Solar Energy in North Carolina

Henry Shimp
December 10, 2018

Submitted as coursework for PH240, Stanford University, Fall 2018

Introduction

Fig. 1: Solar panel farm. (Source: Wikimedia Commons)

Solar energy has become a more and more common source of energy in North Carolina in recent years. Solar installations in North Carolina are second highest in the nation as of 2016, largely due to favorable legislature around state energy policy. [1] As of 2018, the only state that utilizes solar more effectively than North Carolina is California. Solar energy currently accounts for 4.4% of the states total electricity and has created more than 7,600 jobs. [2]

Utility-Scale Development

North Carolina is second to California in overall utility scale solar capacity behind only California. Regional growth and demand for solar energy power has been a major driver for the increased use of solar at the utility level with states such as South Carolina, Georgia, Florida, and Tennessee all moving to more and more solar energy. None of them however have embraced solar quite like North Carolinas has as of late. [1] North Carolina has set the only renewable portfolio standard in the southeast which is a self imposed mandate that a certain portion of its energy must come from renewable sources. Solar has become the go to. [2] The state's largest energy provider, Duke Energy, already has plans to expand into South Carolina which will help them grow their solar use. [1] A major positive externality of North Carolina's commitment to the solar industry at the utility-scale is that other southeastern states are being provided with an excellent model for how solar can be beneficial to a state. California has served a similar role for the west coast. Together, North Carolina and California, the country's two largest solar users are helping America become more environmentally friendly through solar energy use.

Private Development

The private market for solar in North Carolina is much more nascent than the commercial market; however, due to more pro-solar state legislation, the market is predicted to triple in the next five years. [3] The states largest electricity provider, Duke Energy, has approved a program where customers will receive heavy rebates for solar panel installation. Up to 60 cents per watt will be eligible for residential customers and as much as 75 cents per watt will be eligible for nonprofits such as churches and schools. [3] Another strategy that Duke Energy is employing is building and operating their own solar facilities then leasing them to residential and small commercial operations (Fig. 1). [4] The logic behind this method is that some people are hesitant of the upfront costs of solar panel installation, so this alternative solves that issue for them.

Conclusion

North Carolina has become a national leader in solar power applications and has showed that it is a very viable electricity generation vehicle. The state has made a large commitment to reduce its effect on climate change through carbon emissions and one of the major ways it is solving this problem is through leaning heavily on solar. While still only 4.4% of the states electricity generation, solar prevalence is growing every year and will hopefully help show other states the viability of it as a source of electricity. [2]

© Henry Shimp. The author warrants that the work is the author's own and that Stanford University provided no input other than typesetting and referencing guidelines. The author grants permission to copy, distribute and display this work in unaltered form, with attribution to the author, for noncommercial purposes only. All other rights, including commercial rights, are reserved to the author.

References

[1] R. Aldina et al., "North Carolina Solar and Agriculture," NC Sustainable Energy Association, April 2017.

[2] D. Davis, "Renewable Energy: North Carolina Again Ranks Second to California in Solar Power," Asheville Citizen Times, 20 Mar 18.

[3] B. Henderson, "NC Regulators Just Made It Cheaper to Install Solar Panels on Your Roof. Here's How," Charlotte Observer, 16 Apr 18.

[4] J. Downey, "New Duke Energy Subsidiary to Start Solar-Project Leasing for Businesses in the Carolinas," Charlotte Business Journal, 29 Oct 18.