Solar Energy is Under Relentless Attack by Power Companies
Solar energy is under relentless attack by power companies across the nation. Since 2000, Duke Energy customers with residential solar panels benefited from net metering in North Carolina, but no longer.
The North Carolina Public Services Commission approved new rules. Instead of a flat rate, Duke now uses a time-of-usage system. Existing solar customers can stay on current rates for three more years. In October 2027, they’ll shift to a bridge rate (lower flat rate for excess energy) for 15 years or choose time-of-use rates. New solar customers can pick between the bridge rate or time-of-use rates.
To clarify the power companies are paying a homeowner an adjusted rate relative to the time of day it was produced. Solar energy is made during the daytime when residential energy demands are low. In essence, Duke lowered the rate homeowners receive per kilowatt.
The power companies throughout America are taking advantage of one thing, they have money. Money buys lawyers, lobbyists, and a seat at the table. Homeowners trying to save a buck are far too busy in their lives, the last thing they are thinking about is the power company’s devious plans.
The Power Companies are Manipulating by Taking Homeowners into the Weeds
The changes in North Carolina create ambiguity, and the power companies love ambiguity. Ambiguity means the power companies can set a rate of return for solar energy produced based on stats. Nobody in the world has more experience manipulating stats than the power companies. So now the battle begins again in the courts, the power companies’ wheelhouse where the rules are under constant scrutiny by a team of lawyers.
Although Duke Energy was part of unsuccessful attempts to remove net metering in Florida, it remains a state where power companies have been closely scrutinized for their stance on solar energy. Advocates continue to push for policies that benefit homeowners and encourage solar adoption.
The Power Companies Stance Doesn't Pass the Mustard Test
Since 2000, Duke customers with residential solar panels benefited from net metering. When their panels produced excess energy, they flowed back to the grid, and Duke paid a flat rate equal to the customer’s per-kilowatt cost. However, Duke argued that this system overpaid solar owners because solar panels produced the most energy during low-usage times (like midday). If Duke bought energy from other producers, they’d pay less. However, due to net metering rules, they had to pay a higher guaranteed rate for solar energy production.
The power companies’ argument centers around the time of day the energy is produced but isn’t being consumed by the homeowner at that time of day. They argue that they can buy that same energy produced by the homeowners and stored on the grid can be purchased on the open market for less than the credits they provide the homeowners. Naturally, the power companies can buy dirty energy for less than they credit the homeowner solar production because they buy wholesale.
The Intent of Net Metering
This is how Net Metering was intended: The homeowners OWN the power produced, from their solar panels, and then store their power on the grid, then use it to offset their power consumption. Net metering is designed to help solar energy overcome one problem, where to store energy produced from it. It was an ingenious idea to use the grid, and exactly what made solar energy cost feasible for homeowners as it was intended.
The problem is homeowners have no representation to offer a rebuttal to Duke Energy’s claims. Duke Energy is the beneficiary of solar energy production relieving stress on the grid itself, which has great value to the company. Relieving stress on the grid is critical because of increasing technology demands. To be clear, stress on the grid is caused by heavy demand, not storing power. Solar power stored on the grid alleviates stress on the grid.
Solar Energy Production Alleviates Stress on the Grid and Has Value for Power Companies
Power Companies Benefits from Home Solar Energy Production
- Reduced Infrastructure Strain: A less stressed power grid means power lines, transformers, and other infrastructure components operate within their intended capacity. This reduces wear and tear, minimizing maintenance costs for power companies.
- Improved Reliability: A stable grid with less stress is less likely to experience blackouts or brownouts. This reliability is essential for power companies to maintain customer satisfaction and avoid penalties.
- Efficient Operations: Power companies operate more efficiently by not overloading the grid. They can better manage supply and demand, optimize generation resources, and reduce inefficiencies.
- Cost Savings: Power companies save money by avoiding emergency repairs and minimizing system failures. Additionally, a well-functioning grid reduces the need for expensive backup power sources during peak demand.
- Regulatory Compliance: Meeting grid reliability standards is crucial for power companies. A less stressed grid helps them comply with regulations and avoid fines.
- Environmental Impact: A stressed grid may require additional fossil fuel-based power generation during peak times. By relieving stress, power companies can rely more on renewable energy sources, reducing greenhouse gas emissions.
Power Company Subsidies
- Renewable Portfolio Standards (RPS): Some states require utilities (including power companies) to generate a certain percentage of their energy from renewable sources. By investing in solar energy projects, power companies can meet these standards and receive incentives or credits.
- Power Purchase Agreements (PPAs): Power companies can enter into agreements to purchase solar energy from independent solar developers. These long-term contracts provide a stable revenue stream for solar projects and help power companies diversify their energy sources.
- Federal and State Tax Incentives: While individual homeowners can claim the federal Solar Investment Tax Credit (ITC), power companies can also benefit indirectly. When they invest in large-scale solar installations, they can take advantage of tax credits, reducing their overall tax liability.
- Grants and Subsidies: Some federal, state, or local programs offer grants or subsidies specifically for solar energy projects. These funds can help cover installation costs, making solar more financially viable for power companies.
- Community Solar Programs: Power companies can participate in community solar initiatives, where they build or support solar arrays that serve multiple customers. These programs enhance their environmental reputation and contribute to solar adoption.
