NC Appeals Court sides with Duke Energy over cost-saving rules for solar power

RALEIGH — Despite challenges from solar companies and environmental groups, the North Carolina Court of Appeals ruled Tuesday in a unanimous decision, Duke Energy’s new net-metering rules will stay in place.

The rules, which went into effect last October, determine how much savings customers with rooftop solar can get on their energy bills when they sell back excess power to the grid. Under the new rules, customers will be transitioned from a flat rate for power produced to a time-of-use rate.

Solar installers say this change has hurt their business. They say the new rules are difficult to explain to potential customers and will result in reduced customer savings as electricity rates are cheapest during the midday hours when solar production is high.

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Duke Energy argued the new rates were necessary to ensure North Carolina’s rooftop solar customers are paying their fair share to be a part of the energy grid.

The appellants in the case argued the NC Utilities Commission approved the changes based on a study Duke Energy conducted, rather than an independent NCUC study. However, the appeals court judges determined the NCUC conducted a de facto investigation when it opened up a docket in response to Duke Energy’s proposed changes and allowed intervenors to submit their own contradictory evidence to Duke’s claims.

Jim Warren is the executive director of NC Warn, one of the appellants in this case, and he expressed his disappointment in a news release.

“This ruling directly harms our once-growing solar power industry and the communities constantly battered by climate change driven by polluters like Duke Energy,” Warren said. “We need the judicial system to uphold the law while other state officials – particularly the rubber-stamping regulators – constantly bend the rules and fair process in deference to this giant corporate polluter.”

Abigail Hopper, president and CEO of the Solar Energy Industries Association, said the trade organization’s data already shows a downturn in rooftop solar installations in the wake of October’s net-metering change. She believes there’s room for a comeback but North Carolina has been slipping in the national rankings when it comes to installed solar capacity.

“[New net-metering rules] make it a more difficult decision,” she said. “We’re working closely with our colleagues in North Carolina to make sure that solar stays an economic and viable option for homeowners.”

Another potential cost-saver for future solar customers is Duke Energy’s Power Pair program. The pilot program offers financial incentives for customers to add rooftop solar and battery storage to their homes.

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