Renewable Energy Policy in the U.S. Southeast

In its Southeast Regional Clean Energy Policy Analysis, NREL presents the following key findings on renewable energy development policies in the southeastern United States:

The most common policies to support renewable energy development are personal and corporate tax incentives and loans.
North Carolina and Missouri have implemented Renewable Portfolio Standards to encourage clean energy development.
While many of the states in the region have net-metering and interconnection policies, built-in limitations reduce their effectiveness in stimulating development. Raising the installation size limits and program participation caps, as well as clarifying and standardizing the application process and contracts would encourage further development.
Encouraging biomass co-firing in existing coal-fired power plants could reduce emissions in the near term and support the early stages of a biomass market.
The region has optimum zones for production of dedicated biomass crops. Dedicated energy crops could also be grown on Conservation Reserve Program Lands. Assistance for biomass growers and generators would support further development of a dedicated energy crop market.

Table 1. State-Level Renewable Energy Development Policies and Incentives
	Alabama	Arkansas	Georgia	Kentucky	Louisiana	Missouri	Mississippi	North Carolina	South Carolina	Tennessee
Access Laws			X	X		X		X		X
Bonds
Construction & Design		X	X			X		X	X
Contractor Licensing
Corporate Tax Incentives			X	X	X	X		X	X
Equipment Certification
Generation Disclosure
Grants	X							X		X
Industry Support										X
Interconnection		X	X	X	X	X		X	X
Line Extension Analysis
Loans	X			X	X	X	X	X	X	X
Net Metering		X	X	X	X	X		X
Personal Tax Incentives	X			X	X			X	X
Public Benefit Funds
Rebates		X	X
Required Green Power
Renewable Portfolio Standards						X		X
Sales Tax Incentives				X				X	X

Updated from sources as of October 1, 2010
Note: State incentives only. Does not include utility, local, or nonprofit incentives.
Source: DSIRE

Table 2. Renewable Portfolio Standards in the Southeast
	North Carolina	Missouri
Final Rules Adopted	February 2008	June 2008
Standard	Investor-owned utilities – 12% by 2010 Municipal and co-operative utilities – 10% by 2010	Investor-owned utilities – 15% by 2021
Interim Standards	2010: 0.02% from solar 2010-2014: 3% 2015: 6% 2018: 10% 2021: 12.5%	2011-2013: 2% 2018-2020: 10% 2020 and thereafter: 15%
Eligible Technologies	Solar water heat, solar space heat, solar thermal electric, solar thermal process heat, PV, landfill gas, wind, biomass, geothermal electric, CHP/ cogeneration, hydrogen, anaerobic digestion, small hydro (up to 10 MW), tidal energy, wave energy	Solar thermal electric, PV, landfill gas, wind, biomass, municipal solid waste, anaerobic digestion, small hydro (up to 10 MW), fuel cells using renewable fuels
Efficiency Eligible	Yes	No
Technology Set-Asides	Solar: 0.2% by 2018 Swine waste: 0.2% by 2010 Poultry waste: 900,0000 MWh by 2014	Solar electric: 2% of annual requirement
Multiplier	None	In-state generation = 1.25
Credit Trading Allowed	Yes	Yes
REC Trading and Verification Required	Yes: North Carolina Renewable Energy Trading System (NC-RETS)	Yes: North American Renewables Registry
Cost Recovery	Utilities may recover the incremental cost of renewable resources and up to $1 million in alternative energy research expenditures annually from customers. The cost per customer account is capped.	Yes, the PSC must develop rules for cost recovery. No cost cap for customers is specified, but the RES is subject to a maximum average retail rate increase of 1%.

Sources: North Carolina Utilities Commission, and Missouri Public Service Commission

Also see the key findings on energy efficiency policy in the U.S. Southeast.

More Information

For more information, see the full report, Southeast Regional Clean Energy Policy Analysis.

As policies change frequently, please see the Database of State Incentives for Renewables & Efficiency (DSIRE) for information on the policies that currently exist in your state or locality. DSIRE only tracks a limited number of local policies, but it tracks more than any other program or organization.