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California utility regulators last week approved new rules requested by utility companies that reduce the amount of rooftop solar power that rooftop owners can feed back into the grid. Will North Carolina be next?
Charlotte's Duke Energy hoped so. The State Energy Reform Act, passed last year, requires regulators to review the cap rates. For example, in November 2021, the state's largest utility asked North Carolina regulators to adopt new so-called "net metering" rules. This has ignited a year-long battle with solar advocates and new lawmakers who will not only cut fees, but also add an additional monthly fee to those who install solar panels on their homes.
Last week, Duke and several industry groups submitted a joint petition for approval by the North Carolina Public Utilities Commission. The opponents submitted their orders and notices asking the organizers to reject or postpone the decision. The battle can be won in 2023.
Solar advocates say Duke's proposal would make solar power less attractive, increase costs for rooftop solar customers and increase the time it takes for those who invest in solar panels to recoup their investment.
Currently, solar panel owners whose systems produce more electricity than they need receive a credit on their bills equal to what they pay for electricity. According to the proposed changes, this monthly credit will be lower and will vary according to the time of day and electricity demand. Homeowners will be charged an additional monthly fee if they add solar. Duke says the changes bring payments more in line with electricity prices.
Net metering and rebates are important growth drivers for North Carolina's solar industry. But in recent years, utilities across the country have tried to remove those incentives, with some success. It's not hard to see why. If more consumers generate their own electricity, demand will drop, and with it the need for expensive centralized power plants. (Duke makes most of its money at these stations, selling electricity to consumers at cost). In a nationwide campaign, utilities and utility advocacy groups have argued that net metering is unfair to customers without solar power. strength
Lyn Good, CEO of Duke Energy, made the announcement at the company's annual meeting in May.
"We have to pay a fair and reasonable price, so that not only the consumers who produce electricity, but also the beneficiaries pay a reasonable amount," he said.
But environmental groups, as well as solar panel owners and installers, have spoken out. They say Duke's plan will slow the spread of solar power and make it harder for the government to meet its climate goals. Meanwhile, North Carolina Act 589 of 2017 requires a "cost-benefit analysis of customers' use of solar energy." Duke says it provided the information, but both sides say Duke's internal investigation was "flawed" and did not follow the law.
Tasks of the prosecution
North Carolina Attorney General Josh Stein also disagreed with several statements, including one made last week. In March, his office asked for a delay in the plan to allow time to further study the role of rooftop solar in meeting the state's goal of reducing carbon emissions from energy production. State law requires a cost-benefit analysis of rooftop solar.
No one from the attorney general's office was available for an interview this week, but the office said in a statement: "Our office believes that Duke did not adequately consider the benefits of generating electricity to consumers and that the proposed net metering rates are incorrect. We do not consider those benefits." including solar installations on roofs to reduce carbon emissions.'
"It is important that rates fairly compensate solar installers to support the clean energy transition. However, Duke's rates do not take into account all the factors that should be considered to provide fair compensation to consumers and solar installers. Those who do not. Criminals are penalized at a higher rate. ».
Duke has received support from some major solar power groups and has agreed to slow the transition to new rules that would help existing solar owners. The proposed application was filed last week by the North Carolina Sustainable Energy Association, Vote Solar, the Southern Clean Energy Alliance and the Solar Energy Association.
Among other things, the agreement will create a 15-year "temporary tariff" for some existing solar panel owners and those who will install solar power by the end of 2026. But it is still higher than the last rate. It will only be available to a limited number of subscribers each year. Ultimately, the deal allows Duke to drop the fee and continue with its original plan to add a new monthly fee for solar users.
The enemy continued to fight
But rooftop solar installers and other proponents continue to struggle with the idea. In a March letter to the governor, attorney general and regulators, 15 installers wrote that their estimates showed that Duke's plan would reduce the investment costs of solar energy for homes by 25% to 35%. They fear that solar panel owners will find it difficult to repay their solar panel loans.
"Duke's proposed changes will significantly increase the time it takes to pay back my initial solar investment," Donald Ullman of Durham, owner of Home Solar Energy, said last week. "A corporation should not be allowed to change the value of the individual owner's investment after the purchase."
Ullmann was one of the parties to another joint statement to the Public Service Commission last week. These include the Environment Task Force, NC WARN, Sunrise Durham, 350 Triangle, 350 Charlotte, North Carolina Climate Solutions Coalition and the North Carolina Alliance to Protect Our People and the Places We Live. They called for a formal cost-benefit analysis of rooftop solar systems before the rate change.
Duke Energy spokesman Randy Wells said Duke solar owners are being overpaid for electricity.
"If you're paying retail price for solar every time, in many cases it's not worth it. So you're paying people more to produce solar at the expense of other people: 'Wait, I'm not getting the same.'" we are," Wiles said this week.
The Public Utilities Commission is working on a carbon emissions plan by December 31. It is not yet clear when regulators will be able to turn their attention to the net metering changes.
You can read all the case papers at NCUC.net.
More information on carbon mapping
State regulators have spent much of this year reading documents, commenting and holding public hearings on Duke's proposed carbon plan. The North Carolina Energy Reform Act passed last year requires the commission to come up with a plan by the end of the year that will see Duke Energy decarbonize its power plants to meet the state's climate goals. Regulators hope to issue an order by next Friday. Read more in my Dec. 21 report, "North Carolina Energy Regulators Face Choices Over Duke's Carbon Cut Plan: How Fast and How Far Should You Go?"
