North Carolina is a solar energy leader, ranking among the top states for installed solar capacity. Our Renewable Energy Portfolio Standard (REPS) and other favorable state regulations have driven significant solar investment and jobs across the state.
The state can continue utility-scale solar growth for years to come. But, as solar proliferates as a viable and affordable energy source, it’s important to improve solar access for everyone, sharing the benefits of clean energy among all North Carolinians.
Rooftop solar is a good option for some residential areas, but it’s not always accessible due to the cost or the physical and geographical limits of a house. And it doesn't help the nearly 40 percent of U.S. households who rent their homes.
Community, or ‘shared’ solar, can be the solution, allowing homeowners, renters, businesses, and others to tap into solar power.
Community solar can be set up in a variety of ways. For example, a group of customers could jointly access a large array sponsored by a utility, co-op, or other community organization. At least 40 U.S. states have community solar sites, and 19 states plus the District of Columbia are encouraging shared renewable growth through policies and programs. These solar programs can be particularly beneficial to low- and moderate-income (LMI) communities, who can save money on burdensome energy bills and overcome traditional financial barriers to solar.
That's where North Carolina, for all its solar development, lags behind. This is particularly troublesome given the state’s large number of poor and rural areas. Forty North Carolina counties are classified by the N.C. Department of Commerce as Tier 1, which means that they are “most distressed” in terms of average unemployment rates, median household incomes, percentage growth in population, and adjusted property tax base per capita.
In 2017, the North Carolina legislature required Duke Energy, the state’s main monopoly utility, to propose a program to the N.C. Utilities Commission offering 40 megawatts (MW) of community solar.
But when Duke Energy put forward a proposal, it got a thumbs-down from some environmental and clean energy groups, including N.C. Sierra Club. The groups felt the plan was a premium program that didn’t offer savings to ratepayers, with critics complaining that it was “designed to fail,” would price-gouge customers, and would take too long to implement. The N.C. Utilities Commission eventually approved a revised plan in 2019, but to date, it has produced no community solar facilities.
Co-Ops, Local Utilities Step Up
On the other hand, North Carolina’s electric cooperatives - which serve approximately 2.5 million people - have developed 18 community solar programs totalling 2 megawatts. Cooperative members generally purchase a share of the solar output and a credit is generated on their monthly electric bill.
In addition, some local N.C. utilities, like the Fayetteville Public Works Commission, offer community solar. The Fayetteville PWC built the state’s first municipal community solar farm (pictured above). The program offers customers the opportunity to pay for a portion of the clean power generated by the solar array in exchange for credit on their monthly bill.
A few solar programs also exist through the N.C. Department of Environmental Quality (DEQ) State Energy Office, the N.C. Clean Energy Technology Center (NCCETC), and other energy centers and municipalities.
- NC Weatherization Program: This DEQ program funds qualified LMI households’ participation in utility community solar programs. Program participants receive energy-saving weatherization and community solar enrollment subsidized by the N.C. State Energy Program. Partnering utilities include the Blue Ridge Energy Cooperative, Roanoke Electric, and the Fayetteville PWC. The program currently has 44 participants.
- NC Clean Energy Technology Center Community Solar Program: NCCETC works with electric cooperatives, municipal utilities, and state associations to develop community solar programs in North Carolina. The program encourages LMI community outreach and education about solar benefits, and supports access to solar programs. Partnerships with existing and planned community solar projects will offset solar subscription costs and provide monthly savings for customers.
What's Happening in Other States
North Carolina's patchwork of community solar “gardens” and solar projects means access to clean energy is very limited for LMI communities. Other states, however, are making significant progress.
Virginia took bold strides in clean energy investment by passing the Clean Economy Act. The state also passed legislation on shared solar, which requires its utility commission to establish a Dominion Energy shared solar subscription. The Virginia Solar Freedom Act is particularly aimed at customers of low socioeconomic status. This law requires at least 30 percent of shared solar subscribers to be low-income (making no more than 80 percent of their area’s median income). Another law set up a community solar pilot ensuring that at least 50 percent of participating households earn 60 percent below the average median gross income.
Minnesota has had a community solar garden program since 2013, and has more community solar projects and capacity than any other state. The state provides credit score waivers in certain areas to ensure a diverse socioeconomic customer base. Areas without waivers may also receive assistance through solar nonprofit subsidies.
In 2015, Colorado’s Energy Office awarded a grant for a low-income community solar demonstration project. The project was intended to demonstrate LMI solar feasibility and how those programs can reduce energy burden for underserved customers. As of 2017, Colorado had six new community solar models and seven participating utilities, increasing LMI customers’ solar capacity by more than 2,000 percent.
New York has a Community Distributed Generation Program, which provides schools, businesses, LMI households, renters, and homeowners with access to clean and affordable power. The first phase of the project was specifically designated for “opportunity zones,” which are areas containing at least 20 percent LMI customers.
Where Do We Go from Here?
Community solar is growing at a record pace. In 2020, national community solar programs accounted for 37 percent of annual non-residential solar capacity. Over the next few years, markets like New York are expected to bring thousands of megawatts online, and similarly rapid development is expected in states like New Jersey, Illinois, and Maine.
We've written many times about how our climate will benefit from increased development of clean energy. If North Carolina’s utilities, regulators and lawmakers ramp up community solar options, all our people and communities - particularly those who need affordable electricity - can have a greater share in clean energy's environmental and economic benefits.