Duke cuts proposed $100M solar program
October 30, 2008
Duke Energy Carolinas has cut its proposed $100 million rooftop solar program in half in response to critics who contend it is too costly and blocks independent development.
The company is now asking state regulators to OK a $50 million investment that would create a solar network covering more than 420 sites.
The N.C. Utilities Commission is considering Duke’s revised proposal in hearings that began Thursday.
Duke proposed the solar panel program in June. It wanted to spend $40 million in 2009 and $60 million in 2010 to install solar panels on the property of some 850 customers.
The Public Staff, charged with protecting the interests of consumers, suggested cutting the program in half.
Duke expects the smaller network to produce enough electricity to power 13,000 homes.
Duke will install, own and maintain all the equipment related to the solar operations.
It will also get all the power produced by it. Duke will pay customers rent for the use of their property.
The Public Staff contends the smaller program will boost independent efforts while still meeting Duke’s goals.
Those include:
•Encouraging new solar technology.
•Helping the utility meet pending state requirements for energy from alternative sources.
•Helping Duke understand how to deal with a large number of small generators as if they were a single large power plant.
Duke says even though it has not advertised the program, more than 460 customers have called since June to find out if they can have solar units installed.
Duke is not willing to consider, for now, proposals from Wal-Mart Stores Inc. and two solar advocacy groups. Those proposals deal with letting customers use some solar power produced on site and allowing them to sell credits for producing non-polluting energy.
Rosalie Day, director of the N.C. Sustainable Energy Association, says Duke is dragging its feet on both issues. She contends Duke’s program will serve as a barrier to independent investment in solar power.
The environmental groups say Duke should be required to meet a portion of its state renewable quotas through independent solar generators.
Owen Smith, head of renewable energy programs for utilities at Charlotte-based Duke Energy Corp. (NYSE:DUK), says that is unrealistic. In his testimony filed Monday, he says Duke cannot rely on independent development to come quickly enough to meet the state’s requirements.
A state law adopted last year phases in quotas for energy from renewable sources. For 2010, utilities must produce .02% of the energy they sell from solar, wind, biomass or other alternative energy sources. That rises to 12.5% by 2021.
Smith says independent programs cited in testimony from the solar groups are occurring largely in California and Ohio, where electricity rates are two to three times higher than in North Carolina.
He says if customers want to hold on to their renewable energy credits and some of the power they produce, they can buy their own solar panels.
Day contends Duke prevents that from happening by not installing meters that would easily allow customers to keep some energy and sell some to the company.
More advanced programs in New Mexico have attracted a large number of individuals and small businesses to install solar panels, she says. Electricity costs about 9 cents a kilowatt-hour there, she says, very much in line with the N.C. average of 8 cents a kilowatt hour.
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[...] Duke cuts proposed $100M solar program - •Encouraging new solar technology. •Helping the utility meet pending state requirements for energy from alternative sources. •Helping Duke understand how to deal with a large number of small generators as if they were a single large … [...]