Why North Carolina Homeowners Are Choosing Solar
As electricity prices rise and clean energy becomes more accessible, more and more North Carolina homeowners are making the switch to solar. From long-term financial savings to energy independence and environmental impact, solar energy is becoming one of the smartest home upgrades you can make.
Here’s everything you need to know about why solar power makes sense in North Carolina and how much you could actually save by making the switch.
1. Lower Power Bills
North Carolina residents pay an average of $0.14–$0.15 per kWh for electricity (Choose Energy). A typical $120 monthly electric bill reflects about 857 kWh of energy use. Compare that price to an average 5.7 kW solar panel system which can produce nearly 855 kWh/month, offsetting that usage almost entirely.
Estimated Savings:
10-Year Savings: ~$14,400
25-Year Savings: ~$36,000
2. Affordable Solar Installation Costs
North Carolina has one of the more affordable solar markets in the country. As of 2025:
- Average cost: ~$2.25 per watt (EnergySage)
- Typical 6 kW system: ~$13,500 before incentives
The current return on investment is stronger than ever, especially once incentive programs are applied (see below for more information). And by our estimate, this return is only going to continue to grow.
3. 30% Federal Solar Tax Credit
According to the IRS the Federal Investment Tax Credit (ITC) allows you to deduct 30% of your solar system cost from federal taxes. This credit is available through 2032. (see more)
Here’s An Example of How it Changes Average Costs:
System Cost: $13,500
Federal Credit: $4,050
Net Cost: $9,450
This significantly shortens your payback period to about 11–12 years.
4. Local & State Incentives in North Carolina
While there’s no longer a state-level solar tax credit, several local and utility-based benefits still exist:
- Net Metering: Get retail-rate credits for extra solar power you don’t use that are sent back to the grid.
- Property Tax Exemption: 80% of a solar system’s added home value is exempt from property taxes.
- Duke PowerPair: Up to $9,000 in rebates for solar + battery systems (Duke Energy).
- Local Rebates: Some cities (e.g., Asheville) offer permit fee rebates and some co-ops offer low-interest solar loans.
5. Excellent Solar Output in NC
North Carolina averages about 5 peak sun hours per day, according to Solar Energy Local.
Here’s a breakdown of what all that sunlight means:
- 1 kW of solar = ~150 kWh/month
- 6 kW system = ~900 kWh/month (enough to power most homes)
Panel sizing basics:
Avg. panel = ~400W
Roof space per panel = ~20 sq ft
500 sq ft of roof = up to 10 kW system
6. Energy Independence & Control
Solar gives you freedom from unpredictable utility rate hikes. Once installed, your system generates power at a predictable cost which turns into essentially free electricity after the payback period (minus anything you would originally pay for on a monthly basis).
7. Environmental Benefits
Each kilowatt-hour of solar displaces fossil fuel use. A standard system can offset more than 6,000 lbs of CO2 annually which is one of the best ways homeowners can reduce their carbon footprints.
Summary of Key Solar Facts in NC:
- Average electricity rate: ~$0.14/kWh
- Avg. install cost: ~$2.25/W
- Federal tax credit: 30% (through 2032)
- Monthly production (1 kW): ~150 kWh
- Net metering: Yes, at retail rates
- Average payback period: ~11–12 years
Get Started
Whether you’re just starting your research or ready to go solar, North Carolina Solar Company is here to help. We connect you with vetted, local installers and make the process easy and transparent.
Use our solar savings calculator to estimate how much you could save — and take the first step toward long-term energy independence today.