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North Carolina On My Mind for a New Generous Solar Thermal Tax Credit


A 35% State Tax Credit for solar hot water–almost as grand as North Carolina’s Blue Ridge Mountains

If you’re looking for generous solar thermal rebates, North Carolina has a new 35% state tax credit that can be used for North Carolina’s many food processing plants, private universities, pork and dairy farms, hotels, apartment buildings, and more.

The credit is worth 35% of the cost of installing commercial solar water heating systems. Solar thermal space heating, combined heat and power, geothermal, and other renewable technologies are also eligible.

However, there is a maximum of $2.5 million per installation, and the credit can only be used by businesses to pay up to 50% of their NC state business taxes, per year. If there’s any tax credit amount left over after the first year, the residual amount can be carried over for 5 years.

In addition to this state tax credit, North Carolina businesses and homeowners are both eligible for the 30% Federal Investment Tax Credit. Combined, 65% of the cost of a solar thermal installation can be offset by these two state and federal incentives.  

For non-business (residential) solar water-heating systems, including residential solar pool heating, the 35% tax credit is also available, but to a maximum of $1,400. However, there’s a $3500 limit for residential solar thermal space heating, combined solar water and space heating, and passive solar heating.

More details on North Carolina’s renewable energy tax credit program can be read here.

If you’re a North Carolina business wanting to reduce your space heating and water heating operating costs for industrial applications and agriculture, contact Free Hot Water. Our award winning engineering team works with local NC solar installers to design trouble-free solar thermal systems for commercial and industrial applications.



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