{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/56-594.02.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/56-594.02.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/56-594.02.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/56-594.02.html"}],"law_id":66346,"edition_id":1,"section_id":66346,"structure_id":13084,"section_number":"56-594.02","catch_line":"Solar-powered or wind-powered electricity generation; power purchase agreements; pilot programs","history":"2013, cc. 358, 382; 2017, c. 803; 2020, cc. 1187, 1188, 1189, 1193, 1194, 1239; 2021, Sp. Sess. I, cc. 361, 362; 2024, cc. 783, 827.","full_text":"A\n\nThe Commission shall conduct pilot programs under which a person that owns or operates a solar-powered or wind-powered electricity generation facility located on premises owned or leased by an eligible customer-generator, as defined in \u00a7 56-594, shall be permitted to sell the electricity generated from such facility exclusively to such eligible customer-generator under a power purchase agreement used to provide third party financing of the costs of such a renewable generation facility (third party power purchase agreement), subject to the following terms, conditions, and restrictions:1\n\nNotwithstanding subsection G of § 56-580 or any other provision of law, a pilot program shall be conducted within the certificated service territory of each investor-owned electric utility (“Pilot Utility”);2\n\nExcept as provided in this subdivision, both jurisdictional and nonjurisdictional customers may participate in such pilot programs on a first-come, first-serve basis. The aggregated capacity of all generation facilities that are subject to such third party power purchase agreements at any time during the pilot program shall not exceed 500 megawatts for Virginia jurisdictional customers and 500 megawatts for Virginia nonjurisdictional customers. Such limitation on the aggregated capacity of such facilities shall constitute a portion of the existing limit of six percent of each Pilot Utility’s adjusted Virginia peak-load forecast for the previous year that is available to eligible customer-generators pursuant to subsection E of § 56-594. Notwithstanding any provision of this section that incorporates provisions of § 56-594, the seller and the customer shall elect either to (i) enter into their third party power purchase agreement subject to the conditions and provisions of the Pilot Utility’s net energy metering program under § 56-594 or (ii) provide that electricity generated from the generation facilities subject to the third party power purchase agreement will not be net metered under § 56-594, provided that an election not to net meter under § 56-594 shall not exempt the third party power purchase agreement and the parties thereto from the requirements of this section that incorporate provisions of § 56-594;3\n\nA solar-powered or wind-powered generation facility with a capacity of no less than 50 kilowatts and no more than three megawatts shall be eligible for a third party power purchase agreement under a pilot program; however, if the customer under such agreement is a low-income utility customer, as defined in § 56-576, or is an entity with tax-exempt status in accordance with § 501(c) of the Internal Revenue Code of 1954, as amended, then such facility is eligible for the pilot program even if it does not meet the 50 kilowatts minimum size requirement. The maximum generation capacity of three megawatts shall not affect the limits on the capacity of electrical generating capacities of 25 kilowatts for residential customers and three megawatts for nonresidential customers set forth in subsection B of § 56-594, which limitations shall continue to apply to net energy metering generation facilities regardless of whether they are the subject of a third party power purchase agreement under the pilot program;4\n\nA generation facility that is the subject of a third party power purchase agreement under the pilot program shall serve only one customer, and a third party power purchase agreement shall not serve multiple customers;5\n\nThe customer under a third party power purchase agreement under the pilot program shall be subject to the interconnection and other requirements imposed on eligible customer-generators pursuant to subsection C of § 56-594, including the requirement that the customer bear the reasonable costs, as determined by the Commission, of the items described in clauses (a) and (b) of such subsection;6\n\nA third party power purchase agreement under the pilot program shall not be valid unless it conforms in all respects to the requirements of the pilot program conducted under the provisions of this section and unless the Commission and the Pilot Utility are provided written notice of the parties’ intent to enter into a third party power purchase agreement not less than 30 days prior to the agreement’s proposed effective date; and7\n\nAn affiliate of the Pilot Utility shall be permitted to offer and enter into third party power purchase arrangements on the same basis as may any other person that satisfies the requirements of being a seller under a third party power purchase agreement under the pilot program.B\n\nThe Commission shall review the pilot program established pursuant to subsection A in 2015 and every two years thereafter during the pilot program. In its review, the Commission shall determine whether the limitations in subdivisions A 2 and 3 should be expanded, reduced, or continued.C\n\nAny third party power purchase agreement that is not entered into pursuant to the pilot program established pursuant to subsection A is prohibited in the Pilot Utility’s service territory, unless such third party power purchase agreement is entered into between a licensed supplier and a retail customer pursuant to § 56-577 where such supplier is responsible for serving 100 percent of the load requirements for each retail customer account it serves.D\n\nIf the Commission approves a tariff proposed for electric power