North Carolina’s Solar Industry Faces a Tumultuous Year
North Carolina’s solar sector has been grappling with significant shifts and challenges this year, as changes to federal policies and tax credits create uncertainty and impact the market. The state’s solar industry, once buoyed by incentives, now faces a more challenging landscape.
Key developments affecting the industry include:
- The Trump administration’s decision to end the 25d Residential Clean Energy Credit earlier than planned, moving its expiration to the end of this year instead of 2032.
- New Foreign Entity of Concern (FEOC) requirements that complicate the selection of solar panels eligible for Clean Energy Investment and Production tax credits.
- The Environmental Protection Agency’s (EPA) funding cuts to EnergizeNC, a program that aimed to reduce energy costs for low-income residents, as highlighted by North Carolina Attorney General Jeff Jackson.
For more than two decades, clean energy tax credits have significantly reduced the costs of installing home solar systems. However, the opportunity to capitalize on these savings may be dwindling for homeowners. According to Bryce Bruncati from 8MSolar in Raleigh, the demand surged immediately after the passage of Trump’s “One Big Beautiful Bill,” leading to full bookings for solar installers in the state.
“When the Big Beautiful Bill passed, and they ended 25d, we signed up like 200 people in a couple weeks,” Bruncati mentioned. “So, all solar installers in North Carolina right now are booked through the year.”
The Evolution of Solar Power
Solar power systems in North Carolina have seen consistent growth since the mid-2000s, contributing significantly to the state’s energy grid. These systems have become even more integral as battery storage and power management agreements allow utilities like Duke Energy to utilize home-generated power during peak demands.
Nonetheless, solar installations took a hit before Trump’s return to office. The number of new installations decreased for the first time in six years in 2023, with a 15% drop, followed by a 44% decrease in 2024.
Resilience in the Face of Natural Disasters
Despite a challenging year, the aftermath of Hurricane Helene brought unexpected opportunities for some companies. Rhino Renewables in Asheville saw an increase in demand as residents recognized the importance of solar systems, particularly with battery storage, for resilience during blackouts.
“Since the storm, we’ve been very busy. A lot of people realize the need for solar,” noted Glynnis Hollifield, office manager at Rhino Renewables. The hurricane prompted many to consider the benefits of having at-home battery storage systems, which can act as an ‘energy island’ during outages.
Following the hurricane, organizations like The Footprint Project deployed solar and battery systems to provide essential power to affected areas. Buncombe County also installed its first two battery systems at strategic locations, shifting focus from cost-saving to resilience and emergency preparedness.
Attorney General Jeff Jackson has been vocal about the impact of the canceled EnergizeNC program, emphasizing its potential benefits for low-income communities. He has joined other states in a lawsuit against the EPA to restore funding.
Anticipating Future Trends
As the landscape changes, companies like South Carolina’s Southern Energy Management are adapting by embracing other energy efficiency programs. Co-owner Graham Alexander remains optimistic, suggesting that the industry could thrive without tax credits if subsidies for fossil fuels were also removed.
“We’d rather see the energy industry in North America on a level playing field,” Alexander said, underscoring the need for equitable policy changes.
Despite the challenges, 8MSolar’s Bruncati is confident about the industry’s future. He points out that even without tax credits, solar systems can break even within a decade, especially as electricity rates continue to rise, as forecasted by Duke Energy.
Changes in federal policy might favor alternative business models like solar leasing, which has gained traction in other states with high electricity costs. In such agreements, homeowners benefit from energy savings without owning the panels.
North Carolina’s solar landscape continues to evolve, with incentives like South Carolina’s state tax credit and Mecklenburg County’s Solarize Charlotte-Mecklenburg program helping to offset initial costs. Duke Energy’s PowerPair program is another example, offering rebates to homeowners who install solar and battery systems.
While the future of some programs remains uncertain, the industry is poised to adapt and innovate in response to policy shifts and market demands.
Additional solar information:
- The deadline to apply for Solarize Charlotte-Mecklenburg has been extended to Nov. 28.
- For those interested in solar or battery installations, the North Carolina Sustainable Energy Association provides a list of reputable installers on its website.
