Solar power in North Carolina
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Solar power has been increasing rapidly in the U.S. state of North Carolina, from less than 1 MW (megawatts) in 2007 to 6,152 MW in 2019, when it had the second-largest installed PV capacity of all states.[1]
The economic viability of solar energy is heavily influenced by political and technological factors. Political dynamics play a critical role in shaping renewable energy policy, with barriers such as political polarization and protection of incumbent industries often hindering the adoption of solar power. Long-term analyses of U.S. policies demonstrate how favorable regulations can accelerate solar adoption, a consideration particularly relevant to North Carolina. With its abundant agricultural land, and its relative political power as a swing state, the state has the potential to lead in solar energy expansion by advocating for supportive policies and leveraging technological advancements.[2]
In addition to federal incentives, the state has a Renewable Portfolio Standard of 12.5% by 2021 and a state renewable energy tax credit, both of which have been credited with boosting solar installations.[3][4][5] Recently in June 2023, the Environmental Protection Agency released $7 billion for solar for all notice. This is a program that aims to expand solar to disadvantaged communities.[6]
In North Carolina, the distribution of solar power production is mainly on land that is classified as agricultural land, at 63%.[7] In North Carolina there exists potential growth for solar energy on this agricultural land. Specifically, land that has watersheds adjacent to the land. Furthermore, a 2018 Smithsonian Magazine article described North Carolina as likely being the national leader in the "solar shepherd phenomenon" – combining sheep farming with solar power plants to reduce the high costs of grass trimming.[8] A drawback of distributing solar power on agricultural land is the land that can potentially be lost for crops. There are debates of whether solar will harm agriculture.[9]
Duke Energy is a large energy providing company. They have been playing a role in implementing solar in North Carolina, making it second in the nation for most solar energy usage. In 2017 they helped develop laws that allowed the implementation of solar and made it more affordable.[10]
According to a report from the Solar Energy Industries Association, as of June 2019, North Carolina generates 5.81% of its electricity through solar power, and ranks second (up from 3rd in 2018) in total installed photovoltaics.[11] As of 2023 this number is up to 9.33% being ranked 4th.[12]
Major solar power projects currently operating in North Carolina
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Generation
Using data available from the U.S. Energy Information Agency's Electric Power Annual 2017[60] and "Electric Power Monthly Data Browser",[61][62][63][64] the following table summarizes North Carolina's solar energy posture.
| Year | Facilities | Summer capacity (MW) | Electric energy (GWh or M kWh) | Capacity factor | Yearly growth of generating capacity | Yearly growth of produced energy | % of NC renewable electric energy | % of NC generated electric energy | % of U.S. Solar electric energy |
|---|---|---|---|---|---|---|---|---|---|
| 2018 | 523 | 3982 | 6997 | 0.201 | 18.7% | 25.4% | 53.5% | 5.2% | 10.5% |
| 2017 | 481 | 3355 | 5579 | 0.190 | 37.7% | 63.1% | 51.6% | 4.3% | 10.5% |
| 2016 | 411 | 2437 | 3421 | 0.16 | 69.6% | 149% | 32.9% | 2.6% | 9.5% |
| 2015 | 262 | 1436.8 | 1374 | 0.11 | 112.5% | 88.5% | 15.8% | 1.07% | 5.5% |
| 2014 | 676 | 729 | 0.123 | 103% | 111% | 9.10% | 0.60% | 4.10% | |
| 2013 | 84 | 333.2 | 345 | 0.176 | 190.8% | 148.2% | 3.5% | 0.27% | 3.82% |
| 2012 | 38 | 114.6 | 139 | 0.199 | 156.4% | 717.7% | 2.16% | 0.12% | 3.21% |
| 2011 | 15 | 44.7 | 17 | 0.049 | 27.7% | 54.6% | 0.27% | 0.01% | 0.94% |
| 2010 | 9 | 35 | 11 | 0.066 | 1067% | 120% | 0.16% | 0.01% | 0.91% |
| 2009 | 3 | 3 | 5 | 0.190 | 0% | 150% | 0.07% | 0.00% | 0.56% |
| 2008 | 3 | 3 | 2 | 0.152 | 0% | 0% | 0.04% | 0.00% | 0.23% |
| 2007 | 0 | 0 | 0 | 0 | 0% | 0% | 0.00% | 0.00% | 0.00% |
In summary, solar-electric generation has increased from 2007 to 2018 at a decreasing rate. The percentage of solar generated electric energy has steadily increased, but the yearly growth of generating capacity and yearly growth of produced energy peaked in 2012–2013.
Capacity factor for each year was computed from the end-of-year summer capacity. 2018 data is from Electric Power Monthly and is subject to change.
