Energy

Electric utilities; virtual power plant program; electric cooperatives. Authorizes electric cooperatives to establish and implement a virtual power plant program. The bill defines a virtual power plant as an aggregation of distributed energy resources, enrolled either directly with an electric cooperative or indirectly through an aggregator, that are operated in coordination to provide one or more grid services. Under the bill, an electric cooperative may offer incentives to residential customers to purchase battery storage devices and is required to evaluate various methods to optimize demand. This bill is identical to SB 487.

Virginia Solar Energy and Battery Energy Storage Systems Grant Program. Establishes the Virginia Solar Energy and Battery Energy Storage Systems Grant Program (the Program), subject to appropriation by the General Assembly, for the purposes of (i) coordinating and supporting the development of solar energy and short duration battery energy storage industries and projects by public or private entities; (ii) evaluating and approving solar energy and short duration battery energy storage projects as qualified projects for the purposes of the Program; and (iii) determining which items and services are considered eligible project costs for a given qualified project, as defined in the bill. The bill provides requirements for what can be considered a qualified solar energy and short duration battery energy storage project based on whether the use of such project is for a residential, commercial and industrial, or utility-scale project. Finally, the bill directs the Department of Energy to monitor allocation of the grant awards and maintain a public dashboard displaying certain information on the solar energy and short duration battery energy storage installations.

Tax credit; solar energy equipment. Establishes a nonrefundable income tax credit for taxable years 2026 through 2030 for individuals who incur allowable expenses, as defined in the bill, for the purchase and installation of solar energy equipment, also defined in the bill. An individual who properly claims this credit shall be allowed a credit in the amount of 15 percent of the cost of such equipment and allowable expenses, up to $1,000. The aggregate amount of credits allowable under the provisions of the bill shall not exceed $5 million per taxable year.