Thinking about rooftop solar in Knightdale this year? Here is a clear, local guide to the 2025 incentives, rebates, tax rules, and utility programs that shape your costs and payback. We focus on Wake County and Duke Energy customers. Nuestro equipo también puede ayudar en español.
What to Expect from Solar Incentives in 2025 — Snapshot for Knightdale Homeowners
In 2025, most savings come from five places:
- Federal tax credit. A big credit that reduces what you owe at tax time.
- State property tax rules. These reduce how much added value gets taxed.
- Utility rebates and pilots. Duke Energy programs can lower upfront costs, especially with batteries.
- Net metering or bill credits. The rate you get for extra power matters for payback.
- Home energy rebates for upgrades. These can pair with solar to cut bills further.
Most programs have timelines and caps. Some require using approved installers and getting utility interconnection. Keep every invoice and approval. Plan for permit time, inspections, and a utility permission to operate.
Federal Incentives: The Basics for 2025
The main federal help is the Residential Clean Energy Credit. It equals 30% of qualified costs for home solar and batteries placed in service by December 31, 2025. After that date, the credit for new spending ends under the 2025 federal law change. See IRS guidance and the H.R.1 summary for details and definitions of placed in service. Sources: IRS overview, IRS FAQs,
Key checkpoints:
- You must own the system. Leases and PPAs do not qualify for the homeowner.
- The credit is claimed in the tax year the system is energized, not when you sign a contract. Use IRS Form 5695 and save all records. See IRS instructions for Form 5695.
- Some rebates lower your tax credit basis if they count as purchase price adjustments. The IRS explains how to handle this in its guidance.
- Sales tax paid on qualifying equipment can count in the basis. IRS Notice 2013-70 covers this.
Bottom line: timing is critical in 2025. Coordinate install schedules so the utility grant of permission to operate and final inspection occur in time.
North Carolina State Incentives and Programs
North Carolina does not offer a broad state income tax credit for residential solar in 2025. The biggest state help is property tax treatment and clear interconnection rules.
- Property tax exclusion. The statute excludes 80% of the appraised value of a home solar system from local taxation. See G.S. 105-275.
- Policy activity. Lawmakers discussed changes for large or commercial systems in 2025, though the residential language remained in statute. Monitor updates if you own a large or mixed-use system.
- Interconnection and net metering are set through the state process and the utility’s tariffs. These rules shape your credits and payback.
State programs also deliver home energy rebates for heat pumps, panel upgrades, and more through Energy Saver NC. These pair well with solar to lower your total bill. See NCDEQ’s program page and press release.
Wake County and Knightdale Local Programs — What to Look For
As of 2025, the Town of Knightdale does not list a direct cash rebate for rooftop solar. Local help is more about smooth permitting, inspections, and clear zoning. See the town’s incentives page for general economic tools.
Practical steps:
- Check the town and Wake County websites for any new pilot efforts.
- Confirm permit timelines with your installer. Ask how long inspections and utility approvals are taking this quarter.
- If your home already has solar, call the Wake County tax office to confirm how the 80% exclusion is applied to your parcel. Bring prior assessments and system specs.
Local programs can change. A quick call or site check can save time and avoid missed windows.
Utility Programs and Rebates — How Your Provider Affects Savings
Most Knightdale homes are served by Duke Energy. Utility incentives can be the second largest dollar impact after the federal credit.
- PowerPair pilot. This one-time incentive targets solar plus battery systems. Example terms included up to $0.36 per watt for solar and up to $400 per kWh of battery capacity, with caps that created a maximum incentive in the thousands. Program slots were limited and often filled fast. Check current status and rules on Duke’s information and news pages. Sources: Duke PowerPair release, program portal.
- Earlier Duke residential rebates also used application windows and capacity limits. Ask your installer which allocations, if any, are open now. Source: Duke rebate news.
- Interconnection. You must apply and get approval before turning on. Duke uses an online portal and follows North Carolina interconnection procedures with fees that scale by size. Source: Duke interconnection overview.
