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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--North Carolina recently became the fourth state with more than 1,000 megawatts (MW) of installed solar generation, and more than 300 MW of additional solar generation remain under construction. But beyond that, further growth of the state's solar fleet may be imperiled because the state's legislature did not extend a renewable energy investment tax credit beyond yearend 2015, according to a sustainable energy group.
"Solar has been a fantastic economic driver in North Carolina's clean energy industry for the past several years, and reaching 1 gigawatt is the latest impressive milestone for this growing market," said Robin Aldina, manager of energy research for the North Carolina Sustainable Energy Association (NCSEA) (Raleigh, North Carolina), in a statement.
She credited strong federal and state energy policies, including North Carolina's Renewable Energy and Energy Efficiency Portfolio Standard (REPS), and the Renewable Energy Investment Tax Credit (REITC), with helping drive photovoltaic (PV) growth in the state since 2008. In late September, North Carolina became the fourth state in the U.S. with more than 1,000 MW of installed solar capacity, joining California, Arizona and New Jersey.
North Carolina's 1,000 MW of installed solar capacity includes utility-scale generation, as well as distributed energy installations for residential and commercial customers. The group was unable to provide a breakdown of utility-scale vs. non-utility-scale solar installations in the state.
Speaking about the state legislature's decision not to extend the REITC, Allison Eckley, NCSEA's communications manager, said: "This policy shift is not the first time our clean-energy economy has faced challenges. However, we know this is a resilient industry. North Carolina clean-energy firms have overcome multiple policy threats in an uncertain business climate to achieve tremendous growth in jobs and revenues since 2008. We see a bright future for North Carolina's 1-gigawatt solar market, and the host of other clean-energy and energy-efficiency resources driving our energy economy forward."
The NRSEA said the solar industry has invested about $1.9 billion in rural counties across the Tar Heel State since 2008. During the last seven years, the price of solar power in the state has declined 50%, more than $1.8 billion of revenue has been generated, and more than 4,300 jobs were created.
Last year, North Carolina installed 396 MW of solar power, trailing only California in adding the most solar energy capacity in 2014, according to another solar group, the Solar Energy Industries Association (SEIA) (Washington, D.C.). North Carolina installed more solar generation last year than Nevada, Arizona, Massachusetts and New Jersey, SEIA said. North Carolina is one of the few states in the region with a renewable portfolio standard (RPS). And the state's 35% renewable energy investment tax credit, coupled with the federal government's 30% investment tax credit, has significantly helped spur solar growth in that state.
Industrial Info is tracking 18 active utility-scale (greater than 1 MW) solar projects in North Carolina, which are valued at $1.24 billion. Projects that are 80% complete by the end of 2015 can still take advantage of the state's 35% tax credit. Several large projects are under construction, including:
"North Carolina jumped into the top-tier of solar states with an aggressive build-out schedule in 2014 and 2015," said Britt Burt, Industrial Info's vice president of research for the global Power Industry. "Like wind power, solar power costs have declined significantly in recent years, which could make solar power competitive with other forms of electric generation. The incentives in North Carolina were very generous, and we will be monitoring how the loss of those credits will affect the pace of solar development in that state."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and ten international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
"Solar has been a fantastic economic driver in North Carolina's clean energy industry for the past several years, and reaching 1 gigawatt is the latest impressive milestone for this growing market," said Robin Aldina, manager of energy research for the North Carolina Sustainable Energy Association (NCSEA) (Raleigh, North Carolina), in a statement.
She credited strong federal and state energy policies, including North Carolina's Renewable Energy and Energy Efficiency Portfolio Standard (REPS), and the Renewable Energy Investment Tax Credit (REITC), with helping drive photovoltaic (PV) growth in the state since 2008. In late September, North Carolina became the fourth state in the U.S. with more than 1,000 MW of installed solar capacity, joining California, Arizona and New Jersey.
