North Carolina’s solar energy landscape is at a crossroads as the state works to meet its ambitious climate goals.

Under House Bill 951, passed in 2021, North Carolina is required to cut carbon emissions in the energy sector by 70% from 2005 levels by 2030 and achieve carbon neutrality by 2050. However, meeting these targets is proving difficult as energy demand surges.

Jeff Hughes, a commissioner with the North Carolina Utilities Commission, says that it’s challenging to maintain grid reliability while pursuing aggressive decarbonization goals.

“If we have two gigawatts of load coming in the next three or four years, it’s going to be very difficult to model our way, to solarize our way out of it,” Hughes said, pointing to the growing demand from industries like AI-driven data centers.

Duke Energy, the state’s largest utility, has said fossil fuels are essential to ensuring reliable power amid increasing demand. Critics argue that the company’s reliance on natural gas and coal could derail progress toward cutting emissions.

North Carolina has long been a leader in solar energy, initially driven by smaller, five-megawatt projects. Today, the focus has shifted to larger installations, which are more efficient but face growing local opposition.

Carson Hart, CEO of Carolina Solar Energy, said scaling up has been key to increasing clean energy capacity. “Moving to these bigger projects has been really beneficial for getting more megawatts in the ground and meeting the state’s climate goals,” Hart said. But she noted that large projects often draw pushback from residents concerned about aesthetics and land use.

Rural areas are at the heart of the state’s solar boom, hosting about 80% of large-scale projects. Reginald Bynum Jr., director of community outreach at the Center for Energy Education, said rural North Carolina plays a critical role in meeting the state’s clean energy goals.

“My job is to make sure rural communities don’t miss the movement,” Bynum said. “These projects bring jobs, economic growth, and opportunities to areas that desperately need them.”

The economic impact of solar energy is substantial. In counties with significant solar development, property tax revenues have increased by as much as 1,600%, according to the North Carolina Sustainable Energy Association. These funds have supported schools, infrastructure, and emergency services in areas facing population declines and economic challenges.

The state’s clean energy sector also supports more than 110,000 full-time jobs, according to a report from e2, with many more expected as solar development continues.

Hughes said the state’s carbon plan, which is updated every two years, will play a key role in charting a path forward.

“There’s a lot of check and adjust that will occur over the next few years,” he said.

As North Carolina advances its solar energy ambitions, balancing the needs of developers, communities, and environmental goals will be essential to achieving a sustainable and reliable energy future.