Distributed Energy Resource Program

Summary

S.B. 1189 of 2014 established a voluntary Distributed Energy Resource Program. The legislation allows participating utilities to recover costs connected to meeting a 2021 target of 2% aggregate generation capacity from renewable energy sources. Facilities sized between 1 MW and 10 MW will make up 1% of aggregate generation (50% of the total target) while facilities sized under 1 MW will make up another 1% (another 50% of the total target). Twenty five percent of facilities under 1 MW must also be under 20 kW (12.5% of the total target). Renewable energy resources include solar PV, solar thermal, wind, hydroelectric, geothermal resources, wave and tidal resources, recycling resources, hydrogen fuel derived from renewable resources, combined heat and power derived from renewable resources, and biomass resources.

Once a participating utility satisfies the minimum 2% requirement, the utility may invest in renewable energy facilities between 1 MW and 10 MW with a cumulative installed capacity equal to one percent of the utility's previous 5 year retail peak demand average.

Voluntary distributed energy resource programs have been adopted by Duke Energy Carolinas, Duke Energy Progress, and Dominion Energy South Carolina.