Is solar power still worth it under Duke Energy's proposed net metering changes?

[inner_outer_440]

Originally Posted by SFspiderman

No, you wouldn't get hit by both hikes. You have either Carolinas or Progress, which continue to operate semi-independently since Duke acquired CP&L/Progress a decade ago.

And they always ask for a big rate hike and then the state approves a smaller one.

This is reassuring to hear. 5-10% after negotiations is much easier on the wallet than the 20-40% I was worrying about.

Originally Posted by paytonc

Which would improve the case for solar panels, since the cost of the avoided electric load is going to increase.

I'd also be curious (and will be asking around) about whether the higher prices makes load-balancing via solar + batteries more cost effective. Batteries are currently rather expensive, but it's hard to put a price on Duke's lack of reliability.

Unless net metering is removed entirely and time of use plans are forced on all customers, batteries will never financially beneficial. Most quotes I received for parts + labor to add a single powerwall (less than one day of backup) were around $12,000 after the tax credit, which would double the cost of the average solar install therefore doubling the time it would take to break even. That being said, that's around the same cost of installing a standby generator, so it would be an interesting option from that regard sometime in the future.

[paytonc]

Originally Posted by inner_outer_440

that's around the same cost of installing a standby generator, so it would be an interesting option from that regard sometime in the future.

^ Yep, it's never going to be cheaper -- but reliable + cheap are often at odds. The price you'd willingly pay for electricity is very high during an outage!

[login2forum]

Sorry where do you see the rate increasing to 28$ before Jan 2027 ? Couldn't find the reference of proposal details. From the existing 14$ it would go up by another 10$ starting Jan 2027 when everyone switches to Bridge rate plan for Duke energy consumer. 38$ connection fee is for Duke energy progress consumers?

Originally Posted by inner_outer_440

I am looking into adding solar panels to my home and with current net metering rules (assuming annual 5% Duke Energy price hikes) I can expect to break even within 10 years. The one thing holding me back from pulling the trigger are Duke Energy's proposed net metering changes, which have made it through most of the steps and are awaiting approval and implementation by the NC Utilities Commission.



Current Net Metering:

• $14/mo fixed rate (regardless of power usage)
• $0.12/kWh for power consumption in 2023
• $0.12/kWh credit for excess power generation
• Excess credits reset on May 31st every year

Proposed "Bridge Rate":

• $28/mo fixed rate + $10/mo surcharge to avoid "Time of Use" billing
• $0.12/kWh for power consumption in 2023
• $0.03/kWh credit for excess power generation
• Excess credits do not reset
• Bridge Rate expires in 2037 and all solar owners must switch to a "Time of Use" plan

When I did the math, the new Bridge Rate adds 3.5 years to the breakeven period and guarantees a minimum bill of nearly $40, which is almost half of what I am paying currently on my standard power bill with the budget billing even payments plan.


Is it even worth messing with solar at this point?


Sources:

https://www.solarreviews.com/blog/du...r-net-metering
https://www.wfae.org/energy-environm...r-rule-changes

[inner_outer_440]

Originally Posted by login2forum

Sorry where do you see the rate increasing to 28$ before Jan 2027 ? Couldn't find the reference of proposal details. From the existing 14$ it would go up by another 10$ starting Jan 2027 when everyone switches to Bridge rate plan for Duke energy consumer. 38$ connection fee is for Duke energy progress consumers?

The final version of the NEM 2.0 proposal was approved by the NCUC a few days ago. The fixed rate (minimum monthly bill) will increase to $22 for DEC customers and $28 for DEP customers. The new rates take effect July 1, 2023 for new customers and January 1, 2027 for existing customers.

All the details are listed in the NCUC finalized proposal, but if I understand correctly, the new rate structure will include the following:

• Minimum monthly billing: $22/mo DEC or $28/mo DEP
• Non-bypassable charges: $0.36/kW DEC or $0.44/kW DEP (based on system size)
• Monthly grid access fee: $2.05/mo DEC or $1.50/mo DEP per kW >15kW systems
• Consumption and production will be netted 1:1 but excess will be sold at the avoided cost rate of $0.0268/kWh on a monthly basis

The finalized version isn't as bad as I thought it would be. The best way forward is to "right size" or slightly under size the system as to not export as much excess power to the grid. Batteries are still exorbitantly priced and not worth it from a purely financial perspective, although the backup power capabilities are nice to have.

I did the math on a system that covers 85% of my annual usage shows that I would be paying ~$40/mo on the legacy net metering plan and ~$50/mo on the bridge rate plan. Break-even, assuming a 5% annual energy price increase, should be 9.5 years on the bridge rate and 9 years on the legacy rate. The "big 3" local companies (8M / YES / NOW) have been very helpful with explaining how a lot of this stuff works and I'll most likely go with one of them to have a system put in place before July 1st.


NCUC finalized proposal: https://starw1.ncuc.gov/NCUC/ViewFil...8-a9e84351e53a