Raleigh Solar Tax Credits 2026: Federal & NC Incentives + Roof Replacement

If you're a Raleigh homeowner asking whether 2026 solar tax credits can help pay for a roof replacement, you need accurate information — fast. The landscape changed dramatically on July 4, 2025, when the federal government eliminated the 30% residential solar credit for new installations. But North Carolina still has incentives worth checking. Here's what is available, what expired, and where Big Bear Roofing fits in: getting the roof ready.

What Happened to the Federal Solar Tax Credit in 2026?

For nearly a decade, the federal Investment Tax Credit (ITC) under Section 25D gave Raleigh homeowners a 30% credit on the full cost of solar installations — panels, labor, inverters, batteries, and in some cases even integrated solar roofing shingles. The credit was worth 30% of the system's total installed cost, taken directly off your federal tax bill. It was one of the most powerful residential energy incentives in American history. Availability check (July 2026): PowerPair is capped by the NC Utilities Commission and is not guaranteed. Duke Energy Progress has reached capacity and closed its waitlist; Duke Energy Carolinas has limited remaining slots on a first-come, first-served basis. Confirm your reservation with Duke Energy before counting on this rebate — and do not begin installation until you have an incentive reservation rather than a waitlist placement.

That changed when the One Big Beautiful Bill was signed into law on July 4, 2025. Unlike the Inflation Reduction Act's original timeline — which would have kept the 30% credit alive through 2032 with a gradual phase-down — the new law drew a hard line at December 31, 2025. Any qualifying solar system placed in service by that date still earns the full 30% credit. Any system installed on January 1, 2026, or later receives zero direct federal credit for homeowner-purchased systems.

The IRS has confirmed this clearly: under Section 25D, an expenditure is treated as made when the original installation is completed. Paying for a system in 2025 but completing installation in 2026 does not qualify. If you are still filing taxes on a qualifying 2025 installation, claim your credit using IRS Form 5695.

What About Third-Party Solar Leases and PPAs?

One federal pathway survives, but not as a credit you claim. Section 48E — the commercial Clean Energy Investment Tax Credit — is claimed by the solar company, not by you as the homeowner. When you enter a solar lease or Power Purchase Agreement (PPA), the installer claims it and may pass some of the value through as a lower monthly rate. The 2025 law tightened this residential leasing pathway, so treat any pass-through as something to get in writing rather than as a given.

The tradeoff: you don't own the system. The long-term savings are lower than with an owned system, and you lose control over decisions like roof access for maintenance. For many Raleigh homeowners, direct ownership is still worth pricing, especially when a roof replacement from Big Bear Roofing comes first and the NC state-level incentives that remain in place are confirmed with your utility.

North Carolina Solar Incentives That Still Apply in 2026

The good news: several meaningful North Carolina incentives are still active in 2026. Understanding all of them is how you stretch your investment as far as possible.

1. NC Property Tax Exemption (100% for Residential)

When you install solar panels on your Raleigh home, your property value increases. Normally, that increase would raise your annual property taxes. North Carolina has exempted residential solar homeowners from this since 2008. If your solar system adds $25,000 to your home's assessed value, you pay property taxes as if that value doesn't exist.

This exemption applies automatically to residential systems not used for income generation. Commercial installations only receive an 80% exemption. No additional application is required for homeowners.

2. Duke Energy PowerPair Rebate

For Raleigh homeowners served by Duke Energy (the dominant utility in Wake County), the PowerPair program is the most impactful remaining incentive. It combines a solar installation rebate with a battery storage rebate:

• Solar rebate: a per-kilowatt rebate on installed solar, up to a program limit
• Battery rebate: a per-kilowatt-hour rebate on battery storage, up to a program limit
• Battery control enrollment bonus: monthly bill credits for enrolling the battery in Duke's battery control program

PowerPair is a one-time cash incentive paid after installation, and Duke Energy sets the amounts and terms, so check Duke's current program details. The program has capacity limits (approximately 60,000 kW total across Duke Energy's NC territories), so availability is first-come, first-served.

3. Net Metering in Raleigh, NC

When your solar system produces more electricity than your home uses — common on sunny Raleigh days — the excess flows back to the grid. Net metering credits your electric bill for that power. The rules in Raleigh depend on your utility provider.

Raleigh and Wake County are served by Duke Energy Progress — Dominion Energy serves parts of northeastern North Carolina, not the Triangle, so Duke's rules are the ones that apply here. Duke moved to a modified structure after October 2023: monthly netting, added fees and a lower value for exported power than the older arrangement. Customers who interconnected before that change were grandfathered into the better rates for a period.

4. NC Renewable Energy Financing Programs

Under North Carolina law, city and county governments are authorized to offer low-interest revolving loans for solar installations — with a maximum interest rate of 8% and terms up to 20 years. These options help Raleigh homeowners access solar without the financial pressure of large upfront payments.