- Net metering and bill credits. Legacy full retail net metering closed to new applicants in 2023. New customers choose between the Net Metering Bridge or Residential Solar Choice. Exports now earn credits tied to avoided cost, not full retail. Minimum bills and time-of-use rates can apply. This changes payback math. Source: North Carolina Public Staff overview.
Community solar options may be available if rooftop is not a fit. These are separate from rooftop incentives. See state overviews on community solar for background.
How Solar Incentives Affect Home Value and Home Sales in Knightdale
Solar can be a plus in a listing if you present it clearly.
- Owned vs leased. Owned systems are simpler for buyers and appraisers. Leases or PPAs can add complexity and often need buyer credit approval and contract transfer.
- Property taxes. The state exclusion can limit tax impact from system value. Share any notices or assessor letters with buyers.
- Disclosures and documents. Keep the contract, final invoices, equipment list, interconnection approval, inspection certificate, and warranty terms. Buyers want proof of ownership and service records.
- Pricing and appraisal. Incentives lower the owner’s net cost, which can support value. However, appraisers still look at actual production, bill savings, age, and warranty. A one-page solar fact sheet in your listing helps.
Tip for sellers: include a short summary of system size, annual kWh, install date, warranty years, and any program participation like PowerPair.
How to Claim Incentives and Typical Timeline (Step-by-Step)
Use this simple checklist so you do not miss a step.
Pre-install planning
- Gather 12 months of power bills and your roof details.
- Get at least two quotes from licensed, insured installers with Duke interconnection experience.
- Confirm program availability. Ask about PowerPair status and any pre-app steps.
- Approve design. Your installer submits the utility interconnection application.
Permits and installation
- Town or county permits are pulled by your installer.
- Save the contract, change orders, and a paid invoice showing equipment and sales tax lines.
- Ask for product spec sheets and warranty certificates.
Inspections and permission to operate
- The local inspector signs off.
- Duke issues permission to operate. Keep this email or letter.
Claiming benefits
- Federal credit. File IRS Form 5695 for the year the system was placed in service. Keep all records. Sources: IRS Form 5695 instructions and IRS overview.
- Utility incentives. If approved for PowerPair or other rebates, submit final documents right away to meet deadlines.
- Energy Saver NC rebates. Apply for eligible home upgrades if you plan to electrify more loads.
Simple Financial Example — How Incentives Move the Numbers
Hypothetical example to show the math:
- System price: 100 units of cost.
- Utility rebate: 10 units off upfront. New cost basis for federal credit could be 90 units if that rebate is a price adjustment under IRS rules.
- Federal tax credit at 30%: 27 units. Your net cost becomes 63 units.
- Annual bill savings: 7 to 10 units per year, depending on your usage, time-of-use plan, and export credits.
- Simple payback: around 6 to 9 years in this example.
Your numbers will vary based on system size, shade, rates, and whether you add a battery. Use your installer’s production estimate and your actual bill history to dial in payback.
Choosing an Installer and Contract Checklist for Knightdale Homes
Pick a partner who knows Duke processes and local permits.
- Credentials. North Carolina license, general liability and workers’ comp, strong Duke interconnection history, and NABCEP certification if possible. Ask about bilingual support. ¿Prefiere hablar en español? Podemos ayudar.
- Scope. Confirm who handles permits, interconnection filings, and rebate applications.
- Ownership and warranties. Make sure you will own the system. Look for at least 10 years workmanship and 20 to 25 years on panels and inverters.
- Clear timeline. Get target dates for install, inspection, and utility approval.
- Paperwork. Require detailed invoices with sales tax lines and equipment lists for your tax files.
Common Pitfalls, Compliance & Tax Considerations
Avoid these common issues that reduce value or cause delays:
- Missing the 2025 placed in service deadline for the federal credit. Work backward from the date and add buffer time for inspections and utility approval. Source: IRS FAQs on termination dates.
