Duke Energy PowerPair Pilot Program Enrollment Surpasses 1,300 Customers in North Carolina

Rhea-AI Summary

Duke Energy's PowerPair pilot program in North Carolina has enrolled over 1,300 customers since its launch in May 2024. The program offers up to $9,000 in incentives for residential customers installing new solar plus battery systems. Approved by the North Carolina Utilities Commission, PowerPair aims to make home solar and battery storage more affordable. Customers can choose between two enrollment options: a residential solar choice rider (RSC) or a net metering bridge rider (NMB). The latter option provides additional monthly bill credits for allowing Duke Energy to periodically adjust battery settings. With remaining capacity, Duke Energy is now exploring ways to enhance the pilot for customers who may not be able to purchase systems upfront, potentially focusing on income-qualified customers or those dependent on medical devices.

Positive

• Enrolled over 1,300 customers in the PowerPair pilot program
• Offers up to $9,000 in incentives for residential solar plus battery installations
• Exploring enhancements to make the program available to more customers
• Potential expansion to include income-qualified customers and those dependent on medical devices

Negative

• None.

Energy Industry Analyst

Duke Energy's PowerPair pilot program has shown promising initial results, with over 1,300 customers enrolled since its launch in May 2024. This program, offering up to $9,000 in incentives for residential solar plus battery installations, represents a significant step in Duke Energy's clean energy transition strategy.

The program's success highlights several key points:

• Growing demand for residential solar-plus-storage: The rapid enrollment suggests strong consumer interest in home energy solutions that combine solar power with battery storage.
• Grid modernization efforts: By incentivizing battery storage alongside solar installations, Duke Energy is effectively creating a distributed network of energy resources that can be tapped during peak demand periods, enhancing grid reliability.
• Regulatory alignment: The program's approval by the North Carolina Utilities Commission indicates a supportive regulatory environment for innovative clean energy initiatives.

However, the program's current limitation to customers who can afford upfront costs for solar and battery systems is a notable constraint. Duke Energy's plans to expand offerings to income-qualified customers and those dependent on medical devices could significantly broaden the program's impact and accessibility.

From an investor perspective, this initiative aligns with Duke Energy's long-term strategy to transition to cleaner energy sources while maintaining grid reliability. The company's proactive approach to integrating distributed energy resources could position it favorably in an evolving regulatory and competitive landscape.

Financial Analyst

While the PowerPair program's enrollment numbers are encouraging, the financial implications for Duke Energy (NYSE: DUK) require careful consideration. Here's a breakdown of potential impacts:

• Revenue implications: The program's incentives, up to $9,000 per installation, represent a significant upfront cost. However, this should be viewed as an investment in grid modernization and customer retention.
• Long-term cost savings: By leveraging customer-owned battery storage, Duke Energy can potentially reduce the need for costly peaker plants and grid upgrades, leading to long-term operational savings.
• Regulatory goodwill: Proactive clean energy initiatives like PowerPair can foster positive relationships with regulators, potentially easing future rate case approvals.
• Market positioning: As the fourth-largest solar market in the U.S., North Carolina presents a significant opportunity for Duke Energy to strengthen its market position in the renewable energy sector.

Investors should note that while such programs may impact short-term profitability, they are important for long-term competitiveness in an industry rapidly shifting towards decentralized, renewable energy sources. The planned expansion to serve income-qualified customers and non-residential markets could further drive adoption and potentially open new revenue streams.

Overall, PowerPair aligns with Duke Energy's broader strategy of balancing clean energy transition with maintaining reliable and affordable service. This approach, if executed effectively, could contribute to steady, long-term value creation for shareholders.

• Program to pair home solar installations with battery energy storage continues to help advance rooftop solar

• Company is looking at ways to enhance pilot to make it available to more customers

CHARLOTTE, NC / ACCESSWIRE / August 1, 2024 / Duke Energy (NYSE:DUK) has enrolled more than 1,300 customers in North Carolina in its new PowerPair^SM pilot, a one-time incentive-based program designed to help make a home solar plus battery system more affordable for customers.

Approved by the North Carolina Utilities Commission (NCUC) in January 2024 and launched in May 2024, the pilot program offers up to $9,000 in incentives for residential customers who install a new solar plus battery system. The total incentive is based on the approved capacity of the solar array and battery installed. PowerPair was designed in collaboration with numerous stakeholder groups at the direction of the NCUC.

