NC Solar Incentives
For homeowners interested in installing solar, there are several incentives available at the federal and state level designed to help lower the overall installation cost. This page is intended to help serve as a guide and resource for some of those incentives. This resource is only intended for educational purposes and should not be relied upon for financial projections or calculations. This information may not be entirely up to date, so please make sure to reach out to your utility and preferred installer for the latest updates.
RESOURCES
The following webpages are great resources to identify available solar and electrification incentives in your jurisdiction.
DSIRE USA
DSIRE is the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University and receives support from EnergySage.
PowerPair - Residential Solar + Storage Incentive
KEY DATES:
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March 2024 - Duke Energy’s PowerPair website live
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May 10, 2024 – June 7, 2024 - Initial PowerPair application expected to open
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June 21, 2024 - PowerPair enrollment window reopens on a first come, first served basis
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July 9, 2024 - Customers may begin enrolling an eligible battery storage system
BACKGROUND:
On January 11, 2024, the NC Utilities Commission (NCUC) issued an order approving a new solar and storage pilot incentive program available to all customers across Duke Energy Carolinas and Duke Energy Progress utility operating territories in North Carolina (the terms and conditions of the program can be found here). This program was established as a limited pilot (with program caps) to better understand the role that residential solar and batteries can help play in meeting demand placed on the grid throughout certain peak times of the year. To compensate customers for the role their systems play in serving as a grid asset, the NCUC approved upfront and ongoing incentives to lower the overall cost of installation. Below are additional details about the program, including timing, eligibility, incentive amounts, and FAQs. Should you have any additional questions about the program, reach out directly to Duke Energy’s PowerPair team at PowerPair@duke-energy.com, or PMBattery@duke-energy.com for ongoing incentive/battery control questions. You can also subscribe to regular email updates from Duke Energy about the PowerPair program by visiting this webpage.
CUSTOMERS COULD BE ELIGIBLE TO RECEIVE UP TO A ONE-TIME $9,000 INCENTIVE
THE INCENTIVES:
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Solar and Storage Incentives: The PowerPair incentive for residential solar and battery customers encompasses an upfront and ongoing incentive based on the size of a system and rate structure. All in all, customers could receive up to a one-time $9,000 total rebate to help offset the installation cost of solar and batteries. Customers are eligible for a $0.36/watt incentive on solar panels, limited to a max installation capacity of 10kW and capped at $3,600 per residence. For battery storage, customers are eligible to receive $400/kWh, limited to a maximum installed capacity of 13.5 kWh and capped at $5,400 per residence (Only newly installed systems are eligible for incentives. [Existing solar customers retrofitting their systems with a new battery are not eligible for this incentive]). System sizes may exceed the stated incentive capacity listed above, however, the incentive will only apply to the portion of the system under the cap.
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Battery Control Incentive: After installation of your residential solar and battery storage system, if a household elects to participate in Cohort B (outlined below) they will be eligible to receive a monthly incentive of $6.50/kW of the discharge nameplate value for the battery storage system (multiplied by a 70.9% capability factor). In order to receive this incentive a customer agrees to allow the utility to control/discharge their battery a minimum of 30 events and a maximum of 36 events per year. (This incentive is applicable to each battery if more than one is installed and is not capped). See the chart below for an explanation of the cohorts that customers will have an option to enroll in, dictating the battery control incentive and overall rate structure for their solar system.
TIMING:
The program has an expected effective date of May 10, 2024, though see below for key implementation dates.
Initial enrollment for the incentive program will open for a period of four weeks beginning on May 10, 2024 and ending on June 7, 2024. At the end of the four-week enrollment period, Duke Energy will pause new enrollments for two weeks starting on June 7, 2024, until enrollment reopens on a first come, first served basis. In order for projects to be eligible for the incentives in the first round of selection, the system must be operational within either 90 days prior to May 10th. If there is still capacity remaining in the program, Duke Energy will reopen enrollment starting on June 21, 2024 until capacity is reached or the 3-year enrollment period ends. For the ongoing incentives that compensate customers on a monthly basis for utilizing their batteries as a grid asset, enrollment starts on July 9, 2024 (Power Manager – Duke Energy Carolinas or EnergyWise Homes – Duke Energy Progress) [Of note – customers do not have to participate in PowerPair to be eligible to participate in these programs).