- Assuming old retail net metering. New Duke customers earn avoided cost credits and face minimum bills. Source: North Carolina Public Staff.
- Poor documentation. Keep receipts, specs, interconnection, and inspection proofs. You will need them for IRS Form 5695.
- Miscounting rebates in the tax basis. Some rebates reduce the federal credit basis. Source: IRS credit overview.
- Ignoring program caps. PowerPair and similar pilots can fill fast. Confirm availability before you rely on the dollars.
Next Steps for Knightdale Homeowners — Local Resources & How Alluvium Can Help
Here is how to move forward with confidence:
- Gather your last 12 months of Duke bills, your current tax assessment, and any solar paperwork if your home already has a system.
- Ask two or three vetted installers for site visits and quotes. Confirm interconnection timelines and any 2025 capacity left for utility incentives.
- Review the rules yourself. See the IRS clean energy credit page and FAQs, North Carolina statute on property tax, Duke Energy’s program updates, and NCDEQ’s Energy Saver NC.
At Alluvium Elite Realty, we help sellers and buyers explain solar value, prep clean disclosures, and set smart pricing. We can coordinate with your installer and appraiser so your listing tells a clear story. Our team is local, hands-on, and bilingual. To talk through your plan or evaluate a solar home you want to buy, connect with us at Alluvium Elite Realty. Request a free home valuation.
FAQs
Does Knightdale offer a city solar rebate in 2025? Not at this time. Most dollar incentives come from the federal credit and Duke Energy programs. See Knightdale’s general incentives page for any future updates.
What does placed in service mean for the federal credit? It is the year your system is energized and ready for use, not the contract date. You claim the credit on IRS Form 5695 for that tax year. Sources: IRS FAQs and Form 5695 instructions.
How did Duke’s net metering change? Legacy full retail net metering closed to new applications in 2023. New customers use the Net Metering Bridge or Residential Solar Choice with avoided cost export credits and minimum bills. Source: North Carolina Public Staff.
Can I stack a utility rebate with the federal credit? Yes, but some rebates reduce your federal credit basis as price adjustments. Check IRS guidance and ask your installer and tax pro. Source: IRS credit overview.
Are there rebates for heat pumps or panel upgrades in North Carolina? Yes. Energy Saver NC offers rebates for qualified home upgrades. These are separate from rooftop solar but pair well. Sources: NCDEQ program page and press release.
Will solar raise my property taxes in Wake County? The state statute excludes 80% of the solar system’s appraised value from local taxation for residential systems. Confirm details with the county assessor. Source: G.S. 105-275.
Sources for quick reference:
- IRS Residential Clean Energy Credit: https://www.irs.gov/credits-deductions/residential-clean-energy-credit
- IRS FAQs on 2025 changes: https://www.irs.gov/newsroom/faqs-for-modification-of-sections-25c-25d-25e-30c-30d-45l-45w-and-179d-under-public-law-119-21-139-stat-72-july-4-2025-commonly-known-as-the-one-big-beautiful-bill-obbb
- NC property tax statute: https://www4.ncleg.net/enactedlegislation/statutes/html/bysection/chapter_105/gs_105-275.html
- Duke Energy PowerPair news: https://news.duke-energy.com/releases/duke-energy-to-implement-new-powerpair-pilot-program-for-pairing-home-solar-installations-with-battery-energy-storage
- Duke interconnection overview: https://www.duke-energy.com/business/products/renewables/generate-your-own/fast-track-interconnection-process
- NC Public Staff on net metering: https://publicstaff.nc.gov/public-staff-divisions/energy-division/electric-section/net-metering
- Energy Saver NC: https://www.deq.nc.gov/energy-climate/state-energy-office/energy-saver-north-carolina
- Knightdale incentives page: https://www.knightdalenc.gov/economic-development/incentives
- Local cost context: https://www.energysage.com/local-data/solar-panel-cost/nc/wake-county/knightdale/