The Power to the People Act - Empowering Virginians, Not Big Tech

Power to the People Act

An Act to empower residential renewable energy generation, ensure equitable contributions from high-energy-use industries to distributed clean energy, remove barriers to rooftop solar adoption, and protect ratepayers; amending and reenacting various sections of the Code of Virginia relating to net energy metering, data center development incentives, and renewable energy funding.

Key Goals (Prioritizing Residential Solar Owners)

• Protect and empower homeowners first: Unlimited system sizes, full retail-rate compensation for all excess generation (no more "avoided cost" rollovers that undervalue homeowner contributions), and elimination of punitive standby charges or fees that discourage larger arrays.
• Make data centers pay their fair share: Virginia hosts the world's largest data center market (over 300 facilities, consuming ~26% of the state's electricity in some analyses). Their explosive growth is driving grid upgrades, higher residential bills, and delays in the clean energy transition. This bill redirects a portion of their generous tax incentives (currently worth $700–$900 million annually in sales tax exemptions) into direct support for residential solar — without killing jobs or driving the industry away.
• Balance stakeholders fairly:
  • Homeowners/solar owners: Maximum freedom and financial upside.
  • Data center operators: Retain most tax incentives if they contribute modestly to clean energy that offsets their grid strain.
  • Utilities (Dominion, APCo, co-ops): Fair cost recovery but no ability to impose new anti-solar fees; incentivized to interconnect larger systems quickly.
  • Ratepayers/taxpayers: Prevent bill increases from data center-driven infrastructure; fund distributed solar that reduces peak demand and transmission needs.
  • Environment & communities: Boost small-scale, rooftop solar (which has minimal land/water impact) over massive utility-scale projects or new fossil plants.
  • Local governments: New tools/revenue for oversight without blanket moratoriums.

Core Provisions

1. Remove All Caps on Residential Rooftop Solar System Size and Net Metering
   • Amend § 56-594 to eliminate the current practical caps (25 kW for full retail net metering in IOU territory; 20 kW in many co-ops; standby charges kicking in at 15–25 kW).
   • No maximum size limit for residential systems as long as the system is primarily rooftop/onsite (ground-mount allowed if on the homeowner's property and not exceeding reasonable acreage, e.g., <5 acres).
   • Systems may be sized up without restriction by historical consumption (to accommodate EVs, heat pumps, home businesses, or future growth) and without triggering commercial treatment.
   • Full retail-rate net metering with cash payout for excess:
     • All excess generation credited at full retail rate (kWh-for-kWh).
     • Annual true-up: Any remaining excess paid out at full retail rate (not avoided cost).
     • Eliminates standby/distribution/transmission charges for residential systems of any size.
   • Grandfathering: All existing and new systems locked into these terms permanently (protects early adopters if future changes occur).


2. Data Center Community Solar Benefit Fee (The Funding Mechanism)
   • New § 58.1-609.3 amendment: To qualify for the existing sales & use tax exemption on equipment (worth hundreds of millions annually), data center operators must pay an annual Community Solar Benefit Fee.
   • Fee = 5–10% of the sales tax they would have owed without the exemption (phased: 5% in year 1, scaling to 10%).
   • Example: If a center saves $20 million in sales tax, fee = $1–2 million/year — a tiny fraction of capex/opex but generates $50–$150 million statewide annually.
   • Revenue deposited into a new restricted Virginia Residential Solar Equity Fund administered by the Department of Energy (not utilities).
   • Fund uses (100% for residential solar benefits):
     • Direct rebates/grants for new or expanded residential installations (priority to low/moderate-income, oversized arrays, and battery add-ons).
     • Buy-down of Solar Renewable Energy Credits (SRECs) from residential systems to guarantee high payout values.
     • Zero-interest loans or on-bill financing for large residential arrays.
     • Community solar subscriptions reserved for homeowners who can't install rooftop (e.g., renters, shaded properties).
   • Opt-out alternative: Data centers can reduce their fee by 50–100% if they directly procure and retire Virginia-generated residential/distributed SRECs equivalent to 20–50% of their annual consumption.


3. Additional Safeguards & Incentives
   • Ratepayer protection: Utilities prohibited from shifting data center interconnection/grid upgrade costs to residential class. Explicit SCC authority to create special high-load tariffs if needed.
   • Faster interconnections: Mandatory 30-day approval for residential systems <500 kW; utilities fined for delays.
   • No new anti-solar fees: Bans additional fixed charges, minimum bills, or demand fees targeted at solar owners.
   • Transparency & accountability: Annual public report on fund disbursements, data center fees paid, and residential solar growth attributable to the program.
   • Sunset/review clause: Program reviewed in 2032; can be adjusted if residential solar penetration exceeds goals or data center growth slows.

Why This Works for All Stakeholders (But Protects Homeowners Most)

This bill turns a problem (data center energy explosion) into a solution (explosion of empowered residential solar). It's pro-homeowner, pro-clean energy, and pro-fairness — truly Power to the People.