2026 Solar Incentive Comparison: What Expired vs. What Remains

Solar Roofing and Roof Replacement: How They Work Together

One of the most overlooked opportunities for Raleigh homeowners is combining a roof replacement with a solar installation. If your roof is 10 years or older, installing solar panels on a failing roof creates a costly problem down the line — panels must be removed, the roof replaced, and panels reinstalled — a cost you avoid by addressing both at once.

As a GAF-certified roofing contractor, Big Bear Roofing offers roof replacement solutions using premium roofing materials and readies the roof for your solar provider. GAF Timberline Solar™ is a nailable solar shingle made by GAF Energy, and it needs a separate GAF Energy certification. Unlike traditional racking systems that mount panels on top of an existing roof, Timberline Solar shingles become your roof, functioning simultaneously as weather protection and a solar electricity generator.

How Did GAF Timberline Solar Qualify for the Federal Tax Credit?

Under the now-expired Section 25D credit, the IRS explicitly recognized that solar roofing tiles and shingles — products that serve the dual function of traditional roofing and solar electricity generation — qualified for the full 30% credit. Standard asphalt or metal shingles that merely support solar panels did not qualify. But an integrated system like Timberline Solar, where the shingle itself generates power, qualified for the credit on the full cost of the installation.

For homeowners who installed a GAF Timberline Solar system before December 31, 2025 and are now filing their 2025 tax return, consult a CPA to ensure you're claiming the full eligible cost. The IRS instructs that the credit applies when installation is completed, not when payment is made.

Should You Still Go Solar in Raleigh in 2026 Without the Federal Credit?

Without the federal consumer credit, whether going solar pays off in Raleigh rests on the North Carolina incentives that remain, on what your utility pays for exported power, and on your own electricity bill — so have your solar provider run the numbers for your roof and your usage rather than working from a national average.

The math now depends more heavily on the remaining incentives: Duke Energy's PowerPair rebate, the property tax exemption, net metering credits, and the bill savings your solar provider quotes. PowerPair is capacity-limited and changes fast: Duke Energy Progress, which serves Raleigh and Wake County, had reached capacity with its waitlist closed in early 2026, so check the current status with Duke Energy before counting on it. If the roof is near the end of its life, a roof replacement in Raleigh, NC belongs before or with the panels — removing and reinstalling an array later adds cost.

How to Plan Your Roof Around a Solar Project in Raleigh in 2026

Even without the 30% federal credit, many Raleigh homeowners are still weighing solar, and the order of the work matters. Here is how to plan the roof around it this year.

Step 1: Start With a Free Roof Inspection

Before any solar conversation, your roof's condition determines your path. Big Bear Roofing offers free roof inspections to Raleigh homeowners, assessing shingle condition, decking integrity, flashing, and whether the roof is in shape for a solar installation; your solar provider confirms the structural load. If you're within five years of needing a roof replacement anyway, doing it before the panels go on avoids paying to remove and reinstall them later.

Step 2: Apply for Duke Energy PowerPair Early

PowerPair is capacity-limited and the terms change fast. Duke Energy Progress, which serves Raleigh and Wake County, had reached capacity with its waitlist closed in early 2026, and Duke Energy Carolinas had only limited capacity left. Before you plan around the rebate, confirm live availability and every current requirement — interconnection, an approved battery, installation by a Duke Energy Trade Ally and a minimum participation period among them — directly with Duke Energy at duke-energy.com/powerpair.

Step 3: Explore Financing Options That Preserve Your Incentive Eligibility

With a solar loan (as opposed to a lease or PPA), you own the system outright. This means you benefit from the NC property tax exemption, and as the system owner you receive the bill credits for exported power under Duke Energy Progress’s current tariff — the modified structure Duke moved to after October 2023, with monthly netting and a lower export value than the older arrangement. A Raleigh homeowner can pursue the Duke PowerPair rebate only if the program is accepting applicants and every current Duke requirement is met — interconnection, an approved battery, installation by a Duke Energy Trade Ally and a minimum participation period among them — so confirm live eligibility and remaining capacity directly with Duke Energy. Big Bear offers flexible financing options — ask your estimator.

Step 4: Consider a Battery Storage Addition

Adding a battery (such as a Tesla Powerwall or Enphase IQ) to your solar system in Raleigh in 2026 opens two additional incentive streams: the Duke Energy PowerPair battery rebate and enrollment in Duke's battery control program for monthly bill credits. Given that Duke Energy has changed its net metering rules — reducing the value of power sent back to the grid — storing that power in a battery rather than exporting it is worth weighing for new Duke customers.

Step 5: Verify Your Utility Provider Before Planning

Raleigh and Wake County sit in Duke Energy Progress territory; Dominion Energy serves parts of northeastern North Carolina, not the Triangle. Elsewhere in the state the provider can be Duke Energy Carolinas or an electric cooperative, and the incentives, net-metering terms and rebate programs differ — so confirm the utility on your own bill before a solar design is drawn.

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Frequently Asked Questions: Raleigh Solar Tax Credits 2026

Q: What are the 2026 federal tax credits for solar roofing in NC?

