If you installed solar in North Carolina before October 2023, you’re on the old retail-rate net metering. Duke Energy credits your excess generation at the same rate you pay for power you draw from the grid. That arrangement ends on December 31, 2026, when existing systems are automatically moved onto Rider NMB.
If you’re installing solar now, the situation is different. The NC Utilities Commission changed the net metering rules in 2023 under the authority of HB 951. New customers get two options, neither of which gives you retail-rate credits for power you export to the grid.
What changed and why
HB 951, signed into law in 2021 as the Energy Solutions for North Carolina Act, directed the NCUC to revise Duke Energy’s net metering rates. In March 2023, the NCUC approved a new structure that took effect for new customers in October 2023.
The change reflects a long-running debate about who pays for grid infrastructure. Under the old system, solar customers effectively sold surplus power back to Duke Energy at the retail rate, which includes charges for the grid itself. Utilities argued this shifted grid costs onto non-solar customers. The new structure credits exports at the avoided cost rate, which is what Duke Energy pays to generate or procure power wholesale.
The two current options for new customers
Net Metering Bridge (NMB)
NMB has limited capacity each year. Once the annual limit is reached, new customers go onto Rider RSC instead. Key points:
- No time-of-use requirement for your consumption
- Power exported to the grid is credited at the avoided cost rate, well below the retail rate
- Available alongside Duke Energy’s Power Manager Battery Control program if you also have a battery
NMB is the simpler of the two options. Your electricity bill works much like it did before the change, except the credit you earn for surplus solar generation is lower.
Residential Solar Choice (RSC)
RSC is available indefinitely to new customers. Key points:
- Your consumption is billed on a time-of-use schedule: rates vary by time of day and season
- Excess monthly generation is credited at a low net excess generation (NEG) rate, similar to the avoided cost rate
- Available indefinitely as NMB capacity fills and eventually expires
RSC pairs well with a battery, since storing solar generation and using it during high-rate evening hours gives you the full benefit of the TOU spread.
What the change means in practice
The most important thing to understand: self-consumption is unaffected.
Power your panels produce and your home uses directly (running appliances, AC, lighting) saves at the full retail rate no matter which plan you’re on. This is where most of the financial value of solar comes from.
What changed is the credit for power you export to the grid. Under the old system, that credit was worth the retail rate. Under NMB or RSC, it’s worth much less.
What this means for system sizing
A system sized to over-produce exports surplus generation at a low rate. A system sized to match your actual annual consumption avoids that mismatch. Most solar installers will size based on your past 12 months of Duke Energy bills. Take that recommendation seriously; it matters more now than it did before the 2023 change.
What this means for battery storage
A battery lets you store surplus generation instead of exporting it. You use that stored power in the evening or on lower-production days, getting the full retail-rate savings instead of the export credit. This is exactly why Duke Energy built PowerPair: the incentive structure is designed to encourage solar and battery installed together.
Legacy customers: what changes on December 31, 2026
If you installed solar before October 2023, your retail-rate net metering ends at the close of 2026. The NC Public Staff states that residential customers with existing net metered systems remain eligible for Rider NM until December 31, 2026, and are then automatically transitioned to Rider NMB. You do not need to do anything for the switch to happen, and you will not be asked to opt in.
What changes is the value of what you export. Under Rider NM your surplus offsets consumption one for one at the retail rate. Under Rider NMB it is credited at the avoided cost rate, which is currently 3.40¢/kWh in Duke Energy Progress territory and 4.53¢ in Duke Energy Carolinas, against a retail rate around 13 to 14¢. Power you use directly from your own panels is unaffected.
The 15-year Rider NMB term is measured from your original interconnection request application, not from the 2026 transition. That detail matters more than it first appears. Someone who connected in 2012 reaches 15 years in 2027 and moves to Residential Solar Choice, with its time-of-use requirement, almost immediately. Someone who connected in 2022 has until 2037. Check your own interconnection date rather than assuming the full term.
None of this makes an existing system worthless. Self-consumption value is unchanged, and that is where most of the benefit sits. But if your system was sized to export a large surplus, the economics after 2026 will look different, and battery storage becomes considerably more attractive because it converts an export credited at 3.40¢ into avoided consumption worth four times as much.
NC net metering rates at a glance: legacy vs. new customers
| Customer type | Export credit rate | Consumption billing |
|---|---|---|
| Legacy (installed before Oct 2023) | Retail rate (until Dec 31, 2026) | Standard residential rate |
| New on NMB | Avoided cost rate | Standard residential rate |
| New on RSC | Low NEG rate | Time-of-use schedule |
For current program details and the specific rates in your service territory, check Duke Energy’s residential solar pages or ask your installer when getting quotes.