VirginiaSB2502026 Regular SessionSenateWALLET

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

Sponsored By: Scott A. Surovell (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 is identical to HB 395.

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Bill Overview

Analyzed Economic Effects

13 provisions identified: 5 benefits, 2 costs, 6 mixed.

Cooperative solar credits have capacity limits

The law establishes cooperative net metering starting on the later of July 1, 2019, or the regulations’ effective date. Eligible renewable systems must be on customer premises, connect alongside the utility system, and mainly offset the customer’s use. Residential systems placed in service after July 1, 2015, are capped at 20 kilowatts; nonresidential systems at 1 megawatt. System size also cannot exceed expected annual use, based on 12 months of bills or an annualized estimate. Enrollment is first-come, first-served: class caps are 2% of system peak for residential customers, 2% for nonprofits and nonjurisdictional customers, and 1% for other nonresidential customers. Caps use the highest system peak in the past three years, with statutory exclusions, and cannot decrease. Cooperatives must publish cap calculations and status online. Boards can raise and allocate caps without Commission approval, but must file an updated compliance notice.

Farm power sales bring connection costs

Beginning January 1, 2027, qualifying agricultural businesses and specified licensed manufacturers can sell all qualifying renewable facility output to their utility. This route excludes customers already qualifying as eligible agricultural customer-generators. Facilities must be on customer premises, separately metered, and limited to both 1.5 megawatts and 150% of expected annual consumption. Consumption can be combined across separate, contiguous sites served by the same utility. Renewable generation can use no more than 25% of the agricultural business’s contiguous land, with land-use certification under oath. The utility must buy all output at no less than its approved avoided-cost rate for energy and capacity. Generators must follow applicable connection requirements and pay required connection and engineering study expenses. Utilities can recover distribution costs through proportional cost sharing or separate metering and billing. Purchased power, capacity, and certificate costs can be recovered through an approved renewable-energy rate clause, or fuel adjustments or purchased-power costs without one.

Solar customers can sell extra power

Eligible customers generating more electricity than they use over 12 months can request a purchase agreement in writing. The supplier must buy that excess at the Commission-approved rate, unless both sides agree to a higher rate. Customers have a one-time option, when the agreement starts, to sell related renewable energy certificates at Commission-set compensation. Eligible customer-generators, including agricultural customers, can also earn payments for onsite battery services supporting demand response, efficiency, or peak reduction. Battery payments must cover a distinct service not already paid through net-metering credits or another utility program.

Consumer protections cover portable solar purchases

Beginning January 1, 2027, small portable solar devices count as goods under Virginia’s consumer protection law. Covered purchases receive the law’s protections for goods. The law also requires a written cure offer to include an extra payment. That payment is the greater of 10% of the offer’s value or $500, capped at $4,000.

Easier access to portable home solar

Beginning January 1, 2027, qualifying portable solar devices need no utility approval, connection agreement, device-related fee, or utility reimbursement. The limit is 1,200 watts per customer, or per residential unit in multifamily housing. Devices must plug into an outlet behind the meter, meet electrical safety standards, and have recognized testing-lab certification. They must also prevent power export and effects on building wiring during outages. Customers must submit a notification form; installation can proceed after 15 days without a provider response addressing deficiencies. The state utility commission must publish that form by September 1, 2026. Localities cannot ban qualifying devices on residential structures, but height, setback, and historic-area rules still apply. Devices delivering no more than 391 watts to the outlet are exempt from product-listing rules requiring building, wiring, or panel changes. Utilities can install an automatic, locking disconnect switch where a property has multiple devices or the distribution circuit requires one.

Farms can combine meters and keep rules

Eligible agricultural customer-generators can combine electricity use and generation from multiple meters in one account. The meters must serve the same customer at the same or adjacent sites, all served by one utility. The combined load uses the appropriate utility rate. Eligible agricultural generators connected in cooperative territory before July 1, 2019, keep earlier net-metering rules during their applicable grandfathering period. Certain pre-2019 cooperative connections can retain protection for up to 25 years from their original connection date.

Qualifying locality gets renewable power credits

A locality qualifies if it is a nonjurisdictional Phase II Utility customer in Planning District Eight with over 1 million residents. It can install or contract for locality-owned solar or wind facilities on its own sites within the locality. Each facility is limited to 5 megawatts. Electricity credits can go to any locality or public school division metered account within the locality. Credits must match contract rates and charges, and the utility cannot add distribution charges, service charges, or fees because of them.

Portable solar lacks credits and utility liability

Small portable solar devices do not qualify for net-metering credits under the customer-generator or agricultural customer-generator definitions. Beginning January 1, 2027, investor-owned utilities, municipal utilities, and electric cooperatives are not liable for device-caused harm. This includes damage, injury, and interruptions in electric service.

Some solar customers pay extra charges

Residential customer-generators with systems larger than 10 kilowatts must pay a monthly standby charge under a Commission-approved method. The charge can recover only infrastructure costs properly tied to serving those generators. It cannot start before the date in the Commission’s approval order. Cooperative-area generators using a competitive electricity supplier must net-meter with that supplier under its filed rates. They must also pay the cooperative’s full distribution charges without offsets or netting.

