VirginiaHB8072026 Regular SessionHouseWALLET

Electric utilities; shared solar programs, Phase II Utility.

Sponsored By: Richard C. "Rip" Sullivan, Jr. (Democratic)

Signed by Governor

Summary

Electric utilities; shared solar programs; Phase II Utility. Amends certain provisions related to the shared solar program established by the State Corporation Commission for Dominion Energy Virginia. Under the bill, Dominion Energy Virginia is authorized to release an additional 525 megawatts of capacity as part two of such program upon the earlier of (i) a determination that at least 90 percent of the aggregate program capacity has been subscribed and project construction is substantially complete or (ii) July 1, 2026. The bill directs Dominion Energy Virginia to petition the Commission to initiate a proceeding to determine the capacity for part three of such program on or before part two of such program is substantially complete for 268 megawatts of capacity. The bill directs the Commission to evaluate the costs and benefits of the shared solar program under such proceeding and to consider the results of such proceeding in determining any future allocations of shared solar capacity and changes in program design. The bill directs the Commission to update its regulations on shared solar programs to comply with the provisions of the bill by December 31, 2026, and to require each participating utility to file any tariffs, agreements, or forms necessary for implementation of such programs by March 1, 2027. This bill is identical to SB 254.

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 2 benefits, 0 costs, 4 mixed.

More shared solar with participation limits

After approving 200 megawatts of first-stage capacity, each Phase II Utility must release another 525 megawatts. Release is due when at least 90% of first-stage capacity is subscribed and construction is substantially complete, or July 1, 2026, whichever comes first. Of the added capacity, 450 megawatts must serve no more than 51% low-income customers; 75 megawatts may serve more than 51%. Organizations can show compliance using project capacity or project savings. A low-income shared solar facility has at least 30% of capacity subscribed by low-income customers or low-income service organizations. By substantial completion of 268 megawatts of second-stage capacity, the utility must ask the Commission to start deciding third-stage capacity.

Fee caps protect solar subscribers

Utilities must offer net crediting, which combines shared solar subscription charges and credits on the utility bill. Subscriber organizations choose whether to use it. Under this option, the customer’s net credit equals the solar bill credit minus the subscription fee. The net-crediting fee cannot exceed 1% of the bill-credit value. Subscription fees under this option cannot exceed the subscriber’s bill credits.

Solar subscribers gain access and protections

Program rules must allow all customer classes to participate without changing their class. Rules must reasonably allow subscription transfers, including keeping a subscription after moving within the same utility’s service area. Residential applicants cannot be screened with credit checks. Low-income subscribers cannot face early termination fees or credit reporting. Subscriber organizations need your affirmative written or electronic consent to receive your billing and usage data. Organizations operating in more than one investor-owned utility territory must hold a Commission license.

Solar bill credits with minimum charges

Virginia’s State Corporation Commission sets shared solar rules for customers of Phase II investor-owned utilities. Subscribers receive credits equal to their share of solar output times their customer class’s credit rate. Each year, the Commission calculates residential, commercial, and industrial rates by dividing each class’s revenues by its kilowatt-hour sales. Subscribers pay a minimum bill for utility infrastructure, services, and program administration; the Commission considers other costs and solar benefits and adjusts the charge over time. Customers earning no more than 80% of their locality’s median income, as determined by HUD, are exempt. Utilities must apply credits within two billing cycles, and credits above the monthly bill minus the minimum bill carry forward. Credits continue for at least 25 years after the facility starts commercial operation. Subscriptions must be sized so estimated credits do not exceed the account’s average annual bill. Each facility must occupy one parcel, connect to a Phase II Utility in Virginia, and serve customers in that utility’s territory. Facilities are capped at 5,000 kilowatts of alternating-current capacity and must have at least three subscribers; at least 40% of capacity must serve subscriptions of 25 kilowatts or less. Subscriber organizations send standardized electronic subscriber lists and allocated output monthly, with monthly updates allowed; utilities report credits generated and applied monthly. Organizations can accumulate unused credits and distribute excess credits under Commission guidelines.