As of January 1, 2026, the 30% residential federal solar tax credit (Section 25D) has been eliminated for homeowner-purchased systems under the One Big Beautiful Bill, signed July 4, 2025. Solar roofing installed and placed in service before December 31, 2025 still qualifies for the full 30% credit, claimed on your 2025 federal tax return. In 2026, homeowners who enter solar leases or PPAs may still benefit indirectly from Section 48E credits through the end of 2027, though the credit is claimed by the installer. Always consult a tax professional for your specific situation.

Q: Does a roof replacement qualify for a solar tax credit in Raleigh, NC?

Standard asphalt or metal roof replacements do not qualify. Only solar roofing tiles and shingles that simultaneously function as roofing material AND generate electricity — like the GAF Timberline Solar — qualified under Section 25D (which ended December 31, 2025). For qualifying 2025 installations still being reported, the integrated cost of a solar roof may be eligible. Traditional roof replacements remain ineligible regardless of their energy efficiency.

Q: Is there a North Carolina state solar tax credit in 2026?

No. North Carolina's 35% state solar tax credit expired in December 2015 and has not been renewed despite proposals. However, NC homeowners in 2026 still benefit from a 100% property tax exemption on residential solar systems, Duke Energy's PowerPair rebate (for solar + battery), and net metering credits depending on your utility provider.

Q: What is Duke Energy's PowerPair program and am I eligible in Raleigh?

Duke Energy's PowerPair program offers one-time rebates for Raleigh homeowners who install both a qualifying solar system and battery storage. Eligibility requires being a Duke Energy customer, applying for interconnection, installing an approved battery (Enphase, FranklinWH, SolarEdge, or Tesla), and agreeing to participate in the program for at least one year. The program has capacity limits and is available on a first-come, first-served basis — early application is strongly recommended.

Q: Can I still claim a 2025 solar tax credit on a financed (not paid-off) system?

Yes — if your solar roofing system was installed and placed in service before December 31, 2025, you may still claim the 30% federal credit on your 2025 tax return even if you financed the system through a solar loan. The installation completion date determines eligibility, not the payoff date. The credit is non-refundable, meaning it can reduce your federal tax liability to zero but won't result in a refund for the excess — though unused credit can be carried forward. Consult a CPA or enrolled agent to confirm your specific situation.

Q: Should my Raleigh roof be replaced before installing solar panels?

If your roof is more than 10–15 years old or showing damage, replacing it before or at the same time as your solar installation is strongly advisable. Installing solar panels on a failing roof means costly removal and reinstallation when the roof eventually needs replacement — a cost you avoid by doing both at once. Big Bear Roofing offers free roof inspections for Raleigh homeowners to help you make this decision before committing to a solar investment.

Q: What solar incentives are available to Raleigh, NC homeowners in 2026?

In 2026, Raleigh homeowners can access: (1) 100% property tax exemption on residential solar systems, (2) Duke Energy PowerPair rebates for solar+battery systems, (3) Net metering credits under Duke Energy Progress’s current modified structure, which is the tariff that applies in Raleigh, (4) Low-interest solar financing through NC programs and cooperatives, and (5) Indirect access to Section 48E tax credits through solar leases and PPAs (claimed by the installer). The direct 30% federal consumer credit (Section 25D) ended December 31, 2025.

Q: How do I schedule a roof inspection before solar with Big Bear Roofing in Raleigh?

You can call Big Bear Roofing or visit their website to request a free inspection. Their certified roofers will evaluate your roof's condition and how ready it is for a solar installation by your solar provider, and provide a transparent, no-obligation estimate for the roof work.

Why Raleigh Homeowners Trust Big Bear Roofing to Ready the Roof for Solar

Navigating solar roofing tax credits, utility rebate programs, and a roof replacement all at once is complex. Big Bear Roofing's part of it is the roof: getting the deck, the covering and the flashing sound and ready before an array goes on, so your solar provider is not working over a roof that is due for replacement.

As a GAF-certified roofing contractor and BBB-accredited company, Big Bear Roofing brings the following to every Raleigh solar roof project:

• A sound roof deck, covering and flashing, ready before your solar provider starts
• Lifetime Roof Replacement Warranty on qualifying installations
• Free comprehensive roof inspection to assess your home's solar readiness
• Storm damage inspection and documentation to support a claim on a roof that needs replacing before solar
• Flexible financing options — ask your estimator
• Free, no-obligation roof inspections — drone-assisted where appropriate
• Local expertise serving Raleigh, Durham, Cary, Wake Forest, Morrisville, Apex, Holly Springs, and the greater Wake County area

If your roof is aging and you're weighing whether 2026 is the right time to invest in solar, the honest answer is: the best time was 2025 to capture the federal credit. The second-best time is now, while NC's property tax exemption remains intact and your roof is ready. A solar roof replacement in Raleigh starts with a sound roof, and Big Bear Roofing is the team to get the roof right.