Energy (Solar)

HB 1129 allows residential customers in North Carolina to install and operate small, portable solar panels up to 1.2 kilowatts without needing approval or paying extra fees from their electric power supplier. The bill requires these devices to be safety-certified, comply with electrical codes, and include a feature that stops them from sending power to the grid during an outage, while also exempting them from standard net metering rules. Additionally, the law prevents landlords of larger rental properties from blocking tenants from placing these devices on their units, provided the installation does not block emergency exits or cause property damage.

This bill allows North Carolina residents to install small, portable solar power systems up to 1.92 kilowatts without needing approval or paying fees from their electric utility. To ensure safety, the law requires these devices to have automatic shut-off features during power outages and mandates certification for larger units, while also exempting them from standard net metering programs. Additionally, the bill directs the State Board of Examiners of Electrical Contractors to run a public awareness campaign funded by $100,000 to educate the public on electrical safety standards.

HB 131 reinstates a 35% tax credit for businesses and homeowners who install solar energy systems in North Carolina. Businesses can claim the credit over five years (with a $2.5 million maximum per installation), while homeowners receive capped credits based on system type (e.g., $1,400 for water heating, $3,500 for space heating). The credit applies to equipment placed in service in the state and expires for new installations after 2017, though projects meeting 2015 construction milestones qualify for extension. This bill renews a previously expired tax incentive program for solar energy adoption.

SB 644 allocates $1.5 billion to North Carolina public schools for energy efficiency upgrades, solar panel installations, and replacing combustion-powered school buses with electric models. The bill provides specific funding: $1 billion for building improvements like high-efficiency lighting and HVAC upgrades, $250 million for solar panels on school rooftops, and $250 million to replace qualifying buses (over 10 years old and using motor fuel) with electric buses assembled in North Carolina. These changes directly affect all local school districts through funding tied to student enrollment, aiming to reduce energy costs and emissions. The program begins July 1, 2025, with concrete, measurable infrastructure changes as the core mechanism.

SB 718, the "Fair Procurement and Ownership Reform Act," requires North Carolina's major electric utilities to use competitive bidding for all renewable energy sources (including solar, wind, and storage) without mandating utility ownership percentages, affecting utilities, developers, and customers. It eliminates previous rules like the 55% utility ownership requirement for solar projects, allowing third-party developers to compete equally, and reallocates shared solar capacity to 45% for large commercial customers, 25% for small commercial, and 15% each for government and residential users. Utilities must conduct these all-source procurements every two years, using standardized criteria focused on cost, reliability, emissions goals, and transparency, with public reports on bids and outcomes. The bill aims to promote fair competition, faster renewable deployment, and equitable access for all customer types while removing ownership barriers.

HB 856 clarifies that deed restrictions, covenants, or similar agreements cannot prohibit the installation of solar collectors (for water heating, space heating/cooling, or electricity) on residential properties. It specifically voids restrictions that prevent solar installations, while allowing reasonable rules about placement or screening if they reduce efficiency by 10% or less. This affects homeowners in single-family homes or similar residential properties (excluding certain condos in multi-story buildings) and their homeowners' associations. The law applies to agreements recorded after it takes effect, ensuring solar access without blocking reasonable maintenance or visibility rules.

SB 261, the Energy Security and Affordability Act, removes a mandated interim timeline for carbon reduction by North Carolina's major electric utilities (those serving 150,000+ customers) and introduces an alternative cost recovery method for ongoing construction of base load power plants. The bill requires these utilities to achieve a 70% reduction in carbon dioxide emissions by 2030 (from 2005 levels) and carbon neutrality by 2050, with the Utilities Commission developing a Carbon Plan by 2026 for achieving these goals. It specifies that new solar energy must come from 45% third-party power purchase agreements for small solar facilities (80 MW or less) and 55% utility-owned or purchased sources, including for solar paired with storage. This bill directly affects North Carolina's largest electric utilities and the Utilities Commission, altering their regulatory framework for emissions and infrastructure costs.