In April 2020, the Virginia Clean Economy Act (VCEA) became law, creating a renewable portfolio standard (RPS) for Virginia’s two main utilities – Dominion Energy (Dominion) and Appalachian Power Co. (APCo). The RPS mandates that 100% of electricity provided by Dominion be sourced from renewable energy by 2045, and 100% of electricity provide by APCo be sourced from renewable energy by 2050.
The RPS also mandates that Dominion, the state’s largest utility, procure at least one percent (1%) of their RPS program requirements from distributed generation (DG) resources such as solar, wind, or anaerobic digesters each year. This one percent (1%) mandate is very similar to a solar carve-out and is expected to spur continued solar growth and adoption throughout the commonwealth. Like the solar alternative compliance payment (SACP) used in many other states, the new RPS has a DG deficiency payment for solar, wind, and digesters resources set at $75 for 2021 and then escalating by 1% year-over-year thereafter. The $75 DG payment effectively serves as a price ceiling for SRECs sold within the Virginia.
Virginia State Corporation Commission (SCC) regulators are working to establish the formal structure of the new SREC market. Currently, the SCC is accepting and analyzing public commentary on the VCEA and the formation of the new RPS provisions. So far, Virginia SRECs are priced at more than $20. In addition, owners of Virginia-sited SRECs can sell into the PA Tier I REC market.
Since Virginia-sited SREC eligibility dates back to January 1, 2021, we encourage system owners to register their system with the Virginia SCC and GATS (the applicable REC tracking system) as soon as they can. This will allow system owners to begin generating and compiling SRECs, which can be sold through the PA Tier I REC market or the Virginia SREC market. Sol Systems is currently offering several contract options, including Sol Brokerage and Sol Profit Share. Read more about our options on our Virginia State Market Page to learn more and sign up to sell your SRECs today.