| NC Utility Scale solar generation (GWh, Million kWh)[65][66] | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sept | Oct | Nov | Dec | Total |
| 2011 | 17 | ||||||||||||
| 2012 | 2 | 2 | 4 | 6 | 6 | 6 | 9 | 7 | 9 | 17 | 23 | 48 | 139 |
| 2013 | 10 | 17 | 24 | 21 | 32 | 34 | 34 | 32 | 36 | 40 | 30 | 35 | 345 |
| 2014 | 31 | 41 | 56 | 58 | 74 | 67 | 69 | 75 | 68 | 88 | 49 | 54 | 729 |
| 2015 | 63 | 52 | 95 | 110 | 160 | 151 | 167 | 156 | 109 | 100 | 76 | 135 | 1,374 |
| 2016 | 168 | 175 | 348 | 300 | 265 | 320 | 336 | 448 | 328 | 254 | 182 | 298 | 3,421 |
| 2017 | 265 | 335 | 423 | 477 | 534 | 482 | 537 | 480 | 473 | 423 | 372 | 314 | 5,115 |
| 2018 | 402 | 356 | 514 | 632 | 629 | 677 | 643 | 658 | 440 | 483 | 369 | 308 | 6,111 |
| 2019 | 410 | 398 | 661 | 680 | 772 | 753 | 838 | 749 | 683 | 556 | 481 | 472 | 7,451 |
| 2020 | 477 | 492 | 641 | 872 | 873 | 850 | 955 | 766 | 650 | 660 | 552 | 484 | 8,274 |
| 2021 | 517 | 520 | 817 | 1018 | 1085 | 990 | 1037 | 986 | 916 | 775 | 715 | 548 | 9,922 |
| 2022 | 635 | 719 | 969 | 1157 | 1173 | 1251 | 1174 | 1111 | 1048 | 938 | 664 | 534 | 11,373 |
Beginning with the 2014 data year, the Energy Information Administration (EIA) has estimated the distributed solar-photovoltaic generation and distributed solar-photovoltaic capacity.[67] These non-utility-scale appraisals evaluate that North Carolina generated the following amounts of additional solar energy:
| Year | Summer capacity (MW) | Electric energy (GWh or M kWh) |
|---|---|---|
| 2014 | 56.8 | 72 |
| 2015 | 71.7 | 84 |
| 2016 | 109.7 | 167 |
| 2017 | 114.9 | 186 |
| 2018 | 140.1 | 212 |
| 2019 | 180.2 | 260 |
| 2020 | 200.0 | 310 |
| 2021 | 230.5 | 360 |
| 2022 | 260.7 | 420 |
| 2023 | 290.0 | 430 |
| 2024 | 320.0 | 473 |
Duke Energy rebates
On January 22, 2018, Duke Energy Renewables proposed a $62 million rebate program for both residential and nonresidential customers. It was the first of three programs Duke is proposing as part of "Competitive Energy Solutions for North Carolina" legislation, signed into law in 2017 by Gov. Roy Cooper. The program requires approval from the North Carolina Utilities Commission.[69]
| Electricity customer | Eligible rebate | Maximum rebate |
|---|---|---|
| Residential (10 kilowatts or less) |
60 cents per watt | $6,000 |
| Nonresidential | 50 cents per watt | $50,000 |
| Nonprofit entity | 75 cents per watt | $75,000 |
Customers would also have the option of leasing solar equipment from a third-party.
On April 16, 2018, the North Carolina Utilities Commission approved the program. It applies to Duke Energy's residential, nonresidential and nonprofit customers who installed a solar system and a bi-directional meter on their property on or after January 1, 2018.[70]
EnergizeNC: North Carolina's Solar For All Program
The EnergizeNC coalition was awarded a $156 million grant on April 22, 2024, by the Environmental Protection Agency (EPA). The grant is part of the $7 billion Solar for All program, which seeks to invest in solar projects for low-income and disadvantaged communities. EnergizeNC has three focus areas for solar: rooftop installation in single-family homes, behind-the-meter installations in multifamily housing and non-profit buildings and community solar programs (electric co-ops). The program is expected to launch statewide in Fall 2025.[71]
Duke Energy Solar Centers
A solar center is a facility that has thousands of installed solar panels. Duke Energy has proposed projects for a variety of solar centers using PV panels. The plan is to have the centers operating by late 2025 and they are estimated to produce enough electricity to power 23,000 homes.[72]
| Solar Center | Location | Megawatts | Solar Panel Amount |
|---|---|---|---|
| Bailey Mill[73] | Jefferson County | 74.9 MW | ~163,000 |
| Half Moon[74] | Sumter County | 74.9 MW | ~142,000 |
| Rattler[75] | Hernando County | 74.9 MW | ~210,000 |
In the chart above are the plans for facilities in various areas. Also, a proposed plan in North Carolina, known as the Longleaf Solar Center, will be located in New Hill, NC. It is proposed to be completed in 2028. It is said to be a 100 MW facility with about 215,000 solar panels and the ability to power 27,900 homes.[76]
Pricing of solar energy
The price of solar power in North Carolina has been steadily decreasing since its introduction. Currently, the average price for one watt of solar power is $2.29 during the installation process.[77] This has also decreased further via economic incentives and subsidies.[77] The federal solar tax credit reduces the cost of installation by up to 30%.[77] The average period for the solar powers to pay for their own installation, however, is 11 years in North Carolina.[77]
| Wattage | Cost |
| 6W | $13.72 |
| 7W | $16.00 |
| 8W | $18.29 |
| 9W | $20.56 |
| 10W | $22.26 |
There are also systems in place such as home equity loans, also known as home equity line of credit (HELOC), which utilize the house as collateral, providing a lump sum payment that can be paid back over the course of several years.[77] This aids in covering the initial high cost of a full 3-10 kW solar power system, which may not be affordable for some people without financing.[77]
Solar power distribution potential
Research efforts are ongoing to improve and maximize the amount of North Carolina's energy that is sourced from solar energy. One area of interest is agricultural land that has an adjacent water shed. A case study was performed in 2020 to find potential areas that would maximize the economic impact of solar farms and minimize the impacts on land and the environment.[7] The environmental impacts were found to be minimal compared to other energy sources like coal and fossil fuels that create pollution in the runoff and water sheds.[7] The study also found that in the eastern part of the state there already exists a relationship between farmlands and active solar farms.[clarification needed] It was shown that many agricultural areas are located by watersheds that have high levels of water pollution and damage caused by current energy practices.[7] The study concluded that using agricultural land adjacent to water sheds has high potential.[7] With the availability of this land and the benefits associated, solar energy has the potential to source up to 40% of North Carolina's total energy production.[7]
