The quickest, most affordable way to tackle the climate crisis and cut power bills
By NC WARN
North Carolina regulators persistently go along with Duke Energy’s years-long assault on its only competition: rooftop solar power paired with on-site battery storage, what’s now called solar-plus-storage (SPS). For years the NC Utilities Commission (NCUC) has sided with Duke in preventing even any open discussion of this proven, superior tool for phasing out fossil fuels.
NC WARN now proposes—to regulators, politicians and the people of North Carolina—a sweeping shift in the profit-driven monopoly mindset that increasingly harms communities, drives up power bills, and makes the climate crisis worse.
We propose a fresh approach that can begin right away and expand quickly to spread local SPS across North Carolina. All Duke Energy’s residential, commercial and nonprofit customers can share in the costs and benefits of clean energy much like we currently pay for polluting power plants— through the electric rate system.
By sharing the costs and benefits of clean power—generated and stored where it’s needed—we can help avoid rate hikes for all customers, gain resilience during outages and stop Duke Energy’s ongoing expansion of fossil fuels.
Proven programs in other states show that, in various combinations, North Carolina can rapidly install clean energy resources and create jobs in all communities, large and small, within Duke Energy’s service territories. Many fine solar companies are positioned to expand local SPS. This proposal provides options for local solar to flourish in a way that can work for those companies, Duke Energy and the people of North Carolina.
“Not enough roof space”?
That’s a worn-out claim by monopoly utilities. In fact, North Carolina has twice the practical space on rooftops, parking areas, contaminated brownfields and vacant land close to towns and cities.
The NCUC already approved Duke Energy’s plans to develop a significant amount of solar power many years from now. Duke assumes this would be giant solar farms near rural communities. NC WARN argues that most of it should be SPS. The shared benefits of generating and storing power where it’s used could begin right away and expand quickly.
Shared Solar will help all customers avoid constant rate hikes caused by the tens of billions of dollars Duke wants to spend on high-risk power plants and new transmission corridors. SPS also adds much-needed resiliency for all power users— particularly emergency facilities—during outages.
Due to reliability needs during emergencies, we propose that the NCUC direct Duke Energy and solar companies to prioritize SPS on schools, fire/EMS facilities, local government buildings, homes and other facilities most vulnerable to climate and economic challenges. Initial efforts should be focused on low-income customers, particularly in southeastern NC communities that have largely been left behind in development, are disproportionately communities of color, and which are impacted by hurricanes and flooding disasters.
Shared Solar would benefit all Duke Energy customers—not just those with solar on their home, business or nonprofit—by improving grid resilience and stopping the expansion of fracked gas. It’s past time that we implement real climate solutions instead of accepting “more of the same” from Duke Energy’s decision-makers and state political leaders.
A Proven Model
A Vermont utility creates “virtual power plants” by providing customers low-cost SPS and drawing from those batteries to offset high-usage periods across its system, saving millions from storm-driven outages, and providing emergency power to fire stations. In California, former Republican Gov. Arnold Schwarzenegger led utilities to install 250 MW of solar atop warehouses before monopoly greed killed the program. In several states, nonprofit Solar United Neighbors is leading residential and community solar programs that work for customers and utilities.
North Carolina has options
With Shared Solar, customers could choose to add solar-plus-storage. Completed projects would be paid for by the utility and funded through the rate system, such that the customer has no out-of-pocket cost, and the installer is paid on time. The customer’s SPS system would belong to all ratepayers in the Duke territory* but used primarily by the individual customer.
The utility might also seek bidders for SPS projects it might initiate.
The customer would also receive a monthly payment from Duke Energy for the right to use the solar and battery at times when the regional system needs additional power. (Duke already uses the same technology to remotely cycle air conditioners on/off during high demand). Such “virtual power plants” are increasingly popular nationally. At other times, the customer uses the solar power during the day, then the battery at night and during power outages.
There would be no reason to limit the solar capacity on any facility, as is now the case under net metering rules.
*It is generally considered that Duke Energy owns such assets, but as with all power plants, etc., the customers fully and collectively pay for the investment, and the monopoly utility is allowed to make a return on it.
All system-wide customers benefit
Solar installers would profit and grow. Duke Energy would get a fair return on the local solar investments in place of profiting from its current plans to invest billions in damaging power plants and unneeded transmission towers. Watchdogs and consumer groups would press to ensure fairness to customers and solar companies.
There are workable variations to this approach, which should be considered in an open, fair and timely process. The Utilities Commission needs to move well beyond Duke Energy’s pilot projects which only pretend to move toward meeting NC’s climate goals.
A shared, equitable path
The Shared Solar option would be voluntary; some customers might prefer to purchase solar and storage through the present net metering system.
The utility would provide marketing resources, also funded through the rate system. To simplify and speed installations, installers could choose to work with particular school districts, business centers, faith-based alliances, local government complexes, and or residential neighborhoods. Polls show that a large majority of voters want renewable power and fewer rate hikes, so this would be popular.
Utility-scale solar companies can also benefit from new incentives under the federal IRA, local government climate pledges, and by avoiding land use and right-of-way controversies over rural solar and transmission projects. We can find the best and most equitable balance of size and location for all renewable power projects.
Duke Energy proposes to spend tens of billions of customer money on fracked gas power plants, experimental nuclear plants and hundreds of miles of unneeded power lines passing through disadvantaged communities. If the NCUC keeps approving this approach, power bills will continue rising year after year. The Shared Solar approach could offset most or all of those increases.
The shared approach would allow low- and moderate-income customers to avoid the up-front cost of solar power, thus contribute to the much-needed growth of solar and the transition off fossil fuels.
No technical, economic, regulatory barriers
The NCUC has approved Duke-owned solar power. The problem is that Duke is only considering building utility scale projects up to 50 times larger than typical solar farms. The total buildout would be a decade too late and would be dwarfed by Duke’s plans to expand fossil fuels.
Instead, most new power generation should be from clean solar on rooftops, parking areas, and vacant or contaminated land in or near towns, cities and industries, where it can begin to quickly phase out fossil fuels.
Yes, this proposal is an entirely new direction for North Carolina electricity—one that can meet scientists’ demands for rapid carbon reductions by 2030 to counter the desperate and accelerating climate crisis.
Source: ncwarn.org