Challenges in Advancing Solar Energy in Virginia
Virginia expands solar efforts, but progress faces challenges. Landowners looking to install large-scale solar projects on their rural properties are facing increasing resistance from local authorities. Meanwhile, schools, local governments, and businesses eager to adopt solar energy are encountering high interconnection costs imposed by Dominion Energy. Additionally, the state’s net metering program, which allows solar panel owners to receive credit for excess electricity fed back into the grid, is approaching its expiration, adding uncertainty to future solar investments.
With the rapid expansion of data centers driving up energy demand, Virginia needs a reliable and diverse clean energy supply. However, the state has yet to fully remove the barriers hindering the growth of both large-scale and distributed solar projects. Despite these challenges, several legislative efforts at the General Assembly are addressing specific roadblocks. Although some bills have been significantly weakened, they still hold the potential to make progress in supporting solar energy initiatives.
Legislation Addressing Utility-Scale Solar Projects
One of the most impactful legislative measures supporting Virginia expands solar initiatives comes from the Commission on Electric Utility Regulation (CEUR). Sponsored by Delegate Rip Sullivan and Senator Creigh Deeds, the bill aims to ease the process of approving solar and energy storage projects by ensuring local governments establish clear targets for energy production. These targets would align with broader regional plans and be informed by expert recommendations from a new interagency panel.
The legislation also prevents localities from outright banning solar projects or placing excessive restrictions on them. However, it stops short of requiring project approvals, maintaining some discretion for local governments. A separate bill from Senator Jeremy McPike and another from Senator Schuyler VanValkenburg, which sought to establish rigorous best practices for solar projects, were absorbed into this broader bill. Despite its diluted provisions, the bill has faced partisan challenges, with opposition from Republican members of the Senate Commerce and Labor Committee. The revised bill is now awaiting a vote in the full Senate.
Progress in Expanding Small-Scale Solar Initiatives
Efforts under the banner of Virginia expands solar have also gained momentum for small-scale solar installations, despite some revisions. A coalition known as the Equitable Solar Alliance has put forward three bills focused on distributed generation, virtual power plants, and workforce training.
One notable bill, HB1883 by Delegate Katrina Callsen, increases the portion of distributed solar that Dominion Energy must include in its renewable energy commitments. It also raises incentives for behind-the-meter solar projects and allows third-party power purchase agreements for residential customers. The bill has passed the House with bipartisan support and is progressing in the Senate.
Other bills, including HB2346 and SB1100, introduce pilot programs for virtual power plants, enabling utilities to better manage energy demand through customer solar and battery storage. While these bills envision a future where solar energy plays a larger role in Virginia’s power grid, they currently limit participation to voluntary pilot programs. Additional legislation, such as HB2266, addresses interconnection costs for small-scale solar projects, ensuring that grid upgrades are fairly distributed among benefiting projects.
As Virginia expands solar access, these legislative efforts represent significant progress in advancing clean energy across the state. While challenges remain, the push for a more sustainable and resilient energy infrastructure is gaining traction in both the House and Senate.
