Duke Energy sells distributed generation business to ArcLight Capital

Facebook
Twitter
LinkedIn
Reddit
Email
In October 2022, Duke Energy set out its 10-year plan to possess 30GW of renewables capacity in its portfolio by 2035. Image: Duke Energy

Southeast US utility Duke Energy has sold its distributed commercial generation portfolio – including solar PV developer REC Solar and all of its assets – to investment firm ArcLight Capital Partners. Financial details of the transaction were not disclosed.

Duke Energy said that the proceeds would be used to “strengthen Duke Energy’s balance sheet and avoid additional holding company debt issuances.” The utility also recently sold its utility-scale renewables generation arm to global asset manager Brookfield Renewable for US$2.8 billion.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

In October 2022, Duke Energy set out its 10-year plan to possess 30GW of renewables capacity in its portfolio by 2035, a US$40 billion plan that coincides with its target date for phasing out coal from its operations.

The company currently owns Piedmont Natural Gas, a leading gas provider for the Carolinas and Tennessee, and according to research from the University of Massachusetts Amherst, Political Economy Research Institute, it is the second largest producer of carbon dioxide emissions in the US.

Under the 10-year plan, a further US$75 billion will go towards transmission and distribution infrastructure, a sector in which Duke is seemingly increasing its activity.

Last month energy consultancy DNV published findings that the US’ interconnection and clean energy generation targets present a US$12 trillion cumulative investment opportunity through 2050. Fellow utility Edison International published a white paper at a similar time saying that its native California would need US$370 billion for transmission and distribution upgrades.

PV Tech notes that under US Rate Base Legislation, utilities can receive a rate of return from federal and state governments based on the value of their owned assets, including power transmission lines. This can be reflected in consumer energy costs.

Duke Energy submitted an application to the North Carolina Utilities Commission in January 2023 requesting a rate increase of a total US$833.2 million in retail base revenues, as well as a residential decoupling request that would separate its profits from its direct sales of energy. The request was informed by Duke’s investments in renewables and retiring its coal plants since 2019, including those in transmission infrastructure.

Speaking about its acquisition by ArcLight, Lawrence Denney, CEO of Duke subsidbiary REC Solar said: “ArcLight’s investment provides us with an opportunity to build on [our] legacy and evolve with today’s changing renewables landscape. With their backing, we’re able to expand our reach and drive growth at scale, enabling and financing more on-site solar and storage opportunities while also bringing solar to communities that haven’t traditionally had access.”

Distributed and commercial solar assets, like those in this transaction, are on the rise in the US and other developed countries and will require developed distribution grids. PV Tech Premium recently published a feature on the impact that the Inflation Reduction Act could have on US commercial and industrial solar.

7 October 2025
San Francisco Bay Area, USA
PV Tech has been running an annual PV CellTech Conference since 2016. PV CellTech USA, on 7-8 October 2025 is our third PV CellTech conference dedicated to the U.S. manufacturing sector. The events in 2023 and 2024 were a sell out success and 2025 will once again gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing in the U.S. out to 2030 and beyond.
21 October 2025
New York, USA
Returning for its 12th edition, Solar and Storage Finance USA Summit remains the annual event where decision-makers at the forefront of solar and storage projects across the United States and capital converge. Featuring the most active solar and storage transactors, join us for a packed two-days of deal-making, learning and networking.
25 November 2025
Warsaw, Poland
Large Scale Solar Central and Eastern Europe continues to be the place to leverage a network that has been made over more than 10 years, to build critical partnerships to develop solar projects throughout the region.
16 June 2026
Napa, USA
PV Tech has been running PV ModuleTech Conferences since 2017. PV ModuleTech USA, on 16-17 June 2026, will be our fifth PV ModulelTech conference dedicated to the U.S. utility scale solar sector. The event will gather the key stakeholders from solar developers, solar asset owners and investors, PV manufacturing, policy-making and and all interested downstream channels and third-party entities. The goal is simple: to map out the PV module supply channels to the U.S. out to 2027 and beyond.

Read Next

June 30, 2025
Voting on the US tax reconciliation bill is expected to begin in the Senate today, following a draft published on Friday that hit clean energy tax credits hard.
June 30, 2025
US clean energy developer Clearway Energy Group has received corporate credit facilities over US$1 billion.
June 30, 2025
Australian module manufacturer Tindo Solar has secured a 30MW solar module supply agreement to power Australia's first "net zero pipeline”.
June 27, 2025
Renewables investment platform Nexwell Power has signed a round of power purchase agreements (PPAs) with “one of the largest” US tech companies for solar PV capacity to be built in Spain.
June 27, 2025
Statkraft has signed PPAs with Better Energy to purchase energy from two solar power plants in Poland with a total capacity of 64GWh.
June 27, 2025
Solar developer Lightsource bp has signed a power purchase agreement (PPA) with a subsidiary of Taiwanese energy firm HD Renewable Energy (HDRE).

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
June 30, 2025
10am PST / 6pm BST
Solar Media Events
July 1, 2025
London, UK
Solar Media Events
July 1, 2025
London, UK
Media Partners, Solar Media Events
July 2, 2025
Bangkok, Thailand
Media Partners, Solar Media Events
September 2, 2025
Mexico City, Mexico