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Feb 15 2024
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Duke Energy PowerPair

Duke Energy PowerPair: Up to $9,000 for Home Solar + Battery in North Carolina

By Solar Incentives by State, Solar Rebates & Incentives No Comments

Duke Energy customers in North Carolina will soon have access to rebates worth up to $9,000 for home solar and battery systems.

In May 2024, Duke Energy is opening applications to the PowerPair pilot program that offers a one-time incentive for residential solar and battery installations. Pairing solar with battery storage provides backup power during grid outages and can improve the economic benefits of home solar given the state’s recent cuts to net metering compensation.

The PowerPair pilot will be open to 60,000 kW of solar capacity which will serve a minimum of 6,000 households.

Solar incentives — especially of this magnitude — tend to run out fast. So, let’s talk through how this incentive works and how to claim it.

Duke Energy’s PowerPair Basics

At its core, the Duke Energy PowerPair program is pretty simple. First, install a qualifying solar and battery system through one of Duke Energy’s approved installers (known as “Trade Allies”). Once the system is operational Duke Energy will issue your incentive.

Duke Energy PowerPair Basics

Which systems are eligible for PowerPair?

The incentive only applies to new solar AND battery systems. Solar-only and battery-only systems do not qualify.

  • The system can be leased or owned
  • The program does not limit your system size, however, a maximum of 10 kW of solar and 13.5 kWh of battery qualify for the incentive
  • Upgrades to existing solar + battery systems do not qualify
  • Recently installed systems are eligible if they were completed within 90 days of submitting your PowerPair application
  • The system must be operational within 270 days of receiving a PowerPair reservation notice

At this time, Duke Energy has not released any equipment eligibility requirements.

Two incentive types

There are two options in the program: PowerPair and PowerPair + EnergyWise Battery Control. The key differences are:

  • The rate plan
  • Whether Duke Energy can remotely control the battery to help prevent power outages
PowerPair PowerPair + EnergyWise Battery Control
Solar rebate $0.36 per watt of solar, up to 10 kW $0.36 per watt of solar, up to 10 kW
Battery rebate $400 per kWh of battery, up to 13.5 kWh $400 per kWh of battery, up to 13.5 kWh
Monthly bill credit N/A Based on battery capacity
Can Duke Energy remotely control battery? No Yes, up to 36 times per year
Rate plan Time-of-use Net metering

How much could I save with PowerPair?

The maximum rebate amount for PowerPair is $9,000. That’s based on the following incentive amounts for solar and battery:

  • 36 cents per watt of solar capacity, up to 10 kW
  • $400 per kWh of battery storage capacity, up to 13.5 kWh

However, this incentive can be paired with the 30% federal solar tax credit.

So, let’s say you go for the maximum incentive with a system that costs $45,000. Here’s how PowerPair rebates combined with the 30% solar tax credit would reduce your overall cost by nearly $20,000.

Item Cost
10 kW solar + 13.5 kWh battery $45,000
PowerPair solar rebate -$3,600
PowerPair battery rebate -$5,400
Out-of-pocket cost $36,000
30% federal tax credit -$10,800
Net system cost $25,200

You can actually increase those savings by opting into PowerPair + EnergyWise Battery Control. In this part of the program, solar and battery owners will allow Duke Energy to remotely control their battery up to 36 times per year, with a minium of 30 events, in exchange for a monthly bill credit, estimated at $30-40 per month.

 

 

Applying for PowerPair

The PowerPair application window is between May 10 and June 7, 2024. There will be a random selection process to select participants for the pilot program. If there is still program capacity after this period, the remaining incentive will be issued on a first-come, first-serve basis.

Visit the PowerPair program page to sign up for program notifications.

The Bottom Line

Solar and battery allow homeowners to hedge against rising utility rates and power their homes when the grid goes down. With up to $9,000 in rebates per system, Duke Energy PowerPair program reduces the cost burden of installing solar and battery systems in North Carolina.

This incentive has limited capacity and is expected to go quickly. Connect with an Energy Advisor to make a game plan for claiming it!

