In North Carolina, the solar energy landscape is undergoing a significant transformation, driven by changes proposed by Duke Energy Progress (DEP), one of the major electric utility companies in the state. These changes prompted us at Sugar Hollow Solar to take a proactive stance by crafting a position statement aimed at supporting our clients in navigating the evolving solar energy market. In this blog post, we will explore the motivations driving Sugar Hollow Solar's position statement, provide a brief update on the main concepts behind the proposed changes, and outline its ongoing significance for individuals and businesses contemplating a transition to solar energy in North Carolina.

North Carolina State Capitol Building in Raleigh, NC

Initial Request, Technical Conference, and Rate Case Application

In June 2022, Duke Energy Progress (DEP) approached the North Carolina Utilities Commission (NCUC) with a request to convene a technical conference. The purpose of this conference was to discuss significant alterations DEP intended to make in how they oversee their electrical systems, particularly in how they value solar energy that goes into the utility grid from homeowners and businesses.

On July 25, 2022, a significant event occurred when DEP held an in-person technical conference. During this conference, DEP presented information about their transmission and distribution (T&D) projects. The NCUC set deadlines for filings and comments related to this conference.

Shortly after the technical conference, in September 2022, DEP informed the NCUC that they planned to file an application for a general rate case. A general rate case in this instance involves a utility company requesting changes to the rates they charge their customers for services such as electricity. This application would include their proposal for Performance-Based Regulations (PBR), which is allowed under North Carolina law. On October 6, 2022, DEP officially submitted its highly detailed application which included a lot of technical information, financial data, and testimony from their experts. As this process unfolded, various parties, including other utility companies, the Attorney General's Office, and environmental organizations, wanted to be part of the discussions. They filed petitions to intervene and got the green light from the NCUC to join in. Part of DEP’s proposal involved changing how they set rates for residential and non-residential customers and introducing performance incentives and metrics in the form of PBR.

Performance-Based Regulation Proposal and Solar Industry Concerns

Although Performance-Based Regulations (PBR) are a commonly adopted strategy in the utility industry and have historically been implemented to incentivize utilities to improve performance, efficiency, and customer service- Duke Energy Progress's (DEP) request to use PBR with solar customers has certainly raised questions from solar companies and the NC Solar Energy Association. As reported by WFAE Cassie Gavin of the North Carolina Sustainable Energy Association says its members don't have the information they need.

"We've heard from our members that these are significant changes that would be affecting solar installers across the state. There's still a lot of questions about the implementation and the rules and installers are still trying to understand," Gavin said.

Many perceive this request for change as a means for utilities to adapt to the evolving energy landscape while safeguarding their financial interests. It's important to recognize that while utility companies may claim to be adapting to the changing energy landscape, their primary focus is often on their own financial gain rather than the genuine interests of individuals and businesses transitioning to solar energy. This shift in strategy may primarily serve the utility's profit motives rather than ensuring the best outcomes for those choosing to embrace solar power.

Advocating for Renewable Energy Amidst Regulatory Changes

At Sugar Hollow Solar, we wholeheartedly champion the interests of our clients and the broader community, particularly within the ever-evolving realm of renewable energy. In collaboration with NCSEA, we recently took proactive measures by submitting a position statement that aligned with their stop-motion request, specifically addressing the non-residential changes proposed.

Consider this scenario: One of our team members, Nick Welch, a Commercial Solar Developer, learned about these specific non-residential rider changes on September 22, 2023, through an email from Duke Energy. This left us with only five days to make necessary adjustments.

“To be completely honest, the experience was a bit disheartening. When I was first made aware of changes coming, I began scrambling to gather all the necessary information. I needed to understand what the changes were and how they would affect Sugar Hollow and our customers. I was upset that there had not been an official announcement from Duke and that I had to do a lot of calling around and digging to piece together what this new policy was.”

Nick initially had reservations about considering himself the perfect candidate for the task of scrutinizing extensive testimony in search of a strategy to understand and hopefully delay the new policy. Nevertheless, his unwavering dedication to our company's current and future clients, the advancement of solar energy, and the broader community's renewable energy objectives underscored his commitment to the cause. Nick was instrumental in crafting the position statement Sugar Hollow Solar filed late September 2023.

Our position called for the postponement of the proposed non-residential changes, highlighting the critical necessity for additional time to conduct a thorough assessment of how these alterations might impact businesses and individuals in the process of transitioning to solar energy. While the stop motion for non-residential customers was denied on September 29, 2023, our unwavering commitment to supporting both our current and potential clients in their journey toward renewable energy solutions remains resolute. At present, our primary focus centers on gaining a comprehensive understanding of these changes and adapting our approach to enhance our client service.

