Governor Youngkin Signs Shared Solar Bills

New laws will expand Dominion program and create program for Appalachian Power customers.

                Shared solar delivers billions of dollars of grid-wide benefits, not to mention direct dollar savings for subscribers. The projects themselves have also become more palatable for local governments as they grapple with an influx of solar permit applications. Even though subscriptions are on the rise and developers continue to submit projects, the true benefits of the program cannot be realized until the program is expanded and the minimum bill is recalculated.

                Several shared solar developers, ratepayer advocates, and their lobbyists, including Gentry Locke Consulting’s Government Affairs Team, introduced legislation to expand Dominion’s program, create an Appalachian Power program, and set out a more affordable minimum bill. After several drafts and countless hours of negotiation with the utilities, Governor Youngkin signed SB253/HB106 and SB255/HB108. Below we will summarize the main provisions of the bills and their impact on solar developers and subscribers.

                SB253/HB106 – Dominion Shared Solar Program

• Program Expansion
  • Part I: 200MW. 150MW are already allocated, so the next approved projects will likely come from the waitlist. Once 90% of Part I capacity, or 180MW, is subscribed and construction is “substantially complete,” then the SCC shall authorize Part II.
  • Part II: 150MW. Of those 150MW, 75MW shall serve no more than 51% low-income customers.
• Minimum Bill
  • The bills direct the SCC to calculate a minimum bill that ensures subscribers pay a fair share of the costs of providing electric services and generation, minimizes cost shift, and deducts the benefits of shared solar to the electric grid.
  • Low-income customers are still exempt from the minimum bill.
  • The SCC shall begin recalculating the minimum bill 30 days after the final order in the utilities’ Net Metering proceedings, set to start in 2025.
• Incentives
  • Developers shall receive incentives for shared solar development on rooftops, brownfields, and landfills.
  • The Department of Energy will convene a stakeholder workgroup to determine these incentives by November 30, 2024.
• Renewable Energy Certificates (RECs)
  • Subscriber organizations registered in the initial 200MW program capacity shall continue to own all RECs associated with their facility. For facilities registered after initial capacity, all RECs must be transferred to the Phase II utility to be retired in compliance with their RPS obligations.
• Timeline
  • July 1, 2024: Bills go into effect. Incentives Workgroup can begin.
  • November 30, 2024: Report of the Incentives Workgroup is due.
  • 2024-2026: Utilities’ Net Metering proceedings. SCC can begin recalculating minimum bill once NEM proceeding concludes (final order is required 12 months after proceeding begins).
  • March 1, 2025: The SCC shall establish regulations for the shared solar program.
  • December 1, 2025: Phase II utility files any tariffs, agreements, or forms necessary for implementation.

SB255/HB107 – Appalachian Power Shared Solar Program

• Program Capacity
  • 50MW, or 6% of peak load, whichever is less.
• Minimum Bill
  • The bills direct the SCC to calculate a minimum bill that ensures subscribers pay a fair share of the costs of providing electric services and generation, minimizes cost shift, and deducts the benefits of shared solar to the electric grid.
  • While low-income customers in Appalachian Power territory are not exempt from the minimum bill, the bills require the SCC to ensure net financial savings.
  • The SCC shall begin recalculating the minimum bill 30 days after the final order in the utilities’ Net Metering proceedings, set to start in 2024.
• Incentives
  • Developers shall receive incentives for shared solar development on rooftops, brownfields, and landfills.
  • The Department of Energy will convene a stakeholder workgroup to determine these incentives by November 30, 2024.
• Renewable Energy Certificates (RECs)
  • RECs must be transferred to the Phase I utility to be retired in compliance with their RPS obligations.
• Timeline
  • July 1, 2024: Bills go into effect. Incentives Workgroup can begin.
  • November 30, 2024: Report of the Incentives Workgroup is due.
  • 2024-2026: Utilities’ Net Metering proceedings. SCC can begin recalculating minimum bill once NEM proceeding concludes (final order is required 12 months after proceeding begins).
  • January 1, 2025: The SCC shall establish regulations for the Phase I shared solar program.
  • July 1, 2025: Phase I utility files any tariffs, agreements, or forms necessary for implementation.

While the implementation of both programs is a way off, the new capacity will get allocated quickly, and it’s unclear if the General Assembly will explore further expansion in the near term. Developers need to be prepared to immediately begin securing project sites and prepping applications with an experienced land use team by their side.

[Meet Gentry Locke’s Solar Team!]