The short answer is no. But net metering will look different from its current form. Here are the highlights:
You may have heard by now that net metering is officially changing. After 20+ years as one of North Carolina’s oldest local solar installers, we’ve been through the many ups and downs the clean energy industry has to offer. Here’s the latest ride on the NC solar coaster — so buckle up and hold on tight! Before we dive into the new changes, let’s briefly look at the current state of net metering in North Carolina.
*Note: There are a handful of other smaller utilities that also offer net metering in NC. This article will focus on Duke Energy’s net metering changes.
Net metering is a solar interconnection policy that controls how your solar system is connected to the utility’s grid AND how you are credited for the solar energy you produce.
With Duke’s current net metering policy, the utility stores your electricity credits at a 1:1 rate so you get the full retail value of your solar electricity. You can think of net metering like an energy bank that allows you to save your extra solar energy to use later during those rainy days.
Duke Energy installs a special “bi-directional” meter that captures when your solar system sends excess energy to the utility’s grid. This energy that you send to the grid is applied as a credit for you to use later when your solar system is not producing enough energy for your entire home–at night or on rainy days, for example. Sending this excess energy effectively turns the grid into a storage system for your solar array!
Right now in North Carolina, net metering is the best interconnection policy for solar since it offers a true 1:1 credit for your solar energy. This allows homeowners to capture the most value out of their solar system. Other interconnection policies like buy-all-sell-all or buy-all-sell-excess and time of use rates (TOUs) compensate homeowners for their excess solar energy at a lower, wholesale rate than what they pay for electricity.
TOU rates mean that your energy consumption and solar production are valued differently based on the hour of the day, day of the week, and month of the year.
The value of energy is outlined in a rate schedule, with the utility typically charging more for energy during peak demand hours (think mornings and evenings when everyone is at home). This is in contrast to a flat rate system where usage and solar production are valued the same every hour of the day, year-round.
In November of 2021, Duke Energy filed a proposed change to North Carolina’s solar net metering policy with the NC Utilities Commission (NCUC). These changes are a byproduct of clean energy legislation passed in 2017 through House Bill 589. On March 23, 2023, a version of the proposed changes was approved by the NCUC which were set to go in effect on July 1. As of May 17, 2023, an extension was granted pushing the July 1st date to October 1, 2023.
If you know anything about Southern Energy Management, and especially our co-founders, Maria and Bob Kingery, you’ll know that we aim to stand for things, not against.
After initial net metering changes were proposed by Duke Energy, we were joined by 17 other solar companies, including our friends at Sundance Power Systems and Yes Solar Solutions, in asking Governor Cooper and NC Attorney General to help North Carolina stand for:
You can see our original letter to the governor here. Together with Stew Miller of YES Solar and Dave Hollister of Sundance Power Systems (along with the support of 17 other NC solar companies), our co-founder, Bob Kingery, was part of the working group involved in leading the intervention in the NCUC net-metering case. Through the collaboration of this group, we were able to negotiate a compromise that prevented a drastic reduction of the value of solar for NC solar customers while introducing new consumer protections. Let’s dive into what’s changing for solar and solar customers in NC with Net Metering 2.0.
Duke Energy is piloting a change to the net metering program that will add different fees for new customers who go solar after October 1, 2023. The new net metering program will also introduce a modified net metering structure and a secondary time-of-use rate plan with a new billing system. These changes are still developing, but what we do know is that going solar now will give you best opportunity to control the value of the energy your system produces in this new era of solar in North Carolina.
We’re continuing to work with policy partners, like NCSEA, and other solar companies to advocate for solar and ensure that solar will continue to be as valuable to North Carolinians as possible. As net metering changes go into effect, we will be tracking how these changes impact our customers and our local industry to advocate for adjustments to the policy. Our team is here to help you navigate what would be best for you, now and in the future – and to make that transition as smooth as possible.
You can read the full 42 page NC Utilities Commission approval filing if you want ALL the hairy deets, or keep reading here for the quick hits from our solar team.
Since you’ve already gone solar, take a deep breath – Nothing is changing for you right now. You’ll continue to be on your current solar net metering plan until 2027!
We know you probably have a ton of questions and we’ll be here to answer them for you as soon as we can! Right now, we are working on modeling how the approved fees will impact current and future customers while getting more clarity on the approved changes. Please bear with us as we take this critical time to get as many homeowners into the current structure before October 1, 2023 so that they can have the same net metering opportunity as you.
As we better understand these changes and their impact, we will host a webinar to review these updates with you in the coming months. Until then, we’ll be collecting questions from our customers to answer during that webinar.
Solar Projects that have an interconnection application submitted to Duke Energy before October 1st, 2023 will be grandfathered into the legacy net metering program until 2027.
Legacy net metering will not be available to customers who go solar after October 1st, 2023.
Bottom line — if you know anyone interested in going solar, now is the time! Going solar before October 1st gives new solar customers the most certain financial investment and more options going forward as the policy continues to evolve.
Under the legacy net metering program, the value of solar energy is equal to the retail rate you pay for electricity. It’s easy to calculate because we can look at a customer’s historic utility bills, look at Duke Energy’s current rates, and voila: we know how much your solar energy production is worth. Under the new program, after October 1, the answer is not quite so simple for homes that switch to a time-of-use rate. Because of the way TOU rates work, solar’s value will be dependent on the:
All the variables add a lot of complexity to the solar design and modeling process. Under the legacy net metering system, we needed 24 energy data points to model solar effectively (12 months of the homeowner’s energy usage data and 12 months of projected solar production). Under the new system, that number increases to 17,520 data points, with hourly data required for both historic energy usage (8,760 hours) and projected solar production (another 8,760 hours).
These changes create more opportunities for miscalculating solar savings. This makes it more important than ever to consult with a local, established solar company who understands the ins-and-outs of these rates before you make your solar decision — and to make that decision now, before things get more complicated after October 1st.
Because of the complexities net metering changes introduce into modeling solar’s value with TOU rates, the solar industry was adamant about including consumer protections for North Carolinians as part of negotiations with Duke Energy.
Under the approved changes, Duke Energy is required to create an online solar calculator to provide an accurate estimate of the financial impact of solar for a homeowner’s given address. This calculator has not yet been released, but is required to be created within 60 days of the March 23 approval. As we’re nearing the 60 day window, Duke Energy was recently granted an extension to develop the online bill savings calculator by July 1st, thereby extending the deadline for the new Net Metering policy to go into effect on October 1st.
We’ll be vetting this tool against our own calculations and will keep you posted as soon as we see it come through!
See solar on your home! Our solar calculator uses your home address, the details you provide, and LIDAR satellite technology (with a dash of AI) to give you a ballpark estimate of how much you could save by going solar.
What do these net metering changes mean for current solar system owners, people exploring solar, and everyone else?
🌞 If you already have solar:
Help your friends and family get started on their solar journey! Going solar before October 1, 2023 will give them access to the same benefits that you have as a legacy net metering customer.
✨ If you are considering solar:
Our advice is to go solar now so that you benefit from the current net metering structure and have more options going forward.
⛅ If you are not considering solar:
You should be! Regardless of the changes to Duke’s net metering policy, energy prices and our need for clean and independent energy is only going to go in one direction: up.
If you are just starting on your solar journey, our best recommendation is to start your solar journey now, so you will be grandfathered into the current net metering system before the October 1st deadline.
Reach out to let us know if you’d like to get started and see if solar is a good fit for you!
Schedule a free assessment to learn more about solar power & battery storage for your home.