In North Carolina, rooftop solar is alive and well despite headwinds

The provision was little used in North Carolina until last fall. But it became crucial after the passage of the GOP budget law, which still offers commercial entities a 30% tax credit for solar arrays through at least the end of next year.

That means installers and other third parties can access the incentive and pass the savings on to residential customers. The models for doing so vary, but rooftop companies say the bottom line is similar across the board: Many solar customers can immediately start paying less each month for their electricity.

“Leasing is now alive and well,” said Clary Franko, chief operating officer of Asheville-based Sugar Hollow Solar, who noted at least half of her customers are going that route. ​“It’s actually the most cost-effective residential option I’ve seen yet in North Carolina.”

Some installers are offering their own leases. Others are partnering with one or more of the 20-some third-party lessors registered with state regulators, including homegrown companies like Durham’s Enerwealth Solutions.

The deal can be even sweeter for Duke customers who pair solar with battery storage. Through programs called EnergyWise Home and Power Manager, those households get a monthly incentive for allowing the utility to tap their batteries 30 to 36 times per year.

“The average battery that we’re installing is an additional 50 bucks a month,” said Graham Alexander, an owner and solar energy designer at Southern Energy Management, which opened its doors in Raleigh in 2001. ​“You, as a homeowner, get the money — that’s great. The utility benefits because they get more load stability with being able to deploy those batteries.”

Another key economic driver of solar adoption in Duke territory is rising electricity rates. Residential bills have jumped by over 20% in the last five years, and the company wants to raise them by as much as another 10% over the next two. Households pay 100% of the cost of the fuels in Duke power plants, sending bills even higher.

It all adds up, said Bryce Bruncati, director of residential sales at Raleigh-based 8MSolar. He recently worked with a customer whose Duke Energy bill had jumped to $420 a month. But with a new solar array and two batteries, ​“he’s swapping that out for a $160 payment. All he had to do was sign for the lease,” Bruncati said. ​“There’s no down payment, nothing like that.”

Still, installers say not all customers prefer leasing, and the option may not be widely available after next year if state and federal law remain unchanged. What’s more, bill credits for solar households in Duke territory will decrease again on Jan. 1, 2027. And revised state electrical codes could soon add to installation costs.

While few dare to dream about it under current political conditions, the return of the 30% federal tax incentives would certainly make those coming hurdles easier to clear.

“Anybody would really value and appreciate having those back,” said Matt Abele, the executive director of the North Carolina Sustainable Energy Association. ​“Those tax credits are reinvestments directly into ratepayers’ pockets.”

Despite all the ups and downs, veteran installers say they are feeling optimistic.

“We think that it’s great to be able to help people with a product that’s actually benefiting them — and the world on a large scale,” said Solomon of NC Solar Now. ​“And there’s just tons of room for growth. My favorite thing is when I fly out of Raleigh or Wilmington, and I look at all the roofs.”