A new proposal in the North Carolina General Assembly could slow the growth of solar energy in the state by cutting tax incentives and tightening restrictions for where solar farms could be built.
Filed Tuesday by Rep. Jimmy Dixon (R-Duplin), House Bill 729 (the Farmland Protection Act) would reduce the property tax exclusion for solar energy systems from 80% to 40% of appraised value, starting July 1, 2025.
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The bill would also prohibit the construction of new utility-scale solar facilities that are not certified as qualifying facilities under the federal Public Utility Regulatory Policies Act (PURPA), unless they are built on brownfield sites, non-agricultural land, or clear-cut timberland not currently in production.
Industry advocates say the current 80% tax abatement has played a key role in attracting solar investment to rural areas, creating jobs and increasing local tax revenues. Critics of large-scale solar argue the facilities take valuable farmland out of production and raise concerns about long-term land use and decommissioning.
HB 729 would also implement new requirements for decommissioning plans and financial assurance for utility-scale solar projects. Existing projects would be required to register with the Department of Environmental Quality and submit decommissioning plans by the end of 2026 if they are rebuilt or expanded.
North Carolina currently ranks among the top states for installed solar capacity. Opponents of the bill say scaling back incentives could jeopardize that momentum and delay the state’s progress on clean energy goals.