Why Is Electricity in North Carolina So Cheap?
North Carolina is starting to see a solar farm building boom, but that boom hasn’t extended to houses. Earlier this week, we asked a simple question: If North Carolina’s tax credits on solar panels are among the best in the nation, why don’t more homes in North Carolina have solar panels on them? The easy answer seems to be that electricity here is already relatively cheap compared to a lot of Northeastern states, along with California and Hawaii (where residential solar installations are, pardon the pun, through the roof). Where power is more expensive, people look for alternatives. When it’s cheap, they don’t. So what’s the state of solar in the Carolinas, and why don’t we pay much for power? We asked Duke Energy spokesman Randy Wheeless several questions via email:
NBC Charlotte: Why are rates in North Carolina so low?
Randy Wheeless, Duke Energy: Every state is governed by a utility commission that has different regulatory philosophies - and many states have different laws about how energy markets should work. Plus, different utilities over the years have pursued various strategies. Add it up and rates are different all over the nation (just like gasoline prices). Our attractive electricity prices are a benefit to North Carolina.
NBC Charlotte: If I put 1 kWh of power back out on the grid from the solar panels from my house, will Duke credit me the same amount that I’d have to pay for USING 1 kWh?
Wheeless: Correct. Called net metering, this is how it works in North Carolina. Our only issue with net metering is that Duke Energy can buy solar power from other sources cheaper (like big solar farms) Plus, the homeowner is selling us power on their schedule – not when we need it or want it. A lot of states are looking at the issue to make sure solar customers aren’t being subsidized by non-solar customers — paying less for the upkeep of the electric grid. Because solar customers still depend on the grid. The issue is still small. Only 1,700 customers do net metering in North Carolina.
NBC Charlotte: How close is Duke from meeting the renewable energy requirements that North Carolina has set?
Wheeless: We’re on track. With so much activity in North Carolina, we have many options to increase our renewable portfolio in the state.
NBC Charlotte: Are there any plans to renew the expiring solar tax credit (35%, capped at $10,500) past December 2015?
Wheeless: It’s something for the legislature to decide. I’m sure they’re people on both sides of the issue.
NBC Charlotte: South Carolina’s state senate has passed a law changing the way that state deals with solar panels. What changes would come about if it becomes law?
As you know, South Carolina doesn’t have the attractive incentives like North Carolina. So they are behind when it comes to solar development. This bill will help:
· Allows solar leasing by non-utilities in South Carolina. This makes it less expensive originally for people to go solar at home - leasing instead of buying.
· Directs the Public Service Commission (PSC) to update net metering rules to make it fairer for all involved.
· Allows utilities to file a plan with the PSC to invest in or purchase renewable energy generation.