provided 100 percent from renewable energy that serves 100 percent of the load requirements for each retail customer account it serves under such tariff, hereafter referred to as a “green tariff,” such a green tariff shall not be available to any party to a third party power purchase agreement for the account being served by such power purchase agreement, and such an agreement shall remain in effect notwithstanding the approval of the green tariff.E\n\nNothing in this section shall be construed as (i) rendering any person, by virtue of its selling electric power to an eligible customer-generator under a third party power purchase agreement entered into pursuant to the pilot program established under this section, a public utility or a competitive service provider, (ii) imposing a requirement that such a person meet 100 percent of the load requirements for each retail customer account it serves, or (iii) affecting third party power purchase agreements in effect prior to July 1, 2013.F\n\nNothing in this section shall abridge any rights of either party to an agreement between a Pilot Utility and a group purchasing organization acting on behalf of Virginia local governments regarding the purchase of electric service.G\n\nThe Commission shall, by December 1, 2013, establish guidelines concerning (i) information to be provided in notices required under subdivision A 6 and (ii) procedures for aggregating and posting to the Commission’s web site information derived from the aforesaid notices, including total capacity utilized by pilot projects for which notice has been received and capacity remaining available for future pilot projects. In addition, the Commission may adopt such rules or establish such guidelines as may be necessary for its general administration of the pilot program established under this section.","order_by":null,"text":{"0":{"id":240862,"text":"The Commission shall conduct pilot programs under which a person that owns or operates a solar-powered or wind-powered electricity generation facility located on premises owned or leased by an eligible customer-generator, as defined in \u00a7 56-594, shall be permitted to sell the electricity generated from such facility exclusively to such eligible customer-generator under a power purchase agreement used to provide third party financing of the costs of such a renewable generation facility (third party power purchase agreement), subject to the following terms, conditions, and restrictions:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":240863,"text":"Notwithstanding subsection G of § 56-580 or any other provision of law, a pilot program shall be conducted within the certificated service territory of each investor-owned electric utility (“Pilot Utility”);","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":240864,"text":"Except as provided in this subdivision, both jurisdictional and nonjurisdictional customers may participate in such pilot programs on a first-come, first-serve basis. The aggregated capacity of all generation facilities that are subject to such third party power purchase agreements at any time during the pilot program shall not exceed 500 megawatts for Virginia jurisdictional customers and 500 megawatts for Virginia nonjurisdictional customers. Such limitation on the aggregated capacity of such facilities shall constitute a portion of the existing limit of six percent of each Pilot Utility’s adjusted Virginia peak-load forecast for the previous year that is available to eligible customer-generators pursuant to subsection E of § 56-594. Notwithstanding any provision of this section that incorporates provisions of § 56-594, the seller and the customer shall elect either to (i) enter into their third party power purchase agreement subject to the conditions and provisions of the Pilot Utility’s net energy metering program under § 56-594 or (ii) provide that electricity generated from the generation facilities subject to the third party power purchase agreement will not be net metered under § 56-594, provided that an election not to net meter under § 56-594 shall not exempt the third party power purchase agreement and the parties thereto from the requirements of this section that incorporate provisions of § 56-594;","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":240865,"text":"A solar-powered or wind-powered generation facility with a capacity of no less than 50 kilowatts and no more than three megawatts shall be eligible for a third party power purchase agreement under a pilot program; however, if the customer under such agreement is a low-income utility customer, as defined in § 56-576, or is an entity with tax-exempt status in accordance with § 501(c) of the Internal Revenue Code of 1954, as amended, then such facility is eligible for the pilot program even if it does not meet the 50 kilowatts minimum size requirement. The maximum generation capacity of three megawatts shall not affect the limits on the capacity of electrical generating capacities of 25 kilowatts for residential customers and three megawatts for nonresidential customers set forth in subsection B of § 56-594, which limitations shall continue to apply to net energy metering generation facilities regardless of whether they are the subject of a third party power purchase agreement under the pilot program;","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"A4"},"4":{"id":240866,"text":"A generation facility that is the subject of a third party power purchase agreement under the pilot program shall serve only one customer, and a third party power purchase agreement shall not serve multiple customers;","type":"section","prefixes":["A","4"],"prefix":"4","entire_prefix":"A4","prefix_anchor":"A4","level":2,"prior_prefix":"A3","next_prefix":"A5"},"5":{"id":240867,"text":"The customer under a third party power purchase agreement under the pilot program shall be subject to the interconnection and other requirements imposed on eligible customer-generators pursuant to subsection C of § 56-594, including