Are Solar Panels Worth It in North Carolina?
Last updated July 1, 2026 · based on North Carolina energy prices
In North Carolina, where residential electricity averages about 13¢/kWh and rooftop solar yields roughly 1,400 kWh per kW per year, solar has a longer payback here (about 19.5 years) because electricity is relatively cheap — it makes the most sense if your rate is rising or you value energy independence.
North Carolina solar cost & savings (typical 7 kW system)
| Metric | Estimate |
|---|---|
| Annual production | 9,800 kWh |
| Installed cost (before incentives) | $21,000 |
| Estimated annual savings | $1,078 |
| Payback period | 19.5 years |
| 25-year net savings | +$4,393 |
Figures use North Carolina average prices, a 7 kW system at $3.00/watt, 50% self-consumption at retail plus a conservative 9¢/kWh net-metering credit, and ~0.5%/yr panel degradation. Sources: EIA electricity prices and NREL PVWatts production modeling.
What this means for North Carolina homeowners in 2026
The 30% federal residential solar tax credit (Section 25D) expired December 31, 2025, so a 2026 installation in North Carolina carries the full upfront cost unless a state or utility incentive applies. Because North Carolina electricity costs relatively little, the payback case is more marginal — strongest for high electricity users, south-facing roofs, and homeowners who plan to stay long term.
Frequently asked questions
Are solar panels worth it in North Carolina in 2026?
At North Carolina's electricity price of 13¢/kWh, a typical 7 kW system saves about $1,078 per year and pays for itself in roughly 19.5 years. There is no federal solar tax credit in 2026 (Section 25D expired December 31, 2025), so these figures reflect bill savings and net metering only.
How much do solar panels cost in North Carolina?
A 7 kW system costs roughly $21,000 installed at about $3.00/watt before any state or utility incentive. Costs vary by installer, equipment, and roof complexity.
How much electricity will solar produce in North Carolina?
About 1,400 kWh per year per kW installed in North Carolina, so a 7 kW system produces roughly 9,800 kWh/year. Your exact output depends on roof orientation, tilt, and shading.
Estimates based on North Carolina average energy prices and a simplified model; your results will vary. Energy prices and incentives change frequently. Not financial advice.