VirginiaSB2542026 Regular SessionSenateWALLET

Electric utilities; shared solar programs, Phase II Utility.

Sponsored By: Scott A. Surovell (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 HB 807.

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Bill Overview

Analyzed Economic Effects

6 provisions identified: 2 benefits, 1 costs, 3 mixed.

Solar subscribers gain protections and fee caps

All customer classes can participate without changing classes, and subscriptions can transfer or move within the same utility territory. Residential eligibility cannot require credit checks; low-income customers are protected from early termination fees and credit reporting. Sharing billing or usage data requires affirmative written or electronic consent, and the Commission must require disclosures, education, engagement, and contract review. Utilities must offer optional net crediting: organizations choosing it place subscription fees on utility bills, with a net credit equal to credits minus subscription fees. Under this option, subscription fees cannot exceed credits received, and the billing-service fee cannot exceed 1% of the bill-credit value.

More shared solar capacity for customers

The program starts with 200 MW; utilities must release another 525 MW by July 1, 2026, or earlier once at least 90% is subscribed and construction is substantially complete. Of the added capacity, 450 MW serves projects with no more than 51% low-income customers; 75 MW allows projects serving more than 51%. Organizations can show low-income compliance through project capacity or savings; the utility must seek a third-phase review on or before 268 MW of phase two is substantially complete. The Commission must establish regulations by March 1, 2025, and update them by December 31, 2026. Utility filings are due December 1, 2025, with further required filings due March 1, 2027.

Rules for joining shared solar

Virginia customers can subscribe to shared solar only within the facility’s utility service territory. Each facility must connect to a Phase II utility, occupy one parcel, and have at least three subscribers. Its capacity cannot exceed 5,000 kW; at least 40% must serve customers with subscriptions of 25 kW or less. Estimated subscription credits cannot exceed the customer account’s average annual bill. State Corporation Commission-licensed organizations can own or operate facilities across multiple investor-owned utility territories.

Solar subscribers get credits with limits

Subscribers receive credits based on their share of solar generation and their customer class’s annual revenue-per-kilowatt-hour rate. The Commission sets a minimum bill, considering utility costs, solar benefits, and costs shifted to customers outside the program. Households earning no more than 80% of their local median income, as determined by HUD, are exempt from that minimum. Credits above the monthly amount allowed carry forward; utilities must apply credits within two billing cycles and provide them for at least 25 years after a facility starts commercial operation. Organizations submit monthly subscriber lists, utilities report credits monthly, and organizations can hold and distribute unallocated credits under Commission rules, including more often than annually.

Utilities can recover shared solar costs

Phase II utilities can recover the difference between subscriber bill credits and the cost of solar energy sent to the grid. They can treat that difference as purchased-power costs and recover reasonable program administration and connection costs. Connection procedures must be fair, efficient, and nondiscriminatory. The law does not set a dollar amount or specify how much household bills change.

Later solar projects must transfer certificates

Organizations retain environmental attributes, including renewable energy certificates, for facilities registered within the first 200 MW of awarded capacity. They can sell, distribute, hold, or retire those attributes. Facilities registered after the first 200 MW must transfer their certificates to the Phase II utility. The utility must retire them toward its renewable energy requirements; the law sets no direct household payment or bill adjustment.

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

Related Bills

Back to State Legislation