Hello, Virginia homeowners! If you’re a residential Dominion customer that is considering going solar, it’s important to know about Dominion’s standby fees, and how to avoid them. They apply to larger residential systems, so if your system is under 15kW in size or is for a commercial project, you shouldn’t have to worry.
What are Dominion’s Standby Fees?
In March 2011, a law known as HB 1983 was passed, allowing Dominion to charge residential net-metering customers with an AC capacity greater than 10kW to pay a monthly standby charge. This was later revised to apply to systems of 15kW AC or greater. These are fees that are added to your normal electric bill each month, and they are based on the peak amount of energy you use in a given month.
How Standby Fees Are Calculated
For homeowners with a solar system over 15kW AC, Dominion calculates standby fees based on your peak demand from the grid. Think of it as the most energy that your home uses at any given moment each month. This fee is composed of two parts:
- $2.79 per kW in monthly distribution standby charges.
- $1.40 per kW in monthly transmission standby charges.
For example, if on a hot summer day your solar system isn’t producing much due to cloudy weather, and you plug in your car (10kW), turn on your AC (5kW), and use your dryer (5kW), you could pull 20kW from the grid. This would result in a standby charge of ($2.79 + $1.40) * 20kW = $84.80 for that month.
Who is Most at Risk?
Homeowners with large electrical loads, such as 400A services, car chargers, multiple heat pumps, electric instant-hot water heaters, hot tubs, or pool heaters, are at the greatest risk of incurring high standby fees. If these large loads run simultaneously, your peak usage could spike, leading to hefty charges. If your home has a peak usage of 30kW in a given month, that would be $125 in additional fees!
How to Avoid Standby Fees
- System Size Matters: Standby fees apply to residential customers with solar systems sized at 15kW AC or larger. Solar systems are typically measured in DC, so a 15kW AC system could range from 15kW to 20kW DC, depending on the inverters used.
- Interconnection Paperwork: Whether you get charged standby fees is determined by the system size listed on your interconnection paperwork with Dominion, not your actual production or daily readings.
- Keep it Under 15kW AC: To avoid standby fees, ensure your solar system is less than 15kW AC. This means paying close attention to the system design and the components used.
Final Thoughts
Standby fees can significantly impact the savings you expect from installing solar panels. At Virtue Solar, we prioritize designing systems that maximize your savings and minimize additional costs.
Avoiding standby fees is critical to maximizing your savings, and avoid paying Dominion unnecessary fees.