the requirement that the customer bear the reasonable costs, as determined by the Commission, of the items described in clauses (a) and (b) of such subsection;","type":"section","prefixes":["A","5"],"prefix":"5","entire_prefix":"A5","prefix_anchor":"A5","level":2,"prior_prefix":"A4","next_prefix":"A6"},"6":{"id":240868,"text":"A third party power purchase agreement under the pilot program shall not be valid unless it conforms in all respects to the requirements of the pilot program conducted under the provisions of this section and unless the Commission and the Pilot Utility are provided written notice of the parties’ intent to enter into a third party power purchase agreement not less than 30 days prior to the agreement’s proposed effective date; and","type":"section","prefixes":["A","6"],"prefix":"6","entire_prefix":"A6","prefix_anchor":"A6","level":2,"prior_prefix":"A5","next_prefix":"A7"},"7":{"id":240869,"text":"An affiliate of the Pilot Utility shall be permitted to offer and enter into third party power purchase arrangements on the same basis as may any other person that satisfies the requirements of being a seller under a third party power purchase agreement under the pilot program.","type":"section","prefixes":["A","7"],"prefix":"7","entire_prefix":"A7","prefix_anchor":"A7","level":2,"prior_prefix":"A6","next_prefix":"B"},"8":{"id":240870,"text":"The Commission shall review the pilot program established pursuant to subsection A in 2015 and every two years thereafter during the pilot program. In its review, the Commission shall determine whether the limitations in subdivisions A 2 and 3 should be expanded, reduced, or continued.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A7","next_prefix":"C"},"9":{"id":240871,"text":"Any third party power purchase agreement that is not entered into pursuant to the pilot program established pursuant to subsection A is prohibited in the Pilot Utility’s service territory, unless such third party power purchase agreement is entered into between a licensed supplier and a retail customer pursuant to § 56-577 where such supplier is responsible for serving 100 percent of the load requirements for each retail customer account it serves.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"10":{"id":240872,"text":"If the Commission approves a tariff proposed for electric power provided 100 percent from renewable energy that serves 100 percent of the load requirements for each retail customer account it serves under such tariff, hereafter referred to as a “green tariff,” such a green tariff shall not be available to any party to a third party power purchase agreement for the account being served by such power purchase agreement, and such an agreement shall remain in effect notwithstanding the approval of the green tariff.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"11":{"id":240873,"text":"Nothing in this section shall be construed as (i) rendering any person, by virtue of its selling electric power to an eligible customer-generator under a third party power purchase agreement entered into pursuant to the pilot program established under this section, a public utility or a competitive service provider, (ii) imposing a requirement that such a person meet 100 percent of the load requirements for each retail customer account it serves, or (iii) affecting third party power purchase agreements in effect prior to July 1, 2013.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"12":{"id":240874,"text":"Nothing in this section shall abridge any rights of either party to an agreement between a Pilot Utility and a group purchasing organization acting on behalf of Virginia local governments regarding the purchase of electric service.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"13":{"id":240875,"text":"The Commission shall, by December 1, 2013, establish guidelines concerning (i) information to be provided in notices required under subdivision A 6 and (ii) procedures for aggregating and posting to the Commission’s web site information derived from the aforesaid notices, including total capacity utilized by pilot projects for which notice has been received and capacity remaining available for future pilot projects. In addition, the Commission may adopt such rules or establish such guidelines as may be necessary for its general administration of the pilot program established under this section.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F"}},"ancestry":[{"id":13084,"edition_id":1,"name":"Virginia Electric Utility Regulation Act","identifier":"23","label":"chapter","depth":2,"order_by":1,"parent_id":12881,"metadata":{},"date_created":"2026-06-26 03:44:15","date_modified":"2026-06-26 03:44:15","permalink":{"id":250597,"object_type":"structure","relational_id":13084,"identifier":"23","token":"56\/23","url":"\/56\/23\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12881,"edition_id":1,"name":"Public Service Companies","identifier":"56","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:58","date_modified":"2026-06-26 03:43:58","permalink":{"id":248473,"object_type":"structure","relational_id":12881,"identifier":"56","token":"56","url":"\/56\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":62210,"structure_id":13084,"section_number":"56-576","catch_line":"Definitions","url":"\/56-576\/","token":"56\/23\/56-576","metadata":false},{"id":79838,"structure_id":13084,"section_number":"56-577","catch_line":"Schedule for transition to retail competition; Commission authority; exemptions; pilot programs","url":"\/56-577\/","token":"56\/23\/56-577","metadata":false},{"id":69790,"structure_id":13084,"section_number":"56-577.1","catch_line":"Electric utilities; retail competition; pilot program","url":"\/56-577.1\/","token":"56\/23\/56-577.1","metadata":false},{"id":66769,"structure_id":13084,"section_number":"56-578","catch_line":"Nondiscriminatory access to transmission and distribution system","url":"\/56-578\/","token":"56\/23\/56-578","metadata":false},{"id":76158,"structure_id":13084,"section_number":"56-579","catch_line":"Regional