North Carolina

Solar Legislator Score: *****

From the Great Smoky Mountains down to Cape Fear on the Atlantic coast, North Carolina has a natural environment to be proud of. With everything from golf to wineries, the great outdoors is part and parcel of living in the Tar Heel state. Don’t forget those Carolina blue skies, either. How has the state been protecting this environment by promoting renewable energy sources such as solar power? Check out the steps they’ve been taking to clean up North Carolina’s energy market.

STATE LEGISLATION
North Carolina has been doing fairly well with promoting clean power over the past few years. In August 2007, North Carolina overhauled its renewable energy rules with Senate Bill 3, which authorized tax credits for solar power generation. Senate Bill 3 also requires that the state generate at least 12.5% of its power from renewable sources by 2021. That’s not a phenomenal percentage, but then North Carolina is the first state in the Southeast to adopt a renewable energy standard, so kudos to the legislature for being first into the water.

NET-METERING
In October 2005 the Utilities Commission laid out rules for net-metering by investor-owned utilities in North Carolina; the order was amended in 2006. Maximum system capacities were set at 20kW for residential customers and 100kW for businesses. The utilities are only required to enroll 0.2% of the last year’s peak load, meaning that new systems are subject to a first-come, first-served allocation plan until 2018 when this becomes the minimum. Net excess power generated is credited back to the user on the next monthly bill. At the beginning of each summer season, any credit for net excess generation is granted to the utility. The North Carolina Utilities Commission only wants individuals to develop electrical generation systems that meet their own personal or corporate needs. Lastly, the net-metering program requires that customers switch to time-of-use metering.

STATE INCENTIVE PROGRAMS, UTILITY REBATES, UTILITY LOANS, AND UTILITY INCENTIVES
Renewable Energy Tax Credits
In 2007, when the legislature passed Senate Bill 3, tax credits became available to both residential and corporate customers in North Carolina. The credit covers up to 35% of the cost of a solar electricity or other renewable energy system, capped at $10,500 for residential systems and a whopping $2.5 million for commercial and industrial systems. Residential customers get that credit all in one year unless the total is more than 50% of their tax liability. If so, the rest of the credit is spread over 5 years. Businesses are required to take their credit over 5 years.
One really cool feature of Senate Bill 3 is that you can also take a tax deduction for a donation to a non-profit organization that is working on a renewable energy project. This is a great way to get people on the clean power bandwagon!

EXAMPLE 3KW SYSTEM – HOME INSTALLATION COST
Installing a typical 3kW solar electricity system in Charlotte would cost around $54,000. However, with a state solar rating of Good, the system should generate plenty of power to pay for itself in a short time. After taking federal and state tax credits as well as a great $0.20/kWh rebate (dispersed over the life of the system), the overall cost can be under $10,000! With that rebate, your system should pay for itself in about 1-5 years! On top of all that savings, you will be keeping tons of greenhouse gasses out of the atmosphere and saving nearly $100 a month on your utility bills!

CONSENSUS
When compared to their neighbors in the Southeast, North Carolina has been doing great things to promote solar power and other clean energy sources. Most of the real work that has been done by the legislature has come in the last couple of years. 2007 was a breakthrough year for renewable energy in the state, but it’s not time to rest yet. North Carolina could become a model for the rest of the Southeast if state leadership continues to build up a market for solar power.

http://www.solarpowerrocks.com/north-carolina/