A compromise in South Carolina between advocates of solar power and a utility may offer a blueprint for other states trying to resolve one of the major conflicts in the clean energy transition: the debate over net metering.
Duke Energy has reached an agreement with Sunrun, the rooftop solar company, and Vote Solar, the solar advocacy group, that sets up a process for compensating solar owners for the excess electricity they send back to the grid.
This potential breakthrough in the net metering debate follows years of bitter conflict in the Carolinas and across the country.
The specifics apply to South Carolina and probably will extend to North Carolina because Duke operates in both. But many of the underlying ideas can be used in other states, said Thad Culley, Southeast regional director for Vote Solar.
“We can come together and really find a happy middle,” he said.
Under the plan, solar owners would pay rates that vary depending on the time of day, and would get credits at those same rates for sending excess electricity to the grid. The rates would be highest from 6 p.m. to 9 p.m., when electricity demand is high. Rates would be lower during the day and lowest overnight.
The agreement, which is still subject to approval by state regulators, would allow Duke to pay lower rates for solar during the hours when the grid has plenty of electricity, such as in the morning. And by paying higher rates during times of peak demand, Duke would be encouraging solar owners to set up their panels in places that get more sun during the evening.
“This new arrangement not only recognizes the value of solar and the enabling energy grid, but it unlocks additional benefits for all customers by addressing when utilities experience peak demand across their systems in the Carolinas,” said Lon Huber, Duke Energy’s vice president for rate design and strategic solutions, in a statement.