North Carolina Clean Energy Guide

North Carolina has emerged as the Southeast's clean energy leader, ranking among the top states nationally for solar capacity. With landmark legislation requiring carbon reductions and Duke Energy's ambitious Carbon Plan, the state is positioning itself for significant clean energy growth.

HB 951: The Energy Transition Legislation

House Bill 951, enacted in 2021 with bipartisan support, established binding carbon reduction requirements for the state's electric utilities. The law originally required a 70% carbon reduction by 2030 compared to 2005 levels, but Senate Bill 266, enacted in July 2025 over Governor Stein's veto, repealed that interim target. The law now requires:

• Carbon Neutrality by 2050: Full decarbonization of the electric sector
• Reliability and Affordability Requirements: Transition must maintain grid reliability and limit rate impacts

HB 951 directs the North Carolina Utilities Commission to approve a Carbon Plan submitted by Duke Energy, outlining the pathway to meet these targets. The plan is subject to ongoing revision based on technology developments, cost changes, and reliability needs.

Duke Energy's Carbon Plan

Duke Energy, which serves the majority of North Carolina customers, has developed a Carbon Plan proposing significant changes to the state's generation mix. Key elements include:

Solar and Storage Expansion

The Carbon Plan calls for substantial additions of solar and battery storage capacity. Duke has proposed adding thousands of megawatts of solar through competitive procurement, utility-owned projects, and rooftop programs. Storage is increasingly paired with solar to provide evening capacity.

Coal Retirement

Duke is accelerating coal plant retirements across the Carolinas. The Carbon Plan outlines a timeline for retiring remaining coal units, though the pace has been debated in regulatory proceedings balancing reliability concerns with carbon reduction goals.

Offshore Wind Exit

Duke's October 2025 Carolinas Resource Plan omits offshore and onshore wind entirely through 2040. In June 2026, the utility terminated its Carolina Long Bay lease in a $129 million settlement with the Interior Department, exiting offshore wind development altogether.

Natural Gas and Nuclear Considerations

The Carbon Plan also considers new natural gas generation and potentially small modular nuclear reactors to ensure reliability during the transition. These elements have been controversial, with environmental advocates pushing for faster renewable deployment and less reliance on fossil fuels.

Offshore Wind Development

North Carolina's offshore wind prospects have stalled. As of mid-2026, both Carolina Long Bay leaseholders have exited: TotalEnergies relinquished its lease in a federal buyout in March 2026, and Duke Energy terminated its lease in June 2026. Only the Kitty Hawk lease areas remain (Dominion Energy purchased Kitty Hawk North from Avangrid in October 2024, and Avangrid retains Kitty Hawk South), with no near-term North Carolina project advancing.

Any future development would face infrastructure challenges including port development and transmission upgrades to deliver offshore power to load centers. Coordination with Virginia, which has more advanced offshore wind programs, may provide efficiencies in supply chain and infrastructure development.

Utility-Scale Solar Success

North Carolina historically led the Southeast in solar development and remains among the top five states nationally for solar capacity. Key factors driving solar growth include:

• Early Policy Leadership: North Carolina's renewable portfolio standard and favorable tax treatment attracted early solar investment
• Competitive Economics: Declining solar costs have made projects increasingly competitive with traditional generation
• Corporate Demand: The Research Triangle and Charlotte regions host major corporations with renewable energy goals
• Duke Energy Procurement: Regular solicitations for utility-owned and PPA solar projects

Nuclear Fleet

Nuclear power provides about 30% of North Carolina's electricity through Duke's fleet of plants: Brunswick, Harris, and McGuire in North Carolina, plus the jointly-owned Catawba facility in South Carolina serving both states. These plants provide substantial carbon-free baseload generation counted toward HB 951 targets.

Duke has explored small modular reactors (SMRs) as a potential component of the Carbon Plan, though these technologies remain in development and commercial deployment timelines are uncertain.

Key Developers Active in North Carolina

• Duke Energy: Major utility developing owned and contracted solar projects
• Avangrid Renewables: Offshore wind development
• Strata Solar: North Carolina-based utility-scale developer
• Cypress Creek Renewables: Active solar developer in the state
• Pine Gate Renewables: Utility-scale solar development
• Clearway Energy: Solar project development

Challenges & Outlook

North Carolina faces the challenge of achieving ambitious HB 951 targets while maintaining affordability for customers and reliability during extreme weather events. The pace of the transition has been debated in regulatory proceedings, with some arguing for faster renewable deployment and others emphasizing reliability.

Siting utility-scale solar has faced some local opposition, particularly in rural areas. The state is exploring policies to balance development with community concerns, including agricultural dual-use and enhanced setback requirements.

Transmission investment will be critical to integrate distributed solar resources. Duke's grid modernization plans include upgrades to support increased renewable penetration and improve resilience.

Despite challenges, North Carolina is positioned for continued clean energy leadership in the Southeast. The combination of binding legislative targets, utility commitments, and strong corporate demand creates a foundation for sustained growth.

Frequently Asked Questions