North Carolina's 1,000 MW of installed solar capacity includes utility-scale generation, as well as distributed energy installations for residential and commercial customers. The group was unable to provide a breakdown of utility-scale vs. non-utility-scale solar installations in the state.
Speaking about the state legislature's decision not to extend the REITC, Allison Eckley, NCSEA's communications manager, said: "This policy shift is not the first time our clean-energy economy has faced challenges. However, we know this is a resilient industry. North Carolina clean-energy firms have overcome multiple policy threats in an uncertain business climate to achieve tremendous growth in jobs and revenues since 2008. We see a bright future for North Carolina's 1-gigawatt solar market, and the host of other clean-energy and energy-efficiency resources driving our energy economy forward."
The NRSEA said the solar industry has invested about $1.9 billion in rural counties across the Tar Heel State since 2008. During the last seven years, the price of solar power in the state has declined 50%, more than $1.8 billion of revenue has been generated, and more than 4,300 jobs were created.
Last year, North Carolina installed 396 MW of solar power, trailing only California in adding the most solar energy capacity in 2014, according to another solar group, the Solar Energy Industries Association (SEIA) (Washington, D.C.). North Carolina installed more solar generation last year than Nevada, Arizona, Massachusetts and New Jersey, SEIA said. North Carolina is one of the few states in the region with a renewable portfolio standard (RPS). And the state's 35% renewable energy investment tax credit, coupled with the federal government's 30% investment tax credit, has significantly helped spur solar growth in that state.
Industrial Info is tracking 18 active utility-scale (greater than 1 MW) solar projects in North Carolina, which are valued at $1.24 billion. Projects that are 80% complete by the end of 2015 can still take advantage of the state's 35% tax credit. Several large projects are under construction, including:
- Hope Mills PV Solar, a $173 million, 78.5-MW grassroot PV plant being built in Cumberland County. That project, owned by Principal Solar Incorporated (OTC:PSWW) (Dallas, Texas), kicked off construction earlier this year. It is slated to be operating by next March. For more information on the project, see Industrial Info's project report.
- Sunrise IV PV Solar, a 100-MW, $135 million grassroot project, also is being built in Cumberland County. It, too, is owned by Principal Solar. This project began turning dirt in May 2015, and is expected to be generating electricity by yearend 2015. Alpha Energy LLC (Annapolis, Maryland) is providing engineering, procurement and construction (EPC) services to both Principal solar farms in the state. For more information on the project, see Industrial Info's project report.
- Warsaw PV Solar Facility, a 65-MW, $120 million grassroot project owned by Duke Energy Corporation (NYSE:DUK) (Charlotte, North Carolina). The project, located in Duplin County, kicked off construction earlier this year and plans to be operating by yearend 2015. For more information on this project, see Industrial Info's project report.
- Seventh Solar Unit 1 PV Plant, a 50-MW, $107 million grassroot project located in Robeson County, kicked off construction in September. Owned by Cypress Creek Renewables, LLC (Santa Monica, California), the project is scheduled to be generating electricity in early 2016. For more information on this project, see Industrial Info's project report.
- Cleveland County PV Solar Plant, a 20-MW, $65 million grassroot project scheduled to be built in Cleveland County. This project, owned by Birdseye Renewable Energy LLC (Charlotte, North Carolina), is scheduled to kick off construction in March 2016, and to be operating in September 2016. For more information on this project, see Industrial Info's project report.
- Scotland County PV Solar Plant, a 20-MW, $65 million project also under development by Birdseye Renewable Energy and scheduled to begin turning dirt in March 2016. The project is set to generate electricity by September 2016. For more information on this project, see Industrial Info's project report.
"North Carolina jumped into the top-tier of solar states with an aggressive build-out schedule in 2014 and 2015," said Britt Burt, Industrial Info's vice president of research for the global Power Industry. "Like wind power, solar power costs have declined significantly in recent years, which could make solar power competitive with other forms of electric generation. The incentives in North Carolina were very generous, and we will be monitoring how the loss of those credits will affect the pace of solar development in that state."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and ten international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
