Installing solar in Raleigh costs $24,360 before incentives for a typical 8.4kW system. Important: the federal residential solar tax credit (Section 25D, IRS) expired for homeowner-purchased systems installed after December 31, 2025, so a 2026 purchase does not benefit from a federal credit reduction. Choosing a lease or PPA may allow the installer to capture the 30% credit under Section 48E (IRS) and pass savings through as a lower rate. At Duke Energy Progress's $0.126/kWh and 5.12 daily peak sun hours, estimated payback periods will vary based on the financing path you choose.
Raleigh, North Carolina: 2026 Market Data
📊 LOCAL MARKET DATA
- Average system size: 8.4 kW
- Typical purchase cost (2026): $24,360 — the 30% federal residential credit (§25D) expired Dec 31, 2025; a lease or PPA still captures it via §48E
- Net metering: full retail
- State tax credit: 0%
- Federal residential credit (§25D): expired for purchases after Dec 31, 2025; lease/PPA still gets 30% via §48E
- Median household income: $79,000
Data from U.S. Census Bureau, DSIRE, NREL
Solar Installation Costs in Raleigh: 2026
If you're considering going solar in Raleigh, it helps to know what your neighbors are typically spending. The average solar system installed here is around 8.4 kW, which works out to roughly $24,360 before incentives. It's important to know that the federal residential solar tax credit (Section 25D, IRS) — commonly called the ITC — expired for homeowner-purchased systems installed after December 31, 2025, meaning a 2026 purchase earns no federal credit. If you choose a solar lease or PPA, the 30% credit may still be captured by the installer under the commercial Section 48E (IRS), provided construction begins before July 4, 2026, and savings are often passed through as a lower rate. Unlike some states, North Carolina does not offer a separate state tax credit for solar, so understanding your financing options at the federal level matters more than ever. One factor that makes Raleigh attractive is net metering at full retail, meaning the energy your panels send back can be credited at the retail rate. Because your roof, energy usage, and financing terms all affect your final number, collect several quotes, read the fine print on every contract, and compare the details before committing. With a median household income of around $79,000 in the area, it's worth thinking carefully about how a purchase fits your budget. This is general information, not tax advice.
What Solar Costs in Raleigh in 2026 (Federal Residential Tax Credit Has Expired)
The federal residential solar tax credit (Section 25D, IRS) expired for homeowner-purchased systems installed after December 31, 2025, meaning a 2026 purchase in Raleigh earns no federal credit. For a typical 8kW system priced around $22,000, there is no federal reduction available on a purchase — the full cost is your starting point. If you want to access a federal incentive, a solar lease or PPA is worth considering: under Section 48E (IRS), the installer or system owner can still claim the 30% credit — provided construction begins before July 4, 2026 — and often passes savings through as a lower monthly rate. Keep in mind that on a purchase, your payback calculation changes meaningfully without the federal credit, so your electricity usage, rate plan, and financing terms all matter more than ever. For Raleigh buyers, the state property-tax exclusion and Duke Energy Progress net metering still provide real long-term value and should factor into your planning. This is general information, not tax advice.
