Virginia passed a major clean energy package expanding shared solar by 525 MW while simplifying billing, speeding up permitting, and improving access. The move aims to lower electricity costs and meet rising demand without new taxes or subsidies.
Virginia Expands Community Solar to Lower Costs and Speed Deployment
Electricity costs in Virginia have risen about 30% since 2021. The state is responding with a new package of clean energy laws focused on affordability, access, and faster deployment.
Governor Abigail Spanberger signed legislation centered on SB 254 and HB 807, which reopen and expand Virginia’s shared solar program. The program had already reached its 200 MW cap in Dominion Energy territory, leaving projects and subscribers on waitlists. The new law releases an additional 525 MW of capacity starting July 1, 2026.
Expanding Capacity and Access
The added 525 MW is designed to clear existing backlogs while establishing a more predictable expansion framework under the State Corporation Commission. This capacity alone could power roughly 90,000 additional homes.
The legislation also expands access geographically. Customers in Appalachian Power territory will now have access to shared solar with consolidated billing, supported by an additional 50 MW in 2026 and another 50 MW by 2028.
A portion of the new capacity is reserved for low-income households, ensuring broader participation in the program.
Simplifying the Customer Experience
One of the key changes is consolidated billing. Utilities will be required to provide net crediting on a single monthly bill, making it easier for customers to understand and manage their savings.
The package also addresses permitting. A statewide automated residential solar permitting platform, similar to SolarAPP+, will be introduced to reduce soft costs tied to approvals, inspections, and administrative processes. These costs can add up to around $7,000 per system.
Supporting Public Projects
The legislation includes the Solar Interconnection Grant Program, which provides competitive grants to schools and local governments to cover the cost of connecting solar systems to the grid. This helps expand adoption beyond residential and private sector projects.
Measurable Impact on Costs
Virginia already has about 4,500 MW of installed solar capacity, ranking ninth in the nation. The sector has attracted $5.2 billion in investment and supports more than 5,000 jobs.
Community solar is already delivering savings. Participants typically see about a 10% reduction in monthly bills, or roughly $175 per year. The benefits extend beyond subscribers. A study by Dunsky Energy + Climate Advisors found that an expanded program could deliver $64 million in net benefits within the first two years and more than $2.4 billion over 25 years by reducing peak demand and delaying grid upgrades.
A Broader Strategy
This package combines multiple levers: expanding capacity, simplifying participation, reducing soft costs, and supporting public infrastructure. It addresses both supply and access while aiming to control rising electricity prices.
Industry analysts have described it as one of the more comprehensive state-level clean energy packages introduced in 2026, achieved without new taxes or subsidies.
The approach suggests that lower costs, wider access, and faster deployment can be addressed within the same policy framework.
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