This coverage is made possible through a partnership between BPR and Grist, a nonprofit environmental media organization.
Demand for renewable construction spiked at the end of the year in North Carolina after two major federal tax credits for green home building expired. The tax credits were rolled back in the One, Big Beautiful Bill Act passed last year.
The two tax credits allowed middle-income homeowners to avoid the sometimes prohibitive upfront costs of installing sustainable appliances or doing energy retrofits. It also allowed them to more quickly benefit from long-term energy- and cost-savings from renewable energy.
One tax credit that expired was the Energy Efficient Home Credit, which allowed homeowners to save up to $3,200 on taxes, claiming up to 30% on purchases like home heat pumps, energy-efficient windows, or insulation. Another program, the Residential Clean Energy Credit, offered a 30% tax break on home energy installations, like solar water heaters, rooftop solar panels, battery storage, and wind turbines.
Jennifer McLucas of the Green Built Alliance, a local environmental nonprofit that promotes eco-friendly building practices and certifies sustainably built homes, said the programs’ closures created a lot of pressure on contractors who specialize in sustainable construction.
“Many of our members saw a classic use-it-before-you-lose-it kind of behavior,” McLucas said. “The credit ended on Dec. 31, but what that basically did was pull the demand forward, ahead of that looming deadline.”
What’s more, the work had to be completed before the new year in order for homeowners to get the 30% tax credit, she said.
Still, a lot of what the credits were meant to do had a lasting impact, McLucas said. “The tax credit made it possible to accelerate the adoption of green building and better energy choices installing solar panels. It accelerated that demand. That's what they're designed to do.”
The cuts have already spurred concern and changes in the regional solar industry.
Dave Hollister, CEO of Sundance Solar in Asheville, told BPR it’s hard to project into the next few months. However, he has an optimistic outlook.
“The last quarter was an incredible quarter for the solar industry, for Sundance and, I think, for every solar company in the area,” Hollister said. He said he hopes the support and accessibility built for solar energy by the credits, and by climate-conscious consumers in Asheville, will buoy small solar installers going forward, although he’s worried about losing some business. “We have, you know, cut our prices, cut our costs. We have done everything we can possibly do as a company to make things as cost effective as possible to our customers,” he said.
For homeowners who still want to save money on home energy installations and energy efficiency, these programs are still available:
- Duke Energy Saver Program has free energy efficiency assessments
- Duke’s Home Improvement Rebate Program offers support for HVAC improvements, sealing, and more
- The Department of Environmental Quality’s Energy Saver North Carolina program offers income-eligible homeowners savings on appliances, including:
- Homeowners Managing Energy Efficiency Savings, a home rebate program for insulation, HVAC, and air sealing
- Home Electrification and Appliance Rebates, a rebate program for installing new, energy efficient electric equipment
- Nonprofits like the Energy Savers Network provide free energy-saving services for low-income families in Western North Carolina
