[Energy & Environment News] Solar Emerges as Winner Under New Virginia Laws

Virginia's Democratic trifecta is so far turning out well for the solar industry, which expects a new slate of laws to quickly boost deployment.

Gov. Abigail Spanberger on Monday greenlit bills to simplify permitting, boost energy storage targets and cement Virginia's return to the Northeast's cap-and-trade system for electricity, among others.

The governor signed some bills into law outright, while she proposed technical amendments to others that will require another vote from lawmakers to finalize. She has emphasized that most of the bills garnered bipartisan support.

“As Governor, I know I cannot control global energy markets,” she wrote on social media ahead of Monday's midnight deadline to act on legislation. “But there are tangible steps we are taking right now to tackle high costs where Virginians feel them most.”

Solar advocates said Spanberger's focus on cutting costs positioned their industry well for this session, because solar is relatively cheap and can come online more quickly than other electricity sources.

Darren Van't Hof, interim president and CEO of the Solar Energy Industries Association, said Spanberger is “giving leaders across the country who are concerned about their state's energy future a new example to follow.”

“It is no secret that Virginia needs more home-grown energy supply to meet skyrocketing demand and protect ratepayers,” he said in a statement. “Virginia's leaders are addressing these challenges with a well-rounded strategy that will cut bureaucratic red tape, take advantage of existing energy resources to strengthen grid reliability at minimal cost to ratepayers, and encourage investment in power sources tailor-made for this moment.”

Among the bills Spanberger conditionally approved was HB711/SB347, which would create a statewide framework for local governments to permit solar projects, including standardized requirements for things like setbacks and panel height. (The governor wants lawmakers to tweak some of the bill's wording.)

That standardization would curtail local solar restrictions that industry compared to de facto bans.

“It doesn't take away local authority to approve or deny individual projects. But what it does do is create a more predictable environment for investment,” said Evan Vaughan, executive director of Mid-Atlantic Renewable Energy Coalition Action, which represents utility-scale wind, solar and storage companies.

The bill, which passed the House 63-33 and the Senate 22-18, attracted some Republican support. But it was opposed by the Virginia Association of Counties, which urged Spanberger to veto it.

In a letter to the governor, the counties argued that local governments already approve most of the projects that apply for permits. But the bill would require local governments to review every solar permit they receive — even if they contradict local plans — and report denials to the State Corporation Commission.

Vaughan called the legislation a “soft touch” that would ensure Virginia continues developing new solar capacity.

“What we're finding in Virginia is that, as the low-hanging fruit for cheaper interconnection areas is drying up, there are fewer and fewer opportunities to build solar projects,” Vaughan said. “Now, at least, an individual project can come forward and make its case.”

Also on Monday, Spanberger signed HB 895/SB 448, which raises the battery storage targets for Virginia's utilities.

Dominion Energy Virginia will have to secure 16,000 megawatts of short-duration storage and 4,000 MW of long-duration storage by 2045. Appalachian Power will have to reach 780 MW of short-duration storage by 2040 and 520 MW of long-duration storage by 2045.

Spanberger also signed HB 590/SB 382, which creates an automated system for local governments to permit residential solar systems. SEIA said streamlining that process could shave as much as $6,000 off the cost of rooftop solar systems.

The governor also signed legislation expanding the size of utilities' shared solar programs, also known as community solar. Dominion can now add 525 MW to its program, and Appalachian Power can add 100 MW. Spanberger also approved changes to the state's Renewable Portfolio Standard to encourage more small-scale solar power systems.

Spanberger also cemented Virginia's return to the Regional Greenhouse Gas Initiative by signing HB 397/SB 802. Budget language Spanberger approved earlier this year had already begun the commonwealth's return to the cap-and-trade system.