transmission entities","url":"\/56-579\/","token":"56\/23\/56-579","metadata":false},{"id":77551,"structure_id":13084,"section_number":"56-580","catch_line":"Transmission and distribution of electric energy","url":"\/56-580\/","token":"56\/23\/56-580","metadata":false},{"id":76009,"structure_id":13084,"section_number":"56-581","catch_line":"Regulation of rates subject to Commission's jurisdiction","url":"\/56-581\/","token":"56\/23\/56-581","metadata":false},{"id":70038,"structure_id":13084,"section_number":"56-581.1","catch_line":"Repealed","url":"\/56-581.1\/","token":"56\/23\/56-581.1","metadata":false},{"id":75586,"structure_id":13084,"section_number":"56-582","catch_line":"Rate caps","url":"\/56-582\/","token":"56\/23\/56-582","metadata":false},{"id":60164,"structure_id":13084,"section_number":"56-583","catch_line":"Repealed","url":"\/56-583\/","token":"56\/23\/56-583","metadata":false},{"id":60319,"structure_id":13084,"section_number":"56-584","catch_line":"Stranded costs","url":"\/56-584\/","token":"56\/23\/56-584","metadata":false},{"id":66252,"structure_id":13084,"section_number":"56-585","catch_line":"Default service","url":"\/56-585\/","token":"56\/23\/56-585","metadata":false},{"id":67687,"structure_id":13084,"section_number":"56-585.1","catch_line":"Generation, distribution, and transmission rates after capped rates terminate or expire","url":"\/56-585.1\/","token":"56\/23\/56-585.1","metadata":false},{"id":75688,"structure_id":13084,"section_number":"56-585.1:1","catch_line":"Transitional Rate Period: review of rates, terms and conditions for utility generation facilities","url":"\/56-585.1_1\/","token":"56\/23\/56-585.1_1","metadata":false},{"id":86211,"structure_id":13084,"section_number":"56-585.1:10","catch_line":"Program for electric infrastructure serving business parks","url":"\/56-585.1_10\/","token":"56\/23\/56-585.1_10","metadata":false},{"id":82389,"structure_id":13084,"section_number":"56-585.1:11","catch_line":"Development of offshore wind capacity","url":"\/56-585.1_11\/","token":"56\/23\/56-585.1_11","metadata":false},{"id":82816,"structure_id":13084,"section_number":"56-585.1:12","catch_line":"Multi-family shared solar program","url":"\/56-585.1_12\/","token":"56\/23\/56-585.1_12","metadata":false},{"id":84410,"structure_id":13084,"section_number":"56-585.1:13","catch_line":"Recovery of costs associated with investment in transportation electrification","url":"\/56-585.1_13\/","token":"56\/23\/56-585.1_13","metadata":false},{"id":68074,"structure_id":13084,"section_number":"56-585.1:14","catch_line":"(Effective until December 31, 2029) Recovery of development costs associated with small modular reactor","url":"\/56-585.1_14\/","token":"56\/23\/56-585.1_14","metadata":false},{"id":86919,"structure_id":13084,"section_number":"56-585.1:15","catch_line":"(Effective until July 1, 2034) Recovery of development costs associated with small modular nuclear facility","url":"\/56-585.1_15\/","token":"56\/23\/56-585.1_15","metadata":false},{"id":54669,"structure_id":13084,"section_number":"56-585.1:16","catch_line":"Virtual power plant pilot program","url":"\/56-585.1_16\/","token":"56\/23\/56-585.1_16","metadata":false},{"id":68837,"structure_id":13084,"section_number":"56-585.1:2","catch_line":"Pilot program for energy assistance and weatherization","url":"\/56-585.1_2\/","token":"56\/23\/56-585.1_2","metadata":false},{"id":78934,"structure_id":13084,"section_number":"56-585.1:3","catch_line":"Pilot programs for community solar development","url":"\/56-585.1_3\/","token":"56\/23\/56-585.1_3","metadata":false},{"id":86978,"structure_id":13084,"section_number":"56-585.1:4","catch_line":"Development of solar and wind generation and energy storage capacity in the Commonwealth","url":"\/56-585.1_4\/","token":"56\/23\/56-585.1_4","metadata":false},{"id":75808,"structure_id":13084,"section_number":"56-585.1:5","catch_line":"Pilot program for underground transmission lines","url":"\/56-585.1_5\/","token":"56\/23\/56-585.1_5","metadata":false},{"id":73594,"structure_id":13084,"section_number":"56-585.1:6","catch_line":"Pilot Programs to deploy electric power storage batteries","url":"\/56-585.1_6\/","token":"56\/23\/56-585.1_6","metadata":false},{"id":73105,"structure_id":13084,"section_number":"56-585.1:7","catch_line":"Pilot program for electric generation by public schools","url":"\/56-585.1_7\/","token":"56\/23\/56-585.1_7","metadata":false},{"id":83744,"structure_id":13084,"section_number":"56-585.1:8","catch_line":"Pilot program for municipal net energy metering","url":"\/56-585.1_8\/","token":"56\/23\/56-585.1_8","metadata":false},{"id":78790,"structure_id":13084,"section_number":"56-585.1:9","catch_line":"Provision of broadband capacity to unserved areas of the Commonwealth","url":"\/56-585.1_9\/","token":"56\/23\/56-585.1_9","metadata":false},{"id":56958,"structure_id":13084,"section_number":"56-585.2","catch_line":"Repealed","url":"\/56-585.2\/","token":"56\/23\/56-585.2","metadata":false},{"id":87343,"structure_id":13084,"section_number":"56-585.3","catch_line":"Regulation of cooperative rates after rate caps","url":"\/56-585.3\/","token":"56\/23\/56-585.3","metadata":false},{"id":80324,"structure_id":13084,"section_number":"56-585.4","catch_line":"Net energy metering transition provisions for electric cooperatives","url":"\/56-585.4\/","token":"56\/23\/56-585.4","metadata":false},{"id":81665,"structure_id":13084,"section_number":"56-585.5","catch_line":"Generation of electricity from renewable and zero carbon sources","url":"\/56-585.5\/","token":"56\/23\/56-585.5","metadata":false},{"id":57139,"structure_id":13084,"section_number":"56-585.6","catch_line":"Universal service fee; Percentage of Income Payment Program and Fund","url":"\/56-585.6\/","token":"56\/23\/56-585.6","metadata":false},{"id":63065,"structure_id":13084,"section_number":"56-585.7","catch_line":"On-bill tariff program; electric