VirginiaSB2542026 Regular SessionSenateWALLET

Electric utilities; shared solar programs, Phase II Utility.

Sponsored By: Scott A. Surovell (Democratic)

Became Law

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 HB 807.

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Bill Overview

Analyzed Economic Effects

10 provisions identified: 7 benefits, 0 costs, 3 mixed.

Fair sign-up rules and privacy

You get standardized disclosure forms that explain costs, credits, transfers, and options. Starting March 1, 2025, a utility needs your written or electronic consent before sharing your billing or usage data. Also starting March 1, 2025, rules require customer education, contract reviews, and ongoing engagement. Residential customers cannot be required to pass a credit check to join.

How shared solar credits work

If you subscribe, your bill credit equals your share of kWh times your class’s $/kWh rate. The Commission sets that class rate each year by dividing class revenues by class kWh sales. If your monthly credit is bigger than your bill after the minimum bill, the extra rolls to next month. Utilities must apply credits within two billing cycles, and subscriber groups can allocate unused credits yearly or more often. Utilities must keep bill credits flowing for at least 25 years after the project starts.

More help for low-income subscribers

Low-income subscribers (income at or below 80% of the local median) do not pay the program’s minimum bill. Part two capacity sets aside 450 MW for projects serving up to 51% low-income customers, plus 75 MW for projects serving more than 51% low-income customers. Starting March 1, 2025, low-income customers cannot be charged early termination fees or reported to credit bureaus. Subscriber groups can prove they meet low‑income targets using either capacity or savings methods. The Commission can work with the Department of Energy and a stakeholder group (including low‑income community reps) to boost low-income enrollment.

Net crediting option with fee cap

Starting March 1, 2025, utilities must offer net crediting as an option. Your subscription fee appears on your utility bill, and you get a net credit equal to your bill credit minus the fee. The net crediting fee is capped at 1% of your bill credit. The subscription fee cannot make you pay more than you receive in credits.

More shared solar capacity in phases

Part one provides 200 MW of shared solar capacity. Beginning July 1, 2026, the utility releases another 525 MW for part two, or earlier if 90% of part one is subscribed and construction is substantially complete. When 268 MW of part two is substantially complete, the utility must ask the Commission to plan part three. The Commission reviews costs and benefits, including grid costs, renewable goals, economic and environmental effects, resilience, and fuel price risk, before setting future capacity.

Shared solar program launch timeline

The Commission establishes shared solar rules by March 1, 2025, and utilities file needed tariffs and forms by December 1, 2025. Each utility must start applying bill credits within 180 days after the rules are finalized. The Commission updates regulations by December 31, 2026, and utilities file any new tariffs and forms by March 1, 2027. Existing tariffs and forms stay in place until the Commission approves replacements. Customers of Phase II utilities can subscribe under these rules.

Grid connection rules and cost recovery

The Commission sets fair, efficient interconnection rules and gives guidance for co‑locating projects on one parcel, starting March 1, 2025. Utilities may recover reasonable interconnection and program administration costs. Beginning March 1, 2025, utilities can also recover the difference between subscriber bill credits and the cost of the energy delivered by the project as a purchased power cost. These recoveries can appear in rates paid by customers.

Environmental credits and site incentives

For the first 200 MW registered, the subscriber organization owns the renewable energy certificates (RECs). After that, RECs must be transferred to the utility for its renewable standard. Projects on rooftops, brownfields, landfills, dual‑use farmland, or other Department of Energy‑designated categories qualify for incentives. These rules start March 1, 2025.

Who can join and keep subscriptions

All customer classes can join shared solar. Joining does not change your customer‑class status. Subscriptions are transferable and portable within the same utility area, so you can keep your subscription if you move within that area.

Monthly reporting between utilities and groups

Starting March 1, 2025, subscriber organizations must send the utility a monthly electronic list of subscribers and their kWh shares. Utilities must send subscriber organizations a monthly electronic report showing the total value of credits and each subscriber’s applied credit. This adds regular duties but also improves accuracy and reconciliation.

Sponsors & Cosponsors

Sponsor

  • Scott A. Surovell

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 173 • No: 37

House vote 2/27/2026

Passed House

Yes: 83 • No: 13

House vote 2/24/2026

Reported from Labor and Commerce

Yes: 17 • No: 4

Senate vote 2/13/2026

Read third time and passed Senate

Yes: 24 • No: 15

Senate vote 2/12/2026

Committee substitute agreed to (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: 9 • No: 5

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0671)

    4/13/2026Governor
  2. Approved by Governor-Chapter 671 (effective 7/1/2026)

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

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

    3/10/2026Senate
  5. Fiscal Impact Statement from State Corporation Commission (SB254)

    3/9/2026Senate
  6. Bill text as passed Senate and House (SB254ER)

    3/4/2026Senate
  7. Enrolled

    3/4/2026Senate
  8. Signed by President

    3/4/2026Senate
  9. Signed by Speaker

    3/4/2026House
  10. Passed House (83-Y 13-N 0-A)

    2/27/2026House
  11. Read third time

    2/27/2026House
  12. Read second time

    2/26/2026House
  13. Reported from Labor and Commerce (17-Y 4-N)

    2/24/2026House
  14. Referred to Committee on Labor and Commerce

    2/18/2026House
  15. Read first time

    2/18/2026House
  16. Placed on Calendar

    2/18/2026House
  17. Fiscal Impact Statement from State Corporation Commission (SB254)

    2/16/2026Senate
  18. Read third time and passed Senate (24-Y 15-N 0-A)

    2/13/2026Senate
  19. Committee substitute agreed to (Voice Vote)

    2/12/2026Senate
  20. Engrossed by Senate - committee substitute (Voice Vote)

    2/12/2026Senate
  21. Read second time

    2/12/2026Senate
  22. Passed by for the day Block Vote (Voice Vote)

    2/11/2026Senate
  23. Constitutional reading dispensed Block Vote (on 1st reading) (40-Y 0-N 0-A)

    2/11/2026Senate
  24. Rules suspended

    2/11/2026Senate
  25. Committee substitute printed 26107086D-S1

    2/10/2026Senate

Bill Text

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