This coverage is made possible through a partnership between BPR and Grist, a nonprofit environmental media organization.
The landscape of renewable energy construction in North Carolina experienced a significant shift towards the end of last year. This change was primarily driven by the expiration of two critical federal tax credits that had previously incentivized green home building. These tax credits, crucial for promoting sustainable practices among middle-income homeowners, were rolled back as part of the One, Big Beautiful Bill Act.
Prior to their expiration, these tax credits played a vital role in reducing the upfront financial burden of installing eco-friendly appliances or performing energy-efficient retrofits. Homeowners benefited not only from immediate savings but also from the long-term advantages of renewable energy solutions.
The Energy Efficient Home Credit, which offered up to $3,200 in tax savings, was one such program. This credit enabled homeowners to claim up to 30% on purchases like energy-efficient windows, home heat pumps, and insulation. Another significant program, the Residential Clean Energy Credit, provided a 30% tax break on home energy installations, covering solar water heaters, rooftop solar panels, wind turbines, and battery storage.
Jennifer McLucas, from the Green Built Alliance, emphasized the impact of these programs’ termination on sustainable construction contractors. “Many of our members saw a classic use-it-before-you-lose-it kind of behavior,” McLucas stated. “The credit ended on Dec. 31, but what that basically did was pull the demand forward, ahead of that looming deadline.”
McLucas further noted that to qualify for the 30% tax credit, homeowners were required to complete their projects before the year’s end. Despite the expiration, she acknowledged the credits’ lasting impact, stating, “The tax credit made it possible to accelerate the adoption of green building and better energy choices installing solar panels. It accelerated that demand. That’s what they’re designed to do.”
The regional solar industry is already feeling the effects of these changes. Dave Hollister, CEO of Sundance Solar in Asheville, shared his perspective with BPR, indicating that projecting future trends is challenging, yet he remains hopeful.
“The last quarter was an incredible quarter for the solar industry, for Sundance and, I think, for every solar company in the area,” Hollister remarked. He expressed optimism that the foundation laid by the tax credits, along with the support from climate-conscious consumers in Asheville, will sustain small solar installers, despite concerns about potential business loss. “We have, you know, cut our prices, cut our costs. We have done everything we can possibly do as a company to make things as cost effective as possible to our customers,” he explained.
For homeowners still interested in saving on home energy installations and enhancing energy efficiency, various programs continue to be available:
