Solar power has been increasing rapidly in the U.S. state ofNorth Carolina, from less than 1 MW (megawatts) in 2007 to 6,152 MW in 2019, when it had the second-largest installed PV capacity of all states.^[1]

The economic viability of solar energy is heavily influenced by political and technological factors. Political dynamics play a critical role in shaping renewable energy policy, with barriers such as political polarization and protection of incumbent industries often hindering the adoption of solar power. Long-term analyses of U.S. policies demonstrate how favorable regulations can accelerate solar adoption, a consideration particularly relevant to North Carolina. With its abundant agricultural land, and its relative political power as a swing state, the state has the potential to lead in solar energy expansion by advocating for supportive policies and leveraging technological advancements.^[2]

In addition to federal incentives, the state has aRenewable Portfolio Standard of 12.5% by 2021 and a state renewable energy tax credit, both of which have been credited with boosting solar installations.^[3][4][5] Recently in June 2023, the Environmental Protection Agency released $7 billion for solar for all notice. This is a program that aims to expand solar to disadvantaged communities.^[6]

In North Carolina, the distribution of solar power production is mainly on land that is classified as agricultural land, at 63%.^[7] In North Carolina there exists potential growth for solar energy on this agricultural land. Specifically, land that has watersheds adjacent to the land. Furthermore, a 2018Smithsonian Magazine article described North Carolina as likely being the national leader in the "solar shepherd phenomenon" – combining sheep farming with solar power plants to reduce the high costs of grass trimming.^[8] A drawback of distributing solar power on agricultural land is the land that can potentially be lost for crops. There are debates of whether solar will harm agriculture.^[9]

Duke Energy is a large energy providing company. They have been playing a role in implementing solar in North Carolina, making it second in the nation for most solar energy usage. In 2017 they helped develop laws that allowed the implementation of solar and made it more affordable.^[10]

According to a report from theSolar Energy Industries Association, as of June 2019, North Carolina generates 5.81% of its electricity through solar power, and ranks second (up from 3rd in 2018) in total installed photovoltaics.^[11] As of 2023 this number is up to 9.33% being ranked 4th.^[12]

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Source: NREL^[22]

On September 15, 2014,Duke Energy committed US$500 million to an expansion of solar power in North Carolina.^[53] Announced projects include:

• Warsaw Solar Facility (65 MW) –Duplin County, developed by Strata Solar. This was scheduled to be the largest PV plant east of the Mississippi River as of the announcement date.
• Elm City Solar Facility (40 MW) –Wilson County, developed by HelioSage Energy
• Fayetteville Solar Facility (23 MW) –Bladen County, developed by Tangent Energy Solutions

In addition, Duke Energy plans to purchase energy from five new projects:

• 48 MW – Bladen County, developed by Innovative Solar Systems
• 48 MW –Richmond County, developed by FLS Energy
• 20 MW –Scotland County, developed by Birdseye Renewable Energy
• 19 MW –Cleveland County, developed by Birdseye Renewable Energy
• 15 MW –Beaufort County, developed by Element Power US

Since Duke Energy's $500 million commitment to expand solar power in North Carolina in 2014, the company has made significant progress in increasing its solar capacity and advancing renewable energy initiatives in the 2020 decade:

• Construction of New Solar Plants (January 2022): Duke Energy began constructing nearly 100 megawatts of new solar capacity in North Carolina, further expanding its renewable energy portfolio.^[54]
• Collaboration with Wells Fargo and NextEra Energy Resources (April 2021): Duke Energy partnered with Wells Fargo and NextEra Energy Resources to develop a 58-megawatt solar power plant in Catawba County, North Carolina, under the Green Source Advantage program.^[55]
• Green Source Advantage Program Expansion (October 2024): Duke Energy expanded its Green Source Advantage program, enabling more businesses to access renewable energy and work towards carbon-free operations.
• Carolinas Resource Plan Approval (November 2024): The North Carolina Utilities Commission approved Duke Energy's Carolinas Resource Plan, which outlines the addition of multiple gigawatts of solar photovoltaic (PV) capacity over the next six years.^[56]

Duke Energy explains their investments in renewable energy are driven by a commitment to environmental sustainability, regulatory compliance, and customer demand for cleaner energy options. The company aims to reduce carbon emissions by 50% by 2030 and achieve net-zero emissions by 2050, aligning with environmental goals and regulatory expectations.^[57]

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Using data available from the U.S. Energy Information Agency'sElectric Power Annual 2017^[60] and "Electric Power Monthly Data Browser",^{[61][62][63][64]} the following table summarizes North Carolina's solar energy posture.

