VirginiaHB3952026 Regular SessionHouseWALLET

Electric utilities; small portable solar generation devices, local regulation.

Sponsored By: Paul E. Krizek (Democratic)

Signed by Governor

Summary

Electric utilities; small portable solar generation devices; local regulation; installation by tenants; consumer protection. Prevents a locality from prohibiting the use of a small portable solar generation device, as defined in the bill, on a residential structure, provided that certain requirements are met. The bill includes provisions related to the installation of small portable solar generation devices by tenants and prevents landlords from prohibiting such installation in certain circumstances. Under the bill, small portable solar generation devices are excluded from the provisions of net metering programs applicable to eligible agricultural customer-generators, eligible customer-generators, or small agricultural generating facilities. The bill also permits any electric utility customer to own and operate a small portable solar generation device, provided that certain requirements are met. The bill prohibits an investor-owned utility, municipal utility, or electric cooperative from imposing interconnection requirements, charging any fee related to the device, or requiring that the customer obtain the utility's approval before installing or using the device. Under the bill, no electric utility, municipal utility, electric cooperative shall be liable for damage or injury caused by a small portable solar generation device. The bill directs the State Corporation Commission to develop and publish a notification form for a customer of an electric utility or cooperative to install a small portable solar generation device and directs the Secretary of Commerce and Trade to convene a work group to evaluate and develop recommendations regarding the safety standards and requirements applicable to small portable solar generation devices. Certain provisions of the bill become effective on January 1, 2027. This bill incorporates HB 289 and HB 928 and is identical to SB 250.

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Bill Overview

Analyzed Economic Effects

17 provisions identified: 8 benefits, 2 costs, 7 mixed.

Qualifying farms can sell renewable power

Beginning January 1, 2027, qualifying small agricultural generators can sell all output under an agreement paying at least the utility's approved avoided-cost rate for energy and capacity. Eligible agricultural businesses and businesses with specified manufacturer licenses must use an onsite renewable facility with a separate meter, outside the agricultural net-metering category. Capacity cannot exceed 1.5 megawatts or 150% of expected annual use; meters at separate contiguous sites served by one utility can count together only for that 150% limit. Generation can use no more than 25% of the agricultural business's contiguous land, and the generator must certify land use under oath. Generators receive specified renewable-certificate and environmental-attribute rights, must follow the small-generator connection process, and must pay required additional expenses.

Solar customers can earn battery payments

Eligible household and agricultural customer-generators can use onsite batteries for demand response, energy efficiency, or peak reduction. Payments must cover a distinct service not already paid through net-metering credits, another utility program, or another tariff. During net-metering proceedings, the Commission must review whether standby or other charges on these customers remain necessary.

Solar customers can sell surplus power

Eligible customers whose generation exceeds use over a 12-month net-metering period can request a power purchase agreement in writing. Suppliers must offer the state-approved standard contract or tariff rate unless both sides agree to a higher rate. Standard agreements are first come, first served and subject to available capacity. Customers own their renewable energy certificates and get a one-time option to sell them at a state-set value when signing. Suppliers recover purchase costs through the fuel adjustment clause.

Consumer protections cover portable solar purchases

Beginning January 1, 2027, Virginia's consumer-protection law treats qualifying portable solar devices as goods. Consumer transactions involving these devices receive the protections that apply to goods.

Localities cannot ban qualifying portable solar

Virginia localities cannot ban qualifying small portable solar devices on residential structures. Devices must meet state standards and local height and setback rules. Local historic, architectural preservation, and corridor protection rules still apply.

Farm solar accounts gain flexibility

Eligible agricultural customer-generators can combine electricity use and generation from multiple meters into one account under the appropriate rate plan. Meters must serve the same customer, sit at the same or adjacent sites, and use the same utility. Eligible agricultural generators connected in cooperative territories before July 1, 2019, retain the general net-metering rules during their applicable grandfathering period. Certain qualifying systems can retain that treatment for up to 25 years from their original connection.

Eligible localities can credit public power

A locality in Planning District Eight with more than 1 million residents can use this program if it is a nonjurisdictional Phase II utility customer. It can install or contract for locality-owned solar or wind facilities up to 5 megawatts on its own sites within the locality. Power credits can go to local-government or public-school accounts located there, following the applicable contract rates and monthly charges. Credits cannot cover distribution charges, service charges, or fees arising from the credit; this is not a household bill credit.