cooperatives","url":"\/56-585.7\/","token":"56\/23\/56-585.7","metadata":false},{"id":84206,"structure_id":13084,"section_number":"56-585.8","catch_line":"Biennial rate reviews","url":"\/56-585.8\/","token":"56\/23\/56-585.8","metadata":false},{"id":78391,"structure_id":13084,"section_number":"56-586","catch_line":"Emergency service provider","url":"\/56-586\/","token":"56\/23\/56-586","metadata":false},{"id":60930,"structure_id":13084,"section_number":"56-586.1","catch_line":"Electric energy emergencies","url":"\/56-586.1\/","token":"56\/23\/56-586.1","metadata":false},{"id":63919,"structure_id":13084,"section_number":"56-587","catch_line":"Licensure of retail electric energy suppliers and persons providing other competitive services","url":"\/56-587\/","token":"56\/23\/56-587","metadata":false},{"id":69085,"structure_id":13084,"section_number":"56-588","catch_line":"Licensing of aggregators","url":"\/56-588\/","token":"56\/23\/56-588","metadata":false},{"id":57502,"structure_id":13084,"section_number":"56-589","catch_line":"Municipal and state aggregation","url":"\/56-589\/","token":"56\/23\/56-589","metadata":false},{"id":59256,"structure_id":13084,"section_number":"56-589.1","catch_line":"Energy generation by public school buildings and facilities","url":"\/56-589.1\/","token":"56\/23\/56-589.1","metadata":false},{"id":86105,"structure_id":13084,"section_number":"56-590","catch_line":"Divestiture, functional separation and other corporate relationships","url":"\/56-590\/","token":"56\/23\/56-590","metadata":false},{"id":67461,"structure_id":13084,"section_number":"56-591","catch_line":"Application of antitrust laws","url":"\/56-591\/","token":"56\/23\/56-591","metadata":false},{"id":85339,"structure_id":13084,"section_number":"56-592","catch_line":"Consumer education and marketing practices","url":"\/56-592\/","token":"56\/23\/56-592","metadata":false},{"id":75703,"structure_id":13084,"section_number":"56-592.1","catch_line":"Consumer education program; scope and funding","url":"\/56-592.1\/","token":"56\/23\/56-592.1","metadata":false},{"id":77066,"structure_id":13084,"section_number":"56-593","catch_line":"Retail customers' private right of action; marketing practices","url":"\/56-593\/","token":"56\/23\/56-593","metadata":false},{"id":76060,"structure_id":13084,"section_number":"56-594","catch_line":"Net energy metering provisions","url":"\/56-594\/","token":"56\/23\/56-594","metadata":false},{"id":74615,"structure_id":13084,"section_number":"56-594.01","catch_line":"Net energy metering provisions for electric cooperative service territories","url":"\/56-594.01\/","token":"56\/23\/56-594.01","metadata":false},{"id":56626,"structure_id":13084,"section_number":"56-594.01:1","catch_line":"Local facilities usage charges; electric cooperatives","url":"\/56-594.01_1\/","token":"56\/23\/56-594.01_1","metadata":false},{"id":66346,"structure_id":13084,"section_number":"56-594.02","catch_line":"Solar-powered or wind-powered electricity generation; power purchase agreements; pilot programs","url":"\/56-594.02\/","token":"56\/23\/56-594.02","metadata":false},{"id":82596,"structure_id":13084,"section_number":"56-594.1","catch_line":"Interconnection by farms","url":"\/56-594.1\/","token":"56\/23\/56-594.1","metadata":false},{"id":78424,"structure_id":13084,"section_number":"56-594.2","catch_line":"Small agricultural generators","url":"\/56-594.2\/","token":"56\/23\/56-594.2","metadata":false},{"id":54132,"structure_id":13084,"section_number":"56-594.3","catch_line":"Shared solar programs; Phase II Utility","url":"\/56-594.3\/","token":"56\/23\/56-594.3","metadata":false},{"id":80234,"structure_id":13084,"section_number":"56-594.4","catch_line":"Shared solar programs; Phase I Utility","url":"\/56-594.4\/","token":"56\/23\/56-594.4","metadata":false},{"id":77419,"structure_id":13084,"section_number":"56-595","catch_line":"Repealed","url":"\/56-595\/","token":"56\/23\/56-595","metadata":false},{"id":69517,"structure_id":13084,"section_number":"56-596","catch_line":"Consideration of economic development; report","url":"\/56-596\/","token":"56\/23\/56-596","metadata":false},{"id":82462,"structure_id":13084,"section_number":"56-596.1","catch_line":"New generating facilities utilizing energy derived from sunlight and from wind; report","url":"\/56-596.1\/","token":"56\/23\/56-596.1","metadata":false},{"id":57383,"structure_id":13084,"section_number":"56-596.2","catch_line":"Energy efficiency policy and programs; financial assistance for low-income customers","url":"\/56-596.2\/","token":"56\/23\/56-596.2","metadata":false},{"id":80361,"structure_id":13084,"section_number":"56-596.2:1","catch_line":"Incentives for energy conservation measures and solar energy equipment","url":"\/56-596.2_1\/","token":"56\/23\/56-596.2_1","metadata":false},{"id":70146,"structure_id":13084,"section_number":"56-596.2:2","catch_line":"(Expires January 1, 2031) Energy efficiency savings targets for certain customers","url":"\/56-596.2_2\/","token":"56\/23\/56-596.2_2","metadata":false},{"id":71672,"structure_id":13084,"section_number":"56-596.3","catch_line":"Electric generation, transmission, and distribution; report","url":"\/56-596.3\/","token":"56\/23\/56-596.3","metadata":false},{"id":54473,"structure_id":13084,"section_number":"56-596.4","catch_line":"Electric utilities; local reliability data","url":"\/56-596.4\/","token":"56\/23\/56-596.4","metadata":false},{"id":75595,"structure_id":13084,"section_number":"56-596.5","catch_line":"Rate increases in certain months prohibited; Phase I Utility","url":"\/56-596.5\/","token":"56\/23\/56-596.5","metadata":false},{"id":80765,"structure_id":13084,"section_number":"56-596.6","catch_line":"Distribution cost sharing program","url":"\/56-596.6\/","token":"56\/23\/56-596.6","metadata":false}],"previous_section":{"id":56626,"structure_id":13084,"section_number":"56-594.01:1","catch_line":"Local facilities usage charges; electric cooperatives","url":"\/56-594.01_1\/","token":"56\/23\/56-594.01_1","metadata":false},"next_section":{"id":82596,"structure_id":13084,"section_number":"56-594.1","catch_line":"Interconnection by farms","url":"\/56-594.1\/","token":"56\/23\/56-594.1","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/56-594.02\/","history_text":"