SELECTION:
After the initial enrollment period ends on May 10, 2024, Duke Energy will pause enrollments for two weeks to correct any defects found in customer applications. After this two week pause, Duke Energy will utilize a third party to conduct a random selection process to assign all applications a spot in line for the incentives. Those applications will then be processed in order and assigned to the appropriate cohort. If there are any capacity or participation limitations based on total customer participation or customer preference between cohorts, customers will be placed on a waiting list (customers placed on the waiting list will not lose their eligibility for incentives. If capacity remains in the unselected cohort, the customer will be allowed to switch their choice or remain on the waiting list).
LENGTH AND CAPACITY:
Under the PowerPair program, each Duke Energy utility (Duke Energy Progress and Duke Energy Carolinas) has an overall program capacity of 30MW (for reference the current average PV system size in North Carolina is 4kW). Enrollment in the program will end once these capacities are reached or at the end of three years from program start date. Once enrolled, households are required to participate in the program for at least ten years, unless termination is for good cause (early termination would trigger a one-time charge equal to one minus the number of months since initial participation divided by 120 multiplied by the applicable incentive). Additionally, participants must stay within their chosen cohort for at least the first two years before switching and may only switch up to two times total during the ten years.
FAQs
Question: If a system is over 10 kW solar capacity and/or over 13.5 kWh of stored power via the battery system, would the system still qualify for the PowerPair program? Yes, however, the incentive payments would be capped to 10 kW for the solar panels and 13.5 kWh for the battery. Max energy exported back to the grid cannot exceed 20 kW-AC, as outlined in the Interconnection Agreement.
Question: The program is "limited to a maximum installed capacity of 10 kW" but does that mean that the $0.36 incentive is limited to a maximum installed capacity of 10 kW, or the entire system is limited to that capacity? The $0.36 solar incentive is limited to a maximum installed capacity of 10 kW-AC. A higher solar capacity can be installed, but the incentive stops at 10 kW-AC. The entire system is limited to a max export of 20 kW-AC to the grid.
Question: Will May 10, 2024, be the start date to submit applications? No. May 10th is the date the tariffs become effective. Though this is the earliest that Duke could process applications, the utility will start accepting applications on May 8—they will not be processed until after June 5 (see timeline above).
Question: With the 90-day retroactive period if Duke Energy starts accepting applications in June, would systems installed in mid-March be eligible to apply? Yes. The terms & conditions say that the first projects that are eligible are those completed within 90 days of the start application period. Therefore, projects completed within those 90 days of that initial application period date can be pulled into the program. We understand that completion will be "based on the Operational Date of Installed Equipment as determined by the Company, which may be no earlier than 90 days prior to submission of an application and no later than 270 days following notification of the PowerPairSM Reservation." So, our understanding is that the earliest retroactive system, that is compliant, that can be pulled into the program is a system completed within 90 days of the opening of applications.
Question: Is there a waiting list for applications for Power Pair that don’t make it within the cap? Yes. If applications exceed the program participation cap (30,000 kW(AC) for each of Duke's service territories), the Company will place applicants on a waiting list in a first come, first served order.
Question: How does the cohort A or B selection work? The pilot requires that cohorts be split equally. Duke is implementing this by having a maximum participation rate of 80% for each cohort (or a minimum participation rate of 20% per cohort). Duke is also requiring a minimum total capacity for each cohort of 6 MW (or a maximum of 24MW per cohort). We understand that customers can apply for either cohort, but the Companies reserve the right to stop accepting new participants under either cohort’s net-metering rider to achieve these participation requirements. Customers would then be placed on a waitlist (where their eligibility for incentives would not be affected) until either capacity is available or customers will be offered the choice of joining the other cohort. Customers can switch cohorts after 2 years and cannot switch cohorts more than twice during the 10-year program term. Some key distinctions between the cohorts: Cohort A - requires a time of use (TOU) rate for net metering and will have full control of the storage system. Cohort A cannot participate in a Battery Control Option during the initial 2-year period. Cohort B - gets the bridge rate but is required to participate in the modified EnergyWise/Power Manager Battery Control Option. This cohort gets the extra incentive ($6.50/kW per month) for Duke (or a third-party operator) to have access to and to monitor the storage system during weather events/peaks.