Solar reviews must address customer costs

Whenever the Commission reviews net metering, it must study the program's costs and benefits. It must set a netting period and a method for valuing power under new tariffs using utility avoided costs. Reviews must consider long-term utility costs, other customers in the same rate class, Virginia's economy, and environmental and resilience benefits. The Commission must make reasonable efforts to prevent unreasonable costs from shifting to customers who do not participate.

Portable solar users face liability limits

Beginning January 1, 2027, utilities are not liable for damage, injury, or service interruptions caused by portable solar devices. This covers investor-owned utilities, municipal utilities, and electric cooperatives. Utilities and cooperatives can install an automatic locking disconnect when a property has multiple devices or its distribution circuit requires one. The law does not say who pays for the switch.

Some cooperative solar customers pay more

Residential cooperative customer-generators with systems larger than 10 kilowatts must pay a monthly standby charge once the Commission approves it. The charge can cover only infrastructure costs properly tied to serving them, and payment starts on the approval order's date. Cooperative customers using a competitive electricity supplier can net meter only with that supplier under its filed rates. They must pay the cooperative's full distribution charges without offset or netting.

Cooperative customers face solar contract limits

After the Commission's rulemaking, third-party renewable power agreements in cooperative territories are generally limited to customers exempt from federal income tax. The limit covers cooperative retail and nonjurisdictional customers, with statutory exceptions. Cooperative boards can also allow these agreements for residential customers, nonresidential customers, or both. Boards must file revised compliance information, and agreements must finance renewable generation for eligible customer-generators through electricity sales.

Cooperative solar credits have size limits

The State Corporation Commission must establish cooperative net metering, starting on the later of July 1, 2019, or its regulations' effective date. Eligible renewable systems must be on the customer's premises, connect alongside utility service, mainly offset customer use, and exclude portable solar devices. For facilities placed in service after July 1, 2015, limits are 20 kilowatts for homes and 1 megawatt for nonresidential customers; systems cannot exceed expected annual use, based on 12 months of bills or an annualized estimate. Access is first come, first served, with caps of 2% for residential customers, 2% for nonprofit and nonjurisdictional customers, and 1% for other nonresidential customers. Caps use the cooperative's highest system peak over the past three years; boards can raise and allocate them, but cannot lower them, and must promptly file revised compliance information.

Simpler rules for portable home solar

Beginning January 1, 2027, qualifying portable solar devices need no utility approval, interconnection process, or device fees. Movable devices must plug into an outlet behind the meter, mainly offset household use, and stay within 1,200 watts per customer or multifamily unit. They must meet current electrical-code and laboratory-certification standards and prevent effects on building wiring or power export during outages. Customers must send the state's form before installation; suppliers have 15 days to report deficiencies, and silence satisfies the notice requirement. Devices supplying no more than 391 watts to an outlet are exempt from product-listing rules requiring building or electrical changes; portable devices do not qualify for net metering, and these operating exemptions exclude rentals with ratio utility billing.

Solar connections bring deadlines and costs

Net-metered systems need notice and approval before installation, plus inspection, documentation, and two-way metering before connection. Systems must meet electrical-code, engineering, and accredited laboratory safety standards. Utilities have 30 days after notification to review residential systems and 60 days for nonresidential systems. Customers bear reasonable connection costs, including needed equipment, controls, and tests. State contract rules must protect customers from discrimination and allow time-of-use customers with electricity-supply demand charges to participate; those customers pay added metering costs.

Renters gain solar rights with limits

Covered landlords cannot ban qualifying portable solar devices on the exterior of a tenant's premises. Coverage applies to landlords owning more than four rental units or holding more than a 10% interest in more than four units, directly or through a business. Tenants must give written notice, compliance documents, and the proposed location at least seven days before installation; landlords can set reasonable size and placement rules. Tenants pay for damage they cause, and landlords are not liable for habitability or essential-service failures caused solely by the device. Tenants with ratio utility billing cannot use these devices, and devices requiring building, wiring, or panel changes need express written landlord approval.

