Duke Energy Corp. completed a multi‑year agreement to sell $3.1 billion in net tax credits that will be generated between 2025 and 2028 from its nuclear and solar facilities in Florida and the Carolinas. The credits include production credits for nuclear and solar power and investment tax credits for capital projects. The sale is structured as a forward‑sale to an undisclosed third party and will be subject to regulatory approval before the savings can be passed to ratepayers.
The transaction is designed to reduce Duke’s cost base and deliver long‑term savings to its 8.7 million customers across six states. It is part of the company’s broader goal of delivering more than $5 billion in cost‑saving benefits across its regulated utilities. By monetizing the credits, Duke can offset the cost of its $103 billion five‑year capital plan and the rising cost of operating its largest regulated nuclear fleet in the United States.
The $3.1 billion is broken down into $2 billion for Duke Energy Carolinas, $700 million for Duke Energy Progress, and $350 million for its Florida operations. In 2023, Duke passed $56 million in tax credits to Florida customers annually under the Inflation Reduction Act, and in 2024 nuclear credits generated roughly $500 million in savings for Carolinas customers. The sale therefore builds on a history of passing tax‑credit benefits to customers and expands the scale of those benefits.
The sale comes amid increasing pressure from customers and regulators over rising energy prices. By leveraging the tax incentives created by the Inflation Reduction Act, Duke can convert future tax‑credit revenue into immediate savings for ratepayers. The transaction also supports the company’s clean‑energy strategy, as the credits are tied to nuclear and solar generation that provide reliable, low‑carbon power.
The tax‑credit sale is one element of Duke’s broader cost‑saving strategy, which includes the recently approved combination of Duke Energy Carolinas and Duke Energy Progress that is projected to save customers $2.3 billion between 2027 and 2040. Together, these initiatives reinforce Duke’s commitment to affordability while maintaining the financial resources needed to fund its long‑term infrastructure investments.
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