Utility-Scale Solar Project Decommissioning Program

On June 26, 2023, the North Carolina General Assembly enacted Session Law 2023-58, legislation that amends Article 9 of Chapter 130A of the North Carolina General Statutes (GS) to add a new Part 2J, Management of Solar Energy Equipment (specifically NCGS 130A-309.240 through 309.243).  DEQ was made the lead agency in the statewide administration and enforcement of utility-scale solar project registration, decommissioning, and financial assurance program for new projects, and for enforcing the new state-level statutory registration and decommissioning requirements for existing utility-scale solar projects.  

DEQ was mandated to adopt rules by August 1, 2025 that established criteria to set the amount of financial assurance required for utility-scale solar projects.  SL 2023-58 stated that in establishing requirements for financial assurance for a utility-scale solar project, the Department shall consider the salvage value of the project's equipment. The rules shall require periodic updates to be provided by owners with respect to financial assurance maintained. In addition, the Department was directed to adopt rules, as necessary, to implement requirements for decommissioning plans, including required information, and processes for submittal and review of plans and fees to be assessed upon registration.   

DEQ staff in the Division of Waste Management drafted proposed rules and an associated fiscal and regulatory impact analysis and worked with stakeholders to attempt to address their concerns, where possible, prior to publishing the proposed rules for public comment.  The proposed rules were published for public comment and hearing from October 15, 2024 to December 16, 2024.  DEQ Secretary Wilson certified the rules for adoption by DEQ on February 3, 2025, with changes made in response to public comments received. The rules were approved by the Rules Review Commission at their March 27, 2025 meeting, and the rules became effective April 1, 2025.    

Summary of the Rulemaking Timeline:

Below are links to the proposed rule information for public comment.

15A NCAC 01V Notice and Proposed Rules

15A NCAC 01V OSBM-Approved Fiscal and Regulatory Impact Analysis

Only utility-scale solar projects capable of generating 2 or more MWAC that are directly connected to the local or regional electrical grid with the ability to deliver power to the electrical grid must comply with the requirements set forth in SL 2023-58 and described in GS 130A Part 2J and 15A NCAC 01V. 

• The requirements to decommission/restore the site, to register with NCDEQ, and pay a fee apply to existing and new utility-scale solar projects.
  • The owner of a utility-scale solar project shall register with NCDEQ as follows:
    • by November 1, 2025, or at least 90 days prior to the commencement of construction of the project if the project is constructed after November 1, 2025; and
    • at least 90 days prior to commencement of rebuild or expansion of a utility-scale solar project.
• The requirements for submittal of a decommissioning plan and financial assurance apply to utility-scale solar projects:
  • For which applications for certificates of public convenience and necessity (CPCN) are pending or submitted on or after June 26, 2023 and
  • Generating solar energy or are interconnected to a transmission facility on June 26, 2023, that are rebuilt or expanded after June 26, 2023. 
• The owner of a utility-scale solar project shall submit a decommissioning plan and establish financial assurance
  • by November 1, 2025, or prior to commencement of construction of the project if the project is constructed after November 1, 2025, and
  • prior to commencement of rebuild or expansion of a utility-scale solar project. 

These deadlines are set by SL 2023-58.  

These requirements do not apply to utility-scale solar projects smaller than 2 MWAC, or to renewable energy facilities owned or leased by a retail electric customer intended primarily for the customer's own use or to offset the customer's own retail electrical energy consumption at the premises or for net metering.

The requirements become effective November 1, 2025.  

• The requirements to properly decommission upon cessation of operation and restoration of the site apply as of November 1, 2025 to existing and new utility-scale solar projects. 
• The owner of a utility-scale solar project must register with NCDEQ  and pay a fee as follows:
  • By November 1, 2025, or at least 90 days prior to the commencement of construction of the project if the project is to be constructed after November 1, 2025; and 
  • At least 90 days prior to commencement of a rebuild or expansion of a utility-scale solar project.
• The owner of a utility-scale solar project must submit a decommissioning plan and establish financial assurance as follows:
  • By November 1, 2025, or prior to commencement of construction of the project if the project is constructed after November 1, 2025, and 
  • Prior to commencement of a rebuild or expansion of a utility-scale solar project.
     

