Will utilities be left out of North Carolina's renewable energy future?
March 20, 2015 | By
Jaclyn Brandt
Non-utility energy providers may have one less step in the process when it comes to solar installations in North Carolina, due to a bill introduced this week in North Carolina -- House Bill (HB) 245, also known as the "Energy Freedom Act," was introduced by North Carolina Rep. John Szoka.
Current North Carolina law requires electricity from an independent power producer to be sold to a local utility to re-distribute or sell. HB 245 would allow a third-party energy producer to bypass the utility and provide energy directly to the customer. "Free enterprise, in the form of market competition, is the cornerstone of the success of the United States and our economy," Rep. Szoka said in a statement. "Allowing North Carolinians to generate electricity on private property and allowing consumers flexible financing options, has immediate and long-term benefits that extend beyond the parties involved in third-party agreements." The bill has some stipulations, which include the solar equipment be located on the purchaser's land, and that the energy provider can't produce more than 125 percent of the customer's annual energy consumption. The third-party provider would also need to report the construction to the Public Utilities Commission. The property owner would still be able to participate in net metering programs of their local utility. HB 245 has support from the North Carolina Sustainable Energy Association, who released a statement saying, in part: "Successful passage of The Energy Freedom Act would be a game-changer for North Carolina's growing clean energy economy, which continues to prove its long-term value to our state." State utility leaders Duke Energy Carolinas, Duke Energy Progress and Dominion North Carolina Power have not yet commented on the bill, which also has support from a coalition that includes Wal-Mart Stores Inc., Cargill, Target Corp., as well as North Carolina-based Lowe's Cos., Family Dollar Stores Inc. and VF Corp, according to the Charlotte Business Journal. Utilities have shown concern in the past over similar rules that would allow third-party providers to bypass them. In West Virginia, Gov. Tomblin recently signed a bill that would redefine net metering -- but advocates said would get rid of solar leasing, slowing solar progress in the state. As more energy companies enter the field, it may be up to lawmakers to decide the amount of competition utilities will face. If passed, HB 245 will become effective on July 1, 2015. For more: © 2015 FierceMarkets, a division of Questex Media Group LLC. All rights reserved. |