Net Metering changes
What it means for homeowners, and why it matters
What is Net Metering?
Net metering is a solar interconnection policy that determines how your solar system connects to the utility’s electric grid and how you receive credit for the excess energy your system produces.
Think of net metering like an energy bank that allows you to save your extra solar energy to use later, like on cloudy days, at night, or during times when your home needs more electricity than your solar panels are producing.
When your solar panels generate more energy than your home uses, the extra electricity is sent back to the grid, and your utility company provides credits on your electric bill. Then, when your home needs more energy than your solar system is producing, those credits can help offset the electricity you draw from the grid.
Net metering helps solar homeowners get the most value from their system by ensuring the clean energy they produce can continue to benefit them even when the sun isn’t shining.
What is Changing?
Your solar system is not changing. It will continue generating clean energy and helping lower your electric bills! However, the utility rate used to calculate your bill and solar credits will be changing.
Beginning January 1, 2027, North Carolina customers on Duke Energy’s Legacy Net Energy Metering rate will transition to Bridge Rate by default. You’ll also have the option to choose the Time-of-Use (TOU) Rate if it better fits your household’s energy usage.
Current Duke Homeowners With Solar Have 2 Options For Their Solar at the Start of 2027:
Bridge Rate: Best for customers who want simplicity and to “set it and forget it”.
Time of Use: Best for customers who want more control over their energy rates and a more hands on solar experience.
Section Styles rounded-corners bullet-resources
Section Styles rounded-corners
Understanding Bridge Rate
The Duke Energy Net Metering Bridge Rate in North Carolina is a transitional hybrid solar billing model. It bridges the gap between traditional fixed-rate net metering and variable Time-of-Use (TOU) rates.
It includes a monthly bill charge (roughly $22–$28), a small non-bypassable charge based on system size, and credits excess grid-fed energy at a wholesale rate. While it does include a small minimum bill, your excess solar energy is still credited at a highly favorable rate.
Monthly Netting: Energy generated and energy consumed are calculated on a credit-for-credit basis for the month
Excess Production: Any net excess solar power sent back to the grid at the end of the billing cycle is credited at Duke's avoided-cost rate (around 3.4 cents/kWh)
Understanding Time of Use
Unlike traditional electric rates, where the cost of electricity stays the same regardless of when you use it, TOU rates are designed to reflect when energy demand is higher or lower. Instead of a flat rate where electricity has the same value throughout the day, TOU rates use different pricing periods based on factors like the time of day and season.
Typically, electricity is more expensive during peak demand hours, such as times when more homeowners are using energy, and less expensive during off-peak hours. This means homeowners may benefit from shifting energy usage to lower-cost periods or using battery backup to store solar energy and power their home when electricity costs are higher.
This is in contrast to a flat rate system where usage and solar production are valued the same every hour of the day, year-round.
Because TOU rates are based on energy timing, understanding your home’s energy usage and solar production becomes even more important when evaluating potential savings. If you want to explore this rate and/or choose it for January 1, 2027, Duke Energy asks you to reach out to their Renewable Service Center at 866.233.2290.
What Sugar Hollow Solar Recommends
As net metering policies continue to evolve, now is a great time to consider how battery backup can help you take greater control of your energy.
Battery storage gives you the ability to store your own energy and use it when you need it most, including during power outages, at night, or during times when electricity rates are higher.
Our team can evaluate your home’s energy usage, explain how battery storage works with your utility rate, and help you determine whether adding battery backup is the right solution for your energy goals.