Despite significant economic hurdles and the elimination of the 30% federal tax credit for households following the passage of the One Big Beautiful Bill Act by Republicans a year ago, North Carolina‘s rooftop solar industry is proving remarkably resilient. Industry leaders like Stew Miller of Yes Solar Solutions and Jesse Solomon of NC Solar Now report that surviving installation firms are experiencing unexpected growth, driven by innovative leasing models and rising electricity rates from major utilities like Duke Energy.
The Impact of Federal Cuts and Market Shifts
The expiration of residential tax incentives last December triggered a sharp nationwide decline in new solar panel installations. According to estimates from the North Carolina Sustainable Energy Association, new rooftop solar installations across the state dropped by two-thirds between the fourth quarter of last year and the first quarter of 2026. While national companies have pulled out and the overall number of rooftop firms has shrunk, remaining local businesses are bouncing back after an initial winter freefall.
The Rise of Residential Solar Leasing
To overcome the loss of direct household tax credits, solar companies are increasingly relying on equipment leasing. Under a 2017 state law, third-party entities can rent solar systems to customers within the Duke Energy territory up to a specific cap. Because commercial entities still qualify for a 30% tax credit under the federal budget law through at least the end of next year, installers can pass these savings directly to homeowners. Companies like Sugar Hollow Solar report that at least half of their customers now choose leasing as a cost-effective option requiring little to no money down.
Batteries and Rising Energy Rates Fuel Demand
Additional financial incentives are emerging for customers who pair solar arrays with battery storage systems. Programs such as EnergyWise Home and Power Manager provide monthly incentives—averaging around $50 a month, according to Graham Alexander of Southern Energy Management—for allowing utilities to tap into home batteries. Furthermore, residential electricity bills in Duke Energy territory have climbed by over 20% in the past five years, making self-generated solar power and strategic leasing increasingly attractive options for residents across the state.
