Virginia Net Metering is Under Threat

We’ve got some important news about solar energy that you should know about. The State Corporation Commission (SCC) is making changes to the net metering rules in Virginia and we need to pay attention to this. Net metering is how you get credit for the electricity your solar panels produce.

Right now, if you have solar panels, you get credited at the full retail rate (14-15 cents per kilowatt-hour) for the electricity you send back to the grid. This has made it a good deal for people to invest in solar energy. However, in some other states, revisions to net-metering has lowered the value of these credits. In some places, they only get around 4 cents per kWh. Utilities around the country are pushing for lower net-metering rates, making solar less attractive for homeowners. Without public resistance, the utiltity companies are getting their way.

What’s Happening Now?

On May 6, the SCC told Appalachian Power Company (APCo) and Dominion Energy Virginia (Dominion) to come up with new net metering proposals. The law says they have to look at a few things:

Charges for Customers: How much customers will pay each month for using the utility’s infrastructure.
Credits for Solar Power: How much the utility will pay customers for the benefits their solar panels provide.
Economic Impact: The overall effect of net metering on Virginia’s economy.
Fair Costs: Making sure the costs don’t unfairly shift to customers who don’t have solar panels. (Note– This is worrisome, as this is part of a flawed arguement that has been used nationwide. Read more below!)

APCo has to send in their plan by September 2, 2024, and Dominion has until May 1, 2025.

With APCo and Dominion writing the draft of the rules, it’s all but certain that they will propose lower rates for solar net-metering customers in Virginia.

Net Metering in Other Markets

Other states have gone through similar changes, and here’s what happened:

California: Adjusted their net metering rates (NEM 3.0), slashing the value of solar energy by about 75% overnight. More solar businesses have closed in California last year than any other state, and NREL reports that 17,000 solar jobs would be lost in 2023, with 59% of solar contractors expecting further layoffs.
Nevada: Reduced net metering credits a few years ago, but after public outcry, they brought back better rates.
West Virginia: Utilties proposed slashing net-metering credits to 6.6 cents (about 50% of their residential value), and compromised on 9 cents after massive public backlash.

What You Can Do

A challenge to net-metering does not mean defeat. Some states have seen net-metering challenges, with solar-rights winning out. In Florida, utilities tried to undercut solar net-metering, but after pushback from homeowners and solar advocacy groups, DeSantis vetoed the bill, protecting net-metering.

Utilites are monopolies, and they are attempting take away access to energy choices. Limiting access to net-metering will affect Virginians’ rights to access clean energy and job growth, as we have seen in other states.

This is a tired tactic that utilities have used to maintain their monopoly grip on electricity markets.

Will Geise, SEIA Regional Director

Net metering attacks may restrict access to solar for homeowners — Net metering lets Virginians to choose their energy source, and allows them to avoid paying monopoly utilities.

Stay Informed

We need to stay active and involved in this process. We need to make sure the new rules are fair and continue to support solar energy growth in Virginia. There will be a comment period where you can voice your opinion on the new net metering proposals. This is your chance to let the SCC know how important fair net metering rates are for the growth of solar energy in Virginia. Stay tuned for more details on how and when you can submit your comments. If you want to stay up to date on the latest developments, here are some other great resources:

Power For The People VA – Ivy Main follows legislative changes in Virginia and is an amazing resource. Expect updates on net-metering as things develop.
Solar United Neighbors – SUN is a solar advocacy powerhouse. Join their mailing-list, as they intend to launch a campaign to protect Virginia net-metering rights.

Voice your Opinion

Net Metered Solar Benefits Everyone by providing clean, local energy where and when it’s needed most. It creates local jobs and provides consumers more options to save on rising utility bills. It relieves grid congestion obviating expensive investments in new power plants/ infrastructure (paid by all utility customers). It also insulates utility customers from natural gas and other dirty, expensive commodity fuels like coal. Approximately 54% of VA electricity is generated from imported natural gas, which is expensive and prone to price fluctuation.
A majority of Americans (76%) support net energy metering. Utilities are able to pass unfavorable rates because most homeowners are unaware of the changes. Homeowners want lower electric rates, not higher utility profits.
Utilties use a flawed “cost shift” arguement to support unfair policies. Utilities falsely argue that customers that install solar push costs of grid maintenance to other ratepayers. Despite no evidence of this, and no analysis into the benefits that solar brings to a distributed grid, this tired line continues to crop up in net-metering debates.
Only about 1% of our energy in Virgina comes from customer-owned net-metering sites. Arguements to hamper net-metering are strictly profit-driven, and have little bearing on grid stability or equity.

Go Solar Now

No matter what the outcome is, if you install solar panels before the new rules take effect in Virginia, you’ll keep getting the full retail rate.

Nothing in the Commission’s final order shall affect any eligible customer-generators, eligible agricultural customer-generators, and small agricultural generators who interconnect before the effective date of such final order

SCC Case No. PUR-2024-00047

This means if you install solar before net-metering rules are applied, you will be grandfathered in under the old (likely more favorable) rules.

So, if you’ve been thinking about going solar, now is the perfect time to do it. While we’ll be fighting to maintain Virginian’s full rights, installing solar before the rules change is the safest way to ensure the best rates. Not only will you save on your electricity bills, but you’ll also help the environment by using clean, renewable energy.

Need Help?

If you have any questions or need help getting started, our team is here for you. We can guide you through the process, answer any questions you have, and help you take advantage of the current net metering rates before they change. We’ll keep you updated on what’s happening with net metering in Virginia. Make sure to follow our blog and social media for the latest news.

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