyers.

The revenue generated from selling SRECs can help offset the upfront cost of installing a solar panel system, making it more financially viable. While the SREC market in North Carolina is relatively small compared to some other states, it can still provide an additional income stream for solar system owners.

By taking advantage of net metering and SRECs, North Carolina residents can significantly reduce the payback period for their solar panel investment and potentially even earn money from their system over time.

Low-Income Solar Programs

For low-income households in North Carolina, the cost of installing solar panels may seem out of reach. However, there are several special programs designed to help make solar energy more accessible and affordable for those who qualify.

One option is Community Solar Programs. These programs allow residents to subscribe to a shared solar farm, rather than installing panels on their own property. By participating in a community solar project, you can enjoy the benefits of solar energy without the upfront costs or maintenance responsibilities of owning your own system. Many community solar programs offer subscriptions on a sliding scale based on income, making it an affordable option for low-income households.

Another program available in North Carolina is the Solar Energy Assistance Program. This program provides grants to help low-income homeowners install solar panels on their property. The grants can cover a significant portion of the installation costs, making it much more affordable for those who qualify. To be eligible, you must meet certain income requirements and own your home.

In addition to these state-sponsored programs, there are also non-profit organizations working to make solar more accessible for low-income families. One example is Habitat for Humanity, which has partnered with solar companies to provide affordable solar installations for the homes they build. By incorporating solar energy into their building projects, Habitat for Humanity is helping low-income families save money on their energy bills while also promoting sustainable living.

If you’re a low-income household in North Carolina interested in going solar, it’s worth exploring these special programs to see if you qualify.

Solar Leasing and Power Purchase Agreements (PPAs)

If you’re interested in going solar but don’t want to deal with the upfront costs of purchasing and installing a system, solar leasing and power purchase agreements (PPAs) may be the perfect solution. These options allow you to enjoy the benefits of solar energy with little to no money down, making it much more accessible for homeowners on a budget.

With a solar lease, you essentially rent the solar panel system from a company for a fixed monthly payment. The leasing company owns, installs, and maintains the panels on your property, while you get to use the clean energy they produce to power your home. Leasing terms typically range from 10 to 25 years, and the monthly payments are often lower than what you’d pay for traditional electricity from the grid.

Power purchase agreements, or PPAs, are similar to leases but with a slightly different structure. Instead of renting the solar panel system, you agree to purchase the electricity generated by the panels at a fixed rate per kilowatt-hour. The PPA provider owns and maintains the system, and you pay for the energy it produces, just like you would with your utility company. The key difference is that the rate you pay for solar energy under a PPA is often lower than the rate you’d pay for electricity from the grid, resulting in savings on your energy bills.

One of the main advantages of solar leasing and PPAs is that they require little to no upfront investment. This makes going solar much more accessible for homeowners who may not have the cash on hand to purchase a system outright. Additionally, because the leasing or PPA company is responsible for maintenance and repairs, you don’t have to worry about the ongoing costs of upkeep.

However, there are also some potential drawbacks to consider. With a lease or PPA, you don’t own the solar panel system, which means you won’t be eligible for certain incentives and rebates, like the federal solar tax credit. Additionally, if you decide to sell your home before the end of your lease or PPA term, you’ll need to either transfer the agreement to the new homeowner or buy out the remainder of the contract.

Ultimately, whether a solar lease or PPA is right for you will depend on your specific budget, energy needs, and long-term goals. If you’re looking for a way to go solar with minimal upfront costs and don’t mind not owning the system outright, these options are definitely worth considering. On the other hand, if you want to maximize your long-term savings and take advantage of all available incentives, purchasing your own solar panel system may be the better choice.

Summing Up

While you can’t get solar panels for free in North Carolina, there are many ways to make going solar affordable. By taking advantage of incentives, low-income programs, leasing options, and ongoing savings through net metering and SRECs, you can significantly reduce the cost of installing solar panels on your home. With these money-saving strategies, you can enjoy the benefits of clean, renewable energy without putting a strain on your budget.