"North Carolina already ranks fourth in the nation for overall solar power with approximately 45,000 Duke Energy customers generating about 350 megawatts through solar panels," said Meghan Dewey, vice president of products and services for Duke Energy. "PowerPair is a valuable solution for our customers ready to invest in solar plus storage for their homes. It is one of several ways we're helping our customers save energy and money, while continuing to explore new ways to help manage low carbon grids of the future."

More customer options encourage participation

Participants in the pilot may choose to enroll in PowerPair on a residential solar choice rider (RSC) or through a net metering bridge rider (NMB) and receive a one-time incentive of up to $9,000. NMB customers additionally enroll in the company's new Power Manager^® and EnergyWise Home ^® battery option and receive additional monthly bill credits for allowing Duke Energy to periodically adjust their battery system's operating setting for a temporary period to provide stored electricity back to the grid, which benefits all customers.

"Duke Energy is diving headfirst into our next iteration of solar rebate programs to match the increased need to pair solar and battery," said Dewey. "We're already seeing that PowerPair is proving to be quite popular with customers, and our team is hard at work to develop what comes next for innovative solar and battery storage offerings."

The PowerPair pilot has remaining capacity and continues to take applications. Customers can view the approved battery vendor list and information on equipment eligibility (not all systems will be eligible) at duke-energy.com/PowerPair. Participating PowerPair customers must employ a Duke Energy Trade Ally, a solar and battery installer that has been approved by Duke Energy. Customers can use the company's Find It Duke program here.

Expanded offerings coming soon

As Duke Energy prepares to fulfill incentives for its initial PowerPair participants, it is also looking at ways to enhance the pilot for other customers who may not be able to purchase a new solar and battery system upfront. The company will be collaborating with stakeholders on several options that could focus specifically on income-qualified customers, customers dependent on medical devices, or a comparable program for non-residential customers or other targeted participants.

"It was important to first commit to a successful initial PowerPair launch and ensure that the pilot got off the ground smoothly, and we accomplished that," said Dewey. "We are excited to now turn our attention to developing additional offerings that fit a broader scope of our customers' varying needs and lifestyles."

Duke Energy

Duke Energy (NYSE: DUK), a Fortune 150 company headquartered in Charlotte, N.C., is one of America's largest energy holding companies. The company's electric utilities serve 8.4 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky, and collectively own 54,800 megawatts of energy capacity. Its natural gas utilities serve 1.7 million customers in North Carolina, South Carolina, Tennessee, Ohio and Kentucky.

Duke Energy is executing an ambitious clean energy transition, keeping reliability, affordability and accessibility at the forefront as the company works toward net-zero methane emissions from its natural gas business by 2030 and net-zero carbon emissions from electricity generation by 2050. The company is investing in major electric grid upgrades and cleaner generation, including expanded energy storage, renewables, natural gas and nuclear.

More information is available at duke-energy.com and the Duke Energy News Center. Follow Duke Energy on Twitter, LinkedIn, Instagram and Facebook, and visit illumination for stories about the people and innovations powering our energy transition.

Contact: Logan Stewart
24-Hour: 800.559.3853
Twitter: @DE_LoganS

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SOURCE: Duke Energy

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FAQ

What is Duke Energy's PowerPair pilot program and how much does it offer in incentives?

Duke Energy's PowerPair pilot program is a one-time incentive-based program in North Carolina that offers up to $9,000 in incentives for residential customers who install a new solar plus battery system.

How many customers has Duke Energy (DUK) enrolled in the PowerPair program as of August 2024?

As of August 2024, Duke Energy has enrolled more than 1,300 customers in North Carolina in its PowerPair pilot program.

What are the enrollment options for Duke Energy's PowerPair program?

Participants in the PowerPair program can choose to enroll either on a residential solar choice rider (RSC) or through a net metering bridge rider (NMB), both of which offer the one-time incentive of up to $9,000.

How is Duke Energy (DUK) planning to enhance the PowerPair pilot program?

Duke Energy is exploring ways to enhance the PowerPair pilot for customers who may not be able to purchase systems upfront, potentially focusing on income-qualified customers, those dependent on medical devices, or developing a comparable program for non-residential customers.