Interconnection Standards (North Carolina)

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Last modified on February 12, 2015.

Rules Regulations Policies Program

Place North Carolina

Name Interconnection Standards
Incentive Type Interconnection
Applicable Sector Agricultural, Commercial, Fed. Government, Industrial, Institutional, Local Government, Nonprofit, Residential, Schools, State Government
Eligible Technologies Anaerobic Digestion, Biomass, CHP/Cogeneration, Fuel Cells, Landfill Gas, Microturbines, Municipal Solid Waste, Other Distributed Generation Technologies, Photovoltaics, Small Hydroelectric, Solar Thermal Electric, Wind
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs

Applicable Utilities Investor-owned utilities

External Disconnect Switch Not required for inverter-based systems up to 10 kW (utility may choose to install at its own expense); utility's discretion for all other systems

Insurance Requirements Vary by system size and/or type; levels established by NCUC

Net Metering Required No

Standard Agreement Yes

System Capacity Limit No limit specified

Date added to DSIRE 2005-04-19
Last DSIRE Review 2012-10-30
Last Substantive Modification
to Summary by DSIRE

References DSIRE[1]


The North Carolina Utilities Commission (NCUC) adopted comprehensive interconnection standards for distributed generation in June 2008. The NCUC standards, which are similar to the Federal Energy Regulatory Commission’s (FERC) interconnection standards for small generators, govern interconnection to the distribution systems of the state's three investor-owned utilities: Progress Energy, Duke Energy and Dominion North Carolina Power.* The standards apply to all state-jurisdictional interconnections (including interconnection of three-phase generators) regardless of the capacity of the generator, the voltage level of the interconnection, or whether the customer intends to offset electricity consumption or sell electricity.

The NCUC standards, like the FERC standards, use a three-tiered approach to simplify the interconnection process:

  • Systems up to 10 kilowatts (kW) must follow the 10-kW "inverter process" of simplified interconnection;
  • Systems larger than 10 kW and up to two megawatts (MW) must follow the "fast-track process;" and
  • Systems greater than 2 MW must follow the "study process."

Utilities may not require residential customers to carry liability insurance beyond the amount required by a standard homeowner’s policy ($100,000 minimum). Non-residential generators are required to carry comprehensive general liability insurance ($300,000 minimum). Customers that meet certain eligibility requirements are allowed to self-insure. Generators are responsible only for the costs of upgrades and improvements directly associated with a system's interconnection, but these costs may be determined by utilities.

As specified in a December 2008 order, utilities are authorized to require an external disconnect switch, but must reimburse owners of systems smaller than 10kW for the cost of the switch. Interconnection agreements are not transferrable; new owners must secure an agreement by filing an interconnection request and submitting a fee of $50. (However, the interconnection will not need to be re-studied.) The standards include a provision for mutual indemnification and a weak process for dispute resolution.

The NCUC established a fee structure for interconnection applications: $100 for generators up to 20 kW; $250 for generators larger than 20 kW but not larger than 100 kW; and $500 for generators larger than 100 kW but not larger than to 2 MW. The FERC fee structure applies to the interconnection of systems over 2 MW.

The NCUC has ruled that renewable-energy credits (RECs) generally remain the property of the system owner. However, for net-metered systems, any net excess generation (NEG) and the RECs associated with NEG are granted to the utility once annually.

Legislation enacted by North Carolina in August 2007 (S.B. 3) required the NCUC to establish interconnection standards for distributed generation systems up to 10 MW in capacity. The law stated that the commission “shall adopt, if appropriate, federal interconnection standards.” This law also established North Carolina’s Renewable Energy and Energy Efficiency Portfolio Standard (REPS).

Click here for Duke Energy's web site for interconnection, or here for Progress Energy's web site for interconnection.

*The NCUC’s interconnection standards do not govern interconnection to municipal utilities or electric cooperatives.

Incentive Contact

Contact Name Kennie Ellis
Department North Carolina Utilities Commission
Division Public Staff
Address 430 N. Salisbury Street

Place Raleigh, North Carolina
Zip/Postal Code 27611
Phone (919) 733-2267

Contact Name Dan Conrad
Department North Carolina Utilities Commission

Address 430 N. Salisbury Street

Place Raleigh, North Carolina
Zip/Postal Code 27611
Phone 919-733-0835


Authorities (Please contact the if there are any file problems.)

Authority 1: NCUC Order, Docket No. E-100, Sub 101
Date Effective 2008-06-09
Date Enacted 2008-06-09

  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency (DSIRE)"