Fair solar connections and utility cost recovery

The Commission must set fair, efficient, nondiscriminatory rules, standards, and fees for connecting shared solar facilities to utility systems. Rules must also require standard customer disclosures, customer education and engagement, and an implementation schedule. Utilities must have an opportunity to recover reasonable connection and program-administration costs. A Phase II Utility can also recover the difference between subscriber bill credits and supplied-energy costs as a purchased-power cost. The law does not specify a household bill increase.

Solar certificate rights depend on registration

For facilities registered within the first 200 megawatts of awarded alternating-current capacity, subscriber organizations own all environmental attributes. They can distribute them to subscribers, sell them, save them, or retire them. Facilities registered after that threshold must transfer renewable energy certificates to a Phase II Utility. The utility retires those certificates to meet its renewable energy requirements.

Sponsors & Cosponsors

Sponsor

  • Richard C. "Rip" Sullivan, Jr.

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 385 • No: 32

House vote • 3/2/2026

Senate substitute agreed to by House

Yes: 90 • No: 8

Senate vote • 2/26/2026

Commerce and Labor Substitute agreed to

Yes: 0 • No: 0

Senate vote • 2/26/2026

Passed Senate with substitute

Yes: 22 • No: 18

Senate vote • 2/25/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote • 2/25/2026

Constitutional reading dispensed Block Vote (on 2nd reading)

Yes: 40 • No: 0

Senate vote • 2/23/2026

Reported from Commerce and Labor with substitute

Yes: 10 • No: 5

House vote • 2/4/2026

Read third time and passed House Block Vote

Yes: 97 • No: 1

House vote • 2/4/2026

Passed House Block Vote

Yes: 98 • No: 0

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: 6 • No: 0

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0670)

    4/13/2026Governor
  2. Approved by Governor-Chapter 670 (effective 7/1/2026)

    4/13/2026Governor
  3. Fiscal Impact Statement from State Corporation Commission (HB807)

    3/12/2026House
  4. Governor's Action Deadline 11:59 p.m., April 13, 2026

    3/10/2026Governor
  5. Enrolled Bill communicated to Governor on March 10, 2026

    3/10/2026House
  6. Bill text as passed House and Senate (HB807ER)

    3/6/2026House
  7. Enrolled

    3/6/2026House
  8. Signed by President

    3/6/2026Senate
  9. Signed by Speaker

    3/6/2026House
  10. Senate substitute agreed to by House (90-Y 8-N 0-A)

    3/2/2026House
  11. Fiscal Impact Statement from State Corporation Commission (HB807)

    2/26/2026House
  12. Passed Senate with substitute (22-Y 18-N 0-A)

    2/26/2026Senate
  13. Commerce and Labor Substitute agreed to

    2/26/2026Senate
  14. Engrossed by Senate - committee substitute

    2/26/2026Senate
  15. Read third time

    2/26/2026Senate
  16. Passed by for the day Block Vote (Voice Vote)

    2/25/2026Senate
  17. Constitutional reading dispensed Block Vote (on 2nd reading) (40-Y 0-N 0-A)

    2/25/2026Senate
  18. Rules suspended

    2/25/2026Senate
  19. Committee substitute printed 26108399D-S1

    2/24/2026Senate
  20. Reported from Commerce and Labor with substitute (10-Y 5-N)

    2/23/2026Senate
  21. Referred to Committee on Commerce and Labor

    2/5/2026Senate
  22. Constitutional reading dispensed (on 1st reading)

    2/5/2026Senate
  23. Passed House Block Vote (98-Y 0-N 0-A)

    2/4/2026House
  24. Reconsideration of passage agreed to by House

    2/4/2026House
  25. Read third time and passed House Block Vote (97-Y 1-N 0-A)

    2/4/2026House

Bill Text

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