Tax Credits

Residential Renewable Energy Tax Credit

FEDERAL Incentives – 30% of Total Project Costs

Solar Water Heat, Photovoltaic, Wind

  • Solar-electric systems, Solar water heaters, and wind power systems placed in service after 12/31/2008: no maximum
  • The tax credit does not apply to solar water-heating property for swimming pools or hot tubs.
  • The home served by the system does not have to be the taxpayer’s principal residence.
    Solar water heating property must be certified by SRCC or a comparable entity endorsed by the state where the system is installed. At least half of the energy used to heat the dwelling’s water must be from solar.
  • Excess credit generally may be carried forward to next tax year
  • Expiration date: 12/31/2016


Residential Renewable Energy Tax Credit

NORTH CAROLINA – 35% of Total Project Cost

Solar Water Heat, Solar Space Heat, Photovoltaic, Wind, Hydro, Solar Pool Heating

  • Single-family dwellings: excess credit may be carried forward five years; all other property: credit must be taken in five equal installments; allowable credit may not exceed 50% of a taxpayer’s state tax liability for the year, reduced by the sum of all other state tax credits.
  • Expiration 12/31/2015
  • A maximum of $3,500 per dwelling unit for active solar space heating, combined active solar space and domestic water-heating systems, and passive solar space heating used for a non-business-purpose.
  • A maximum of $1,400 per installation for solar water-heating systems, including solar pool-heating systems used for non-business purpose.
  • A maximum of $10,500 per installation for photovoltaic systems (also known as PV systems or solar-electric systems), wind-energy systems, combined heat and power systems, or certain other renewable-energy systems used for non-business purpose.
  • Renewable-energy equipment expenditures eligible for the tax credit include the cost of the equipment and associated design; construction consts; and installation costs less any discounts, rebates, advertising, installation-assistance credits, name-referral allowances or other similar reductions provided by public funds. SB 388 of 2010 clarified that federal grants made available by Section 1603 of the American Recovery and Reinvestment Tax Act of 2009 do not constitute public funds.

Please Note: This is a very condensed version.
Complete information can be found at: