Tax Credits and Incentives

Frequently Asked Questions

What tax credits are available for renewable energy and energy efficiency?  NCSEA receives this question often, and this page is the first step in getting all of your answers. 

Please note that NCSEA cannot offer you tax advice, but this information should be useful when consulting with your hired tax professional.

The Database of State Incentives for Renewables & Efficiency (DSIRE)  is recognized nationally as the comprehensive source of information on state, local, utility, and federal incentives that promote renewable energy and energy efficiency.  It is the premier resource for incentive research. 

Now is the time to install a solar water heating or photovoltaic system on your home. The combination of North Carolina’s renewable energy tax credit and the Federal government’s solar tax credit  makes these residential solar technologies more affordable.  The NC Solar Center  can provide detailed information about North Carolina’s renewable energy tax credit.

Residential Solar Tax Credit Summary

Tax Credit Details	North Carolina Tax Credit	Federal Tax Credit
Eligible Solar Technologies:	Solar Water Heating Photovoltaics Solar Pool Heating Active Solar Space Heating Passive Solar Space Heating	Solar Water Heating Photovoltaics
Credit Amount:	35% of the installed cost	30% of the installed cost
Maximum  Credit:	$1,400: solar water heating; pool heating $3,500: active & passive space heating; combined space and water heating systems $10,500: photovoltaics	$2,000: solar water heating; $2,000: photovoltaics
Eligibility:	Equipment placed in service through 2010	Equipment placed in service in 2006 & 2007
Instructions:	Guidelines for NC Tax Credit	IRS Notice 2006-26