VirginiaSB2552026 Regular SessionSenateWALLET

Electric utilities; shared solar programs, Phase I Utility.

Sponsored By: Scott A. Surovell (Democratic)

Signed by Governor

Summary

Electric utilities; shared solar programs; Phase I Utility. Amends certain provisions related to the shared solar program established by the State Corporation Commission for Appalachian Power Company. The bill permits excess bill credits to be distributed to shared solar subscribers more than once annually. The bill also requires the utility in administering its shared solar program to require net crediting functionality for customer utility bills, as described in the bill. The bill also directs Appalachian Power to (i) release an additional 50 megawatts as part two of the shared solar program on July 1, 2026; (ii) release a further additional 50 megawatts as part three of the shared solar program by January 1, 2028; and (iii) petition the Commission to initiate a shared solar expansion proceeding to determine the capacity for part four of the shared solar program by May 1, 2029. See final enactments for bill effective date. As introduced, this bill was a recommendation of the Commission on Electric Utility Regulation. This bill is identical to HB 809.

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 4 benefits, 0 costs, 3 mixed.

Solar subscribers gain privacy and portability

Customers in all rate classes can join shared solar without being moved to another class, and residential eligibility cannot require credit checks. Subscriptions can be transferred, and customers can keep them when moving within the same utility's service area. Utilities need written or electronic consent before sharing customer billing and usage data with subscriber organizations. The Commission must set disclosure, education, contract-review, and ongoing customer-engagement requirements. Subscriber organizations provide monthly customer lists and allocation shares; utilities provide monthly reports of credits generated and applied.

Long-term solar credits for utility customers

Virginia's Phase I shared solar subscribers earn bill credits based on their share of a facility's power output. Utilities must provide credits for at least 25 years after the facility begins commercial operation. Credits above the monthly bill carry forward, but credits cannot cover the required minimum bill. Subscriber organizations can direct distribution of accumulated extra credits more often than once a year. Utilities must apply credits within two billing cycles after the power is generated.

Solar bill rates balance credits and costs

The State Corporation Commission sets annual solar credit rates separately for residential, commercial, and industrial customers, using each class's revenue divided by electricity sales. It sets a changeable minimum monthly bill covering utility infrastructure, service, and program costs, and must explain benefits and costs shifted to nonparticipants. Utilities can recover reasonable administration and allowed connection costs; the final law removes the proposed explicit purchased-power recovery provision. The Commission must update rules by December 31, 2026; participating utilities must file tariffs, agreements, and forms by March 1, 2027. Solar renewable energy certificates go to utilities, which retire them to meet renewable energy requirements rather than giving them to subscribers.

Guaranteed solar savings for low-income customers

Shared solar must provide qualifying low-income customers net savings of at least 10% relative to their subscription fee. This savings requirement applies throughout the life of the subscription. Customers must meet Virginia's low-income definition in § 56-594.3. The dollar savings depend on the subscription fee.

Solar subscribers get optional combined billing

Beginning July 1, 2027, subscriber organizations can choose combined utility billing, called net crediting. The utility lists the subscription fee and gives a net credit equal to the solar credit minus that fee. The subscription fee charged this way cannot exceed the credits received for that billing period. A separate net crediting fee cannot exceed 1% of the bill credit.

More shared solar capacity for customers

The first phase allows 50 megawatts or 6% of the utility's peak load, whichever is less. Utilities must release another 50 megawatts on July 1, 2026, and another 50 megawatts by January 1, 2028. By May 1, 2029, the utility must request a Commission proceeding to set the fourth phase's capacity. The Commission must assess long-term power and grid costs, renewable energy compliance, economic effects, environmental effects, resilience, and fuel-price risk. Those findings must guide future program design and expansion.

Solar projects gain incentives with participation limits

Shared solar facilities must use solar panels, connect to an investor-owned utility's Virginia distribution system, serve at least three subscribers, and occupy one parcel. Each facility is capped at 5,000 kW; at least 40% of capacity must serve subscriptions of 25 kW or less. Subscribers must use the same utility, and expected subscription credits cannot exceed the customer's average annual account bill. Licensed subscriber organizations can operate across utility territories without becoming utilities solely by operating solar facilities; program rules also allow co-location and set fair, efficient connection procedures and reasonable fees. Projects on rooftops, brownfields, or landfills, projects combining farming and solar, and other Department of Energy categories qualify for incentives, whose amounts are not specified.

Sponsors & Cosponsors

Sponsor

  • Scott A. Surovell

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 178 • No: 33

House vote • 2/27/2026

Passed House

Yes: 86 • No: 10

House vote • 2/24/2026

Reported from Labor and Commerce

Yes: 20 • No: 2

Senate vote • 2/13/2026

Read third time and passed Senate

Yes: 23 • No: 16

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 (CHAP0674)

    4/13/2026Governor
  2. Approved by Governor-Chapter 674 (Effective - see bill)

    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 (SB255)

    3/9/2026Senate
  6. Bill text as passed Senate and House (SB255ER)

    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 (86-Y 10-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 (20-Y 2-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 (SB255)

    2/16/2026Senate
  18. Read third time and passed Senate (23-Y 16-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 26107085D-S1

    2/10/2026Senate

Bill Text

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