VIRGINIA’S FIGHT FOR NET METERING
We have some very important and disconcerting news to share with you: the powerful, monopolistic utilities in our state are fighting hard to dismantle the longstanding and fair net metering policies that govern the way these companies purchase solar energy from solar customers. If you already have a firm grasp on the situation and how serious it is for our climate and our community, please skip ahead to the last section of this post and take action! If you need a little primer on the situation, read on, and then please: take action! Your voice matters in this fight!
WHAT IS NET METERING?
Net metering is a state-level policy that requires utilities to compensate solar customers for the energy they provide to the grid. The way it works is, energy that a solar array produces is first used to energize the home (or business) that it is connected to. If the solar produces more energy than the home needs, that excess energy is sent back to the grid and “banked” as kWh credits, which are eventually used to offset energy the home pulls from the grid at night and on dark, cloudy days, when the solar isn’t capable of producing enough energy to power the home. Virginia’s current policy requires most utilities, including Appalachian Power and Dominion Energy, to compensate solar customers for their excess energy at full retail rate, or a one-to-one credit.
PETITION
On August 30, 2024, Appalachian Power Company (APCo) filed a petition with the Virginia State Corporation Commission to request a decrease to the net metering rate for new solar customers by a whopping 70% (from our current retail rate of $0.16/kWh to $0.049/kWh). APCo’s petition predictably peddles the same “cost shift” argument that utilities across our country use in their campaign to slash net metering, even though this argument has been debunked time and again. The real reason utilities are pushing to limit or eliminate net metering nationwide is because net metering empowers consumers and promotes decentralized energy systems. Utilities hate net metering, because it challenges the monopoly they have traditionally held over the energy market since the late 1800s.
WHAT HAPPENS IF THE SCC RULES IN APCO’S FAVOR?
Net metering matters more than any other financial incentive when calculating if solar is worth the investment, and how long it will take to recoup the investment. The current average payback time for solar in Virginia is 9-14 years. If net metering is slashed by 70%, payback times will increase by an estimated 15-25 years, which will effectively eliminate solar as a viable choice for the vast majority of home and business owners in our state.
California passed a similar reduction to its net metering rates in 2023, and subsequently experienced a 65% reduction in residential solar installations, and 17,000 job losses in 2023 alone. Virginia will absolutely, positively experience similar declines in renewable energy installations, and similar jobs losses, if Appalachian Power gets its way.
WHAT CAN YOU DO TO HELP?
There are two ways you can help preserve strong net metering policies in our state:
1. Deliver telephonic public comments to the SCC on the day of the hearing. Speaking to the judges over the phone on the day of the public hearing (May 20, 2025) will be more impactful than submitting written comments, so we implore you to consider this option. To do so, you’ll need to register as a participant by May 13th, and you can do so online by following this link, or by calling the SCC at 804-371-9141. The case number to reference is PUR-2024-00161.
2. Submit written public comments to the SCC. You can do so here, and the deadline for this is May 13th, but please don’t wait! Writing an original comment in your own words will have the greatest impact, but if you need a little help formulating one, consider choosing one of the following ideas and customizing it in your own words:
- CHOICE: reducing net metering by 70% will drastically reduce the number of people who can afford solar in our state, taking away 1 of only 2 choices that Virginians currently have for where they get their power
- ENVIRONMENT: full value net metering is key in meeting our climate goals here in Virginia, and a drastic change as proposed by APCo will drastically slow down renewable energy deployment, which will lead to an increase in environmental damage that will be costly or impossible to remedy
- ECONOMY: consider the benefits of net metering to the customers of Appalachian Power: 1:1 net metering incentivizes renewable energy infrastructure, which reduces carbon emissions, which reduces the intensity of storms, which reduces damage to grid infrastructure, which reduces costly repairs by the utility, which reduces the cost of electricity
If you don’t have the time to create your own comment and are instead looking for something to copy and paste (with maybe a little bit of tweaking): “A reduction in net metering rates will eliminate solar as an affordable option for most Virginians. With less renewable energy being produced and more fossil fuels being used, CO2 emissions will increase, causing storms to get stronger and cause more damage in our state, which will of course lead to more damage to Appalachian Power’s infrastructure. This means more costly repairs to the grid and ever-increasing rate hikes. Appalachian power has already increased their rates by 60% over the last four years, and we can’t afford to keep this up. Virginia’s current 1:1 net metering is good for the environment and good for the economy, but most importantly 1:1 net metering is good for Virginians!”