Energizing Virginia

Due to passage of the federal solar Investment Tax Credit and improvements in manufacturing panels that capture energy from the sun, solar power costs have decreased significantly nationwide. However, here in Virginia, communities have yet to benefit.

That could slowly begin to change as a result of an August 7, 2015 decision by the Virginia State Corporation Commission (SCC) that allows qualified Virginia consumers to purchase renewable energy from the state’s major utility company, Dominion Power.

The good news is that Dominion will build a 2-megawatt solar facility and add the newly produced electricity to the distribution grid, under a program called Dominion Community Solar. The bad news is that some of the state’s electrical users will have to pay for the plant. The aim is to eventually lower electric costs which rose 3.1% nationally last year, according to the U.S. Department of Energy.

Under the program, Dominion will resell solar power generated by its new plant to consumers and businesses in 100 kilowatt chunks, for approximately $4 per month. Each consumer or business will be allowed to purchase up to 400 kilowatts of energy.

Prior to the decision, there were few, if any, incentives for property owners to use solar energy in Virginia. That’s because unlike states such as Maryland, that supplement the federal government’s solar tax credit program with state incentives, Virginia does not provide direct solar subsidies to individuals or businesses.

Of course anyone in Virginia can install a solar system on their home or business and reduce their reliance on the power grid. We’ve been thinking about doing that at Shiver Management Group before an expected reduction of the federal solar tax credit by the end of 2016. But in Virginia, solar system sizes are capped at 20 kilowatts for residences and 500 kilowatts for business.

So while the SCC’s ruling is a small step forward, it is unlikely to spur widespread adoption of solar energy in the Commonwealth.

That’s a disappointment to Scott Surovell, the newly elected state senator from Virginia’s 36th district.

“Dominion’s program is a great advance that will provide consumers with more choices and the ability to choose less-polluting, renewable energy,” said Surovell, who has long been an ardent proponent of renewable energy.

But he added that he believes the best way of spurring wider adoption of renewable energy is “allowing groups of individuals or businesses to do this independently,” through financial and policy incentives.