Solar panels have become 11% cheaper in the last ten years in North Carolina. That’s not the only reason to install solar energy if you live in the Old North State.
Not only will you save huge amounts of money on your energy bills every month, but you stand to gain from a few attractive incentives when you go this route.
Keep reading to learn more about NC solar rebate programs and how much you can save.
Federal Tax Incentive for Solar Panel Installation
Since 2005, the federal government has helped homeowners install solar power by offering them lucrative tax benefits for taking this initiative.
Through the Federal Solar ITC, you can deduct 26% of the cost of your solar installation from your annual taxes in the year you install it. In 2023, this incentive decreases to 22%, and it disappears after that.
The average solar panel installation costs around $27,000, so you get to pay $7,020 less on your taxes via the ITC.
This tax credit only includes items directly related to your installation. You can’t claim a percentage of the cost of installing other energy-efficient measures like LED bulbs or insulation.
Duke Energy NC Solar Rebate
You can also benefit from one more NC solar rebate in this state. Duke Energy offers a solar refund worth as much as 40 cents per watt to homeowners in their territory who install solar.
The maximum amount for this rebate is $4,000. There’s also an annual cap on this rebate, and it’s awarded according to a lottery system. You must apply for this competitive rebate during two designated time frames during the year.
There’s no guarantee you’ll receive this rebate, but it’s worth applying anyway since you’ll enjoy considerable savings if you’re one of the lucky recipients.
View this website about solar savings courtesy of Duke Energy for more information.
Commercial Solar Incentives in NC
If you think the solar savings offered to homeowners are great, you’ll love the business benefits of going solar too. Commercial installations qualify for the following additional incentives:
100% Bonus Depreciation
In North Carolina, commercial solar systems are eligible for 100% bonus depreciation in the first year. Most other assets only achieve this over many years.
Depreciation value depends on the business’ effective tax rate. Usually, you’ll pay 20% t0 35% bonus depreciation after this time. With a solar system, you’ll receive these maximum benefits in the first year after it’s installed.
USDA REAP Grant
The Rural Energy for America Program (REAP) Grant offered by the US Department of Agriculture allows eligible businesses and farms to apply for grants worth 25% of the project cost.
The minimum grant is $2,500, and the maximum is $500,000. You can check the USDA to see if your business qualifies.
Thanks to all these incentives, some commercial undertakings can save up to 100% on solar installation.
Make the Most of Ongoing Savings
Even if you don’t enjoy some of these NC solar rebate offerings, the nationwide ITC still makes installing solar worthwhile. Plus, you’ll experience the joys of a reliable electricity supply at very affordable rates.
Would you like to discover more ways to save money at home? Browse our blog for all the best tips.
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