ROANOKE, Va. (WDBJ) – A bill that passed unanimously in the Virginia House is now before the Senate, proposing a virtual power plant pilot program that would allow Appalachian Power subscribers to voluntarily install solar panels on their homes and sell excess electricity back to the grid.
House Bill 1467 would direct Appalachian Power to petition the State Corporation Commission to establish the program. Under the proposal, participating homeowners would power their own residences first, with surplus energy fed into the grid.
This would happen particularly during peak demand periods. Subscribers who also purchase a battery storage unit could keep a percentage of the stored power as backup while selling the remainder back to Appalachian Power.
Appalachian Power approached state government about the virtual power plant concept as energy demand in Virginia has increased, driven in part by the growth of data centers across the state. Traditional power plants take three to seven years to build.
Del. Lily Franklin, who represents District 41 in southwest Virginia, sponsored the bill. She mentioned the distributed model at a town hall Saturday in Blacksburg, and described how it could replicate what conventional plants already do, but on a home-by-home basis.
“Basically that’s what your power plants are doing already,” said Del. Franklin. “They have the power and they feed it into the grid in one location. Now this is basically location by location. And through technology we can do this now.”
Franklin said speed is central to the proposal’s appeal.
“It’s one of the fastest ways we can get new energy on the grid quickly,” said Franklin. “This is what’s going to bring our bills down. People need relief now.”
Franklin also noted the legislature has addressed data center energy consumption separately, passing legislation to create a new rate class for data centers.
“We did pass legislation that would create a new class for data centers, that they would be charged at a higher rate because they should be paying more into the system,” she said. “Energy efficiency is one of the top priorities.”
Despite the program’s potential, the upfront cost of installation is a deterrent for some residents. EnergySafe, a website that compares solar panel prices, estimates installation costs around $37,000 before tax incentives and other price deductions. Recent federal cuts to solar subsidies have added to the financial burden for prospective participants.
Franklin said the program makes the most financial sense for a specific segment of homeowners.
“With the energy bills being so high, it actually makes sense to install these if you’re in the upper middle class here,” Franklin said.
Blacksburg resident Alex Cooper said the economics do not work for him at this time.
“The upfront cost for me is so difficult,” said Cooper. “I can’t afford it. I have to plug into APCO or build my own water turbine or something.”
Cooper also noted that savings projections vary widely depending on installation specifics.
“You get all sorts of services on social media telling you, ‘We can take an aerial imagery of your house and tell you how much you’re going to save,’” he said. “It really depends on where the panels are put, how many of them there are, and how you can connect into the grid.”
Franklin acknowledged that Appalachian Power would not see capital gains from the program but said the company recognizes the limitations of traditional grid expansion.
“They don’t get any capital gains from these kinds of things,” said the delegate. “But they understand that they also don’t have the capability to get as much energy onto the grid as quick as we are going to need it.”
If the bill passes in the state Senate, Appalachian Power is looking to launch its pilot program on July 1, 2027.
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