How Net Metering Changed The Solar Industry In North Carolina

It’s now been over 1 year since net metering changes took effect here in North Carolina. For those unfamiliar with net metering, we wrote an in-depth blog about the changes being made to how solar customers would receive credits for the energy they sent back to the grid.  In short, Solar net metering is a policy that allows homeowners with solar panels to send excess energy they generate back to the grid, receiving credits on their utility bills in return. 

What changed:

For years, Duke Energy’s North Carolina customers were able to buy electricity at the retail rate and sell excess power back to the grid for the same price, with a minimum bill to cover grid maintenance costs. This arrangement worked well for solar customers, but it posed challenges for Duke, a for-profit utility that makes money by buying energy at a lower cost and selling it at a higher price.

To shift more costs onto solar customers and reduce their credits, Duke used its influence in the state legislature, backed by a powerful lobbying force. This effort led to the passage of two laws—one in 2017 and another in 2021—that mandate the end of retail net metering by 2027.

This led to a flurry of activity between Duke Energy and solar installers in North Carolina. We were part of this collaborative effort to challenge duke on their proposed changes and alongside many of our fellow solar installers we managed to come to a compromise. 

Under this new deal, solar customers can choose a “time of use” rate, earning more for energy sent to the grid and paying higher rates during peak demand times. Alternatively, until 2027, they can opt for a “bridge rate,” which offers a one-to-one exchange for energy sent to and taken from the grid.

How it affected the solar industry

Elizabeth Ouzts from the Energy News Network talked to a number of solar companies in North Carolina including Clary Franko, our COO, in her most recent article highlighting the challenges and opportunities we encountered. The brief explanation is that we saw a massive increase in interest leading up to net metering 2.0 being implemented, followed by a decline in interest that has slowly begun climbing back to pre-net metering change levels. 

Part of the increase in interest is Duke’s current Powerpair incentive that directly promotes pairing batteries with solar systems to create more resilient communities. 

We’ve been incredibly fortunate to have been able to weather these changes thanks largely to the amazing community here in WNC. We are proud to be part of such a forward thinking and ecologically minded community that wants to be a leader in sustainable energy. As Sugar Hollow Solar continues to grow, we’re excited to be able to continue to offer and expand how WNC can achieve an energy resilient future.