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 is protected until October 1, 2027.
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 is available through October 1, 2027, with limited capacity each year. 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 happens in 2027
Customers on Legacy Net Metering keep their current rate through October 1, 2027. After that, they transition to the Net Metering Bridge for up to 15 additional years. Eventually they move to Residential Solar Choice.
The 2027 transition isn’t the end of solar value for legacy customers. Net Metering Bridge still provides credits for exported energy, and self-consumption value is unchanged. But the transition to a lower export rate is real, and right-sizing matters for legacy customers too when their systems eventually come up for maintenance or replacement.
The current state, briefly
| Customer type | Export credit rate | Consumption billing |
|---|---|---|
| Legacy (installed before Oct 2023) | Retail rate (until Oct 2027) | 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.