Tax Credits and Incentives

NC Incentives

Information for all incentives is found at the North Carolina DSIRE  web page.

North Carolina incentives for renewable energy and energy efficiency range from personal tax credits to reduced rate loans.  Highlights include:

Personal Tax Credit

Renewable-energy equipment expenditures eligible for the tax credit  include the cost of the equipment and associated design; construction costs; and installation costs less any discounts, rebates, advertising, installation-assistance credits, name-referral allowances or other similar reductions. 
 
Under North Carolina's tax code, the allowable credit may not exceed 50% of a taxpayer's liability for the year, reduced by the sum of all other credits. Single-family homeowners who purchase and install a qualifying renewable-energy system must take the maximum credit amount allowable for the tax year in which the system is installed. If the credit is not used entirely during the first year, the remaining amount may be carried over for the next five years. 
 
For all other taxpayers, the credit is taken in five equal installments beginning with the year in which the property is placed in service. If the credit is not used entirely during these five years, the remaining amount may be carried over for the next five years. The credit can be taken against franchise tax, income tax or, if the taxpayer is an insurance company, against the gross premiums tax. 
 
NC GreenPower Production Incentive

NC GreenPower , a statewide green-power program designed to encourage the use of renewable energy in North Carolina, offers production payments for grid-tied electricity generated by solar, wind, small hydro (10 megawatts or less) and biomass resources. Payment arrangements for electricity generated by most renewable-energy systems are available through a periodic request for proposals process.

Owners of small solar-energy systems and small wind-energy systems (10 kilowatts or less) may apply to receive program incentives at any time. Owners of small solar-energy systems or wind-energy systems are encouraged to review, fill out and return a one-page application  to NC GreenPower. Note that customer-generators who choose to net meter are not permitted to sell electricity under the NC GreenPower Program.

State Loan Program 

The Energy Improvement Loan Program (EILP)  is available to North Carolina businesses, local governments, public schools and nonprofit organizations for projects that include energy efficiency improvements and renewable energy systems. Loans with an interest rate of 1% are available for certain renewable-energy projects and energy-recycling projects. Eligible renewable-energy projects generally include solar, wind, small hydropower (less than 20 megawatts) and biomass. Loans with a rate of 3% are available for projects that demonstrate energy efficiency, energy cost savings or reduced energy demand. Energy conservation projects usually include improvements to HVAC systems, energy management controls, high efficiency lighting and building envelope improvements.