June 16, 2015 | By RGR Marketing Blog

North Carolina: a Solar Leader

If asked to compile a list of states leading the way in renewables, North Carolina might not immediately come to mind for many folks. But the truth is that the solar industry has been going gangbusters in the Tarheel State of North Carolina.

Last year, North Carolina was part of the solar vanguard, installing more solar generation capacity than any other state, save for California's solar program. In a list of the top ten states for current solar power capacity, North Carolina ranks a respectable fourth.

Solar Creates Jobs in NC

The state’s enthusiasm for solar is about more than sustainability; it’s estimated that North Carolina’s solar energy sector currently employs well over 4,000 skilled laborers. Thus far, investors have coughed up more than $2 billion toward photovoltaic and other solar technologies, eager to take advantage of the renewable-friendly political climate.

The state government has been seeing excellent returns on its investment in solar, as well. According to experts, state money spent on offering tax credits and other solar incentives has provided an enviable 193% rate of return.

Clouds on the Horizon for NC Solar

However, solar power in North Carolina faces an uncertain future. The state’s generous North Carolina Renewable Enerrgy Investment Tax Credit has been extended to projects deemed “significantly complete” by the end of the year, but once the year is over, that 35% credit is slated to go the way of the wooly mammoth.

Legislators have made efforts to extend the credit beyond its current expiration date, but their initiatives have yet to gain traction. Many see this lack of forward momentum as a foreboding omen for would-be solar investors. Another major threat to the current state of North Carolina’s solar industry comes in the form of House Bill 760, also known as the Regulatory Reform Act.

The bill would slash the Tarheel State’s Renewable Energy Portfolio Standard by more than 50%. The current goal is to source 12.5% of the state’s energy from renewables by 2020; under the new law, the goal would be a paltry 6%.

HB 760 also contains a provision eliminating the state tax code’s current property tax exemption for already extant solar installations, which would be a major blow for current solar users. Many of them made the switch to solar with the expectation of building tax-exempt property value, and none could have anticipated instead being blindsided by higher property taxes.

A Sliver Lining for Solar in North Carolina?

There may be a silver lining for North Carolina’s beleaguered solar industry. House Bill 245, dubbed the Energy Freedom Act, would clear the path for solar leasing and solar power purchase agreements, which have become quite popular among consumers for their low up-front costs.

HB 245 is a Republican-sponsored bill with strong support from across the aisle, not to mention enthusiastic backing from major NC business players such as Volvo and Wal-Mart. Proponents say major utilities such as Florida’s Duke Energy would stand to benefit from the HB 245, as it would allow them to purchase renewable energy credits from private solar owners.

Duke Energy Florida doesn’t seem to agree. The utility has been aggressively lobbying against the new legislation, claiming that a massive solar exodus would leave lower-income families who can’t afford to purchase solar panels to shoulder more than their share of utility infrastructure maintenance costs, an assertion critics have been quick to refute.

Let the Sun Shine in North Carolina

North Carolina has taken a stand for solar energy, but legislative hurdles could stop its burgeoning solar industry in its tracks. Hopefully state lawmakers will take a serious look at the long-term positive effects increased solar investment could have for the state of NC, and will cast their votes accordingly.

[Photo Via: TownNews]

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