Dominion’s Minimum Cost Proposal For Community Solar Is Too High
The General Assembly approved legislation in 2020 allowing Dominion Energy customers to purchase electricity through a subscription to a shared solar power generator. Known as community solar, this model of distributed energy allows for solar energy to flow from off-site solar panels to a group of customers, whether they be individuals or businesses. Put simply, community solar allows multiple customers to tap into the power being generated by local solar panels, helping to reduce carbon emissions and keeping energy prices low.
Community solar is an excellent option for those who are unable to install personal solar panels on their home. Whether it be shady trees, a stubborn landlord, or an inability to finance an installation, there are a number of reasons as to why an individual may not be able to equip their home with solar panels. With community solar, renewable energy becomes more accessible to all, not just those able to foot the costs associated with home installation.
Standing in the way of inexpensive access to community solar, however, is Dominion Energy. In plans presented this April to the State Corporation Commission on how to bill community solar customers, the energy utility suggested a minimum monthly bill of $74.90 for those purchasing 1,000 kWh of energy. Renewable energy advocacy groups say this is an excessive cost that will hinder the widespread adoption of solar energy in Virginia. Sen. Scott Surovell, who sponsored the 2020 legislation establishing community solar in Virginia, said an energy bill that high would allow only the wealthiest to access community solar.
Citing the cost of electricity delivery and the potential need to deliver other forms of electricity when solar energy isn’t available, Dominion said that the $75 minimum bill proposal is a “fair and equitable approach.” This becomes hard to believe, however, in looking at a recent ruling by the South Carolina Public Service Commission that found $13.50 to be a fair minimum monthly billing rate for residential distributed energy customers. The unanimous decision has been hailed by clean energy advocates, who say the ruling will help solar get off the ground in South Carolina. If Dominion can deliver renewable energy to South Carolina at such a low price, the utility can certainly charge similarly low prices here in Virginia.
Community solar is intended to be an inexpensive, efficient method of distributing renewable energy. The legislation that enabled Virginians to take part in community solar contains a provision that requires a portion of megawatts generated by community solar facilities to be distributed to low-income customers; this shows that the concept of community solar was introduced to be accessible to all regardless of income, and also demonstrates the state’s commitment to environmental justice during the transition to clean energy. Dominion’s attempt to set a minimum bill of nearly $75 for community solar customers is a confrontation to the notion of equitable, accessible clean energy.
In order for community solar to operate as intended in Virginia — that is, affordable to all — Dominion needs to abandon its proposal to set minimum bills of $74.90 for community solar customers. Keeping community solar bills low will allow access to clean energy for all Virginians, helping households and businesses save on energy costs and bringing the state closer to a carbon-free economy.