An Act to amend and reenact §§ 15.2-2288.7, 56-594, 56-594.01, 56-594.2, and 59.1-198 of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 55.1-1212.1 and by adding in Chapter 23 of Title 56 a section numbered 56-596.7, relating to electric utilities; small portable solar generation devices; Residential Landlord and Tenant Act.
HB395 makes a broad set of changes to Virginia law governing solar energy, net metering, and related consumer protections. The bill expands and clarifies where solar facilities may be installed on residential, agricultural, commercial, industrial, institutional, and mixed-use property, generally allowing rooftop and, in many cases, ground-mounted solar installations so long as they comply with local height, setback, and historic-preservation rules. It also updates the state’s net energy metering framework for customer-generators and agricultural customer-generators, including definitions, interconnection rules, compensation for excess generation, standby charge rules, and the process the State Corporation Commission must follow when reviewing or revising net metering terms.
A major new feature of the bill is the creation of a separate legal framework for “small portable solar generation devices.” These devices may be used without utility approval, fees, or extra equipment requirements beyond what is integrated into the device, though customers must notify the utility using a Commission form before installation. The bill also authorizes utilities to require an automatic disconnect switch in certain circumstances, requires the device to prevent export to the grid and protect the building during outages, and limits utility liability for damage or service interruption caused by such devices. In addition, the bill adds a new section to the Residential Landlord and Tenant Act addressing these devices in rental contexts, including an exception for rental dwelling units subject to ratio utility billing systems.
HB395 also revises provisions affecting third-party partial requirements power purchase agreements and provider registration, including consumer-protection and registration requirements for providers offering certain renewable-energy financing arrangements. The bill amends the Virginia Consumer Protection Act definition section as part of these changes, and it includes effective-date provisions that delay implementation of the first enactment until January 1, 2027. Overall, the bill would expand the legal pathway for residential and agricultural solar deployment while preserving local zoning authority and utility oversight in specified areas.
The general sentiment reflected by the bill’s final status is favorable, as it was approved and reenrolled into chapter law. Although no committee transcripts or recorded votes were provided, the structure of the bill suggests a policy goal of encouraging distributed solar adoption and clarifying rules for consumers, landlords, utilities, and solar providers. The main points of contention likely center on the balance between solar access and local zoning control, utility interconnection and standby-charge authority, and the extent to which utilities may regulate or limit small portable solar devices and third-party financing arrangements.
HB395 amends local zoning authority under § 15.2-2288.7, revises the net metering statute in § 56-594, updates small agricultural generator rules in § 56-594.2, adds a new statutory framework for small portable solar generation devices in Chapter 23 of Title 56, and makes conforming changes to the Virginia Consumer Protection Act definition section in § 59.1-198. It also adds a new section to the Residential Landlord and Tenant Act, affecting landlord-tenant rights and obligations related to portable solar devices. The bill primarily affects electric utilities, electric cooperatives, customer-generators, agricultural businesses, landlords and tenants, and solar providers, while preserving local zoning and historic-district review authority for many installations.
The bill appears to have been received positively overall, given that it was approved and reenrolled as chapter law. Its provisions are consistent with a pro-solar and pro-distributed-generation policy direction, expanding consumer access to rooftop, ground-mounted, and portable solar options while setting utility and safety rules. Because no committee debate or vote record is included, there is no evidence of organized opposition in the provided materials, but the bill’s regulatory changes suggest that utilities and local governments may have had concerns about interconnection, compensation, and zoning preemption.
The likely areas of contention are the extent of local control versus statewide solar access, the degree of utility oversight over interconnection and standby charges, and the treatment of third-party solar financing and provider registration. Localities may be concerned about the bill’s presumption that certain ground-mounted solar facilities are permitted on residential, agricultural, and commercial property unless a local ordinance says otherwise. Utilities may object to limits on standby charges, compensation obligations for excess generation, and the new rules for small portable solar devices that restrict approval requirements and fees. Landlords and utilities may also have differing views on how the new portable-solar rules should apply in rental housing, especially where ratio utility billing systems are used.