On a plot of land along Route 58 in Suffolk, about 9,000 solar panels sat soaking up the sun on a recent afternoon.
“What we have in front of us here is much like what you might see on your neighbor’s house who’s got solar, but many, many more panels,” said Brandon Smithwood, vice president of policy for Atlanta-based solar developer Dimension Energy.
The property is about 20 acres, “much smaller than the big utility-scale projects we see here and elsewhere that can be thousands or more.”
This Suffolk site is one of Virginia’s first shared, or community, solar projects. The industry’s slowly building after lawmakers launched a pilot program several years ago.
The concept fits somewhere between small rooftop systems and massive solar farms. Renters and homeowners subscribe to a specific offsite project to earn credits on their energy bills.
“This essentially provides a cost-effective solution for customers who want to access clean energy but can’t locate solar on their own homes,” Del. Rip Sullivan, D-Fairfax, said at a recent legislative committee meeting.
The program’s initial structure effectively limited it to low-income customers. But changes to state rules are set to broaden access.
Virginia authorized shared solar through legislation passed in 2020. It then took several years to formalize the process, a key part of which was deciding how to bill customers.
Private developers, such as Dimension, pay to construct the projects and produce power. But utilities argued they’re still responsible for costs such as transmission infrastructure and need everyone to pay their fair share.
The State Corporation Commission decided people who use shared solar should pay a minimum of $55 to Dominion Energy each month, on top of the cost of electricity.
That essentially negated the financial benefits of participating for most people, Smithwood said. Low-income customers were exempt.
In 2024, state lawmakers directed the SCC to reconsider the minimum bill structure, factoring in not just the cost of shared solar but also its benefits.
“Producing power here means less transmission lines, less new power plants, less distribution upgrades,” Smithwood said. “There are savings for ratepayers in addition to the climate benefits meeting our clean energy goals in the commonwealth.”
In November, state regulators agreed and changed the methodology. The minimum bill now serves as a floor rather than an additional fee.
If a subscriber owes Dominion $100, for example, they can use credits from shared solar to drop their bill as low as $55, instead of paying $100 plus another $55.
“That really unlocks access to every other Virginian who, before, unless they were willing to pay a premium, was shut out,” Smithwood said. “We shouldn’t be charging people a premium for the cheapest source of energy we’ve got.”
Dominion spokesperson Tim Eberly said in an email that the utility is complying with the SCC order and has updated the corresponding documentation.
The shared solar program benefits the electric grid by adding more power, “which is power that Dominion Energy doesn’t need to generate,” he said.
“As a company, Dominion Energy is ‘all in’ on solar. We’re supportive of customers developing or acquiring their own solar, whether that’s through a rooftop solar system or a program like shared solar.”
Dimension operates seven shared solar projects in Virginia that collectively serve more than 10,000 households. The Suffolk site has about 800 subscribers in Hampton Roads.
The company makes money by taking a portion of subscribers’ energy savings each month.
At the moment, Virginia’s shared solar industry is restricted from too much expansion. Capacity was initially capped at 200 megawatts added to the grid, which has since been allocated across 52 projects. (Each produces no more than 5 megawatts.)
State lawmakers authorized another 150 megawatts in 2024. More than a dozen shared solar projects are on a waitlist to join, according to Del. Sullivan.
He proposed legislation that would allow 525 more megawatts, with the ability to expand without additional approval from the General Assembly. The bill passed the House of Delegates Wednesday.
Smithwood said he hopes lawmakers will capitalize on the benefits of shared solar, such as adding energy to the grid much more quickly than larger projects.
Because of their small size, community solar projects do not require approval from PJM Interconnection, the regional electric grid operator notorious for yearslong delays.
“Virginia is still in the dip in its toe phase” of community solar, Smithwood said. “Our hope is that Virginia will take the success of the bit it’s done and do a lot more.”
Energy affordability has increasingly made headlines nationwide amid concerns about inflation and the rising cost of living.
But “affordability has always been a part of the conversation for us,” said Michael Sutphin, communications manager for Community Housing Partners, an affordable housing nonprofit based in Christiansburg.
The organization has played a key role in spreading shared solar in Virginia through a partnership with Dimension.
Community Housing Partners manages multifamily properties across the state, including Hampton Roads. About 22% of its units are eligible for the low-income shared solar program.
Sara Hoke, housing stability director, said renters and people with lower incomes face barriers to solar energy.
“They don’t have the freedom to be able to add solar panels,” she said.
The nonprofit helps enroll interested residents and matches them with a site.
“Once that solar project is live, then they start to receive their discounts on a monthly basis, and that is a line item that’s highlighted on their monthly bill,” Hoke said. “They are very grateful to be pointed to a resource to save any bit of money that they can.”

source