Electricity Rates Are Rising: How Solar Can Help
Inflation and rising costs aren’t just affecting our groceries, home prices, and other everyday expenses. Electricity is getting more expensive, too. Across North Carolina and South Carolina, utility customers are seeing electricity prices trending upward, while utility companies continue to make changes to their rates and billing structures.
And while rates can vary by utility provider for various reasons, it has become clear that homeowners are losing control over what they pay for electricity from the grid.
What We’re Seeing
According to the U.S. Energy Information Administration, the average residential electricity price in North Carolina rose from 13.38¢/kWh in June of 2025 to 14.74¢/kWh in June of 2026, an increase of about 10%. In South Carolina, the average rose from 14.79¢/kWh to 15.55¢/kWh, an increase of nearly 5%. And this upward trend extends beyond the past year: since 2020, residential electricity prices have risen substantially, from an average of around 11¢/kWh in both states.
For homeowners, increases like these can add up over time, especially as electricity rates continue to change. Duke Energy Carolinas originally proposed a nearly 18% residential rate increase over three years in 2023. Then, in July 2026, Duke and the NC Public Staff reached a settlement* that would reduce the proposed increase to an average annual increase of approximately 3.7% over two years.
*This settlement still requires approval by the North Carolina Utilities Commission.
Of course, your individual electric bill depends on more than the rate itself, including how much energy your household uses and seasonal factors. But when the price of electricity increases, those higher rates can have a lasting impact.
It’s Not Just Duke
Electricity costs and rate structures are changing, and it’s not just happening with large utilities like Duke Energy. Electric cooperatives are feeling the pressure as the cost of wholesale power, fuel, infrastructure, and other materials continues to go up.
There’s another major factor reshaping the energy landscape: the rapid growth of artificial intelligence and data centers. AI-powered technologies require large amounts of electricity, adding to demand on the grid, and increasing the need for new infrastructure. As electricity demand continues to grow, utilities across the country are facing new challenges in keeping up with that demand while maintaining reliable and affordable power.
The important takeaway for homeowners is that many of these costs are outside of your control. You can manage how much electricity your household uses, but you don’t control the rates and utility charges for the electricity you purchase. That's why it’s worth looking at ways to take greater control over where your energy comes from.
Solar Costs Could Also See Pressure
The cost of electricity from the grid isn’t the only energy cost worth watching. New federal trade policies could also affect the cost of solar equipment in the coming months. On August 6, 2026, President Donald Trump signed a Section 232 proclamation establishing new minimum import prices and a 15% tariff on certain imported polysilicon and polysilicon derivative products used in the solar supply chain. A majority of domestically made solar equipment still uses these imports. The measures are scheduled to take effect December 4, 2026.
It’s too early to know exactly how these changes will affect the cost of residential solar, but for homeowners considering solar, this is another reason to understand the market and your options sooner rather than later. At Sugar Hollow Solar, we’re here to help you understand what these changes mean and see how solar can help you take greater control of energy costs even as the industry continues to evolve.
What’s Changing for Solar Customers
Already have a system, or are considering going solar? You may have heard about changes coming to how Duke Energy compensates solar customers. Solar compensation is changing in both North Carolina and South Carolina, but the changes look different in each state. If you’re thinking of going solar, getting started this year can help you take advantage of the current rate structures before these changes take effect January 1, 2027.
If you’re a Duke Energy solar customer, understanding your transition options can help you make an informed decision about your future electric bill. To learn more about these changes, check out our Net Metering Changes information page. Here’s a quick rundown:
North Carolina
Beginning January 1, 2027, North Carolina customers on Duke Energy’s Legacy Net Energy Metering rate will transition to the Bridge Rate by default, with the option to choose a Time-of-Use (TOU) Rate. The Bridge Rate offers a more traditional billing structure, with more predictable savings and monthly credits for excess solar energy, and is available for up to 15 years from the date of your interconnection agreement.
The Time-of-Use Rate charges different electricity rates depending on the time of day. This can make timing your energy usage and battery storage more important, as shifting your usage or using stored solar energy during peak hours may help reduce your bill.
If you’re considering solar in North Carolina, a valid interconnection application submitted to Duke Energy by December 31, 2026 can preserve your eligibility for the Bridge Rate, even if your system is installed in 2027!
South Carolina
Duke Energy already transitioned South Carolina customers away from legacy net metering to new rate structures at the beginning of 2026. And now through the end of 2026, customers can choose between:
Net Metering Transition (NMT), which is a more traditional billing structure for solar customers. The opportunity to get on NMT expires at the end of 2026. Customers can stay on NMT for up to 10 years after their interconnection application date.
Residential Solar Choice (RSC), a Time-of-Use rate where electricity rates vary depending on the time of the day. Battery storage can be especially valuable under this type of rate.
If you want to remain on the NMT rider, you must notify Duke Energy. Otherwise, you will automatically transition to the RSC rate at the end of your transition year. Give us a call at 828-776-9161 if you want to walk through these shifts together! Learn more about South Carolina’s net metering options here.
So, What Can Homeowners Do About Rising Rates?
Our answer is to create energy independence by generating your own electricity with solar power and battery backup!
Think of it like the difference between renting your electricity from the utility vs. owning your own power source. When you rely entirely on the utility, you’re subject to changing rates, whereas with solar, especially with our new Residential Lease Program, you can lock in the same predictable rate for up to 25 years. Buying your own solar system means you’re investing in your own power source, reducing your reliance on ever-changing utility rates for years to come.
Solar allows homeowners to produce electricity right at home, reducing the amount of power they need to purchase from the utility. While solar won’t eliminate every electric bill, it can help homeowners take more control over where their energy comes from and how much they rely on the grid. Battery backup is also an incredibly valuable asset as Duke shifts customers to a Time of Use billing structure.
We know this is a lot to take in, but we’re here to help. At Sugar Hollow Solar, we make going solar simple. Our team handles your project entirely in-house, from design and permitting to installation and service! We’ve been helping homeowners and businesses across Western North Carolina and Upstate South Carolina make the switch to clean, reliable energy for over 16 years.
If rising electricity rates have you wondering what your options are, let’s talk about what solar and battery backup could look like for your home. Contact us today for a free, no-commitment consultation!