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Renewable Energy Pilot Program
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Renewable Energy Pilot Program

The State Corporation Commission (SCC) accepts notices of intent by non-utility owners of solar or wind-powered generation who are interested in selling electricity to utility customers under a power purchase agreement. Under a purchase power agreement, a non-utility developer installs a solar or wind generating facility on a customers’ property and then sells the electricity generated by them back to that customer at a price that is usually less than electricity provided by the utility company.

Three Virginia utility companies have pilot programs – Appalachian Power Company, Dominion Energy Virginia and Kentucky Utilities/Old Dominion Power. Solar or wind developers interested in participating in the pilot program should arrange with respective customers of the utility and use the sample template letter which must include an attachment including these 12 pieces of information:

"Notice of Intent for Third Party Power Purchase Agreement"

  1. Owner-Operator:
  2. Eligible Customer-Generator:
  3. Pilot Utility:
  4. Utility Account No. (Confidential):
  5. Customer Type: Jurisdictional or Non-Jurisdictional
  6. Location of Project:
  7. Renewable Energy Source:
  8. Generation Capacity: kW AC
  9. Expected In-Service Date:
  10. Duration of PPA: ____ years
  11. Proof of 501(c)3: n/a
  12. Expected Project Installation Cost (Confidential): $____/watt AC
Email the letter, along with the 12 data responses above to: PURRenewEnergyPilot@scc.virginia.gov

Pilot Utility Program Information:


Staff Note:

The pilot program limitation on the aggregated capacity of such facilities shall constitute a portion of the existing limit of six percent of each Pilot Utility's adjusted Virginia peak-load forecast for the previous year, not to exceed (i) 500 MW for DEV’s Virginia jurisdictional customers, or 500 MW for DEV’s Virginia non-jurisdictional customers, or (ii) 40 MW for customers of APCo or ODP.

When the Staff has received and posted Notices of Intent equaling the limits as established above, the Staff will treat these pilot programs as fully subscribed and no further Notices of Intent will be accepted or posted by the Staff for a pilot utility on the Commission’s website.

Historical References:

The 2020 Acts of Assembly — Chapter 1193, known as the Virginia Clean Economy Act (VCEA), amends and reenacts § 1 of the first enactment of Chapters 358 and 382 of the Acts of Assembly of 2013 and Chapter 803 of the Acts of Assembly of 2017 to modify the existing pilot programs of DEV and APCo and expand to include the territory of Kentucky Utilities d/b/a Old Dominion Power (ODP), effective July 1, 2020.

Summary of VCEA legislation:

Under the Virginia Clean Economy Act, a person that owns or operates a solar-powered or wind-powered electricity generation facility that is located on premises owned or leased by an eligible customer-generator will be allowed to sell the electricity generated from such facility exclusively to the eligible customer-generator under a power purchase agreement that provides for third party financing of the costs of the renewable generation facility. Eligible facilities shall have a generation capacity of 50 kW to 3 MW each. The pilot program limitation on the aggregated capacity of such facilities shall constitute a portion of the existing limit of six percent of each Pilot Utility's adjusted Virginia peak-load forecast for the previous year that is available to eligible customer-generators pursuant to subsection E of § 56-594 of the Code of Virginia. Further, these limits shall not exceed (i) 500 MW for DEV’s Virginia jurisdictional customers, or 500 megawatts for DEV’s Virginia non-jurisdictional customers or (ii) 40 MW for customers of APCo or ODP. The minimum size requirement does not apply to certain nonprofit and low-income entities.

**DEV and APCo Pilot Programs are now open for pre-registration as set forth in the Commission's Order in Case PUR-2020-00081**

  • Commission Case Number PUR-2020-00081 (via DocketSearch) 
    • Enables pre-registration for projects wishing to participate in the territories of DEV or APCo beginning May 14, 2020

 

The 2017 Acts of Assembly — Chapter 803 amends and reenacts § 1 of the first enactment of Chapters 358 and 382 of the Acts of Assembly of 2013 to expand the existing pilot program of DEV to also include the territory of Appalachian Power Company (APCo)

Summary of legislation:

Expands the existing pilot program of Dominion Energy Virginia under Chapter 382 to include the territory of Appalachian Power Company (APCo). The expanded pilot program limitation of 7 MW for APCo targets participation among nonprofit, private institutions of higher education and is set to expire on July 1, 2022.

The 2013 Acts of Assembly - Chapter 382 direct the establishment of a pilot program for third party power purchase agreements.

Summary of legislation:

Directs the State Corporation Commission (SCC) to conduct a pilot program in the territory of Dominion Energy Virginia (DEV) permitting third party power purchase agreements.  The SCC shall establish guidelines concerning aspects of the pilot program by December 1, 2013