Feb 14 2024
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reason to go solar in 2024

The $7 Billion Reason to Go Solar in 2024

By Federal Solar Tax Credit, Solar Rebates & Incentives No Comments

Tax season is a drag — unless you recently installed solar.

This year, US homeowners are expected to claim an estimated $7 billion in tax credits for the solar systems they installed in 2023. (And that doesn’t even include tax credits for home batteries!)

The federal solar tax credit is worth 30% of the installed cost of a residential solar system, with no maximum amount. So, whether you spend ten thousand or fifty thousand on a solar system, Uncle Sam is offering to eat 30% of the cost.

This tax credit was extended through 2032 with the passage of the Inflation Reduction Act (IRA). However, this incentive can — and almost certainly will — be repealed in early 2025 if a new administration takes the White House.

That would make 2024 the last year to qualify for this tax credit and a very good year to go solar.

$7 billion in solar tax credits for 2023

A record 7,000 Megawatts (MW) of residential solar capacity was installed in 2023, according to data from Wood Mackenzie. To break that down, the average home solar system has roughly 7 kilowatts of capacity. So, 7,000 MW is an average-sized system on 100,000 homes.

residential solar installed through 2028

Wood Mackenzie also reports the average cost of a solar system in 2023 was $3.42 cents per watt (1 MW = 1,000,000 watts). At that price point, Americans spent a combined $23.9 billion on residential solar in 2023 — making them eligible for a total of $7.2 billion in federal income tax breaks.

In early 2024, these new solar owners are claiming their tax break and enjoying their first full year of generating their own clean electricity.

Will 2024 be the last year to qualify for the solar tax credit?

There’s a reasonable chance that 2024 is the last year for homeowners to install a solar system that qualifies for the 30% federal tax credit. It depends on how that 2024 general election pans out.

Political opinions aside, it’s a matter of fact that former President Donald Trump has vowed to repeal clean energy tax credits if he is re-elected in 2024. This presumably includes the tax credits and rebates for solar, batteries, EVs, EV chargers, and a wide range of home electrification upgrades.

In this scenario, US homeowners would still have all of 2024 to install systems that qualify for this incentive before the Trump administration takes over in 2025.

However, given the average solar project timeline of 3-4 months, waiting for election results in November may not leave enough time to install a system before the end of the year — especially if there is a rush to claim the credit before it expires.

The safe bet is to start a project early in 2024 to ensure eligibility. Plus, it’s a good idea to have your solar system up and running before your high summer electricity bills kick in.

 

 

Claiming the solar tax credit

The federal solar tax credit is claimed on IRS Form 5695 for the tax year the system was installed. We have a detailed walk-through here, but please consult a licensed tax professional with questions about your personal tax situation.

The credit is worth 30% of your total project cost after rebates and discounts are applied. So, if your out-of-pocket cost was $25,000, you can claim a $7,500 tax credit for the year it was “deemed operational” (i.e., installed and passed inspection).

Here are some things to keep in mind:

  • This incentive is not a check that simply comes in the mail — it’s a non-refundable tax credit.
  • As a non-refundable credit, the solar tax credit is used to reduce your tax liability (i.e., your taxable income) to increase your refund or reduce the amount of tax you owe.
  • It must be claimed on the tax return for the year the system was installed and passed inspection. (You can’t install it in 2023 and wait until your 2025 tax return to claim it)
  • If the tax credit amount is greater than your tax liability for the year, you can carry the leftover credit forward to future tax years

In many cases, claiming the credit is simply following the instructions on Form 5695. But if you’re unsure consult a licensed tax advisor with questions about claiming this credit. 

The bottom line

The 30% tax credit is a great incentive that boosts the cost savings of solar and undoubtedly played a role in the record number of systems installed in 2023.

This incentive is scheduled to remain until 2032. However, there is a reasonable chance that 2024 could be the last year to install a system that qualifies for his tax credit.

Start your solar project today to ensure eligibility for the 30% solar tax credit.