NC H535

Increases the rooftop solar leasing capacity cap from 1% to 10% of the previous five-year average of North Carolina retail contribution to an offering utility's coincident retail peak demand.

Allows utilities to refuse interconnection of customers that would exceed the 10% limitation and requires utilities to establish capacity reservation programs for new leased solar installations.

Limits individual solar energy facility leases to 1,000 kilowatts (kW) for nonresidential customers or 20 kilowatts (kW) for residential customers, based on contract or estimated electrical demand.

Restricts reservations to prospective individual customer generator lessees only, with each reservation serving a single customer premises and prohibiting sale, exchange, trade, or assignment except with the underlying premises.

Becomes effective July 1, 2023, and applies to solar energy facility leases executed on or after that date.