Virginia Upholds Rooftop Solar Compensation Rules, SEIA Welcomes SCC Decision

Yesterday, the Virginia State Corporation Commission (SCC) issued a ruling that preserves current compensation rules for rooftop solar customers who send excess electricity back to the grid. The Commission rejected a proposal from Dominion Energy that would have significantly reduced net energy metering (NEM) compensation rates for solar users.

Net energy metering is a system that allows homeowners and businesses with rooftop solar panels to earn credits for surplus electricity they export to the grid. These credits can later be used to offset their electricity consumption, helping lower monthly bills and improve the economics of installing solar systems.In this case, the SCC decided not to approve Dominion Energy’s request to lower these compensation rates.

It also maintained the existing “energy netting” structure, which allows solar customers to carry forward excess energy credits for up to one year to offset future electricity usage. In addition, the Commission denied the utility’s proposal to introduce higher application fees for new net metering customers.The Solar Energy Industries Association (SEIA) participated in the case and welcomed the decision.

Kevin Lucas, SEIA’s Vice President of Policy Analysis, stated that fair net metering policies benefit not only solar customers but also grid reliability, electricity affordability, and the broader clean energy economy. He added that rooftop solar provides value beyond individual households by supporting the stability of the overall power system and helping reduce electricity costs.

According to SEIA and Wood Mackenzie’s latest Solar Market Insight report, Virginia currently has around 7.6 GW of installed solar capacity, ranking it ninth among all U.S. states. This capacity is sufficient to power more than 850,000 homes.

The report also notes that over 64,000 homes in Virginia have already installed rooftop solar systems, reflecting steady adoption of distributed solar energy in the state. The SCC’s ruling is seen as a continuation of supportive regulatory conditions for rooftop solar in Virginia, ensuring that existing customers continue to receive fair compensation for the clean energy they contribute to the grid.