By Peter Castagno
A prominent clean energy nonprofit issued a new proposal to revise Duke Energy’s carbon plan to expand rooftop solar throughout the state, arguing the strategy would address climate change and result in lower costs for ratepayers.
NC WARN is a Durham-based nonprofit focused on promoting the clean energy transition in North Carolina. On Tuesday, the group introduced its “Shared Solar” proposal focused on a broad expansion of rooftop solar paired with on-site storage, known as solar plus-storage (SPS).
Under the 2021 state law HB 951, Duke must reach carbon neutrality by 2050 and reduce carbon dioxide emissions to 2005 levels by 2030. The company introduced an updated carbon plan in accordance with the law in January, which includes natural gas expansion as its largest energy source over the next decade. New infrastructure would produce 8,925 megawatts of gas power by 2031 versus 6,640 MW of solar by the same year.
Duke estimates infrastructure development from the current proposal would increase ratepayers’ monthly bills over $50 by 2033 and $80 by 2038.
The NC Utilities Commission is currently reviewing the plan and expected to amend, reject, or approve it in November. The review process involves public hearings for feedback from ratepayers, including a meeting at New Hanover County Courthouse last month. More than 20 residents criticized the plan for its emphasis on natural gas and excessive rate increase projections.
Duke argues natural gas is a necessary component of the carbon plan because economic growth in the state is driving a major increase in energy demand.
“Meeting the energy needs of a growing and economically vibrant state, while delivering a path to cleaner energy that protects reliability and affordability for our customers, requires a diverse, all of the above approach including next-generation nuclear, natural gas, solar, wind and storage resources,” spokesperson Bill Norton told Port City Daily.
The Shared Solar Plan
Although Duke’s current carbon plan already includes a major expansion in solar power, NC WARN argues it excessively focuses on large-scale infrastructure that will take years to build. The group believes emphasizing localized SPS would be a more immediate solution and potentially save billions in transmission infrastructure costs required from reliance on large-scale solar farms.
Under the proposal, customers could choose whether or not to build SPS at their homes. Installation would be funded by the utility and ratepayers, and Duke would pay customers for the right to use excess SPS energy shared to the grid when necessary.
Advocates argue solar and other renewables will progressively lower costs in coming years as fossil fuels sources become more expensive. NC WARN has cited research such as a 2014 study by investment research firm Sanford Bernstein & Co., which found rooftop solar lowers market prices for electricity by reducing peak demand.
Chris Carmody, executive director for Carolinas Clean Energy Business Alliance, told PCD Duke’s recent rate hikes are often mistakenly attributed to renewables, but natural gas and other commodity price fluctuations were the cause of its 11.7% rate hike last year. He also cited an April study of NC Utility Commission data by Cary-based consultant EQ Research that found natural gas plants caused 67% of Duke Energy Carolina’s rate increases since 2017.
NC WARN notes they are open to variations of their preferred approach but believe SPS should be given open and fair consideration by the North Carolina Utilities Commission. They argue Duke would still earn a fair return on its investments in solar power and the plan would serve as a boon to the state’s solar companies and workforce.
Duke spokesperson Bill Norton said the company does support rooftop solar, citing an incentive program that opened last week and currently has more than 400 applicants.
“North Carolina is already number four in the nation for solar, and rooftop solar plus storage is poised to grow even more thanks to Duke Energy’s new Power Pair program recently approved by the North Carolina Utilities Commission,” he said. “Developed in conjunction with solar developers and many other stakeholders, this new incentive helps make a home solar-plus-battery system more affordable for customers.”
Robert Parker — COO of Wilmington-based Cape Fear Solar Systems — praised Duke’s Power Pair initiative after the New Hanover County hearing last month, but argued it will fill up quickly and should be modified into a permanent program. He added it should expand to commercial clients, as it currently only serves residential customers.
Alternatively, NC WARN executive director Jim Warren views the incentive program as a public relations stunt. He differentiated the “Shared Solar” proposal from Duke’s incentive program, noting NC WARN’s effort would have no up-front costs and focus on expanding affordable energy to low- and middle-income people throughout the state, as well as businesses and nonprofits.
“They basically rolled out this pilot program to mask the damage being done to the rooftop solar industry,” Warren said. “Duke does pilot programs to get PR value and then they kill them. It doesn’t matter how successful they are.”
