Property Tax Abatement for Solar Electric Systems

March 16, 2023


In August 2008, North Carolina enacted legislation that exempts 80% of the appraised value of a "solar energy electric system" (also known as a photovoltaic, or PV, system) from property tax. For the purposes of this assessment, the term "solar energy electric system" means "all equipment used directly and exclusively for the conversion of solar energy to electricity." This incentive is effective for taxable years beginning on or after July 1, 2008.

A Memorandum sent to County Commissioners in February 2011 clarified that residential PV systems that are not used to generate income or in connection with a business may be entirely exempt from property taxes as non-business personal property. The Memorandum provides further guidance for determining if a system can be exempted as non-business personal property. System owners should review the Memorandum and consult their local property assessment office if they have questions.


Program Overview

Implementing Sector: State
Category: Financial Incentive
State: North Carolina
Incentive Type: Property Tax Incentive
Web Site:
Administrator: N.C. Department of Revenue
Start Date: 7/1/2008
Eligible Renewable/Other Technologies:
  • Solar Thermal Electric
  • Solar Photovoltaics
Incentive Amount: Residential systems: 100% of the appraised value
All other systems: 80% of the appraised value


Name: N.C. Gen. Stat. § 105-275 (section 45)
Date Enacted: 08/02/2008
Effective Date: 07/01/2008
Name: North Carolina Department of Revenue Solar Energy Electric Systems Memo
Date Enacted: 02/15/2011


Name: Taxpayer Assistance - NC DOR
Organization: N.C. Department of Revenue
Address: Post Office Box 25000
Raleigh NC 27640
Phone: (877) 252-3052

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.