Property Tax Abatement for Solar Electric Systems

North Carolina exempts 80% of the appraised value of a solar PV system from property tax, and a residential system that isn't used to earn income or tied to a business may be fully exempt as non-business personal property. The exemption covers equipment used directly and exclusively to convert sunlight to electricity. To confirm how your system is treated, check with your local county property assessment office.

You can tell customers in all sectors (residential, commercial, industrial, agricultural) that 80% of the appraised value of a solar electric system is exempt from North Carolina property tax, which lowers the long-term cost of ownership. Residential systems not used for income or business may be fully exempt as non-business personal property, so customers should review the February 2011 guidance memorandum and consult their local assessor. Only equipment used directly and exclusively to convert solar energy to electricity qualifies.

This is a state property tax exemption enacted in August 2008, effective for taxable years beginning on or after July 1, 2008, that exempts 80% of the appraised value of a qualifying solar energy electric system. It is administered through local property assessment, with no separate funding or application pool, and covers PV and solar thermal electric systems across residential, commercial, industrial, and agricultural sectors. A February 2011 memorandum to County Commissioners clarified that residential systems not used for income or business may be fully exempt as non-business personal property and gave guidance for making that determination.