Key Points
- Net Metering Benefits in Virginia: Virginia’s net metering program allows solar system owners to receive bill credits for surplus energy they contribute to the grid. The program is governed by Virginia code §56-594 and applies to investor-owned utilities (Dominion and Appalachian Power) and electric cooperatives, with smaller municipal utilities having optional participation.
- Compensation and Billing: Residential customers (systems below 25 kW) and non-residential customers (up to 3,000 kW) receive credits at a one-to-one retail rate. Excess energy generated within a 12-month period can be rolled over as a credit or paid out at the avoided cost rate, depending on the utility.
- Alternative Net Metering Options: Virginia offers Aggregate Net Metering for farmers, allowing surplus production from one meter to credit another. Virtual Net Metering for community solar and tenant aggregation is also in progress. Homeowners can support stronger solar rights through the Virginia Declaration of Solar Rights and file complaints with the State Corporation Commission when needed.
What is Net Metering?
Net metering in Virginia enables individuals with solar energy systems to receive credits on their electric bills for the energy they generate and export to the grid. When your solar panels produce more electricity than your home needs, that surplus flows back to the utility grid — and your utility company credits your account for it. You can then use those credits to offset the cost of electricity you pull from the grid when your panels aren’t producing enough, such as at night or during cloudy periods.
Net metering is one of the most important financial benefits of going solar in Virginia. It effectively lets you use the grid as a battery — storing your excess energy as credits and drawing on them when needed — significantly reducing or potentially eliminating your monthly electricity bill.
Net Metering Guidelines in Virginia
- Residential System Capacity Limit: 25 kW
- Non-Residential System Capacity Limit: 3,000 kW
- Agricultural System Capacity Limit: 500 kW (aggregated capacity)
- Monthly Excess Generation Credit Rate: Full retail (1:1)
- Annual Excess Generation Credit Rate: Avoided cost rate
- State-wide Net Metering Cap (Dominion & APCO): 6% of the utility’s prior year peak load, including a 1% carve-out for low-to-middle-income customers
- State-wide Net Metering Cap (Electric Cooperatives): 7% of the utility’s prior year peak load
- Expanded Options: Aggregate Net Metering for farmers; Virtual Net Metering in development
The regulations outlined in Virginia code §56-594 govern net metering implementation across the Commonwealth. Virginia’s investor-owned utilities — Dominion Energy and Appalachian Power — and electric cooperatives are required to follow these guidelines. Smaller municipal utilities have the option to participate.
Compensation and Billing
Virginia’s net metering compensation works on a one-to-one retail rate basis. For every kilowatt-hour of surplus solar energy you send to the grid, you receive a credit equal to the full retail rate of electricity — the same rate you pay when you draw power from the grid. This applies to both residential customers (systems up to 25 kW) and non-residential customers (systems up to 3,000 kW).
In Virginia, solar systems are typically designed not to significantly exceed a customer’s annual energy consumption. However, some homeowners choose to oversize their systems in anticipation of future electricity needs — such as adding an electric vehicle or upgrading to electric appliances. If your system generates more energy than you consume within a 12-month period, you have two options for that excess:
- Roll over the credit to the next billing period, depending on your utility’s rules
- Receive payment at the avoided cost rate — typically lower than the retail rate — for any remaining surplus at the end of the 12-month period
It’s worth checking with your specific utility provider — Dominion Energy and Appalachian Power may have slightly different billing procedures within the framework of §56-594.
How Does Net Metering Affect Your Electric Bill?
Net metering can dramatically reduce your monthly electricity costs. Here’s how it works in practice:
- During sunny months (spring and summer), your panels often produce more electricity than your home uses. That surplus earns you credits on your account.
- During lower-production months (fall and winter), you draw more power from the grid — but your accumulated credits offset those charges.
- Over a full year, a well-sized solar system combined with net metering can reduce your annual electricity bill by 70–100%, depending on your usage and system size.
Note that most Virginia utilities still charge a small monthly service or connection fee regardless of how much solar energy you generate. Even so, a properly sized solar system will dramatically reduce your total annual electricity costs.
Alternative Net Metering Options in Virginia
- Aggregate Net Metering: Virginia farmers have the opportunity to engage in aggregate net metering. This arrangement allows surplus solar production from one meter or building to be credited to another meter on the same farm property — ideal for agricultural operations with multiple structures or electricity accounts.
- Virtual Net Metering: Virginia is working to make virtual net metering accessible to more solar customers. This initiative encompasses both community solar and tenant aggregation — allowing renters and those who can’t install rooftop panels to benefit from shared solar projects. Dominion Energy currently offers a community solar program, though this program does not allow individuals to own or develop their own shared solar facilities.
Additional Policy Resources for Virginia
Virginia’s solar policy landscape continues to evolve. Here are key resources to stay informed:
- Power for the People VA blog: An excellent resource that summarizes key solar and energy policy updates in Virginia, written for homeowners and advocates alike.
- Virginia Distributed Solar Alliance: A coalition of individuals, grassroots organizations, industry, finance, and legal professionals united around expanding solar access for all Virginia communities.
- Virginia Declaration of Solar Rights: A homeowner advocacy initiative aimed at strengthening solar rights in Virginia, particularly around HOA restrictions and utility policies.
- State Corporation Commission (SCC): Virginia homeowners who encounter issues with net metering implementation or utility billing can file a formal complaint with the SCC for resolution.
Maximize Your Net Metering Benefits With 8MSolar
Getting the most out of Virginia’s net metering program starts with having a solar system that’s properly sized for your home’s energy needs. 8MSolar designs systems to optimize your annual energy production and net metering credits — helping you minimize what you owe your utility company year-round.
As certified solar installers serving Virginia, North Carolina, and South Carolina, our team stays current on all state net metering policies and utility-specific rules — so you don’t have to. Contact 8MSolar today for a free consultation and find out exactly how much you could save with solar and net metering in Virginia.