Facing lower gas prices, Duke Energy wants to cut solar rates in North Carolina

Dive Brief:

Lower natural gas prices have reduced the price Duke Energy needs to pay for solar power, the utility has told state regulators.
The utility wants to lower the standard offer for small renewable projects by about 15%, The State newspaper reports, impacting energy purchased in 15-year contracts from renewable facilities smaller than 5 MW.

Dive Insight:

Duke Energy's proposed move is the latest in an ongoing battle over how green power contracts are structured in North Carolina.

Currently, standard terms apply for power purchased from smaller facilities. The utility would like to reduce the threshold even more to 100 KW, while solar advocates have said the size and length of the contracts should be increased.

"We believe our filing reflects the best data on how these prices should be set," Duke spokesman Randy Wheeless told The State. Declining natural gas prices have set a lower price for energy, reducing the value of renewable energy.

North Carolina, along with California, has helped lead the country's surge in utility-scale solar construction. North Carolina has over 20 projects under construction and 3.3 GW in development. California has over 24 projects under construction and 3.8 GW on the way.

Last year, Duke committed $500 million to North Carolina's solar industry, announcing plans to buy three utility-scale solar projects totaling 128 MW of capacity and also sign five power purchasing agreements with solar developers totaling 150 MW.