Question: If you are in Cohort B with the bridge rate, are you required to opt into the agreement with Duke to pull from your energy storage system? If a customer participates in the Net Metering Bridge Rider NMB (Cohort B), the Customer must participate in a new demand response program called Battery Control, a new measure within the modified EnergyWise and Power Manager programs. The Company proposes that, under Battery Control, it or a third party would be able to control customer Batteries up to 18 times per winter control season (December through March); and up to 9 times per summer control season (May through September); and up to 9 times in the remaining months (collectively, referred to as “Control Events”). A Control Event is defined as the initiation of a signal to control the Battery and, within 48 hours later, discharging it. The Company will not discharge the Battery below a 20% state of charge. The Company also reserves the right for interruption outside of these parameters in the event continuity of service is threatened. For systems participating in these programs, there will be a minimum of 30 Control Events and a maximum of 36 (in line with the seasonal limits set out above).
Question: Is the Pilot intended to be 30,000kW per Company for a total of 60,000kW or 15,000kW per company for a total of 30,000kW? It is 30,000 kW (AC) per service territory. 30,000 each for Duke Energy Progress (DEP) and Duke Energy Carolinas (DEC), for a total of 60,000 kW.
Question: Is the incentive only for solar + battery systems? Or does a standalone battery system or adding a battery to an existing solar system qualify? The incentive is only for new solar plus battery storage systems. Adding additional solar panels to an existing system does not qualify. The system should be entirely new (both solar and storage). However, a standalone battery or a battery added to an existing system would be eligible to join the EnergyWise and Power Manager programs, and thus be eligible for the Battery Control Incentive of $6.50/kW.
Question: Will this rebate program be like the solar rebate program that gave customers a week to apply and then was a lottery? No. Customers may initially apply for the Pilot during a four-week application period from May 8th to June 5th, 2024. The initial application period will close for a two-week period. Eligible applications will be entered into the Random Selection Process. Applications will be assigned a place in line at random using analytical software and then processed in that order. Applications will then either receive an incentive allocation or be placed on the waiting list.
Question: Are there kW limitations? The solar incentive amount is capped to 10 kW AC from the nameplate capacity reading on the inverter. The PowerPair battery incentive is capped to 13.5 kWh.
Question: Does a contract for solar plus storage have to be signed after this incentive goes into effect in May or can solar installers sign people up now? Customers cannot apply for PowerPair incentives until May 8th, 2024, however, the interconnection application can be submitted prior to this date. The operational date can happen up to 90 days prior to the launch date of PowerPair in May, so long as all of the program’s eligibility requirements are met, however, the incentive is not guaranteed as the application will be processed through the random selection at the end of the initial 4-week application window.
Question: Does a solar plus storage system installer have to be a “Trade Ally”? A Duke Energy website says that participating North Carolina homeowners can earn one-time installation incentives when they have a Duke Energy Progress Trade Ally install a qualified solar + battery system and that Trade Allies are skilled professionals who have been vetted by Duke Energy Progress and can be found by using a Find it Duke referral tool. Yes. The solar plus storage system installer must be a “Trade Ally,” as certified by either Duke Carolinas or Duke Progress, or both, as necessary. Duke Energy intends to consider such things as Better Business Bureau ratings, customer reviews, resolved vs. unresolved complaints, company location, and sales practices. Duke may refuse or revoke a company’s registration if their business practices are found to be unethical, deceptive, or misrepresentative. “Trade Ally” designation is separate from the Find It Duke program; however, a company may elect to also participate in the Find It Duke program if it so chooses (and completes additional required application paperwork). The portal to apply for “Trade Ally” status is Tradeally.aspirerewards.com.
Question: Can the battery control incentive be used against a customer’s minimum monthly bill so that their bill could be $0? If there are excess credits in such a situation, would those roll over to the next month? Or are they zeroed out after each month/at some particular time? The incentive can be used against a customer’s bill so that the bill can be $0. If there are excess credits these credits will roll over to the next month and will not be zeroed out.