We recognize that grasping and adjusting to these transformations will necessitate time, and we are wholeheartedly dedicated to crafting new processes that optimize our customer experience. If you have any specific inquiries about transitioning to solar energy for your Western North Carolina home or business in light of these developments, please don't hesitate to reach out to us at hello@sugarhollowsolar.com or give us a call at (828) 776-9161. We're here to provide our honest, reliable, expertise throughout any stage of your solar experience.

Economic Viability of Solar Installations

It is essential to underscore that, even amidst these regulatory shifts, which are not uncommon in the renewable energy sector, the economic viability of solar installations remains robust for both businesses and homeowners alike. The enduring value proposition of transitioning to solar energy within the Duke Energy Progress service region and beyond is a testament to the sustained cost-effectiveness and long-term savings associated with solar installations.

Solar energy stands as a wise investment choice, offering compelling economic benefits that endure over time. One of the key financial advantages of solar power lies in its capacity to reduce electricity bills significantly. By harnessing the abundant energy of the sun, solar panels generate electricity that can power homes and businesses, substantially reducing reliance on grid-supplied electricity. As a result, solar adopters experience consistent and substantial savings on their utility bills month after month.

Furthermore, incentives and rebates further enhance the financial appeal of solar installations. Various federal and state-level programs are in place to encourage the adoption of renewable energy sources, offering financial incentives, tax credits, and rebates to offset the initial costs of solar panel installation. These incentives not only reduce the upfront expenses but also accelerate the payback period, allowing solar adopters to start realizing savings sooner.

Additionally, the opportunity to sell excess energy back to the grid, a practice known as net metering, provides a financial advantage. When a solar system generates more electricity than is consumed, the surplus energy is fed back into the grid, often earning credits or compensation from utility providers. Despite the impact of these new Performance-Based Regulations on net metering, which will introduce changes in calculations, net metering remains a valuable advantage for DEP customers. This effectively turns solar adopters into energy producers, further offsetting their energy costs.

Also, as conventional energy prices continue to escalate, the financial benefits of solar power become increasingly pronounced over time. Solar panels typically have a lifespan of 25 years or more, and during this period, they continue to produce electricity with minimal maintenance costs. This long-term reliability ensures that the economic advantages of solar energy persist, making it a financially prudent choice for businesses and homeowners alike. Ultimately, the enduring financial appeal of solar installations transcends regulatory changes, solidifying their position as a sustainable and economically savvy investment.

Solar Power: A Global Solution for a Sustainable Future

We believe it is also important to note that the decision to embrace renewables at this juncture holds profound significance, not only for our local community but also on a global scale. We find ourselves in an era marked by escalating environmental concerns and an urgent imperative to combat the climate crisis. Our local community, like the rest of the world, faces mounting challenges stemming from carbon emissions, fossil fuel depletion, and the preservation of natural ecosystems. In this context, the adoption of renewables such as solar power emerges as a compelling solution with far-reaching benefits.

As reported by Dogwood Alliance, fossil fuels, particularly coal and natural gas, continue to dominate the energy landscape in the United States. In 2018, a staggering 89% of total carbon dioxide emissions emanated from the fossil fuel industry. Dogwood Alliance emphasizes the urgent need for an immediate transition towards renewables, with solar energy representing one of the primary alternatives. Factors contributing to the enduring cost-effectiveness of solar power include reduced electricity bills, incentives or rebates, and the opportunity to sell excess energy back to the grid. As conventional energy prices continue to rise , the financial benefits of solar power become increasingly pronounced over time, making it a wise and sustainable investment.

By opting to support solar, our local community actively contributes to a greener and more sustainable future. Solar power substantially reduces greenhouse gas emissions, thereby playing a pivotal role in mitigating the adverse effects of climate change. Simultaneously, this transition reduces our dependence on finite fossil fuel resources, enhancing our energy security and resilience. It sends a powerful message that we are wholeheartedly committed to safeguarding our planet for future generations. In this pursuit, we join a global movement toward a more sustainable, economically viable energy future.

Jake, one of our Commercial Energy Consultants, explains a new solar system setup and operation to a customer.

Embracing renewable energy choices and supporting NCSEA and other advocacy organizations is a clear testament to our unwavering commitment to transitioning our energy grid away from carbon based fuels and preserving the planet for future generations. By aligning ourselves with the global climate movement and actively engaging at the local level, we play an integral role in shaping a more environmentally conscious and economically viable energy landscape that benefits everyone. Our dedication revolves around empowering individuals and businesses during their transition to renewable energy sources, all while championing a brighter and cleaner future for our local community and the planet. We firmly believe that, collectively, we can usher in a sustainable energy era, one solar installation at a time, and we will continually and steadfastly advocate for this cause.