Wilmington-area businesses are among those feeling the glow from a renewed interest in solar power.

The solar energy initiative, buoyed by state and federal tax incentives, is heating up in North Carolina, which ranked third among states during the third quarter of 2014 in terms of installed capacity, according to the Solar Energy Industries Association.

With a state tax credit currently slated to go away at the end of this year, those in the industry expect activity to remain brisk in the coming months as they wait to see if legislators extend the credit or take up other policies that affect renewable power.

One local solar power specialist is Carolina Green Building LLC, headquartered at 1508 Marstellar St.

Carolina Green Building incorporated in 2010 and now has 10 employees, said owner Robbie Sutton. Sutton, a mechanical engineering major who graduated in 2009 from N.C. State University, studied energy conservation in college and decided to put his knowledge to practical use after returning home to Wilmington.

Sutton founded Carolina Green Building as a solar installation provider. Since the company’s start,
it has expanded its service lines and focuses on residential and small commercial businesses.

Sutton finds more consumers are educating themselves about the benefits of solar power.

“I would say about two-thirds of our initial calls are educated clients who have done research into the hardware types and general costs,” he said. “About a third have done very little research. They kind of call us to inform them.”

On average, it takes about five to seven years to break even on a home solar system, Sutton said.

“The technology is improving,” he said. “In the past five years there has been a substantial improvement in the hardware that’s used.”

TAX CREDIT’S FUTURE

North Carolina currently offers a 35 percent tax credit for solar photovoltaic (PV) and thermal systems that provide hot water and heating.

“The tax credit is vital to the solar industry in North Carolina,” Sutton said, adding that about 90 percent of Carolina Green Building customers take advantage of the credits.

North Carolina residents also qualify for a 30 percent federal investment tax credit that helps offset the installation cost of solar systems.

The state solar tax credit for homeowners remains at 35 percent for the Renewable Energy Personal Tax Credit, for a maximum of $10,500 for PV systems and $1,400 for solar thermal systems. But the N.C. General Assembly has discussed repealing or modifying the credit, which is set to expire on Dec. 31 if there are no legislative changes.

INDUSTRY INVESTMENT

In September, Duke Energy announced it would add another 386 megawatts of solar to its North Carolina portfolio, a $500 million commitment. That includes the 65-megawatt Warsaw Solar Facility in Duplin County, which will be the largest PV plant east of the Mississippi when completed.

“This year is going to be pretty busy for us. We’re building three large-scale solar farms in North Carolina and partner with five others to buy the power from,” utility spokesman Randy Wheeless said.

“We’re going to see more solar in the future,” Wheeless added, as part of a “balanced” mix of power sources that includes coal, nuclear and natural gas.

Eastern North Carolina is among the best locations in the state for developing solar power, Wheeless said.

“There’s a lot of land that can be acquired at a most attractive price. There are a lot of farmers getting out of the business,” he said.

Strata Solar, a company based in Chapel Hill, announced in September that its investment in solar projects surpassed the $1 billion mark in North Carolina. The company has more than 65 solar facilities in 40 counties across the state. Since its founding in 2009, Strata Solar has brought 350 megawatts of solar energy online and is a factor in North Carolina’s high ranking nationwide for solar installations. 

In August, Strata Solar announced plans for a 5-megawatt, 25,000-panel solar farm in Pender County.

The project will require a special-use permit from county commissioners, but plans for a facility on Old Savannah Road near Willard were filed with the N.C. Utilities Commission in the spring of 2014. A timetable for construction of the solar farm is not in place.

Such a facility is considered “mid-sized,” according to Jay Lucas, an engineer with the Utilities Commission. The 3-by-5-foot panels would cover about 25 to 30 acres, he said.

The facility, known within the company as Bearford Farm LLC, will be developed, built and maintained by Strata Solar.

The energy generated by the proposed Pender County solar farm would be sold to Duke Energy and be sufficient to keep about 750 homes running, Blair School, company vice president of sales and marketing, said on the company’s website.

Company officials recently said that the start of work on the Pender County solar farm remains at least one year away.

RISING SUN

There are currently more than 161 solar companies in North Carolina that employing about 3,100 people, according to the Solar Energy Industries Association (SEIA).

In 2013, North Carolina installed 335 megawatts of solar electric capacity, ranking it third nationally. The 722 megawatts of solar energy currently installed in North Carolina ranks the state fourth nationwide in installed solar capacity and is enough to power 79,000 homes.

In 2013, $787 million was invested in North Carolina to install solar systems for home, business and utility use – investment spurred largely by what Rhone Resch, president and CEO of SEIA, calls “smart and effective public policies,” such as the solar investment tax credit, net energy metering and renewable portfolio standards.

“Every three minutes of every single day, the U.S. solar industry is helping to fight the battle against damaging carbon emissions by flipping the switch on another completed solar project,” Resch said.

Sutton said that more native North Carolinians are requesting information about solar power options, but he made an observation about his customer base.

“We have a lot of people that move to town from other areas that had [solar power systems] in their last home,” he said. “The industry has its own return customers. The majority of our customers have recently moved here.”

Sutton said he hopes tax incentives remain in place to fuel growth in his business and the industry overall.

“I think that solar is on the rise in North Carolina in the last few years,” he said. “The tax credits will play a large role in the industry’s success.”