Does Virginia Have Community Solar Laws?

Yes. Virginia has formal legislation authorizing community solar projects through two key programs: the Shared Solar Program and the Multi-Family Shared Solar Program, both enacted under the Virginia Clean Economy Act (VCEA) of 2020. These laws enable residents, including renters and those without suitable rooftops, to access the benefits of solar energy by subscribing to off-site solar facilities. The Virginia State Corporation Commission (SCC) regulates these programs and sets guidelines for participation, pricing, and consumer protections.

The Shared Solar Program allows customers in the service territory of Dominion Energy Virginia to subscribe to community solar facilities up to 5 megawatts (MW) in capacity. Each participant receives credits on their electric bill for their share of the energy produced by the project. The SCC oversees subscription rates and ensures fair compensation for subscribers.

Shared Solar Program (Dominion Energy)

The Dominion Shared Solar Program officially launched in July 2023 after regulatory delays. It permits both residential and non-residential customers to subscribe to solar facilities within Dominion’s service area. Program capacity is currently capped at 200 MW, with an additional 30 MW reserved for low-income participants. Subscribers receive monthly bill credits based on their share of energy produced.

Low-income subscribers are exempt from the minimum bill requirement, a fee designed to ensure cost recovery for grid maintenance. This exemption significantly improves accessibility for lower-income households, making community solar participation financially viable.

Multi-Family Shared Solar Program (Apartment Solar)

In addition to the broader Shared Solar Program, Virginia introduced a Multi-Family Shared Solar Program for apartment buildings and condominiums. This policy allows property owners to install shared solar systems and allocate generation credits among tenants. The program applies to customers in Dominion Energy and Old Dominion Power territories. It simplifies solar participation for renters and apartment dwellers, who traditionally face challenges installing residential solar systems.

Low-Income Provisions

Virginia’s community solar policies specifically address low-income inclusion. At least 30 MW of the 230 MW combined program capacity is reserved for low-income subscribers. The Department of Housing and Community Development (DHCD) and the Virginia Clean Energy Advisory Board work together to ensure equitable participation and outreach. These measures make Virginia one of the more inclusive states for community solar energy access among economically disadvantaged households.

What Is Community Solar?

Community solar is a model that allows multiple participants to share the benefits of a single solar facility. Instead of installing solar panels on their property, participants subscribe to a portion of a centrally located solar farm. The electricity produced is fed into the grid, and subscribers receive bill credits for their share of the generation.

This model is ideal for households unable to install residential solar systems, whether due to cost, roof constraints, or rental status. Participants benefit from renewable energy access without the high upfront investment or maintenance responsibilities associated with rooftop systems.

Community solar works best for:

  • Renters and apartment residents who cannot install rooftop panels
  • Homeowners with shaded or small roofs
  • Individuals who prefer predictable, subscription-based energy savings
  • Businesses seeking sustainability credentials without capital investment

Unlike residential solar, where the system is owned and operated on a private roof, community solar farms deliver shared access to clean energy while reducing logistical barriers.

Advantages of Community Solar Over Residential Solar

Community solar offers several advantages over residential solar:

  • No installation or maintenance responsibility for subscribers
  • Lower upfront and operational costs
  • Flexible participation with transferable subscriptions
  • Broader inclusivity for non-homeowners
  • Economies of scale that reduce total project costs

For many Virginians, this structure represents the most accessible pathway to sustainable energy, particularly in urban or multi-family housing environments.

Why Community Solar?

The benefits of community solar in Virginia extend beyond cost savings. It supports the state’s clean energy transition, expands energy equity, and strengthens local economies. These benefits include the following:

Energy Equity and Accessibility

Virginia’s Shared Solar and Multi-Family Shared Solar Programs were designed with inclusivity in mind. They enable participation by households historically excluded from the solar market, especially renters, low-income residents, and those in dense urban areas. Through these programs, solar access becomes a right, not a privilege limited to property owners.

Cost Savings

While the Shared Solar Program includes a minimum bill (around $55/month for Dominion customers), subscribers still benefit from predictable rates and partial bill offsets. As the market matures and competition increases, savings are expected to grow. For low-income participants exempt from the minimum bill, the financial benefits are even greater, often resulting in immediate net savings compared to standard utility rates.

Environmental and Economic Benefits

Each community solar project helps reduce carbon emissions and create local employment opportunities. A 1 MW community solar farm in Virginia can offset roughly 1,500 metric tons of CO₂ annually. Projects stimulate job creation in installation, engineering, and maintenance while contributing to the state’s renewable energy targets under the Virginia Clean Economy Act, which mandates 100% clean electricity by 2045 for Dominion Energy.

Grid Resilience and Reliability

By decentralizing energy generation, community solar enhances grid resilience. Distributed solar facilities reduce strain on transmission infrastructure and can supply critical power during peak demand, improving reliability for both urban and rural communities.

