Duke Energy to implement new PowerPair pilot program for pairing home solar installations with battery energy storage

Rhea-AI Summary

Duke Energy launches PowerPair program offering up to $9,000 incentives for home solar and battery installations in North Carolina, enhancing grid reliability and supporting clean energy goals.

Insights

Energy Policy Analyst

The introduction of Duke Energy's PowerPairSM program represents a significant step towards integrating renewable energy systems with the existing energy grid. The initiative aligns with broader policy trends encouraging the adoption of low-carbon technologies. The incentive of up to $9,000 lowers the economic barrier for households to invest in solar and battery storage, potentially accelerating the uptake of these technologies.

From a policy perspective, this program could serve as a case study for other states or utility companies considering similar incentives. By offering financial benefits and demand response programs, Duke Energy not only incentivizes adoption but also enhances grid management capabilities. The inclusion of a random selection process for participant enrollment ensures equitable access to the program, which is an important consideration in energy policy discourse.

However, the impact on Duke Energy's financials will depend on the program's scale and the level of customer participation. While the upfront costs for the company may be substantial, the long-term benefits could include a more stable and efficient grid, reduced reliance on traditional generation methods and an improved company image in the eyes of environmentally conscious consumers and investors.

Renewable Energy Financial Analyst

The financial implications for Duke Energy and its customers are multifaceted. For customers, the immediate attraction is the $9,000 incentive, which significantly reduces the upfront cost of solar and battery systems. This reduction in capital expenditure can improve the return on investment for homeowners, making the decision to install renewable energy systems more financially viable.

For Duke Energy, the investment in incentives could be recouped over time through the reduced need for investment in traditional power plants and infrastructure. By incentivizing residential solar and battery storage, Duke Energy is effectively decentralizing part of its energy production, which can lead to operational cost savings. Additionally, the expansion of demand response programs can offer Duke Energy greater flexibility in managing peak loads, potentially lowering energy procurement costs during high-demand periods.

It is important to note that the success of the program hinges on the rate of adoption. If adoption is slower than anticipated, the expected benefits may not materialize as quickly. Conversely, rapid adoption could lead to significant changes in Duke Energy's load profiles and necessitate further investment in grid modernization.

Sustainable Business Strategist

Duke Energy's PowerPairSM program could be a strategic move to position the company as a leader in sustainable energy solutions. By promoting the adoption of solar and battery storage, Duke Energy is not only contributing to the state's clean energy goals but also potentially creating a competitive advantage in the utility market.

Businesses that are early adopters of such programs may benefit from improved brand perception and customer loyalty. The program also serves to mitigate potential future regulatory risks associated with carbon emissions and climate change. By proactively transitioning towards a cleaner energy mix, Duke Energy may be better equipped to navigate future policy changes that favor low-carbon energy sources.

However, the long-term success of the program will depend on its ability to scale and integrate seamlessly with existing energy infrastructure. Challenges such as ensuring reliable connectivity for the demand response programs and maintaining a robust list of approved vendors are critical for the program's operational effectiveness and overall perception among stakeholders.

• Customers could receive up to $9,000 as a one-time incentive to help lower the cost of installing solar and battery storage
• Programs explore new ways to help manage low carbon grids of the future 

CHARLOTTE, N.C., April 4, 2024 /PRNewswire/ -- Duke Energy (NYSE: DUK) is implementing PowerPair^SM, a new incentive-based pilot program for installing home solar generation with battery energy storage in its Duke Energy Carolinas and Duke Energy Progress service areas in North Carolina. The company received approval from the North Carolinas Utility Commission (NCUC) for the program on January 11, 2024.

The one-time incentive-based program, designed to help make a home solar plus battery system more affordable for customers, offers up to $9,000 in incentives for residential customers who install a solar plus battery system. The total incentive is based on the type of solar array and battery installed. 

PowerPair was designed in collaboration with numerous stakeholder groups pursuant to the direction of the NCUC.

"PowerPair gives Duke Energy an added tool to provide more reliability to solar energy which in turn benefits all customers as North Carolina grows in population," said Lon Huber, Duke Energy senior vice president, Pricing and Customer Solutions. "And by participating, customers are helping to support the state's clean energy goals." 

Some PowerPair customers and customers with existing battery storage may also participate in the company's expanded demand response programs. The Power Manager^® and EnergyWise^® Home programs will now include the newly approved battery control option, available in July. By enrolling, customers allow Duke Energy to temporarily adjust the system's operating setting a minimum of 30 times per year up to a maximum of 36 times per year, to provide stored electricity back to the grid. Participants receive a bill credit each month for enrolling a qualifying battery storage system and meeting program requirements, including internet connectivity. Customers may opt out of four events per year and still be eligible to receive bill credits.  

"As we continue to strengthen our grid and bring clean energy resources online, our customers are important partners in our clean energy future – and can receive upfront and potential ongoing financial incentives for coupling solar power and battery storage on their residential systems," said Huber. "These programs enable Duke Energy to maximize the use of popular consumer technologies to support the overall energy grid."  

Participants in the pilot will have two enrollment options. They can enroll in the PowerPair pilot 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 will be required to enroll in the new Power Manager and EnergyWise Home Battery Control option. They will receive the additional monthly bill credits for their participation.  

To help ensure incentive equity, PowerPair pilot participants will initially be selected through a random selection process (RSP), which will open May 10. The RSP window for the PowerPair program will be four weeks in length, allowing customers time to apply on the Duke Energy website. Customers can sign up to receive program updates, view the approved battery vendor list and view 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 to locate approved companies knowledgeable about the program. Installers may apply to become a Duke Energy Trade Ally here.   

Ranked fourth in the nation for overall solar power, North Carolina has approximately 45,000 customers who generate power with solar panels with a total capacity of about 350 megawatts. The expanded demand response offerings will add to the existing 100 megawatts of residential flexible winter capacity in North Carolina. 

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 unit serves 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 advanced 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 Kureczka
24-Hour: 800.559.3853
Twitter: @DE_LoganK 

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SOURCE Duke Energy

FAQ

What is Duke Energy's new incentive-based pilot program called for installing home solar generation with battery energy storage?

Duke Energy's new incentive-based pilot program for installing home solar generation with battery energy storage is called PowerPair.

What is the total incentive offered under Duke Energy's PowerPair program for residential customers installing a solar plus battery system?

Residential customers installing a solar plus battery system under Duke Energy's PowerPair program can receive up to $9,000 in incentives.

When was Duke Energy's PowerPair program approved by the North Carolinas Utility Commission?

Duke Energy's PowerPair program was approved by the North Carolinas Utility Commission on January 11, 2024.

How many times per year can customers allow Duke Energy to adjust their battery storage system's operating settings under the PowerPair program?

Customers can allow Duke Energy to adjust their battery storage system's operating settings a minimum of 30 times per year up to a maximum of 36 times per year under the PowerPair program.

What options do participants in Duke Energy's PowerPair pilot have for enrollment?

Participants in Duke Energy's PowerPair pilot can enroll through a residential solar choice rider (RSC) or a net metering bridge rider (NMB) and receive a one-time incentive of up to $9,000.