Duke Energy - Standard Purchase Offer for RECs (North Carolina)

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• Summary
• Quantitative Data

Last modified on February 12, 2015.

Financial Incentive Program

Place	North Carolina
Name	Duke Energy - Standard Purchase Offer for RECs
Incentive Type	Performance-Based Incentive
Applicable Sector	Commercial, Fed. Government, Local Government, Nonprofit, Residential, State Government
Eligible Technologies	Anaerobic Digestion, Biomass, CHP/Cogeneration, Geothermal Electric, Hydrogen, Landfill Gas, Photovoltaics, Small Hydroelectric, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Solar Water Heat, Tidal Energy, Wave Energy, Wind
Active Incentive	No
Implementing Sector	Utility
Energy Category	Renewable Energy Incentive Programs
Amount	2012 Rate: RECs: 5.00 per MWh
Eligible System Size	Must provide a minimum of 35 RECs per year, and no more than 10,000 RECs per year Systems producing in excess of those caps can participate in the unsolicited bid process.
Ownership of Renewable Energy Credits	Utility
Terms	Minimum term: 5 years Maximum term: 15 years.
Program Administrator	Duke Energy
Website	http://www.duke-energy.com/suppliers/carolinas-rfp.asp
References	DSIRE

Summary

Duke Energy is required by North Carolina's Renewable Energy and Energy Efficiency Portfolio Standard (REPS) to have 12.5% of their electricity sales in North Carolina come from renewable energy and energy efficiency by 2021. There is also a solar component to the requirement which calls for 0.2% of their total sales to come from solar technologies by 2018. The utilities can comply with the law by purchasing renewable energy certificates (RECs) where one REC represents one megawatt-hour (MWh) of electricity generated by a renewable resource. Duke Energy is taking a variety of approaches to meet their portfolio requirements, including their standard purchase offer for RECs and an unsolicited bid process for RECs.

Duke Energy launched their REC-purchasing program in 2008. They have stated REC prices through 2027. For 2012 Duke is offering $5 per REC for general renewable energy RECs. Originally scheduled to increase over time, REC prices are now scheduled to remain at the current level through 2027. These prices are not part of a tariff, however, so Duke Energy may choose to change the rates or close the program altogether at any time. REC purchase agreements are not locked in at the rate offered in the year the agreement is signed. Instead, a REC provider who signs an agreement in 2012 will get paid at the 2012 rate for RECs generated in 2012, but then receive payments at the 2013 rate for RECs generated in 2013.

Facilities must be registered with the North Carolina Utilities Commission as a new certified renewable energy facility to participate in this program. The facility must also be interconnected with Duke Energy's electricity grid in the Carolinas. Systems that meet these requirements and are located in South Carolina are also eligible for this program. REC purchase agreement must be for at least 5 years and up to 15 years.

Incentive Contact

Contact Name	Kathy Dunn
Department	Duke Energy Corporation
Address	Mail Code: EC12H
Address 2	PO Box 1006
Place	Charlotte, North Carolina
Zip/Postal Code	28201
Email	kathy.dunn@duke-energy.com
Website	http://www.duke-energy.com

• Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.

References

Production Concentrating Solar Power Incentives

CSP Commercial Performance-based incentive $/KWh	$0.005
CSP Commercial Max $/year	$50,000

Production Solar Photovoltaic Incentives

PV Residential Performance-based incentive $/KWh	$0.005
PV Commercial Performance-based incentive $/KWh	$0.005
PV Non-profit Performance-based incentive $/KWh	$0.005
PV Number of Years Applies	15
PV Residential Max $/year	$50,000
PV Commercial Max $/year	$50,000
PV Non-profit Max $/year	$50,000

Production Solar Space Heating Incentives

SSH Residential Performance-based incentive $/KWh	$0.005
SSH Commercial Performance-based incentive $/KWh	$0.005
SSH Non-profit Performance-based incentive $/KWh	$0.005
SSH Residential Number of Years Applies	15
SSH Commercial Number of Years Applies	15
SSH Residential Max $	$50,000
SSH Commercial Max $	$50,000
SSH Non-profit Max $	$50,000

Production Solar Water Heating Incentives

SWH Residential Performance-based incentive $/KWh	$0.005
SWH Commercial Performance-based incentive $/KWh	$0.005
SWH Non-profit Performance-based incentive $/KWh	$0.005
SWH Residential Number of Years Applies	15
SWH Commercial Number of Years Applies	15

Production Wind Incentives

Wind Residential Performance-based incentive $/KWh	$0.0050
Wind Commercial Performance-based incentive $/KWh	$0.0050
Wind Non-profit Performance-based incentive $/KWh	$0.0050
Wind Number of Years Applies	15
Wind Residential Max $/year	$50,000
Wind Commercial Max $/year	$50,000
Wind Non-profit Max $/year	$50,000

• Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.

References