In response to a 2007 North Carolina state law which says that, by 2012, three percent of all retail electric sales by a utility must come from renewable energy resources, Duke Energy in 2008 established the North Carolina Solar PV Distributed Generation Program, which aims to install small solar arrays on public and private roofs across the state.

Under the terms of its program, Duke Energy will own and maintain the systems during their 25-year lifetimes. Duke will also claim all renewable energy credits resulting from solar photovoltaic installations. What happens to the systems after the lease period ends has not been discussed, but presumably they revert to the property owners, perhaps for a small fee, since the cost of removal at that time would likely exceed their commercial value.

The North Carolina law further stipulates that 10 percent of retail sales must come from renewables by 2018, and 12.5 percent by 2021. Duke, for its part, is using land-lease agreements to create the renewable solar fields to fulfill the mandate, and is now into the second round of sitings.

Duke Energy’s original Solar PV Distributed Generation Program, announced in May of 2008, called for 20 megawatts of generation at a cost of $100 million, but after battling with state energy regulators over how much of the cost could be recouped from ratepayers, Duke reduced its target to 10 megawatts, at a cost closer to $50 million.

The first phase, completed in October of 2009, involved four large solar installations on commercial buildings, or about half the capacity Duke intends to create for the rooftop solar program. However, since the leases were made on private property, the amount that Duke Energy paid in lease fees remains unknown.

Phase two involves public schools, so it is becoming common knowledge that the Gaston County School District will be paid about $1,500 per month for the 481 solar panels on top of the Nutrition building for the term of its (25-year) lease.

The Gaston County School District is one of about 20 entities partnering with Duke Energy under lease agreements, and one of about three school districts slated for round-two installations.

Others include the Catawba County School District, where Duke proposes siting 36,000 square feet of solar panels on the roof of Snow Creek Elementary in Hickory, in exchange for an annual leasing fee of $3,600. Catawba SD board member Sherry Butler, however, wants to know how much revenue Duke Energy will earn from the installation, as that figure will determine if the lease fee is equitable.

According to Catawba County SD spokesman Steve Demiter, Duke is also talking to officials of the Charlotte Mecklenburg County School District.

If all parties can reach accord, the school-based installations will be completed during the summer of 2010, when no students are attending classes, to prevent disruption of teaching schedules. Some phase two installations may also be made on residential properties.