Solar Panel Cost North Carolina: Local prices & online estimator Updated: October 26, 2022 As of Oct 2022, the average cost of solar panels in North Carolina is $2.49 per watt making a typical 6000 watt (6 kW) solar system $10,441 after claiming the 30% federal solar tax credit now available.
- This is lower than the average price of residential solar power systems across the United States which is currently $3.00 per watt,
- The size of a solar panel system also plays a role in how much the installation will cost.
- Larger solar installations will typically have a lower cost per watt, because the panels can be purchased at a ‘bulk price’.
However, these larger solar systems will still have a higher total cost, because they are made up of more individual panels. Installation costs for solar will vary with your location and the size of your homes electricity bill. To be meaningful solar cost information needs to be tailored to the individual situation.
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Is it worth it to go solar in NC?
North Carolina residents paid an average electricity bill of about $123.23 in October 2022. If you replaced that electricity entirely with solar power, you could save around $1,478.76 per year. Keep in mind that there are many factors that can influence your energy savings, including your average monthly energy usage.
How much does it cost to install solar in NC?
Solar power prices, savings and payback in your part of North Carolina – The average cost for an installed residential solar system in North Carolina is currently $10,441 after claiming the 30% federal solar tax credit. This is $2.49 per watt. However, there is some variance in solar prices in different parts of the state.
Does NC have a solar tax credit?
30% Federal Solar Investment Tax Credit for Businesses – Since there is no cap on the amount you can claim via the Federal Solar ITC, businesses can also claim the 30% solar tax credit. The biggest difference between the residential and commercial version of the Federal Solar ITC is the option to “safe harbor” the tax credit for commercial solar projects.
Safe harboring means that commercial project owners are able to preserve the current tax credit value (at 30%) even if they don’t complete the project in the year 2022. There are a few different routes for safe harboring, but the most common is the “Five Percent Safe Harbor Test”. Under this option, solar projects can confirm they have started construction on their project to qualify for the 30% tax credit by paying/incurring five percent or more of the total cost of the solar project.
This is again time to restate that we are not tax professionals but that if you want to explore this option we can connect you with a CPA that specializes in tax issues related to solar projects to help build a plan that works for your situation. More information about the Federal Tax Credit can be found on DSIRE, Commercial solar systems are also eligible for 100% first year bonus depreciation. Most assets are depreciated over a long period of time, but by depreciating the entire solar system in the first year business owners are able to immediately save money on their taxes.
The value of depreciation depends on the business’ effective tax rate. For this example, let’s use a $100,000 system. In this case, if the business gets taxed at 20%, bonus depreciation impact is $20,000 less taxes paid. If a business is taxed at 35%, the impact would be $35,000 less taxes paid. So depending on the business’ effective tax rate, this incentive could be even more valuable than the Federal Tax Credit for Solar, taking another 20-35% off the cost of the system in the first year.
More information about bonus depreciation can be found at DSIRE : MACRS Depreciation. The USDA Rural Energy for America Program (REAP) Grant provides grants and loans to farmers and businesses for renewable energy projects, energy efficiency upgrades, and energy audits.
- Eligible farms and businesses can apply for a grant worth 25% of the project cost (up to $500k), with a minimum grant of $2500.
- To qualify for the USDA REAP Grant, you must be a Agricultural Producer or Rural Small Business.
- You can check eligibility at usda.gov,
- Grants are awarded twice per year in the spring and fall.
Applications are due to the USDA on April 30th and Oct 30th each year. Individual or entity directly engaged in agricultural production whereby 50% or greater of its gross income is derived from agricultural production. An entity or utility that meets the Small Business Administration’s (SBA) Small Business Size Standards by the North American Industry Classification System (NAICS) found in 13 Code of Federal Regulations (CFR) Part 121.
- The April grant is open to projects above $80k size (that’s approximately the cost of a 35 kw solar system) while the October grant is only given to projects that cost less than $80k.
- To be on a confident timeline to compile and review the grant application for submission, we need to have the grant intake forms completed by the end of February.
Reach out today to get started with your commercial solar project to make sure there’s time to get everything in order by the next REAP Grant deadline. More information about the USDA REAP Grant can be found at DSIRE,
Does solar increase property taxes in NC?
No, there is a 100% property tax exemption for residential solar systems. Your home becomes more valuable, but your property taxes are not raised. Solar power systems owned by businesses get an 80% property tax exemption.
What is the NC solar rebate program?
Residential customers who are accepted into the program will receive 40 cents per watt or a $4,000 maximum rebate. A larger system may be installed, but this incentive is limited to up to 10 kW. Commercial customers who are accepted into the program will receive 30 cents per watt or $30,000 maximum rebate.
How much does Duke Energy pay for solar in NC?
Duke Energy offers rebates to North Carolina customers who want to install a solar panel system. For homeowners, the program offers a $0.60/Watt rebate for systems up to 10 kilowatts. The benefit is equivalent to $3,600 for a 6 kilowatt (kW) system.
Can you sell solar power back to the grid in North Carolina?
North Carolina solar customers in Duke Energy Progress and Duke Energy Carolinas territories are currently offered net-metering rates with full retail rate credit for any excess electricity exported to the grid at the end of the month.
How many solar panels does it take to run an air conditioner?
How Many Solar Panels Do I Need to Run an AC Unit? – In order to run your AC on solar panels, you need to ensure they produce that same total amount of wattage. An average estimate would be to divide your AC wattage by the solar panel wattage you intend to use.
- Using the average household AC wattage of 3,500 watts, and a standard solar panel wattage, this formula would look something like 3,500 (w) / 250 w (panels) = 14 panels.
- Despite the labeled wattage of the panels, in real life, variables include how much energy your solar panels can produce due to climate, area placement, type, model, electrical connection, and more.
To get the most accurate information about residential solar panel installation, trust our Neighborly partners at Mr. Electric. They are experts at solar energy system installation, Related Topic: How to Get Energy Efficiency Improvement Rebates
Is it worth to install solar panels?
When Are Solar Panels Worth It? – There are various ways solar panels pay off, from reducing your carbon footprint to increasing your home’s value. The National Renewable Energy Laboratory (NREL) found that homes with solar power increased in value by $20 for every dollar saved on energy.
That is a 20-to-1 return on investment (ROI). There are, however, some instances when solar panels may not yield as high returns as you want. According to Garrett Nilsen, the deputy director of the U.S. Department of Energy ‘s Solar Energy Technologies Office, local electricity rates, your total system cost, and whether you pay up-front, take out a loan, or lease your system can all affect your ROI.
Changing compensation patterns with your local utility or an unexpected lapse in a system’s performance may cause your payback period to take longer. In these rare instances, Nilsen advises engaging with your installer to understand the expected production or why it’s not matching their estimate.
Can you have solar in North Carolina?
How Much Do Solar Panels Cost? – Cost of Solar Panels in 2021 Explanation
North Carolina is a great place for solar. Between the state’s high sun exposure, tax credits, net-metering program and utility incentives, homeowners will get a high return on their investment. Solar panel costs in the state have also fallen 50% over the last 10 years.