• Cessation of operations means a utility-scale solar project has not produced power for a period of 12 months.  This 12-month period shall not, however, include a period in which the (i) project fails to produce power due to an event of force majeure or (ii) owner has retained legal control of the project's footprint and has commenced rebuilding the facility.
• Expansion or expanded, when used in reference to a utility-scale solar project, means adding 2 megawatts AC (MW AC) or more of directly connected solar energy generating capacity to the local or regional electrical grid with the ability to deliver power to the electrical grid, or increasing the ability of the project to deliver power to the electrical grid by thirty-five percent (35%), whichever is larger.
• Photovoltaic module or PV module means the smallest non-divisible, environmentally protected assembly of photovoltaic cells or other photovoltaic collector technology and ancillary parts intended to generate electrical power under sunlight, which is part of a utility-scale solar project.  (PV modules are commonly referred to as solar panels and the term can be used interchangeably.)
• Project Owner means the legal entity or entities that own the personal property that has been constructed or assembled for a USSP, which may be a different legal entity than the owner of the real property (landowner) on which the USSP has been constructed.
• Rebuild or rebuilt when used in reference to a utility-scale solar project means a utility-scale solar project for which more than fifty percent (50%) of the original photovoltaic modules have been replaced with a different type of photovoltaic module or other fuel source and the project is deemed to be new for income tax purposes.
• Recycle means the processing, including disassembling, dismantling, and shredding of PV modules or other equipment from utility-scale solar projects, or their components, to recover a usable product. Recycle does not include any process that results in the incineration of such equipment.  PV modules determined to be hazardous shall comply with applicable hazardous waste requirements even when recycled.
• Substantial Business Relationship means the extent of a business relationship necessary under applicable State law to make a guarantee contract issued incident to that relationship valid and enforceable. A "substantial business relationship" shall arise from a pattern of recent or ongoing business transactions, in addition to the guarantee itself, that demonstrates to the Department that a business relationship between the guarantor and the project owner exists.
• Utility-scale solar project means a ground-mounted PV, concentrating PV (CPV), or concentrating solar power (CSP or solar thermal) project capable of generating 2 MWAC or more directly connected to the local or regional electrical grid with the ability to deliver power to the electrical grid.  The term includes the solar arrays, accessory buildings, battery storage facilities, transmission facilities, and any other infrastructure necessary for the operation of the project.  A utility-scale solar project does not include renewable energy facilities owned or leased by a retail electric customer intended primarily for the customer's own use or to offset the customer's own retail electrical energy consumption at the premises or for net metering.
• USSP means utility-scale solar project as defined in G.S. 130A-309.240(a). The Department's determination of whether a USSP meets the threshold in the statute definition of being "capable of generating 2 megawatts AC" shall be consistent with the determination made by the NC Utilities Commission as to whether a generating facility meets the two-megawatt capacity threshold for certification requirements pursuant to G.S. 62-110.1(g).
  • Existing USSP means a USSP for which an application for a certificate of public convenience and necessity (CPCN) was submitted to the NC Utilities Commission (NCUC) pursuant to G.S. 62-110.1 before June 26, 2023.
  • New USSP means a USSP for which an application for a CPCN was submitted to the NCUC pursuant to G.S. 62-110.1 on or after June 26, 2023, or a USSP that was generating solar energy or was interconnected to a transmission facility on June 26, 2023, but was later rebuilt or expanded after June 26, 2023. 

"Corporation," "fiscal year," "parent," and "subsidiary" mean these terms as defined in G.S. 105 -130.2. 

• Utility-Scale Solar Project Decommissioning and Financial Assurance Overview - Applicability and Compliance Timeframe
• Utility-Scale Solar Project Decommissioning and Financial Assurance Guidance