On November 24, the Virginia State Corporation Commission (SCC) issued its final order in Dominion Energy’s Shared minimum solar billing process – delivering a long-awaited solution that will make the program much more workable for customers. The ruling represents a major improvement for Virginians who are not exempt from the minimum bill and will help expand access to one of the state’s most effective tools for lowering energy costs.
The Shared Solar program aligns with that of Governor-elect Abigail Spanberger Affordable Virginia Planensuring that all Virginians have access to affordable, reliable energy. However, the Commission has not recognized the full benefits that shared solar projects bring to the electric grid, consumers, and ultimately the Commonwealth of Virginia.
The Shared Solar program was created in 2020 – and expanded again in 2024 – to help renters and households unable to install rooftop solar gain access to affordable clean energy. Customers subscribe to a local project and receive bill credits that reduce their monthly energy costs. But when the SCC imposed an extremely high “minimum bill” in 2022, Shared Solar became more expensive – and not more affordable – for most non-low-income participants, meaning the program did not work as intended.
“Today’s decision represents a significant course correction and should help more customers access one of Virginia’s most effective energy affordability programs. The Commission has made significant progress in improving Dominion’s Shared Solar Program in this ruling and we look forward to working with them next year to recognize the full range of grid and tax benefits these projects deliver so that the program can function as the General Assembly intended,” said Charlie Coggeshall, Mid-Atlantic Regional Director for CCSA.
A key part of yesterday’s ruling is that the Commission reversed the flawed methodology adopted in 2022 and aligned Dominion’s minimum billing structure with the recently approved framework for Appalachian Power Company’s Shared Solar Program. Under the new structure, the minimum bill acts as a simple floor – the lowest point a subscriber’s bill can reach – rather than being added on top of a customer’s bill.
For example, if a customer’s monthly Dominion bill is $100 and the minimum bill is $60, Shared Solar credits can now reduce that bill to $60. Under the old system, the customer would have paid the $100 bill plus the $60 minimum bill, completely eliminating their savings.
Although the ruling is a major step forward, the Commission has once again limited the list of benefits that Shared Solar projects can count towards reducing the minimum bill. The Commission has for now only considered avoided generation and transmission costs, ignoring additional network benefits – such as avoided line losses and ancillary services – that reduce system costs for all customers. Although regulators directed Dominion to further investigate these benefits, they declined to include them in the minimum bill calculation. They also continued to view the wider economic and environmental benefits of shared solar as fully covered by renewable energy certificates, despite evidence to the contrary.
“CCSA remains committed to ensuring that the full value of shared solar – to customers, the Commonwealth and the electric grid – is reflected in Virginia’s policies. We look forward to working with the Commission, Dominion, APCo and stakeholders during the recalculation procedures expected in the coming months to ensure customers are fairly compensated for the value created,” Coggeshall said.
News item from CCSA