Are There Community Solar Projects in Virginia?

Yes. Virginia has a growing number of community solar projects under both utility-led and third-party ownership models. As of 2025, there are more than a dozen operational or approved projects across the state, representing a combined capacity exceeding 80 MW. The total is expected to rise sharply as new facilities come online under the SCC’s expanded approval process.

Largest Community Solar Projects in Virginia

  • Spring Grove Solar (Surry County): One of the state’s earliest and largest shared solar facilities, serving Dominion Energy customers
  • Dulles Solar and Storage Project (Loudoun County): A hybrid community solar and storage installation developed by Dominion Energy, supplying power to thousands of homes
  • Powhatan Community Solar (Powhatan County): A project under the Shared Solar Program offering subscriptions to residential customers statewide
  • Summit Ridge Energy Shared Solar Portfolio: Multiple community solar projects developed in partnership with Altus Power and Sun Tribe Solar, targeting low-income participants
  • Accomack County Community Solar Farm: A cooperative project serving rural communities on Virginia’s Eastern Shore

Virginia residents can join a community solar project by subscribing through an approved provider or their utility. The process typically involves:

  • Confirming eligibility with Dominion Energy or a participating third-party provider
  • Selecting a subscription size, often based on a percentage of average monthly electricity use
  • Signing a participation agreement
  • Receiving monthly bill credits based on production

Low-income households can apply for cost exemptions through verified community organizations and energy-assistance programs managed by the Department of Housing and Community Development (DHCD). Enrollment is typically open year-round, though availability depends on program capacity and project launch schedules.

How Does Community Solar Work in Virginia?

In Virginia, community solar energy operates through a subscription-based system. Solar developers build and maintain solar farms that feed power into the local grid. The utility company then applies bill credits to subscribers for their share of the energy generated. The amount of credit depends on production levels, electricity rates, and the subscriber’s contract terms.

Grid Connection and Credit Calculation

Under the Shared Solar framework, project developers must connect their installations to the utility grid under interconnection rules established by the SCC. Energy production data is reported monthly, and participating utilities calculate credits based on kilowatt-hours generated and avoided-cost rates. These credits appear as line items on customer bills, reducing total charges.

Program Oversight and Incentives

Community solar developers in Virginia benefit from the federal Investment Tax Credit (ITC), which provides a 30% tax reduction on eligible project costs. They can also utilize accelerated depreciation through the Modified Accelerated Cost Recovery System (MACRS). Although Virginia does not currently offer state-level tax incentives specific to community solar, the Clean Energy Advisory Board and the Virginia Department of Energy provide grants for innovative renewable energy projects, which occasionally include community solar pilots.

Real-World Example

The Powhatan Community Solar Project, managed by Summit Ridge Energy, demonstrates how community solar farms work in practice. Participants subscribe to a portion of the array’s capacity, and the energy generated offsets grid electricity consumption. This project also contributes to local workforce development by employing Virginia-based contractors for installation and operations.

By integrating these projects into the grid, Virginia moves closer to meeting its renewable portfolio standard targets while empowering consumers to participate in the clean energy economy.

How Much Does Community Solar Cost in Virginia?

The community solar cost in Virginia depends on utility territory, subscription structure, and whether the participant qualifies for low-income exemptions. For most Dominion Energy customers, subscriptions range between $25 and $40 per month per kilowatt (kW). Costs vary depending on the number of kW subscribed and the program’s credit rate.

Under the Shared Solar Program, Dominion Energy requires a minimum bill, currently about $55/month, to cover grid and administrative costs. This charge applies regardless of energy usage but can be offset by production credits. For a typical household subscribing to 4 kW of community solar capacity, total monthly costs often fall between $100 and $130, with savings depending on generation output and retail electricity prices.

In contrast, low-income customers enrolled through approved organizations are exempt from the minimum bill. These participants often see immediate monthly savings, as their bill credits exceed the subscription charges.

Comparison to Residential Solar

Installing residential solar in Virginia averages around $2.85 to $3.25 per watt in 2025, translating to $20,000 to $23,000 for a 7 kW system before incentives. While ownership offers long-term returns, community solar provides a no-upfront-cost alternative with flexibility and predictable expenses. Participants avoid maintenance, permitting, and financing challenges while still benefiting from clean energy.

Factors Influencing Community Solar Cost

  • Utility Credit Rates: Determined by the SCC, affecting net savings
  • Location and Project Size: Rural installations typically offer lower costs per watt
  • Subscription Type: Fixed or variable pricing options affect total expenditure
  • Program Fees: Administrative and interconnection charges influence pricing structures

Overall, community solar offers Virginians a practical entry point into renewable energy participation. Although savings vary, subscribers typically achieve 5 to 12% annual bill reductions compared to standard electricity rates. For many, the combination of predictable pricing and environmental benefits makes Virginia community solar an increasingly attractive choice for clean, reliable power.