In March 2023, Duke Energy North Carolina made significant revisions to its solar net metering policy. Net metering is a credit system that allows solar customers to receive credits for excess energy they produce. These credits can be utilized when their solar systems are not generating sufficient power, such as during bad weather conditions. The current Duke net metering policy in North Carolina ensures that customers’ produced energy will be consumed at some point, either immediately or stored for later use.
Recent Modifications to Net Metering
Starting from October 1, 2023, Duke Energy North Carolina will introduce a range of fees for customers who purchase solar systems after this date. Additionally, the net metering system will be updated to incorporate a time-of-use rate plan along with a new billing system. While specific details about these changes are not yet available, it’s important to understand how they will impact existing and future solar energy customers.
Impact on Existing Customers
Customers who have already transitioned to solar energy will not experience any net metering changes until January 2027. At that point, existing customers will be subject to a modified net metering rate known as a bridge rate. The duration of the bridge rate will be determined by subtracting the year 2027 from the year their system’s interconnection was submitted and then subtracting this value from 15. For example, if a customer’s interconnection date is 2015, they will be on the bridge rate for three years.
Duration of Bridge Rate = 15 years – (2027 – interconnection year)
Duration of Bridge Rate = 15 years – (2027 – 2015)
Duration of Bridge Rate = 3 years
Customers who plan to invest in solar energy before October 1, 2023, must apply for interconnection with Duke Energy North Carolina to be included in the existing net metering program. After January 1, 2027, these customers will be subject to a modified rate for 12 years before transitioning to a time-of-use rate. It’s important to note that any credits currently rolling over under the existing net metering policy will not transfer to the bridge rate or time-of-use rate. Instead, these credits will be used at the avoided cost rate and applied to the bill, which will be no less than the minimum bill for the bridge rate or time-of-use rate.
Implications for Future Customers
Customers who choose to invest in solar systems after October 1, 2023, will encounter a new set of fees and must decide between a modified net metering rate or a time-of-use rate. The selection between net metering and time-of-use will depend on the customer’s appliance usage patterns and the type of system they have installed.
Need A System Expansion?
Customers who already have a solar energy system that are looking to expand their system will have the same conditions applied as if they were installing a new system. To continue to be included in Duke Energy North Carolina’s existing net metering program, customers should expand their systems before October 1, 2023 and have an expansion contract signed by September 24, 2023
Seize the Opportunity
Now is the ideal time to adopt solar energy in order to maximize the benefits of the current 1:1 net metering policy. The 1:1 credits allow customers to make the most of their energy production, and they will also have more options in the future as modified net metering policies and time-of-use rates come into effect. If you’re interested in solar energy for your home or know someone who might be, click the link here to schedule a consultation without any pressure.
For further information on the net metering changes in North Carolina, you can visit the North Carolina Utilities Commission Page by clicking here.