This law was first created in 2013. The record of its establishment is cataloged in chapters 358<\/a> and 382<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 3 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 2017, chapter 803<\/a>; in 2020, chapters 1187<\/a>, 1188<\/a>, 1189<\/a>, 1193<\/a>, 1194<\/a>, and 1239<\/a>; in 2024, chapters 783<\/a> and 827<\/a>.<\/p>","references":[{"id":78550,"section_number":"15.2-2316.6","catch_line":"Definitions","order_by":null,"url":"\/15.2-2316.6\/"},{"id":83744,"section_number":"56-585.1:8","catch_line":"Pilot program for municipal net energy metering","order_by":null,"url":"\/56-585.1_8\/"},{"id":81349,"section_number":"58.1-2636","catch_line":"Revenue share for solar energy projects and energy storage systems","order_by":null,"url":"\/58.1-2636\/"}],"refers_to":[{"id":62210,"section_number":"56-576","catch_line":"Definitions","order_by":null,"url":"\/56-576\/"},{"id":79838,"section_number":"56-577","catch_line":"Schedule for transition to retail competition; Commission authority; exemptions; pilot programs","order_by":null,"url":"\/56-577\/"},{"id":77551,"section_number":"56-580","catch_line":"Transmission and distribution of electric energy","order_by":null,"url":"\/56-580\/"},{"id":76060,"section_number":"56-594","catch_line":"Net energy metering provisions","order_by":null,"url":"\/56-594\/"}],"permalink":{"id":250799,"object_type":"law","relational_id":66346,"identifier":"56-594.02","token":"56\/23\/56-594.02","url":"\/56-594.02\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/56-594.02\/","token":"56\/23\/56-594.02","dublin_core":{"Title":"Solar-powered or wind-powered electricity generation; power purchase agreements; pilot programs","Type":"Text","Format":"text\/html","Identifier":"\u00a7 56-594.02","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> The Commission<\/span> shall conduct pilot programs under which a person<\/span> that owns or operates a solar-powered or wind-powered electricity generation facility located on premises owned or leased by an eligible customer-generator<\/span>, as defined in \u00a7 56-594<\/a>, shall be permitted to sell the electricity generated from such facility exclusively to such eligible customer-generator<\/span> under a power purchase agreement used to provide third party<\/span> financing of the costs of such a renewable generation facility (third party<\/span> power purchase agreement), subject to the following terms, conditions, and restrictions: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Notwithstanding subsection G of § 56-580<\/a> or any other provision of law<\/span>, a pilot program shall be conducted within the certificated service territory of each investor-owned electric utility<\/span> (“Pilot Utility”); <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Except as provided in this subdivision, both jurisdictional and nonjurisdictional customers may participate in such pilot programs on a first-come, first-serve basis. The aggregated capacity of all generation facilities that are subject to such third party<\/span> power purchase agreements at any time during the pilot program shall not exceed 500 megawatts for Virginia jurisdictional customers and 500 megawatts for Virginia nonjurisdictional customers. Such limitation on the aggregated capacity of such facilities shall constitute a portion of the existing limit of six percent of each Pilot Utility’s adjusted Virginia peak-load forecast for the previous year that is available to eligible customer-generators<\/span> pursuant to subsection E of § 56-594<\/a>. Notwithstanding any provision of this section that incorporates provisions of § 56-594<\/a>, the seller and the customer shall elect either to (i) enter into their third party<\/span> power purchase agreement subject to the conditions and provisions of the Pilot Utility’s net energy metering program under § 56-594<\/a> or (ii) provide that electricity generated from the generation facilities subject to the third party<\/span> power purchase agreement will not be net metered under § 56-594<\/a>, provided that an election not to net meter under § 56-594<\/a> shall not exempt the third party<\/span> power purchase agreement and the parties thereto from the requirements of this section that incorporate provisions of § 56-594<\/a>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> A solar-powered or wind-powered generation facility with a capacity of no less than 50 kilowatts and no more than three megawatts shall be eligible for a third party<\/span> power purchase agreement under a pilot program; however, if the customer under such agreement is a low-income utility customer<\/span>, as defined in § 56-576<\/a>, or is an entity with tax-exempt status in accordance with § 501(c) of the Internal Revenue Code of 1954, as amended, then such facility is eligible for the pilot program even if it does not meet the 50 kilowatts minimum size requirement. The maximum generation capacity of three megawatts shall not affect the limits on the capacity of electrical generating capacities of 25 kilowatts for residential customers and three megawatts for nonresidential customers set forth in subsection B of § 56-594<\/a>, which limitations shall continue to apply to net energy metering generation facilities regardless of whether they are the subject of a third party<\/span> power purchase agreement under the pilot program; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> A generation facility that is the subject of a third party<\/span> power purchase agreement under the pilot program shall serve only one customer, and a third party<\/span> power purchase agreement shall not serve multiple customers; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> The customer under a third party<\/span> power purchase agreement under the pilot program shall be subject to the interconnection