Virginia Shared (Community) Solar Expansion Bills Signed Into Law

On April 8, 2024, Virginia Governor Glenn Youngkin signed four bills into law that will expand shared (community) solar in Virginia. Some of the key details of the new legislation are as follows:

Expansion of Shared Solar Program in Dominion’s Territory:

SB 253 (Surovell) / HB 106 (Sullivan):

• Expands the existing 200MW shared solar program in Virginia Electric and Power Company’s (Dominion) territory by up to 150MW of additional capacity.
  • Of the additional 150MW, no more than 75MW shall serve more than 51% of low-income customers.
  • Renewable energy credits (RECs) from the additional 150MW are to be transferred to Dominion for compliance with its Renewable Portfolio Standards (RPS) obligations.
• Directs the State Corporation Commission (SCC) to recalculate the minimum bill assessed to program subscribers. In recalculating the minimum bill, the SCC is required to:
  • Consider costs deemed relevant to ensure subscribing customers pay a fair share of the costs of providing electric services and generation sufficient to meet customer needs at all times;
  • Minimize the costs shifted to customers not in a shared solar program; and
  • Calculate the benefits of shared solar to the electric grid and to the Commonwealth and deduct such benefits from other costs. The SCC is to explicitly set forth its findings as to each cost and benefit, or other value used to determine such minimum bill. 
  • Note: Low-income customers are exempt from the minimum bill.
• Provides possible incentives for shared solar projects located on rooftops, brownfields, or landfills, or are dual use-agricultural facilities.
  • Virginia Department of Energy shall convene a stakeholder group to determine the amounts and forms of possible project incentives.

New Shared Solar Program in Appalachian Power’s (APCo) Territory:

SB 255 (Surovell) / HB 108 (Sullivan):

• Establishes a new 50MW shared solar program in APCo territory.
  • RECs will be transferred to APCo for compliance with its RPS.
• Directs the SCC to recalculate the minimum bill assessed to program subscribers. In recalculating the minimum bill, the SCC is required to:
  • Consider costs deemed relevant to ensure subscribing customers pay a fair share of the costs of providing electric services and generation sufficient to meet customer needs at all times;
  • Minimize the costs shifted to customers not in a shared solar program; and
  • Calculate the benefits of shared solar to the electric grid and to the Commonwealth and deduct such benefits from other costs. The SCC shall explicitly set forth its findings as to each cost and benefit, or other value used to determine such minimum bill.
  • Note: Low-income customers are NOT exempt from the minimum bill.
• Provides possible incentives for shared solar projects located on rooftops, brownfields, or landfills, or are dual use-agricultural facilities.
  • Virginia Department of Energy shall convene a stakeholder group to determine the amounts and forms of possible project incentives

The new legislation will go into effect on July 1, 2024 and SCC regulatory proceedings will be needed to implement the new legislation.

For more information or any questions regarding the new legislation, please contact any of the authors or the Williams Mullen attorney with whom you may already work.