At UNC’s Clean Tech Summit last month, NC Representative John Szoka announced a new piece of legislation that would open the door for third party solar sales in North Carolina. Then, last week, he made it official by filing H245 – the Energy Freedom Act along with co-sponsors Rep. Nelson Dollar, Rep. Chuck McGrady, and Rep. Linda Johnson.

You might be asking: what in the world are third party solar sales? Here’s the (very basic) low down:

Transitioning to solar energy right now is still far too expensive for individuals and organizations. The upfront costs of generating photovoltaic (PV) energy is pricey: the equipment, installation, and maintenance are out of financial reach for most.

So, how can we make solar more accessible? By allowing third parties to establish agreements between customers and utilities, called Power-Purchase Agreements (PPAs). Typical PPAs involve the installer/developer building a solar energy system on a customer’s property at zero cost. That’s right: it eliminates the upfront investment that precludes most potential customers. Instead of the customer having a relationship with the utility (like our friends at Duke Energy), the installer/developer would maintain that relationship.

Each cycle, the developer sells the power generated by the customer’s system back to the customer – at a fixed rate. This rate is typically lower then local utilities. The developer continues to provide upkeep to the PV system. At the end of the contract terms, the customer can choose to extend the contract or even buy the energy system from the developer.

Sounds great, right? More people can access the benefits of solar energy, reduce their carbon footprint, and likely pay a lower energy bill. You may be wondering why this type of arrangement isn’t already in place in a state like North Carolina.

Generally speaking, most utilities aren’t keen on the idea of a separate entity controlling the power source.

Additionally, there has been fear over protecting consumer interest if the Public Utility Commission has little to no oversight or control. This certainly could be a challenge. But, solar developers argue that if they do not provide consumers with a quality product and service to remain competitive, they will fail – which goes against the traditional business model.

Other benefits of allowing third party solar sales may include:

• Predictable energy pricing
• Projects can be cash flow positive from day one
• Demonstrable commitment to the environment
• Potential increase in property value
• Supporting local economy and job creation

Still a little unclear on all this PPA/third party solar jargon? Watch this video from our friends in Florida who underwent a similar push to increase access to solar:

https://youtu.be/pvOPZeS9azQ

Several other states have some form of third party solar sale agreements in statute: Oregon, Arizona, California, and Georgia, to name a few. We are one of five states that have laws on the book explicitly prohibiting third-party sales. But, this could all change.

Right now, H245 – the Energy Freedom Act – is making its way through three NC House committees. This bill has bipartisan support at the NC General Assembly AND both business and environment give this legislation two enthusiastic thumbs up.

In a recent letter sent to NC Speaker of the House Tim Moore, several major corporations of note – Walmart, Target, Family Dollar, and Lowe’s – outlined their approval of the Energy Freedom Act, citing the importance of creating competition and choice in the renewable energy market. You can read the letter in its entirety here.

Environmental groups – including us – want to see more opportunities for growth in our state’s renewable energy sector. Additionally, by removing the upfront costs for solar, this will allow more North Carolinians access, which ties into our values of justice and equity. Solar energy no longer will be available to those who can afford it. We are creating a space for all people to be empowered in where their power comes from and continues to push North Carolina into a future built on clean energy.

Please contact your legislators and ask them to support the Energy Freedom Act. This legislation will boost our economy and protect our environment. It will create healthier communities and lower energy costs. And, it will empower people to make their own power choices. It’s time to get third party sales legalized in North Carolina!