and other requirements imposed on eligible customer-generators<\/span> pursuant to subsection C of § 56-594<\/a>, including the requirement that the customer bear the reasonable costs, as determined by the Commission<\/span>, of the items described in clauses (a) and (b) of such subsection; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> A third party<\/span> power purchase agreement under the pilot program shall not be valid unless it conforms in all respects to the requirements of the pilot program conducted under the provisions of this section and unless the Commission<\/span> and the Pilot Utility are provided written notice of the parties’ intent<\/span> to enter into a third party<\/span> power purchase agreement not less than 30 days prior to the agreement’s proposed effective date; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> An affiliate<\/span> of the Pilot Utility shall be permitted to offer and enter into third party<\/span> power purchase arrangements on the same basis as may any other person<\/span> that satisfies the requirements of being a seller under a third party<\/span> power purchase agreement under the pilot program. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The Commission<\/span> shall review the pilot program established pursuant to subsection A in 2015 and every two years thereafter during the pilot program. In its review, the Commission<\/span> shall determine whether the limitations in subdivisions A 2 and 3 should be expanded, reduced, or continued. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Any third party<\/span> power purchase agreement that is not entered into pursuant to the pilot program established pursuant to subsection A is prohibited in the Pilot Utility’s service territory, unless such third party<\/span> power purchase agreement is entered into between a licensed supplier<\/span> and a retail customer<\/span> pursuant to § 56-577<\/a> where such supplier<\/span> is responsible for serving 100 percent of the load requirements for each retail customer<\/span> account it serves. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> If the Commission<\/span> approves a tariff proposed for electric power provided 100 percent from renewable energy<\/span> that serves 100 percent of the load requirements for each retail customer<\/span> account it serves under such tariff, hereafter referred to as a “green tariff,” such a green tariff shall not be available to any party<\/span> to a third party<\/span> power purchase agreement for the account being served by such power purchase agreement, and such an agreement shall remain in effect notwithstanding the approval of the green tariff. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> Nothing in this section shall be construed as (i) rendering any person<\/span>, by virtue of its selling electric power to an eligible customer-generator<\/span> under a third party<\/span> power purchase agreement entered into pursuant to the pilot program established under this section, a public utility or a competitive service provider, (ii) imposing a requirement that such a person<\/span> meet 100 percent of the load requirements for each retail customer<\/span> account it serves, or (iii) affecting third party<\/span> power purchase agreements in effect prior to July 1, 2013. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> Nothing in this section shall abridge any rights of either party<\/span> to an agreement between a Pilot Utility and a group purchasing organization acting on behalf of Virginia local governments regarding the purchase of electric service. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> The Commission<\/span> shall, by December 1, 2013, establish guidelines concerning (i) information to be provided in notices required under subdivision A 6 and (ii) procedures for aggregating and posting to the Commission<\/span>’s web site information derived from the aforesaid notices, including total capacity utilized by pilot projects for which notice has been received and capacity remaining available for future pilot projects. In addition, the Commission<\/span> may adopt such rules or establish such guidelines as may be necessary for its general administration of the pilot program established under this section. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nSOLAR-POWERED OR WIND-POWERED ELECTRICITY GENERATION; POWER PURCHASE AGREEMENTS;\nPILOT PROGRAMS (\u00a7 56-594.02)\n\nA. The Commission shall conduct pilot programs under which a person that owns or\noperates a solar-powered or wind-powered electricity generation facility located\non premises owned or leased by an eligible customer-generator, as defined in \u00a7\n56-594, shall be permitted to sell the electricity generated from such facility\nexclusively to such eligible customer-generator under a power purchase agreement\nused to provide third party financing of the costs of such a renewable\ngeneration facility (third party power purchase agreement), subject to the\nfollowing terms, conditions, and restrictions:\n\n 1. Notwithstanding subsection G of § 56-580 or any other provision of\n law, a pilot program shall be conducted within the certificated service\n territory of each investor-owned electric utility (“Pilot\n Utility”);\n\n 2. Except as provided in this subdivision, both jurisdictional and\n nonjurisdictional customers may participate in such pilot programs on a\n first-come, first-serve basis. The aggregated capacity of all generation\n facilities that are subject to such third party power purchase agreements at\n any time during the pilot program shall not exceed 500 megawatts for Virginia\n jurisdictional customers and 500 megawatts for Virginia nonjurisdictional\n customers. Such limitation on the aggregated capacity of such facilities shall\n constitute a portion of the existing limit of six percent of each Pilot\n Utility’s adjusted Virginia peak-load forecast for the previous year\n that is available to eligible customer-generators pursuant to