Cooperatives control third-party solar contract access

After Commission rulemaking concludes, third-party agreements financing renewable generation in cooperative areas are generally limited to federal income-tax-exempt customers. Statutory exceptions apply, and cooperative boards can allow these agreements for residential customers, nonresidential customers, or both. Boards need no Commission approval but must file an updated net-metering compliance notice. Providers must register, pay $250, submit required certifications, and meet Commission rules before offering agreements. Commission oversight covers registration, provider conduct, and consumer complaints, not civil contract disputes; penalties can reach $30,000 per provider registration.

Solar connection rules include customer costs

Cooperative net-metering customers must notify their supplier and get approval before installing a generating system. Required inspections and documents must be completed before connection, and systems must meet electrical and testing standards. Compliance reviews have 30-day deadlines for residential systems and 60-day deadlines for nonresidential systems. Customers pay reasonable connection-equipment costs. Commission contract rules must prevent discrimination and allow customers on time-of-use plans with electricity-supply demand charges to participate. Those customers must pay the added metering costs needed for net metering.

Tenant solar rights have rental limits

Covered landlords cannot ban qualifying portable solar devices on the exterior of a tenant’s premises. This covers landlords owning more than four rental units or holding more than a 10% interest in more than four units. Tenants must give at least seven days’ notice, compliance documents, and the proposed location. Landlords can set reasonable size and placement limits, restrict installation elsewhere, and require tenants to cover installation damage. Building, wiring, or panel changes need the landlord’s express written approval. Beginning January 1, 2027, the portable-solar rules do not cover rental units using a ratio utility billing system.

State reviews solar payments and charges

In net-metering proceedings, the Commission must weigh program costs, benefits, and effects on other electricity customers. It must set a fair netting period and a compensation method based on avoided utility costs for new rates. It must also work to prevent unreasonable costs from shifting to other customers. Reviews must consider utility costs, state economic effects, and environmental and resilience benefits. In the specified proceedings, it must evaluate whether standby and other generator charges remain necessary; review alone does not change bills.

Sponsors & Cosponsors

Sponsor

  • Scott A. Surovell

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 354 • No: 36

House vote • 4/22/2026

House concurred in Governor's recommendation

Yes: 93 • No: 3

Senate vote • 4/22/2026

Senate concurred in Governor's recommendation

Yes: 27 • No: 12

Senate vote • 3/12/2026

House substitute agreed to by Senate

Yes: 29 • No: 11

House vote • 3/11/2026

Passed House with substitute

Yes: 96 • No: 0

House vote • 3/5/2026

Reported from Labor and Commerce with substitute

Yes: 20 • No: 1

House vote • 3/3/2026

Subcommittee recommends reporting with substitute

Yes: 8 • No: 1

Senate vote • 2/13/2026

Read third time and passed Senate

Yes: 30 • No: 7 • Other: 1

Senate vote • 2/12/2026

Senator Surovell Substitute agreed to

Yes: 0 • No: 0

Senate vote • 2/12/2026

Committee substitute rejected (Voice Vote)

Yes: 0 • No: 0

Senate vote • 2/11/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote • 2/11/2026

Constitutional reading dispensed Block Vote (on 1st reading)

Yes: 40 • No: 0

Senate vote • 2/9/2026

Reported from Commerce and Labor with substitute

Yes: 11 • No: 1 • Other: 2

Actions Timeline

  1. House concurred in Governor's recommendation (93-Y 3-N 0-A)

    4/22/2026House
  2. Senate concurred in Governor's recommendation (27-Y 12-N 0-A)

    4/22/2026Senate
  3. Acts of Assembly Chapter text (CHAP0998)

    4/22/2026Governor
  4. Reenrolled bill text (SB250ER2)

    4/22/2026Senate
  5. Approved by Governor-Chapter 998 (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 Senate

    4/11/2026Governor
  10. Fiscal Impact Statement from State Corporation Commission (SB250)

    4/6/2026Senate
  11. Governor's Action Deadline 11:59 p.m., April 13, 2026

    3/31/2026Governor
  12. Enrolled Bill communicated to Governor on March 31, 2026

    3/31/2026Senate
  13. Signed by Speaker

    3/31/2026House
  14. Bill text as passed Senate and House (SB250ER)

    3/30/2026Senate
  15. Enrolled

    3/30/2026Senate
  16. Signed by President

    3/30/2026Senate
  17. Fiscal Impact Statement from State Corporation Commission (SB250)

    3/24/2026Senate
  18. House substitute agreed to by Senate (29-Y 11-N 0-A)

    3/12/2026Senate
  19. Passed House with substitute (96-Y 0-N 0-A)

    3/11/2026House
  20. Engrossed by House - committee substitute

    3/11/2026House
  21. committee substitute agreed to

    3/11/2026House
  22. Read third time

    3/11/2026House
  23. Passed by for the day

    3/10/2026House
  24. Read second time

    3/9/2026House
  25. Committee substitute printed 26108925D-H1

    3/5/2026House

Bill Text

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