Sips and Solar: renewable energy at Virginia’s breweries and wineries

In 2017, Powered by Facts partnered with Virginia’s Electric Cooperatives and several other key stakeholders via the Rubin Group to develop the Small Agricultural Generation program, giving agricultural businesses an alternative option to use solar energy. This allowed farmers to generate solar energy outside of the constraints of traditional agricultural net metering.

This program now allows businesses and farms involved in agriculture to build bigger solar projects (up to 1.5 MW and 150% of load). Additionally, these businesses can capitalize on Renewable Energy Credits (RECs) by selling them to their utility. Solar generation on agricultural land is a win-win. It helps farmers keep their businesses afloat by keeping energy consumption low and receiving additional income. It also creates an incentive structure that promotes more renewables that benefit the whole state!

The program’s passage into law was a huge legislative victory that would not have been possible without a wide and diverse coalition of stakeholders from across the energy industry.

Following the program’s creation, the State Corporation Commission created regulations that took a very narrow definition of “agricultural business.” This limited the program to only businesses that produce plants or animals as primary producers or provide plant or animal services. The result has created an uneven application of the program.

For instance, a farm growing hops could qualify as an agricultural business, but the brewery that turns those hops into beer—as a secondary producer—could not.  The same is true for vineyards and wineries, and distilleries.

Solving this problem requires another piece of legislation, which has been brought forward by Delegate Kathleen Murphy (D – McLean) for the 2021 Legislative Session. Delegate Murphy’s bill, HB 1994, clarifies the definition of “agricultural business” as including breweries, distilleries, and wineries.

Wine, beer, and liquor production have grown significantly in Virginia. It has offered great opportunities for small businesses and economic growth for the state as a whole. Let’s support our local breweries, distilleries, and wineries by supporting HB 1994!