subsection E of\n § 56-594. Notwithstanding any provision of this section that incorporates\n provisions of § 56-594, the seller and the customer shall elect either to\n (i) enter into their third party power purchase agreement subject to the\n conditions and provisions of the Pilot Utility’s net energy metering\n program under § 56-594 or (ii) provide that electricity generated from\n the generation facilities subject to the third party power purchase agreement\n will not be net metered under § 56-594, provided that an election not to\n net meter under § 56-594 shall not exempt the third party power purchase\n agreement and the parties thereto from the requirements of this section that\n incorporate provisions of § 56-594;\n\n 3. A solar-powered or wind-powered generation facility with a capacity of no\n less than 50 kilowatts and no more than three megawatts shall be eligible for\n a third party power purchase agreement under a pilot program; however, if the\n customer under such agreement is a low-income utility customer, as defined in\n § 56-576, or is an entity with tax-exempt status in accordance with\n § 501(c) of the Internal Revenue Code of 1954, as amended, then such\n facility is eligible for the pilot program even if it does not meet the 50\n kilowatts minimum size requirement. The maximum generation capacity of three\n megawatts shall not affect the limits on the capacity of electrical generating\n capacities of 25 kilowatts for residential customers and three megawatts for\n nonresidential customers set forth in subsection B of § 56-594, which\n limitations shall continue to apply to net energy metering generation\n facilities regardless of whether they are the subject of a third party power\n purchase agreement under the pilot program;\n\n 4. A generation facility that is the subject of a third party power purchase\n agreement under the pilot program shall serve only one customer, and a third\n party power purchase agreement shall not serve multiple customers;\n\n 5. The customer under a third party power purchase agreement under the pilot\n program shall be subject to the interconnection and other requirements imposed\n on eligible customer-generators pursuant to subsection C of § 56-594,\n including the requirement that the customer bear the reasonable costs, as\n determined by the Commission, of the items described in clauses (a) and (b) of\n such subsection;\n\n 6. A third party power purchase agreement under the pilot program shall not be\n valid unless it conforms in all respects to the requirements of the pilot\n program conducted under the provisions of this section and unless the\n Commission and the Pilot Utility are provided written notice of the\n parties’ intent to enter into a third party power purchase agreement not\n less than 30 days prior to the agreement’s proposed effective date; and\n\n 7. An affiliate of the Pilot Utility shall be permitted to offer and enter\n into third party power purchase arrangements on the same basis as may any\n other person that satisfies the requirements of being a seller under a third\n party power purchase agreement under the pilot program.\n\nB. The Commission shall review the pilot program established pursuant to\nsubsection A in 2015 and every two years thereafter during the pilot program. In\nits review, the Commission shall determine whether the limitations in\nsubdivisions A 2 and 3 should be expanded, reduced, or continued.\n\nC. Any third party power purchase agreement that is not entered into pursuant to\nthe pilot program established pursuant to subsection A is prohibited in the\nPilot Utility’s service territory, unless such third party power purchase\nagreement is entered into between a licensed supplier and a retail customer\npursuant to § 56-577 where such supplier is responsible for serving 100\npercent of the load requirements for each retail customer account it serves.\n\nD. If the Commission approves a tariff proposed for electric power provided 100\npercent from renewable energy that serves 100 percent of the load requirements\nfor each retail customer account it serves under such tariff, hereafter referred\nto as a “green tariff,” such a green tariff shall not be available\nto any party to a third party power purchase agreement for the account being\nserved by such power purchase agreement, and such an agreement shall remain in\neffect notwithstanding the approval of the green tariff.\n\nE. Nothing in this section shall be construed as (i) rendering any person, by\nvirtue of its selling electric power to an eligible customer-generator under a\nthird party power purchase agreement entered into pursuant to the pilot program\nestablished under this section, a public utility or a competitive service\nprovider, (ii) imposing a requirement that such a person meet 100 percent of the\nload requirements for each retail customer account it serves, or (iii) affecting\nthird party power purchase agreements in effect prior to July 1, 2013.\n\nF. Nothing in this section shall abridge any rights of either party to an\nagreement between a Pilot Utility and a group purchasing organization acting on\nbehalf of Virginia local governments regarding the purchase of electric service.\n\nG. The Commission shall, by December 1, 2013, establish guidelines concerning\n(i) information to be provided in notices required under subdivision A 6 and\n(ii) procedures for aggregating and posting to the Commission’s web site\ninformation derived from the aforesaid notices, including total capacity\nutilized by pilot projects for which notice has been received and capacity\nremaining available for future pilot projects. In addition, the Commission may\nadopt such rules or establish such guidelines as may be necessary for its\ngeneral administration of the pilot program established under this section.\n\nHISTORY: 2013, cc. 358, 382; 2017, c. 803; 2020, cc. 1187, 1188, 1189, 1193,\n1194, 1239; 2021, Sp. Sess. I, cc. 361, 362; 2024, cc. 783, 827.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}