VirginiaSB2552026 Regular SessionSenateWALLET

Electric utilities; shared solar programs, Phase I Utility.

Sponsored By: Scott A. Surovell (Democratic)

Became Law

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: 3 benefits, 2 costs, 2 mixed.

Join shared solar and get credits

Customers of a Phase I utility can join a shared solar project and get monthly bill credits. Your credit equals your share of the project’s kWh times your class’s $/kWh credit rate, which the Commission sets each year. If your credit is larger than your bill minus the minimum bill, the extra carries to next month. Utilities must apply credits within two billing cycles and report each month how credits were applied. Subscriber groups send monthly subscriber lists and can hold extra credits and give allocation instructions at least once a year. Bill credits last at least 25 years from when a project starts operating.

Stronger protections for shared solar customers

All customer classes can join shared solar, and you cannot be moved to a different class to join. Residential customers do not face credit checks. You can keep or transfer your subscription if you move within the same utility area. Low-income subscribers must get at least 10% lifetime net savings compared to their subscription fees. You get standard disclosure forms and education on terms. Your usage data can be shared only with your clear written or electronic consent.

Shared solar rollout and capacity growth

The program starts with 50 MW or 6% of peak load, whichever is less. It adds 50 MW on July 1, 2026, and another 50 MW by January 1, 2028. By May 1, 2029, the utility must ask the Commission to set future capacity based on cost, economic, and clean-energy studies. Phase I utilities must file needed tariffs and forms by July 1, 2025. The Commission updates rules by December 31, 2026, and utilities file by March 1, 2027; net crediting starts July 1, 2027. Utilities must begin crediting within 180 days after final rules for facilities already interconnected, and the rules include a rollout schedule.

Minimum bill and utility cost recovery

The Commission sets a minimum bill that subscribers must still pay. Credits cannot lower your bill below this amount. Utilities can recover reasonable costs to run the shared solar program. Utilities may also recover the difference between bill credits they give and the cost of the energy supplied by the project as a purchased-power cost. These rules can limit your monthly savings and may show up in electric rates over time.

RECs from projects go to utility

Renewable energy certificates from shared solar projects go to the utility. The utility retires them to meet its clean‑energy standard. Subscribers cannot keep or sell these environmental certificates.

Simple net crediting with 1% fee cap

You can choose net crediting, where the utility puts your subscription fee and credit on the same bill. Your net credit equals the bill credit minus the subscription fee. The fee charged this way cannot be more than 1% of your bill credit. You never pay more in subscription fees than you get in bill credits in any billing period. This rule takes effect July 1, 2027.

Rules for building shared solar projects

Interconnection rules must be fair and efficient. Utilities can recover reasonable interconnection costs through fees. Developers may place two or more shared solar facilities on a single parcel, under Commission guidelines. Projects on rooftops, brownfields, landfills, or dual-use farms can get incentives. These rules help projects move forward while setting cost and siting standards.

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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