Utilities regulator protects rooftop solar for Dominion customers

RICHMOND, Va. — Recently the State Corporation Commission (SCC) issued an order confirming that future rooftop solar customers in Dominion territory will continue to be fairly compensated through the existing “1:1” rate. That means future customers will be compensated for sending solar energy to the grid at the same rate the utility receives for energy it produces. This decision does not affect existing rooftop solar customers, and low-income solar customers can select either the existing or the new compensation program.

The Commission’s order rejected Dominion’s proposal to transition compensation for solar customers from “annual netting” of energy exports and imports to a “net billing” framework that compensates solar exports at a significantly reduced rate. Initially, Dominion also proposed retaining the renewable energy certificates associated with customers’ rooftop solar installations, which all parties agreed was inconsistent with Virginia law.

“We are pleased that the Commission maintained a structure that encourages more rooftop and small-scale solar in the Commonwealth,” said Appalachian Voices Director of State Energy Policy Peter Anderson. “Customers will continue to have the freedom to hedge against rising electricity prices while contributing to a cleaner energy system.”

On behalf of its client, Appalachian Voices, the Southern Environmental Law Center engaged one of the nation’s leading experts, R. Thomas Beach, to evaluate and critique Dominion Energy’s proposal. Using well-established standards and sophisticated analysis, Mr. Beach’s testimony demonstrated that rooftop solar provides net benefits to all customers in Dominion Energy’s territory and recommended that the Commission maintain the existing rate until there is significantly more rooftop solar on the system. 

“This is great news for Virginians. In a monopoly utility territory like Dominion, rooftop solar is one of the few ways for households to take ownership of their energy bills. It is also one of the best answers to today’s—and the foreseeable future’s—affordability and demand growth challenges. We urge the Commission to build on this positive step, and to continue to protect customer access to distributed solar,” said Emma Clancy, a staff attorney at SELC.