Is solar worth it in North Carolina in 2026?

How North Carolina pays for your solar power

Net billing (exports credited below retail). Duke Energy's Residential Solar Choice (since Oct 1, 2023) nets use and production each month, then credits surplus at avoided cost, below retail. New customers move to it in 2027.

In the calculator, 40% of your solar output is used at home at the retail price and the rest is exported at about 80% of retail, so each solar kWh is worth 88% of the retail price on average. Change it if your utility pays more or less. Method

How exports are credited

North Carolina has no single statewide credit rate. The North Carolina Utilities Commission (NCUC) sets the rules, and they apply to Duke Energy Carolinas and Duke Energy Progress, which serve most of the state. A 2017 law (N.C.G.S. 62-126.4) told the Commission to set net metering rates so that a solar customer “pays its full fixed cost of service.” On March 23, 2023, in Docket E-100, Sub 180, the Commission approved revised tariffs.

The old residential tariff, Rider NM, closed to new applications after September 30, 2023. Two riders replaced it on October 1, 2023:

• Residential Solar Choice (Rider RSC). The customer must be on a time-of-use rate with critical peak pricing. Net exports are credited each month at Duke’s avoided cost rate. It adds a minimum monthly bill, non-bypassable charges for storm recovery and cyber security costs, and a grid access fee for systems above 15 kW AC.
• Net Metering Bridge (Rider NMB). Similar to RSC, but a time-of-use rate is not required. It is a transition rider that is open to a limited amount of capacity each year. Per the Public Staff, it runs for up to 15 years from the interconnection application, and new customers go to RSC once the annual limit is reached.

Under both riders, solar used or netted within the same monthly billing period offsets power at the retail rate. A secondary guide (Palmetto) says surplus in a month is credited at a net excess energy credit of roughly 3.4 to 4.5 cents per kWh, depending on Duke’s annual avoided cost. That is a utility-set figure that changes, so check the current Duke tariff before relying on it.

Timing matters in 2026. The Public Staff says customers still on Rider NM can stay until December 31, 2026, then move automatically to Rider NMB. Industry press reports that NMB is open to new applicants only through the end of 2026 (or until its annual capacity cap is met), after which new customers go on RSC. The Utility Dive report on the 2023 order gives the 2026 caps as 43.5 MW for Duke Energy Progress and 38.7 MW for Duke Energy Carolinas. Confirm the NMB deadline and remaining capacity with Duke before signing a contract.

State incentives in 2026

North Carolina has no open state solar tax credit, rebate or performance payment for residential rooftop systems. The federal 30% credit ended for systems installed after December 31, 2025.

North Carolina has a property tax exclusion for solar energy electric systems. A bill, House Bill 1213, was filed April 30, 2026. A House committee substitute was adopted, and it would end the exclusion for systems placed in service on or after July 1, 2027. It is a pending bill, not law, as of the date of the summary page, and it would not change systems placed in service before that date. Check its status before basing a decision on it.

What it means for payback

The bill credit for power used as it is produced stays high, because that power offsets the retail rate. Power sent to the grid is worth much less under RSC and under the surplus side of NMB. A system sized close to the home’s own use, with more of the load shifted to daytime, keeps more of the value. Under RSC the time-of-use rate adds another factor: power used in the evening peak costs more, so a battery or load shifting can change the result. The minimum monthly bill and fixed charges mean a home cannot erase its bill to zero.

Applying before the end of 2026 may secure NMB terms for up to 15 years, if capacity remains. This is the largest timing question for North Carolina buyers in 2026.

Other rules worth knowing

Residential systems up to 20 kW AC qualify for net metering in North Carolina, per the Public Staff. The system must be sized to offset the customer’s own use, not to sell power to the utility. Eligible customers must interconnect under the state’s generator interconnection standard.