2024 Commercial Solar Incentives & Rebates North Carolina

Key North Carolina Commercial Solar Incentives & Rebates Available in 2024

A 2023 SEIA report shows that NC ranks 4th by cumulative solar capacity. Alongside this solar potential are several federal and local commercial solar incentives in North Carolina. Several renewable energy financing programs and net metering options are also available for NC businesses going solar. While the state pays below the national average on electricity costs, commercial properties still spend up to $1000/month, a significant cost on electric bills. Here, we cover the most critical commercial solar incentive in North Carolina and how much a solar system should cost and save if you are getting in today.

Commercial Solar Investment Tax Credit (ITC)

The Inflation Reduction Act enables commercial solar customers to take 30 percent of their solar investment as a credit against their federal tax liability. The ITC applies to the complete costs of commercial solar systems, and there is no cap on its value (though the customer must have a tax liability to benefit from a tax credit). This means that the Inflation Reduction Act allows businesses that invest in solar energy systems to get back 30% of the money spent on the system as a tax credit on federal taxes. However, while there is no limit on how much you can get back, you must owe taxes to benefit from the credit.

Key aspect of the ITC

This is a 10-year program and is subject to policy renewal. At the end of 2033, the 30% tax credit will drop back to 26%.

Commercial Production Tax Credit (PTC)

The Production Tax Credit (PTC) is another federal commercial solar incentive in NC. This incentive aims to foster the development of renewable energy sources, including solar power. Unlike the Investment Tax Credit (ITC), which provides a one-time credit based on the cost of installation, the PTC operates on a per kilowatt-hour (kWh) basis. It offers a tax credit for electricity generated by solar and other eligible renewable technologies during the initial ten years of a system’s operation. The PTC effectively reduces the federal income tax liability of the system’s owner based on the amount of electricity generated. Additionally, the credit is subject to annual adjustments for inflation, ensuring its value keeps pace with economic changes.

Modified Accelerated Cost-Recovery Systems (MACRS)

MACRS is a tax benefit that allows businesses to write off the cost of solar assets over a shorter period than the actual lifespan. North Carolina businesses can also take advantage of this federal commercial solar incentive. This special depreciation system allows businesses to depreciate 87% of the cost of their solar investment. The amount you can save through this depreciation depends on your current tax rate and typically amounts to about 20-25% of the total solar system cost, making this one of the best commercial solar incentives North Carolina businesses can take advantage of.

Request a Commercial Solar Proposal for Your IL Business

Net Metering in North Carolina 2024

Net metering consists of measuring the surplus energy generated by your solar system and exchanging it with your utility for electricity credits or cash incentives. While the state of NC with Duke Energy has been operating in a 1:1(total retail value) credit for surplus energy, the State of North Carolina, with the help of Duke Energy, changed its net metering policy in 2023. This change was due to a 2017 energy legislation through House Bill 589, which went into effect on the 1st of October 2023. Here is what the new policy looks like.

Today, new solar customers have a new set of fees and can choose between a modified net metering rate or the new TOU rate. While the rate will differ for distinct systems primarily based on size and capacity, determining the best rate option will depend on energy demand, battery size, and system size. Businesses with large enough solar systems with output consistently greater than consumption can opt for a sell-all tariff instead of net metering. This allows you to send all power your solar system generates to the utility, and you are paid a flat rate per kWh produced.

Key Points from the new Policy:

• The current residential net metering rider (Rider NM) closed to new customers on September 30, 2023.
• Revised net metering riders (Residential Solar Choice – Rider RSC and Net Metering Bridge – Rider NMB) for residential customers became effective on October 1, 2023.
• Rider RSC introduces new charges and requires customers to be under a Time-Of-Use with a Critical Peak Pricing rate schedule. Net exports will be credited at the utility’s avoided cost rate.
• Rider NMB is similar to Rider RSC, but customers aren’t required to be under a Time-Of-Use with a Critical Peak Pricing rate schedule. It is limited, and customers can stay on it for up to 15 years.
• Existing net metered systems can continue under Rider NM until December 31, 2026, after which they’ll transition to Rider NMB.

How to Enroll for Net Metering in NC

Registering for Net Metering in North Carolina is straightforward. Contact your utility company and request the interconnection service application form for your proposed renewable energy facility. The application is reviewed and approved before a connection can be made. However, if you are working with a solar company like Commercial Solar, all this comes with your set-up package.

Duke’s Solar Interconnection Policies and Costs

Duke Energy, one of the largest utility companies in the US, has an interconnection process that varies based on project size. Customers must typically first submit a Pre-Application request with a non-refundable $300 fee. This is followed up by completing an online Interconnection Request signed by the customer requesting interconnection and a $100 non-refundable processing fee, including an electrical one-line diagram and insurance certification.

The NC State also requires new customers to file a Report of Proposed Construction with the North Carolina Utilities Commission and provide the Report’s docket number to Duke Energy. After these documents are submitted, Duke Energy will approve the installation of the solar panel system, at which time a disconnect switch will be installed.

After the system is installed and inspected, the customer must submit a Certification of Completion form, at which time Duke Energy gives the customer permission to operate, contingent on the Duke meter being set. But not to worry, as we have mentioned, Commercial Solar takes care of these tasks for you.

Additional Local Commercial Solar Incentives North Carolina: Incentives and Rebates

As the 4th highest solar state, there are also several commercial solar incentives North Carolina has to offer. Twice the number provided in most states. While some local incentives are tailored to specific locations, there are also some state-wide incentives you can take advantage of no matter where you are in North Carolina.

Duke Energy Solar Rebate Program

Though the biggest utility in the US, Duke Energy only offers its solar rebate program in NC. North Carolina businesses can take advantage of this rebate program as a commercial solar incentive. The program offers 30 cents per watt, up to $30,000 for commercial customers. However, getting into the program can be incredibly difficult due to the waiting list. You can get on the waiting list here.

USDA REAP Grant

The USDA Rural Energy for America Program (REAP) offers grants and loans to local businesses, such as rural farmers, for renewable energy projects, upgrades, and energy audits. Eligible businesses can get grants up to $1 million worth 50% of their project cost. To qualify, businesses must be agricultural producers or rural small businesses. Grants are awarded quarterly, and you can apply here.