Cost of Going Solar in North Carolina

The Cost of Going Solar in North Carolina in 2025

North Carolina has emerged as a leader in solar energy, ranking among the top U.S. states for installed solar capacity. With abundant sunshine, rising electricity rates, and strong renewable energy commitments, the state offers homeowners an attractive environment for solar adoption. While not as sunny as Arizona or Nevada, North Carolina still enjoys significant solar potential, especially in central and coastal regions, making solar panels a practical and cost-saving investment.

As of 2025, the average North Carolina solar cost for a residential system sized to meet the needs of an average household, about 8 to 9 kilowatts (kW), ranges from $23,000 to $28,000 before incentives. After applying the 30% federal Investment Tax Credit (ITC), the net outlay is reduced to around $16,100 to $19,600. In addition to federal incentives, homeowners benefit from North Carolina’s solar policy, such as property tax exemptions and utility net metering programs.

However, if the federal ITC expires after December 31, 2025, the cost of solar panel installation in North Carolina will rise considerably. A system that costs around $17,000 after incentives today could exceed $25,000 without the credit. For homeowners considering solar, understanding cost components, local incentives, and long-term savings is critical to making a smart investment.

Solar Cost Basics

The cost of solar in North Carolina consists of two primary components:

Hardware costs: The physical equipment that produces and stores energy
Solar soft costs: The services, permits, labor, and financing that support installation

North Carolina’s humid summers, coastal hurricane risks, and diverse housing stock, from urban apartments to rural farms, add unique challenges and design considerations to both categories.

Hardware Costs

Hardware makes up about 35 to 45% of the total cost of solar panel installation in North Carolina. These costs include the essential components that generate clean power.

Cost of solar panels: Monocrystalline panels are most common in North Carolina because they provide higher efficiency in humid, hot conditions. Polycrystalline panels may be cheaper, but they are less efficient, particularly in summer when air conditioning drives high energy demand
Inverters: Both string inverters with optimizers and microinverters are widely used. Microinverters are often recommended in shaded areas, common in neighborhoods with tall trees. Hybrid inverters compatible with storage are also gaining popularity
Solar battery: Although optional, batteries are increasingly popular in North Carolina due to storm-related power outages. During hurricanes or ice storms, batteries provide critical backup power, making them a valuable addition to solar systems
Racking and mounting equipment: Roof racking systems must be engineered to withstand hurricane-force winds along the coast and heavy rainfall statewide. Ground-mount systems are common in rural areas with ample land
Wiring and electrical gear: High-quality, weatherproof wiring and enclosures are essential to prevent damage from humidity and heavy storms

Hardware costs can vary depending on system size, equipment brand, and the installer’s design approach, but durability is a top priority for long-term reliability in North Carolina’s climate.

Solar Soft Costs

Soft costs typically account for 35 to 40% of total North Carolina solar costs. These include the professional services and fees that make installation possible.

Labor: Labor expenses cover design, permitting, and installation. In cities like Charlotte, Raleigh, and Durham, competition among installers helps control labor costs. Rural regions may see higher expenses due to limited installer availability
Permitting and inspection fees: Fees vary by county. Coastal areas often require stricter wind-resistance compliance, while larger cities have streamlined solar permitting
Sales, marketing, and overhead: These business costs differ depending on whether the installer is a large national company or a smaller local provider
Financing expenses: Solar loans or Power Purchase Agreements (PPAs) may include origination fees, dealer charges, or interest, adding to the total solar cost

Homeowners who compare quotes from multiple installers often reduce soft costs, making the investment more affordable.

How Much Do Solar Panels Cost in North Carolina in 2025?

In 2025, the average solar panel cost in North Carolina is $2.50 to $2.80 per watt, slightly higher than in many western states due to additional weatherproofing requirements.

A 6 kW system typically costs $15,000 to $16,800 before incentives
A 10 kW system ranges from $25,000 to $28,000 before incentives

Factors Influencing Solar Panel Prices

Type of panel: Monocrystalline panels perform best under North Carolina’s hot, humid summers
System size: Larger systems lower the per-watt cost through economies of scale
Roof structure and shading: Tree cover is common in suburban areas, requiring additional design adjustments and sometimes more expensive microinverters
Local installer market: Raleigh and Wilmington have competitive solar markets, while smaller towns may have fewer installers, raising overall costs

These variables explain why quotes for solar panel installation in North Carolina can differ widely, even within the same region.

Average Cost of Solar Batteries in North Carolina

Solar batteries increase upfront costs but are highly valuable in North Carolina, where power outages from hurricanes and ice storms are a recurring challenge. In 2025, the average solar battery cost in North Carolina is $1,100 to $1,400 per kilowatt-hour (kWh).

A 10 kWh solar battery costs about $11,000 to $14,000
A 13 kWh solar battery bank for backup power during outages runs $14,500 to $18,000

Factors Affecting Solar Battery Cost

Battery type: Lithium-ion batteries dominate due to their long lifespan, high efficiency, and resilience in fluctuating temperatures. Lead-acid remains cheaper but requires more maintenance
Capacity: Larger batteries provide extended backup power but come with higher upfront costs
Installation complexity: Batteries installed during the initial solar project are more cost-effective than retrofits
Storm resilience: Protective enclosures may be added to safeguard batteries from flooding and strong winds in coastal regions

For many households, batteries provide peace of mind by ensuring reliable power during emergencies.

How to Lower Solar Cost in North Carolina

Several programs and policies help reduce the cost of solar in North Carolina:

Federal ITC: Reduces installation costs by 30% through 2025
Property tax exemption: North Carolina exempts solar systems from property tax assessments, preventing higher annual taxes
Net metering: Utilities like Duke Energy offer net metering programs that credit homeowners for excess energy fed back into the grid
Renewable energy support: North Carolina’s Renewable Energy and Energy Efficiency Portfolio Standard (REPS) encourages solar adoption across the state

These North Carolina solar incentives significantly improve return on investment for homeowners.

Paying for Solar Installation in North Carolina

Homeowners considering solar panel installation in North Carolina typically finance systems in one of three ways:

Cash purchase: Offers maximum savings and fastest payback, but requires a large upfront investment
Solar loan: Spreads costs over time, allowing ownership and full access to incentives while keeping upfront costs low
Solar lease/Power Purchase Agreement (PPA): Provides access to solar with little or no upfront investment, though long-term savings are reduced since the system is not owned by the homeowner

Choosing the right financing option depends on financial resources, credit access, and housing plans.

How Much Money Can I Save by Going Solar in North Carolina?

Savings from going solar in North Carolina are significant. A typical 8 to 9 kW system can offset 10,000 to 12,000 kWh annually, which covers most household energy needs.

With incentives, the payback period is around 8 to 10 years
Without the federal ITC after 2025, the payback period extends to 11 to 13 years
Over a 25-year lifespan, homeowners can save $25,000 to $40,000, particularly if they add solar batteries for resilience

Solar lowers electricity bills and provides protection against rising energy costs and storm-related outages.