30 Nov, 2021

Duke Energy, environmentalists reach deal on NC solar net metering proposal

Duke Energy Corp. subsidiaries Duke Energy Carolinas LLC and Duke Energy Progress LLC filed a joint petition with North Carolina regulators for approval of revised net energy metering tariffs.

The petition contained an agreement with the North Carolina Utilities Commission to align solar adopter compensation to utility system benefits and "create long-term stability for the residential solar industry in North Carolina," Duke said in an announcement Nov. 30.

The net metering agreement was reached between Duke and environmental advocates, including the North Carolina Sustainable Energy Association, the Southern Environmental Law Center on behalf of Vote Solar and the Southern Alliance for Clean Energy, residential solar panel provider Sunrun Inc., and the Solar Energy Industries Association.

The agreement is still subject to approval by state regulators.

Duke's petition aligns with North Carolina policy goals outlined in key legislation, House Bill 951, passed earlier in 2021, which includes a 70% reduction in carbon emissions by 2030 and net-zero emissions target by 2050, the utility noted in its announcement. State law also requires utilities to file for commission approval of revised net metering rates for electric customers. (Docket Nos. E-7, Sub 1214; E-2, Sub 1219 and E-2, Sub 1076)

The agreement follows a similar net metering agreement in South Carolina from 2020, Duke said in its announcement.

The petition, if approved, would allow for new net metering tariffs to go into effect for customers submitting applications on or after Jan. 1, 2023; create innovative pricing and incentives for residential solar customers; contain rate design mechanisms to properly collect costs of grid infrastructure needed to serve solar customers; and include retail rates that vary based on time of day and when the utility experiences peak demand, Duke said.

If approved, the net metering tariffs would remain in place for 10 years, the Duke utilities said in the petition.

The agreement "ensures fair and reasonable treatment for all customers, whether they choose to install solar or not," Duke Energy North Carolina President Stephen De May said in a statement Nov. 30.

"This program pushes forward progress in North Carolina's clean energy economy," Peter Ledford, general counsel and director of policy at the North Carolina Sustainable Energy Association said in the Duke-issued statement. "Not only does it advance the residential solar sector, it also provides a framework and agreement to work collaboratively on the next generation of nonresidential net metering. This agreement establishes new price signals and opportunities for homeowners to incorporate innovative technologies with solar — smart thermostats, battery storage and more."

About 24,000 Duke Energy customers in North Carolina have private solar systems, the company said, compared to 6,000 in 2018. Its $62 million solar rebate program, in operation for three years already, is expected to continue into 2023.

Duke Energy represented about 40% of installed solar capacity in the Southeastern U.S. in 2020, according to an analysis by the Southern Alliance for Clean Energy, and is expected to remain the region's leader.