Hey, Raleigh. It’s time to break up with your utility company. Solar panels hit historically low pricing in late 2023. And while that should be an incentive alone to make a renewable upgrade to your home, there’s one more that goes beyond the initial installation savings.
Research from the National Renewable Energy Laboratory suggests that for every dollar saved on electrical bills through solar panels, the value of a home increases by $20. Furthermore, data indicates that properties equipped with solar panels command a selling price that’s four percent higher compared to those without such installations.1
Solar power in Raleigh specifically is financially accessible to almost all homeowners in 2024. If you pay an electric bill, you can afford solar in Raleigh where it can cost as low as $100 per month with financing.
Let’s dive into what you need to know about the cost of your next renewable home upgrade.
Cost of Home Solar Power in Raleigh
The average cost of solar panels in North Carolina, as of early 2024, is around $2.69 per watt, making a typical 5 kW (5000 watts) solar system approximately $13,4402 – and that’s before claiming the 30% Federal Solar Tax Credit! With that factored in, the average price would fall to $9,408.
Keep in mind that the cost of your solar PV system is based heavily on details like its size, variable installation expenses, and the incentives you’re able to tap into—factors we’ll delve into shortly. What goes into the total cost?
Solar Panels
This is the most significant part of the cost. The type, quality, and number of panels will determine the overall price.
Installation Labor
Professional installation ensures your system is correctly set up for maximum efficiency. At Freedom Solar PowerⓇ, we’ve installed solar PV systems for more than 24,000 customers.
Inverter
A crucial device that converts the electricity produced by your panels from DC to AC so that it can be used in your home.
Mounting Hardware
This includes the racking system to mount your panels securely on your roof or ground.
Permitting and Inspection Fees
These are required by the local government and can vary depending on where you live.
Sales Tax
Depending on your state, you may need to pay sales tax on the equipment and installation.
Maintenance Costs
Although minimal, ongoing maintenance costs can include cleaning and occasional part replacements.
Using Incentives & Rebates
State Rebates and Incentives
Low Interest Loans
The state of North Carolina has enacted legislation allowing city and county governments to offer low-interest loans for installing solar panels. With a generous 20-year term, a capped interest rate of just 8%, and the added bonus of hassle-free renewals, it’s never been easier or more affordable to bask in the benefits of solar power.3
Property Tax Abatement for Solar Electric Systems
The cost of solar panels in North Carolina is made more accessible by the state’s Property Tax Abatement for Solar Electric Systems.4
Since 2008, North Carolina has encouraged its residents to switch to solar power by offering an enticing property tax exemption for solar panels and solar thermal electric systems. Just like any other home improvement, these systems can boost your property’s value! But there’s a twist: North Carolina won’t tax you on that increase! Under this program, 80% of the appraised value of a solar electric system is exempt from property tax.
For example, let’s say you’ve installed solar panels that have bumped up your home’s value from $370,000 to $400,000. Despite this increase, you’ll only be taxed as if your home is still worth $370,000 – a tremendous savings in property taxes over the potential 20 to 25 year lifespan of your solar PV system.
Fortunately, residential solar power users in North Carolina who are not using their systems for commercial gain can benefit from a property tax exemption4.
Net Metering in North Carolina
Solar power in North Carolina can provide a huge offset to utility bills. Utilities in North Carolina are required to offer net metering, which allows you to earn credits for the excess electricity your solar panels produce and feed back into the grid. Dominion Energy and Duke Energy both offer net metering programs in the state.
Local Utilities Incentives
While North Carolina has several statewide solar incentives, Raleigh has no city-specific solar incentives as well as access to the nationwide Federal Solar Tax credit.
Federal Rebates
The Federal Solar Tax Credit in 2024, also known as the Residential Clean Energy Credit, continues to be a boon for homeowners and businesses alike.
This generous incentive allows you to claim a substantial 30% of your solar system costs as a tax credit, making the switch to renewable energy more financially accessible. This tax credit, which has increased from 26% in recent years, is set to continue through 2032.
Notably, there is no ceiling to what can be claimed. You can qualify for the ITC for the tax year that you installed your solar panels as long as the system generates electricity for a home in the United States.5
Estimating Your Solar Costs
Looking for an estimate that is not just a general ballpark. Our Solar Potential Savings Calculator will take unique details about your home and current energy usage and calculate a detailed estimate.
Raleigh Solar Panel Installers Who Can Help You Save
Choosing your solar company in Raleigh requires due diligence. It’s important to choose a solar partner who you can work with long-term. The decision you make today will impact your energy consumption, financial savings, and environmental footprint for decades to come.
A reliable solar company will provide quality equipment, expert installation, and stellar customer service and offer comprehensive warranties, protecting you from any unforeseen issues – all of which are vital components for a smooth transition to solar energy.
At Freedom Solar, we help you live more powerfully. We only install carefully curated high-quality solar technology and do so with excellence and attention to detail so you and your families can depend on the power for decades to come.
In your search for solar companies in NC, you deserve clarity, established expertise, and superior quality. Reach out to us today for a free consultation.
References:
- https://www.zillow.com/research/solar-panels-house-sell-more-23798/
- https://www.energysage.com/local-data/solar-panel-cost/nc/wake-county/raleigh/
- https://programs.dsireusa.org/system/program/detail/3649
- https://programs.dsireusa.org/system/program/detail/propertytax
- https://www.energy.gov/eere/solar/homeowners-guide-federal-tax-credit-solar-photovoltaics