Net Metering changes
What this means for South Carolina homeowners, and why it matters.
What is Net Metering?
Net metering is an interconnection policy from the utility provider that determines how your solar system connects to the electric grid, and how you receive credit for excess energy your system produces and pushes back to the grid.
Think of net metering like an energy bank that allows you to save your extra solar energy for later use — cloudy days, at night, or during times when your home needs more electricity than your solar panels are producing.
When your solar panels generate more energy than your home uses, the extra electricity is sent back to the grid, and your utility company provides credits on your electric bill. Then, when your home needs more energy than your solar is producing, those credits can help offset the electricity you draw from the grid.
Net metering helps homeowners get the most value from their system by ensuring the clean energy they produce can continue to benefit them even when the sun isn’t shining bright.
What is Changing?
Your solar system is not changing. It will continue generating clean energy and helping lower your electric bills! However, the utility rate used to calculate your bill and solar credits will be changing.
Beginning January 1, 2027, all new solar customers with Duke Energy in South Carolina will be on Residential Solar Choice (RSC) aka Time-of-Use. Until then, existing solar customers have the option of the Net Metering Transition Rate (NMT).
Homeowners Have 2 Options For Their Solar Before the Start of 2027:
Net Metering Transition Rate (NMT): Best for customers who want simplicity and to “set it and forget it”.
Residential Solar Choice (RSC): Best for customers who want more control over their energy rates and a more hands on solar experience.
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Understanding Net Metering Transition Rate (NMT)
Net Metering Transition Rate in South Carolina is a transitional hybrid billing model. It bridges the gap between the previous, traditional fixed-rate net metering and variable Time-of-Use (TOU) rates.
How it works: If you opt-in to NMT, you stay on your current rate schedule. At the end of the month, any net excess solar energy you sent back to the grid is credited at Duke's wholesale rate. NMT is only available to opt-in through 2026, but this secures these rates for 10 years after your Interconnection application date.
It includes a monthly bill charge (roughly $22–$28) and a small non-bypassable charge based on system size, then credits your excess energy at a wholesale rate.
Monthly Netting: Energy generated and energy consumed are calculated on a credit-for-credit basis for the month
Excess Production: Any net excess solar power sent back to the grid at the end of the billing cycle is credited at Duke's avoided-cost rate (around 3.974 cents/kWh)
Understanding Residential Solar Choice (RSC)
Unlike traditional electric rates, where the cost of electricity stays the same regardless of when you use it, RSC uses Time-of-Use (TOU) rates designed to reflect when energy demand is higher or lower. Instead of a flat rate where electricity has the same value throughout the day, TOU rates use different pricing periods based on factors like the time of day and season.
How it works: Typically, electricity is more expensive during peak demand hours, such as times when more homeowners are using energy, and less expensive during off-peak hours. This means homeowners may benefit from shifting energy usage to lower-cost periods or using battery backup to store solar energy and power their home when electricity costs are higher.
It includes a monthly bill charge (roughly $22–$28) and a small non-bypassable charge based on system size, then credits your excess energy at a wholesale rate.
Monthly Netting: Energy generated and energy consumed are calculated on a monthly basis
Excess Production: Any net excess solar power sent back to the grid at the end of the billing cycle is credited at Duke's avoided-cost rate (around 4.19 cents/kWh)
Because TOU rates are based on energy timing, understanding your home’s energy usage and solar production becomes even more important when evaluating potential savings.
If you want to explore this rate and/or choose it for January 1, 2027, Duke Energy asks you to reach out to their Renewable Service Center at 866.233.2290.
What Sugar Hollow Solar Recommends
For a majority of customers, the Net Metering Transition Rate is the simpler choice. With set rates for electricity pulled from the grid, and more favorable credits for excess energy, savings are more predictable. You know what to expect.
If you wish to go this route and you already have solar with Duke in South Carolina, you may already be there. Confirm your status with Duke’s Renewable Service Center at 866.233.2290.
If you do not yet have solar and wish to go this route, we recommend you reach out as soon as possible. Your interconnection application must be submitted by the end of 2026, and it is a process (but don’t worry, we’ll handle the hard parts!)
For some homeowners, Residential Solar Choice may be ideal. If you pair your solar with enough battery backup, you can store and offset your power needs during peak demand allowing you to take more control of your potential for savings with the varying rate structure.
If you wish to explore and/or chose this route for January 1, 2027 and you are on NMT, Duke Energy asks you to reach out to their Renewable Service Center at 866.233.2290.
If you do not yet have solar and wish to explore RSC, we’re here to help ensure it’s the right choice for you.
If you unsure which route makes the most sense, we can help you determine which option works best for your home.
If you already have solar, now is a great time to consider how battery backup can help you take greater control of your energy — regardless of the Net Metering option you select!
Battery storage gives you the ability to store your own energy and use it when you need it most, including during power outages, at night, or during times when electricity rates are higher (hello, Time-of-Use?)
Our team can evaluate your home’s energy usage, explain how battery storage works with your utility rate, and help you determine how many batteries would suit your energy goals.