In summary, solar-electric generation has increased from 2007 to 2018 at a decreasing rate. The percentage of solar generated electric energy has steadily increased, but the yearly growth of generating capacity and yearly growth of produced energy peaked in 2012–2013.

Capacity factor for each year was computed from the end-of-year summer capacity.2018 data is from Electric Power Monthly and is subject to change.

Beginning with the 2014 data year, the Energy Information Administration (EIA) has estimated the distributed solar-photovoltaic generation and distributed solar-photovoltaic capacity.^[67] These non-utility-scale appraisals evaluate that North Carolina generated the following amounts of additional solar energy:

On January 22, 2018, Duke Energy Renewables proposed a $62 million rebate program for both residential and nonresidential customers. It was the first of three programs Duke is proposing as part of "Competitive Energy Solutions for North Carolina" legislation, signed into law in 2017 byGov. Roy Cooper. The program requires approval from theNorth Carolina Utilities Commission.^[69]

Customers would also have the option of leasing solar equipment from a third-party.

On April 16, 2018, the North Carolina Utilities Commission approved the program. It applies to Duke Energy's residential, nonresidential and nonprofit customers who installed a solar system and abi-directional meter on their property on or after January 1, 2018.^[70]

The EnergizeNC coalition was awarded a $156 million grant on April 22, 2024, by the Environmental Protection Agency (EPA). The grant is part of the $7 billion Solar for All program, which seeks to invest in solar projects for low-income and disadvantaged communities. EnergizeNC has three focus areas for solar: rooftop installation in single-family homes, behind-the-meter installations in multifamily housing and non-profit buildings and community solar programs (electric co-ops). The program is expected to launch statewide in Fall 2025.^[71]

A solar center is a facility that has thousands of installed solar panels. Duke Energy has proposed projects for a variety of solar centers using PV panels. The plan is to have the centers operating by late 2025 and they are estimated to produce enough electricity to power 23,000 homes.^[72]

In the chart above are the plans for facilities in various areas. Also, a proposed plan in North Carolina, known as the Longleaf Solar Center, will be located in New Hill, NC. It is proposed to be completed in 2028. It is said to be a 100 MW facility with about 215,000 solar panels and the ability to power 27,900 homes.^[76]

The price of solar power in North Carolina has been steadily decreasing since its introduction. Currently, the average price for one watt of solar power is $2.29 during the installation process.^[77] This has also decreased further via economic incentives and subsidies.^[77] The federal solar tax credit reduces the cost of installation by up to 30%.^[77] The average period for the solar powers to pay for their own installation, however, is 11 years in North Carolina.^[77]

There are also systems in place such ashome equity loans, also known as home equity line of credit (HELOC), which utilize the house as collateral, providing alump sum payment that can be paid back over the course of several years.^[77] This aids in covering the initial high cost of a full 3-10 kW solar power system, which may not be affordable for some people without financing.^[77]

Research efforts are ongoing to improve and maximize the amount of North Carolina's energy that is sourced from solar energy. One area of interest is agricultural land that has an adjacentwater shed. A case study was performed in 2020 to find potential areas that would maximize the economic impact of solar farms and minimize the impacts on land and the environment.^[7] The environmental impacts were found to be minimal compared to other energy sources like coal and fossil fuels that create pollution in the runoff and water sheds.^[7] The study also found that in the eastern part of the state there already exists a relationship between farmlands and active solar farms.^{[clarification needed]} It was shown that many agricultural areas are located by watersheds that have high levels of water pollution and damage caused by current energy practices.^[7] The study concluded that using agricultural land adjacent to water sheds has high potential.^[7] With the availability of this land and the benefits associated, solar energy has the potential to source up to 40% of North Carolina's total energy production.^[7]

• Solar power in the United States
• Renewable energy in the United States

• North Carolina solar calculator
• Renewable energy policies and incentives^{[permanent dead link]}

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