Virginia sees a new PPA

­­­Virginia will see a first-of-its-kind power purchase agreement (PPA). As a reminder, PPAs are a financial agreement where a solar developer arranges for the design, installation, and financing of a solar array on a third-party’s property. This host then becomes a customer and can purchase the energy that is produced at a fixed rate. It can be a great way for a customer to purchase solar energy without dealing with the logistics and costs of installing their own array. Until recently, these agreements were not permitted in Virginia, but they have been since been allowed in certain use cases.  

This new PPA is an agreement between Dominion Energy and Harrisonburg Electric Commission (HEC). Dominion will provide 1.4 MW of power to the HEC community solar program. The land itself is owned by the City of Harrisonburg but the equipment will be owned and operated by Dominion.

These agreements are mutually beneficial. HEC will be able to purchase low-cost, locally produced renewable energy. Dominion will be able to expand its renewable energy production without investing in the additional capital cost of land.

The Harrisonburg City Council has already authorized this project and it is only waiting on approval from the Virginia Municipal Electric Association, so construction is expected to begin early next year.

PPAs help customers mitigate risk against fluctuating energy prices and more easily allow them to reach sustainability goals. It also allows for more widely distributed energy production, improving grid reliability. We are excited to see these community partnerships and innovative energy solutions crop up in Virginia and hope to see more from a diverse group of developers.