All Roll Calls
Yes: 173 • No: 37
Sponsored By: Scott A. Surovell (Democratic)
Became Law
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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10 provisions identified: 7 benefits, 0 costs, 3 mixed.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Scott A. Surovell
Democratic • Senate
There are no cosponsors for this bill.
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
Acts of Assembly Chapter text (CHAP0671)
Approved by Governor-Chapter 671 (effective 7/1/2026)
Governor's Action Deadline 11:59 p.m., April 13, 2026
Enrolled Bill communicated to Governor on March 10, 2026
Fiscal Impact Statement from State Corporation Commission (SB254)
Bill text as passed Senate and House (SB254ER)
Enrolled
Signed by President
Signed by Speaker
Passed House (83-Y 13-N 0-A)
Read third time
Read second time
Reported from Labor and Commerce (17-Y 4-N)
Referred to Committee on Labor and Commerce
Read first time
Placed on Calendar
Fiscal Impact Statement from State Corporation Commission (SB254)
Read third time and passed Senate (24-Y 15-N 0-A)
Committee substitute agreed to (Voice Vote)
Engrossed by Senate - committee substitute (Voice Vote)
Read second time
Passed by for the day Block Vote (Voice Vote)
Constitutional reading dispensed Block Vote (on 1st reading) (40-Y 0-N 0-A)
Rules suspended
Committee substitute printed 26107086D-S1
Chaptered
4/13/2026
Enrolled
3/4/2026
Substitute
2/10/2026
Substitute
2/9/2026
Introduced
1/12/2026
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