2023 Solar Incentives Guide for Cary, NC - Tax Credits & Rebates

What Solar Tax Credits, Incentives, and Rebates are Available in Cary?

Source: https://www.dsireusa.org/

The phrase "solar incentives" refers to a range of financial incentives designed to make installing and using solar panels more affordable. This is done to encourage people to switch to renewable energy. Solar incentives can include upfront discounts, cash back or credit towards your monthly utility bill. Some incentives are given by the federal government, some by the North Carolina government and some by your utility company, county or municipality. Some broad categories of solar incentives include:

• Net Metering: Net metering factors in once your solar panels are up and running. If you have a net metering agreement in place with your Cary utility company, they will subtract the value of the excess energy your solar system produces from your monthly utility bill. In some places, this is a dollar-for-dollar credit, while in other places you may be refunded a percentage of the value.
• Tax Exemptions: These can come in the form of property tax exemptions, which allow you to ignore the value added by your solar panels when paying taxes on your home. They may also include exemptions on sales tax at the time of purchase.
• Tax Credits: Unlike tax deductions, tax credits are dollar-for-dollar reductions in the amount of income tax that you owe the government.
• Solar Renewable Energy Certificate (SREC): SRECs and similar performance-based incentives are normally handled by your state government. Once your solar system meets the qualification threshold (normally a small amount of energy production), you can receive SRECs that can be sold to your utility company or other buyers. The money you make from the sale is usually considered part of your taxable income.
• Rebates: Rebates, or partial refunds after a purchase, are usually applied before any solar tax credits are calculated. Solar rebates might be given by your local utility company, by your county or by your state.

Federal Solar Incentives

When thinking about solar incentives, you probably think of federal incentives first. The solar incentive that you're most likely to have heard of is the Federal Solar Investment Tax Credit (ITC), which provides a credit on your taxes equal to a predetermined percentage of your solar system's cost.

The ITC applies to the value of solar panels installed on your primary or secondary residence in the United States. The solar panels have to have been installed after January 1, 2006 on a property you own for you to claim the credit. Originally, the ITC covered 30% of all installation costs (panels, equipment, accessories and labor), although the covered amount has fluctuated over the last few years between 26-30%. The installation date of your solar system will determine what percentage you are eligible for. There is no cap on the claim amount.

Wondering how the ITC applies to your specific situation? Contact your local Cary solar panel installer to get more information.

The ITC was both renewed and expanded by the passage of the Inflation Reduction Act in August 2022. It's also now called the Clean Energy Credit. For solar systems installed between January 1, 2022 and December 31, 2032, homeowners may be eligible for a credit for 30% of the total cost. This percentage will decrease annually after 2032 until the Clean Energy Credit expires in 2035. Starting in 2023, the expansion to the program will also make credits for energy storage systems even easier to claim.

Click here to learn more about the new Inflation Reduction Act. Your local Cary solar panel company is the best resource for answering your questions about the new Clean Energy Credit and how it will apply to you.

State & Local Solar Incentives

Some solar incentives may be offered at the local or state level. Similar to federal incentives, these might include rebates, tax credits and more. These incentives may be given out by your county or municipality, or by the North Carolina government. Some are available for a limited time, while others are ongoing.

Next Steps for Installing Solar in Cary

Nationwide solar energy use has increased enormously in the last 15 years, in part due to the increase in availability of solar incentives. You can obtain these incentives from your local utility company, the North Carolina government or the federal government. Reach out to your local solar panel installer today to learn more and to save the most money possible on a solar system for your Cary home.