North Carolina’s solar landscape is experiencing significant changes following Duke Energy’s adjustment to bill credits for homes equipped with rooftop solar systems. Despite critics’ concerns about potential declines in solar adoption, the data reveals a complicated scenario. While the number of new household solar connections in Duke’s jurisdiction is on track to decrease by around 40% from 2023 levels, various factors are contributing to this reduction. Installers maintain an optimistic outlook, focusing on emerging incentives and strategies to overcome these challenges in the solar industry.
Historically, North Carolina has been a leader in solar energy, with favorable policies that boosted its growth. However, the shift from retail net metering, which allowed homeowners to sell excess energy back to the grid at retail rates, to a more complex system, represents a departure from past practices. Previously, the solar market thrived due to favorable conditions, including rebates and low interest rates, enhancing its attractiveness to potential adopters. Now, installers are adapting to new realities while maintaining a positive outlook.
A Complex Truce on Net Metering?
The adjustments in net metering agreements play a crucial role in this transition. Previously, customers could buy and sell excess electricity at retail rates, but the updated policies have altered this arrangement. New solar customers can choose between a “time of use” rate and a “bridge rate” until 2027. The “bridge rate” provides a straightforward exchange for electricity use, appealing to those who prefer simplicity. Installers advocate for this rate as it offers predictability in the changing policy landscape.
What Are the Industry Cross Currents?
Despite these policy changes, some installers remain confident, reporting continued interest in solar installations. However, metrics from Duke Energy indicate a decline in new solar rooftops, with projections signaling a 40% drop in installations compared to prior years. The decrease may be influenced by factors such as higher interest rates and the expiration of rebate programs. Nonetheless, experienced installers emphasize the importance of adapting to industry ebbs and flows, highlighting the resilience of the solar market.
The introduction of the Power Pair battery incentive program emerges as a pivotal catalyst for optimism in the solar industry. This initiative provides rebates for both home batteries and solar arrays, significantly reducing the cost for consumers. The program encourages customers to integrate battery storage with their solar systems, offering additional financial benefits. This development aligns with the industry’s goal of promoting energy independence and grid stability.
Power Pair is gaining momentum, with a notable increase in battery installations alongside solar systems. Installers report a substantial rise in customer interest, with a significant portion of new adopters opting for battery inclusion. This trend underscores the evolving dynamics within the solar market, as consumers increasingly prioritize energy storage solutions in their renewable energy investments.
Looking ahead, the solar industry in North Carolina faces multiple challenges and opportunities. Extending successful programs like Power Pair and expanding their reach to small businesses and nonprofits could enhance the sector’s growth potential. The expiration of the bridge rate in 2027 presents both a challenge and an opportunity for market adaptation. As the solar landscape continues to evolve, industry stakeholders are focused on creating a sustainable and resilient energy future.
