In all the stress of the end of 2020, great news emerged for the NC solar industry. Within the recently passed omnibus spending bill, there was a big win for both solar installers and solar customers in the form of the federal Investment Tax Credit.
The Investment Tax Credit (ITC) is an income tax credit against the federal tax the homeowner owes, the amount determined by a percentage of the total solar investment, or “eligible basis” (equipment, labor, permitting, battery storage, etc.) That percentage was scheduled to decrease from 26% to 22% in 2021, but the 26% ITC has been extended for the next two years. This means that if a project starts before the end of 2022, it is eligible for the 26% ITC. In 2023, it decreases to 22% and then ends for residential projects in 2024. * Learn more…
*For personal eligibility and impact of the Tax Credit, we recommend you discuss details with a tax professional.
Say you have a contract for a $40,000 16 kW solar system for your home. The 26% federal credit would give you $10,400 off, compared to $8,800 off under the 22% credit. That’s an extra $1,600 savings. You get the credit (dollar for dollar) off your income taxes for the year when you install the solar panels. Also, many utilities (like Duke Energy) offer net metering that lets you sell excess supply back to them.
More Good News for Duke Energy Customers
In addition to the good news of the federal tax credit extension, Duke Energy customers gained an additional application date for the Duke Energy Solar Rebate Program. In previous years, the total capacity for the rebate program was available at the beginning of the year. This was a challenge for solar companies planning and pricing, and a problem for customers pressured to make a decision in a tight timeframe. The new program allows for half of the capacity available on the January 6th 2021 application date, and the other half available in July 2021. This spurs customer confidence and allows solar companies to handle supply and demand issues.
The downside is it cut the available awards at each application in half. This resulted in only 21% of NC solar homeowners being awarded the rebate, although Yes Solar customers were about 50% awarded. The rest of the applicants go on a waiting list based on their submission time. Yes has had customers awarded the rebate months later so the waiting list is still a potential opportunity, but Duke customers should not count on a rebate in making a decision to invest in solar.
- NC Solar rebate program is only offered to Duke Energy and Duke Progress Energy customers in North Carolina.
- The installation must be interconnected within 90 days prior to the application date or within the calendar year of the application date.
- The amount of the rebate is based on the AC Inverter rating of your solar installation. For residential customers, it is $0.60/W with a cap of $6,000.
- Additional eligibility details can be found on the Duke Energy Website
Yes Solar Solutions is ready to help you consider all the options for solar and recommend the best solution for your budget and energy goals. Now there are more good reasons than ever to go solar.