Generate Your Own Renewable Energy

Energy Selling Options

• net metering
• purchased power and cogeneration

Offset my bill with renewable energy

Duke Energy customers who generate electricity from their own renewable facility may be eligible to offset their retail bills through “Net Metering.” Through this arrangement, you can use the electricity you generate while receiving service from Duke Energy.

In Florida, the Public Service Commission (PSC) sets the rules for net metering. Interconnection of renewable generation (wind, solar, tidal, methane, etc.) will require a customer comply with the net metering rules. All eligible systems will be fueled by a renewable resource and will be designed to offset the customer's usage. Customers will need to ensure that adequate access to the meter is maintained given that the bi-directional meters installed for these types of interconnections must be manually read. If access to the meter becomes an issue, the usage will be estimated for billing purposes; benefits for exported power will be credited in the month the meter is read.

For more information on Net Metering, please read the Net Metering tariff in Section IV, 8.08. https://www.flrules.org/gateway/RuleNo.asp?ID=25-6.065.

Qualifying facility status and commitment to sell form

Qualifying facilities (QFs) are a class of generators recognized under the Public Utility Regulatory Policies Act of 1978 (PURPA). A QF may receive special rates and regulatory treatment as dictated by individual states. There are two types of QFs: small power producers up to 80 megawatts (MW) (typically fueled by renewable resources), and cogeneration facilities.

A generating facility proposing to sell electricity to Duke Energy must be a qualifying facility as defined by PURPA and the Federal Energy Regulatory Commission (FERC) regulations implementing PURPA. A QF is one that meets certain federal guidelines and qualifies to receive avoided cost payments from the utility. Depending on the project, a customer may need to fill out FERC Form 556, which is available on the FERC website.

Projects smaller than 1 MW are no longer required to file an FERC Form 556 to obtain QF status as long as they meet the QF requirements. To determine if you are exempt from the requirement to file a Form 556 for your facility, based on the small size of your facility, download the Form 556 from the FERC website and complete Section 7. If the value you obtain in line 7g is less than or equal to 1,000 kilowatts (kW), then your facility is exempt from the Form 556 filing requirement.

Although facilities smaller than 1 MW are exempt from the requirement to file, there is no prohibition against filing the Form No. 556 application either for self-certification or commission certification for these facilities.

Facilities larger than 1 MW in size as defined by maximum net power production capacity must file a FERC Form No. 556 either as a self-certification (or self-recertification) or as an application for commission certification.

Instructions for obtaining FERC Qualifying Facility Status can also be found on the FERC’s website located at ferc.gov.

Sell Renewable Energy

Duke Energy in Florida supports the economic development of the state and has contracts to purchase more than 1,000 MW from renewable energy and cogeneration facilities in Florida. We actively pursue new projects and explore new technologies that will help us provide clean, reliable and affordable electricity to our customers.

You may be eligible to sell us electricity at our standard or negotiated rates if you own qualifying generation such as wind, solar or cogeneration that is interconnected directly to the Duke Energy electric grid.

All generators who intend to sell energy to Duke Energy are fully responsible for adhering to all utility requirements, applicable federal rules and regulations, applicable state and local ordinances and applicable regulations adopted by the Florida Public Service Commission (FPSC) (the governing body of regulated utilities in Florida). This website does not establish a legal or binding arrangement; it is intended solely to provide access to general information about potential options that may be available through Duke Energy. Generators are responsible for consulting with appropriate legal and energy professionals in determining if generation ownership is the right choice and for assistance in navigating applicable requirements and procedures. 

• All generators must meet the requirements of a QF as defined by the FERC.
• All customers who sell power to Duke Energy must enter into a Purchase Power Agreement.

Contracts

Duke Energy in Florida has two types of renewable energy contracts that have been preapproved by the FPSC – An As-Available contract and a Standard Offer contract.

As-Available contract – this contract contains no obligation to deliver energy to Duke Energy and the energy payments are based on the fuel savings that Duke Energy realizes due to these types of purchases. That price is determined in accordance with FPSC rule and it approximates Duke Energy’s  hourly marginal energy cost. In other words, the price is based on Duke Energy’s highest cost for fuel for any hour. Contact Duke Energy at the addresses below and someone will be glad to provide the historic prices. View the as-is available contract.

Standard Offer Contract – this contract does contain an obligation to deliver energy to Duke Energy on a reliable basis. The standard offer contract available to renewable generators has a number of options that can be chosen by the renewable supplier, including:

1. A term length between 10 and 35 years
2. Customized capacity payment stream

•  A capacity payment is a payment for the cost of constructing the avoided unit. It is determined by calculating the value of deferring the construction of the avoided unit. It should be noted that the capacity payment is made monthly based upon the renewable supplier’s history of reliable operation over the prior 12 months.
• To receive the maximum payment, a supplier must deliver its full output at least 95% of the time over the last year. If the supplier makes deliveries less than 95% of the time, the capacity payment will be reduced. If the supplier makes deliveries less than 75% of the time at full output then no capacity payment will be made.

Payments under this contract are based on the cost of the power plant, or part thereof, that Duke Energy avoids building due to this purchase, referred to as the “avoided unit.” The avoided unit is the generator that Duke Energy “avoids” building because it has purchased capacity and energy instead. The avoided unit’s energy cost is determined by multiplying the avoided unit’s heat rate by the cost of its fuel and then adding a variable operations and maintenance cost component. The avoided unit heat rate is a measure of how much fuel the avoided unit would have used to generate 1 megawatt-hour (MWh) of electricity. Accordingly, there is a capacity (capital cost) and energy (fuel cost) payment in this contract.

In addition, Duke Energy is willing to negotiate an agreement with renewable suppliers in the event that the preapproved as-available or standard offer contract is not satisfactory. If help is needed, simply send an email to the address below and someone will help with a basic understanding of the contracts. As is the case with any contract, it is advisable to contact an attorney and have them review the contract before you sign it.

Contact Duke Energy at the address below for more information on As-Available Contracts, Standard Offer Contracts, or calculating capacity stream payments.