On February 10, 2025, the Virginia State Corporation Commission (the “Commission”) issued an Order ("Order") adopting the amended Rules Governing Shared Solar Program (20VAC5-340-10 et seq.) (the “Rules”), to be effective February 14, 2025. The Commission amended the Rules pursuant to amended Va. Code § 56-594.3 and Va. Code § 56-594.4, which were passed by the Virginia General Assembly during its 2024 session and were effective July 1, 2024, (the "2024 Shared Solar Legislation"). The Commission previously issued an Order on November 25, 2024, adopting the amended Rules, but that Order was suspended pending its consideration of a Petition for Reconsideration and Clarification.
The 2024 Shared Solar Legislation directed the Commission to (i) modify certain Rules applicable to Virginia Electric and Power Company’s (d/b/a Dominion Energy Virginia) (Dominion) shared solar program, and (ii) establish a similar shared solar program for Appalachian Power Company (APCo) customers. The amended Rules establish APCo’s shared solar program and make modifications to Dominion’s shared solar program. These are the first material amendments to the Rules since their adoption in December 2020 (see prior alert here). The following briefly summarizes certain key provisions from the amended Rules:
Shared Solar Rules Amendments
I. New Shared Solar Program in APCo Territory
The amended Rules establish a new shared solar program for APCo customers, to be effective July 1, 2025.
Consistent with the 2024 Shared Solar Legislation, the definition of “shared solar facility” as used for purposes of APCo’s shared solar program (and also Dominion’s program) is as follows:
- Generates electricity by means of a solar photovoltaic device with a nameplate capacity rating that does not exceed 5,000 kilowatts of alternating current;
- Interconnected with the distribution system of Dominion or APCo in the Commonwealth;
- Has at least three subscribers;
- Has at least 40% of its capacity subscribed by customers with subscriptions of 25 kW or less; and
- Is located on a single parcel of land.[1]
Subscriber organizations cannot enroll subscribers until the project receives an executed interconnection agreement, all required permits for the shared solar facility and, for a shared solar facility registered with APCo, after July 1, 2025.
II. Program Sizes
- APCo Program Size: APCo’s maximum aggregate capacity is the lesser of 50 MW or 6% of peak load.
- Dominion Program Size: Dominion’s maximum aggregate capacity is divided into two parts:
- Part 1: 200 MW
- Part 2: Up to an additional 150 MW when the Commission determines that:
- at least 90% of the megawatts of the aggregate capacity of Part 1 have been subscribed, and
- that project construction is substantially complete.
Additionally, 75 MW of Part 2 can serve no more than 51% of low-income customers.
A shared solar facility is “subscribed” when a customer has made an initial payment or deposit to the owner of the facility.[2]
“Substantial completion” means “all requirements for interconnection with the electric transmission or distribution system have been met by the shared solar facility and it is signified by a letter or comparable written document from the utility signifying that the shared solar facility has been constructed consistent with applicable standards for interconnection.”[3] Dominion or APCo must provide this letter as soon as reasonably practical, but no later than 30 days after the Commissioning Test (as set forth in 20 VAC 5-314-90) or comparable project milestone.
Dominion is to notify the Commission once 90% of the Part 1 aggregate capacity has been subscribed and the related project construction is substantially complete.