Solar Energy is Under Relentless Attack by Power Companies
A Board of 7 Commissioners Decided the Fate of Home Solar Energy in North Carolina
I don’t know how educated the board of commissioners for North Carolina’s Utilities Commission is about solar energy and net metering in particular, but they are either on the take or are collectively dumber than a box of rocks. They could not have possibly got their decision more wrong, of course at the expense of homeowners.
The North Carolina’s Utilities Commission allowed Duke Energy to take control of the solar industry in North Carolina and deter homeowners from even considering home solar. I am an expert in solar advocacy, and I can honestly say this ruling was nothing less than criminal moving untold fortunes from the homeowners directly into the pockets of a conglomerate crying foul.
I have a daughter who lives in North Carolina, married with 2 children. She bought a home recently and told me she wants solar installed and was very excited about it. So, I put a proposal together that included a battery backup system because that’s the only way to counter the power companies’ “time of day method”. The cost of a solar system with battery backup wasn’t feasible for my daughter because of the increased cost.
The North Carolina Utilities Commission Ruling Hit Home for Me Personally
As an expert in the home solar industry, I advised my daughter against installing home solar because it was too expensive in North Carolina, It broke my heart. The damage caused by North Carolina’s Utilities Commission ruling in favor of Duke Energy who makes record profits every year is devastating for homeowners. No matter what Duke Energy or the North Carolina’s Utilities Commission have to say, I know for a fact they changed the rules that deterred a professional Solar Advocate from advising his daughter to go solar because their ruling diminished the value, as intended.
The Federal government needs to step in and stop the shenanigans the power companies are up to because home solar energy is a cut-and-dry issue. Net metering is a one-for-one trade-off for a kilowatt hour produced traded for a kilowatt hour consumed, regardless of the time of day.
I don’t believe for a second, the North Carolina’s Utilities Commission members weren’t aware of what they did, they were fully aware, and sold homeowners down the drain. I want to know how North Carolina’s Utilities Commission has such immense power.
Ron Hunnewell
Author and Owner of Your Solar Advocate
Buying Solar Explained in Easy-to-Understand Charts Below
The primary objective is to shorten the time it takes to offset the cost of solar with what you would have paid the power company anyway.
This Chart Is When You Pay Full Retail Cost for a Home Solar System
| System Size | Retail Cost | Tax Credit | Net Cost | Production (Monthly Power Bill) | Break-Even Point |
| 7K Solar System | $23,500 | $7,050 | $16,495 | $150 a Month in power | 9.2 Years |
| 9K Solar System | $29,250 | $8,775 | $20,475 | $190 a Month in power | 9.25 Years |
| 11.7K Solar System | $39,000 | $11,700 | $27,300 | $250 a Month in power | 9.20 Years |
Disclaimer: You Must Seek Expert Advice for the ITC Solar Tax Credit Because No Two Homeowners’ Income Taxes are the Same. Consult with a Tax Expert to Determine if You Qualify for the ITC Tax Credit and How Much You Qualify for Per Year.
High-quality solar panels can last 30 years or more, Solar Panels have no moving parts. Regular maintenance contributes to their longevity. Major Manufacturers Warranty Solar Panels for 25 to 30 years.
This Chart Is Your Solar Advocate Cost for a Home Solar System
| System Size | Wholesale Cost | Tax Credits | Net Cost | Production (Monthly Power Bill) | Break-Even Point |
| 7K Solar System | $19,250 | $5,775 | $13,475 | $150 a Month in power | 7.5 Years |
| 9K Solar System | $24,750 | $7,425 | $17,325 | $190 a Month in power | 7.6 Years |
| 11.7K Solar System | $32,175 | $8,365 | $23,810 | $250 a Month in power | 7.9 Years |
A Typical Solar Company's Proposal
| Add-Ons To Every Solar Proposal | Cost of Add-Ons |
| The Cost of Salesperson | $2500 |
| Sales Manager | $1000 |
| Proposal Builders and Permitting Department | $1000 |
| Overhead: Rent, Auto Insurance, Vehicles, and Utilities | $1000 |
| Cost of Leads and Marketing | $1000 |
| Points for Low-Interest 20-Year Loan Terms (Frequently Hidden Cost) | |
| Solar Panels, Inverter, Installation | $17,000 |
| Solar Company Profit | |
| $3.25 a Watt or Lower for a 7K Home Solar System Total | $23,500 |
Disclaimer: You Must Seek Expert Advice for the ITC Solar Tax Credit Because No Two Homeowners’ Income Taxes are the Same. Consult with a Tax Expert to Determine if You Qualify for the ITC Tax Credit and How Much You Qualify for Per Year.
Your Solar Advocate Cost Savings
| Add-Ons To Every Solar Proposal | Cost of Add-Ons |
| The Cost of a Salesperson | $500 |
| Sales Manager | |
| Proposal Builders and Permitting Department | $1000 |
| Overhead: Rent, Auto Insurance, Vehicles, and Utilities | $750 |
| Cost of Leads and Marketing | |
| Points for Low-Interest 20-Year Loan Terms (Frequently Hidden Cost) | |
| Solar Panels, Inverter, Installation | $17,000 |
| Solar Company Profit | |
| Your Solar Advocate Target Price $2.75 a Watt or Lower for a 7K Home Solar System | $19,250 Tax Credit – $5,775 The net Cost Is $13,475 |
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