North Carolina is weighing a landmark proposal to revitalize its aging solar infrastructure by integrating battery storage systems into existing facilities. As hundreds of early-stage solar contracts approach expiration, utility giant Duke Energy has suggested offering 10-year contract renewals to operators who agree to add significant storage capacity. This strategic “repowering” initiative aims to bolster grid reliability and meet surging electricity demands from data centers while utilizing existing transmission infrastructure. If approved, the plan could secure the future of nearly a quarter of the state’s utility-scale solar fleet.
A decade ago, North Carolina established itself as a national leader in renewable energy, trailing only California in solar capacity. This growth was fueled by a combination of state tax incentives and favorable regulations under the Public Utility Regulatory Policy Act (PURPA). However, many of these original 15-year agreements are now nearing their end. Without a clear path forward, these older sites face the risk of decommissioning or short-term renewals that discourage further investment.
The new framework, currently before the North Carolina Utilities Commission, offers a solution to this looming “cliff.” Under the terms of the proposal, solar developers could lock in a decade of pricing certainty—double the current five-year renewal standard—provided they install four-hour battery storage systems. These batteries must be capable of handling at least 20% of the facility’s maximum export power. By adding storage, these legacy projects become significantly more valuable to the grid, allowing clean energy to be dispatched when demand is highest.
The scale of this transition is substantial. Approximately 1.9 gigawatts of solar contracts are set to expire within the next five years, representing more than 25% of the state’s total utility-scale solar capacity. Proponents argue that upfitting these existing sites is far more efficient than building new ones. Because these facilities are already connected to the grid, “repowering” them avoids the lengthy and expensive process of permitting new transmission lines and infrastructure.
Industry experts note that the timing is ideal due to federal tax credits for battery storage, which are expected to remain available for several more years. For Duke Energy, the proposal helps address the massive power requirements of incoming industrial users and data centers while moving toward state-mandated decarbonization goals. While the current plan focuses primarily on batteries, some advocates suggest it could eventually expand to include other upgrades, such as replacing older inverters or installing more efficient solar module technology.
The North Carolina Utilities Commission is currently reviewing the proposal and has scheduled a public hearing for February. If the plan moves forward, it could serve as a national model for how states can modernize their first generation of clean energy assets to support a more resilient and flexible power grid.