Farm power sales bring shared costs

Beginning January 1, 2027, utilities must buy all output from qualifying small agricultural generators. Utilities recover distribution costs through proportional cost sharing or by metering capacity and energy placed on the system. Purchase costs go through an approved renewable-portfolio rate adjustment clause when available, or through fuel or purchased-power charges otherwise. Utilities can bill generators for eligible connection studies and required additional engineering studies at cost.

Solar providers need registration and safeguards

Providers must register and follow consumer-protection and safety rules before offering third-party power agreements in cooperative territories. Each residential or nonresidential provider registration costs $250. Providers must certify business licensing, responsible officers, compliance commitments, complaint contacts, and intended territories, and report material changes. The Commission can impose penalties up to $30,000 per registration, order providers to stop, or bar them. The law required rulemaking to begin after August 1, 2019, but before January 1, 2020, and finish within 12 months.

Sponsors & Cosponsors

Sponsor

  • Paul E. Krizek

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 523 • No: 28

House vote • 4/22/2026

House concurred in Governor's recommendation Block Vote

Yes: 99 • No: 0

Senate vote • 4/22/2026

Senate concurred in Governor's recommendation

Yes: 28 • No: 11

House vote • 3/9/2026

Senate substitute agreed to by House

Yes: 93 • No: 4

Senate vote • 3/5/2026

Committee substitute rejected (Voice Vote)

Yes: 0 • No: 0

Senate vote • 3/5/2026

Senator Surovell Substitute agreed to

Yes: 0 • No: 0

Senate vote • 3/5/2026

Passed Senate with substitute

Yes: 30 • No: 8 • Other: 1

Senate vote • 3/4/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote • 3/4/2026

Constitutional reading dispensed Block Vote (on 2nd reading)

Yes: 39 • No: 0

Senate vote • 3/2/2026

Reported from Commerce and Labor with substitute

Yes: 10 • No: 4

House vote • 2/4/2026

Passed House Block Vote

Yes: 98 • No: 0

House vote • 2/4/2026

Read third time and passed House Block Vote

Yes: 97 • No: 1

House vote • 1/29/2026

Reported from Labor and Commerce with substitute

Yes: 22 • No: 0

House vote • 1/27/2026

Subcommittee recommends reporting with substitute

Yes: 7 • No: 0

Actions Timeline

  1. Senate concurred in Governor's recommendation (28-Y 11-N 0-A)

    4/22/2026Senate
  2. House concurred in Governor's recommendation Block Vote (99-Y 0-N 0-A)

    4/22/2026House
  3. Acts of Assembly Chapter text (CHAP1052)

    4/22/2026Governor
  4. Reenrolled bill text (HB395ER2)

    4/22/2026House
  5. Approved by Governor - Chapter 1052 (effective - see bill)

    4/22/2026Governor
  6. Signed by President

    4/22/2026Senate
  7. Signed by Speaker

    4/22/2026House
  8. Governor's recommendation adopted

    4/22/2026Governor
  9. Governor's recommendation received by House

    4/11/2026Governor
  10. Governor's Action Deadline 11:59 p.m., April 13, 2026

    3/25/2026Governor
  11. Enrolled Bill communicated to Governor on March 25, 2026

    3/25/2026House
  12. Fiscal Impact Statement from State Corporation Commission (HB395)

    3/23/2026House
  13. Bill text as passed House and Senate (HB395ER)

    3/14/2026House
  14. Enrolled

    3/14/2026Senate
  15. Signed by President

    3/14/2026Senate
  16. Signed by Speaker

    3/14/2026House
  17. Senate substitute agreed to by House (93-Y 4-N 0-A)

    3/9/2026House
  18. Passed Senate with substitute (30-Y 8-N 1-A)

    3/5/2026Senate
  19. Senator Surovell Substitute agreed to

    3/5/2026Senate
  20. Committee substitute rejected (Voice Vote)

    3/5/2026Senate
  21. Floor substitute printed 26109146D-S2 (Surovell)

    3/5/2026Senate
  22. Floor Offered

    3/5/2026Senate
  23. Fiscal Impact Statement from State Corporation Commission (HB395)

    3/5/2026House
  24. Reading of substitute waived

    3/5/2026Senate
  25. Engrossed by Senate - floor substitute

    3/5/2026Senate

Bill Text

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