2020 Virginia Clean Economy Act
Virginia SRECs
On April 12, 2020, Governor Ralph Northam signed the Virginia Clean Economy Act (VCEA), establishing a mandatory Renewable Portfolio Standard (RPS) in Dominion and Appalachian Power Company (APCo) service territories. A primary component of the VCEA is that 1% of Dominion’s RPS compliance obligation must come from in-state distributed generation solar resources (DG) smaller than 1 MW in nameplate capacity (Solar homes or small solar systems). This requirement will represent approximately 90 MW in 2021 and increase to approximately 250 MW by 2030, thus supporting the development of about 160 MW of DG(Distributed solar purchased form small solar sites as in residential homes) solar over the next nine years. For not reaching these set standard, the utility pays a SACP or buys the certificate from a homeowner that has produced 1000kw of energy or 1 SREC.
The Solar Alternative Compliance Payment (SACP) is the penalty price that electricity suppliers or utility must pay per SREC if they fail to file the required number of SRECs by the end of each compliance period. The VA SACP is set at $75 in 2021 and increases by 1% annually thereafter.
Below are examples of homeowners that took advantage of these payments.
Was unsure about solar but now extremely happy with her system
These customers are getting paid just for producing the energy.
The energy the system produces eliminates your utility bill which the utility will buy any excess you might produce. That is a bill swap.
The Virginia Clean economy act created an extra incentive for homeowners to sell the rights to the production of each 1000kw or 1 SREC as seen in these examples.
In summery the monthly cost of the solar is paid for partly by this incentive.
Solar has many advantages, we are experts at knowing what you would qualify for.
Call us today to see how much we can save you from your current utility energy cost.