Pursuant to Senate Bill 660, Virginia, Maryland, and Delaware Association of Electric Cooperatives (VMDAEC or the “Association") and the Coalition for Community Solar Access (CCSA or the “Coalition") jointly convened a stakeholder process to evaluate shared solar programs for electric cooperatives. As mandated by the Act, the stakeholder process included representatives from electric distribution Cooperatives, Old Dominion Electric Cooperative (ODEC), the Department of Energy, low-income community solar advocates, consumer protection advocates, solar advocacy organizations, environmental advocacy organizations, the Chesapeake Solar and Storage Association and other solar industry and shared solar stakeholders, agricultural associations, and staff of the Commission.

VMDAEC and CCSA convened eighteen meetings pursuant to Senate Bill 660. Eight meetings were preparation and planning between VMDAEC and CCSA which included representatives from distribution Cooperatives(*1), including technical experts, policy experts, and experts in billing, administration, and information technology; four meetings were educational meetings between VMDAEC, distribution Cooperatives, ODEC, and CCSA; two meetings were broader stakeholder meetings between all parties enumerated in Senate Bill 660; and two public input listening sessions open to the public. All convened meetings permitted remote or electronic participation. Feedback was requested following the broader stakeholder sessions, and some feedback was received, which will be summarized in this Report. In addition, following the release of this Report in its draft form, VMDAEC and CCSA also held two listening sessions to receive further public and stakeholder feedback.

The stakeholder group received multiple educational presentations throughout the process. CCSA presented to stakeholders the foundations of shared solar, the finer economics of shared solar, and the opportunities created by the federal Inflation Reduction Act for shared solar. VMDAEC presented to stakeholders on the not-for-profit business model of the Cooperatives, describing also the unique regulatory structure governing Cooperatives in Virginia. ODEC presented to stakeholders on Virginia’s existing community solar efforts and ODEC’s current community solar projects. ODEC also mentioned that, for the distribution Cooperatives that were its Members, the ability would be provided to create a shared solar program using solar installations that were anticipated as part of its distributed solar initiative, which aims to create smaller-scale solar installations behind ODEC wholesale delivery points, where such installations can do the most good to not only provide energy benefits, but also demand management and other benefits to the Cooperatives. Several Cooperatives are considering this option.

Stakeholders raised a multitude of concerns regarding the implementation of shared solar within the cooperative business model. The most prominent stakeholder concern centered around the incompatibility of the standard, for-profit shared solar model with a not-for-profit cooperative model where costs are shared amongst all ratepayers, who are also the owners of the utilities. With most Cooperatives having overwhelmingly residential ratepayers; therefore, the rate and bill impacts of shared solar programs must be carefully and thoroughly considered before any such program is implemented. Stakeholder concerns specifically included: (1) the potential subsidization of shared solar programs by non-participating members, (2) the legality of advertising solar energy if the developer is monetizing the renewable energy credits (RECs), which would create a situation where non-solar energy or undifferentiated electrons would be the only product purchased by a cooperative, (3) a history of misleading marketing tactics employed by some solar developers, including relatively recently(*2), (4) the implications for shared solar in light of any changes to Virginia’s retail access laws, and (5) the nature of the shared solar product as an energy product versus an investment product. Stakeholders who advocated in favor of off-site localized solar focused on: (1) the potential cost savings for subscribers, (2) the accessibility of solar to low-income individuals, and (3) the emerging demand for localized solar. The stakeholder process also uncovered that the benefits of shared solar projects are highly localized, and that a single shared solar project’s value proposition may change drastically depending on where it is located, the physical geography of the site, the distribution system to which it is interconnected, the member-consumer load on the specific circuit where it is located, and its distance from and interaction with, the relevant local wholesale delivery point.

While concerns were raised, the stakeholder process recognized the benefits of off-site localized solar and cooperatives will continue to work with CCSA and the solar industry to pursue these benefits. Shared solar provides benefits and engagement not only to subscribers but also to the utility system as a whole. All stakeholders, including VMDAEC and CCSA, agreed enabling legislation is not necessary to achieve the goals and benefits of off-site localized solar at this time. These benefits may be pursued in individual cooperative territories under existing law or by expanding upon or amending existing community solar programs in cooperative service territories. VMDAEC, CCSA, and other stakeholders all agreed individual cooperative boards should retain the decision-making authority and flexibility to allow and design a shared solar program in their respective territories.

Throughout the process, all stakeholders recognized various issues and challenges of implementing a standard, for-profit shared solar project in a state-regulated not-for-profit cooperative model. As a result, CCSA and VMDAEC agreed that the best course of action would be to continue working together to address the various issues and challenges in implementing shared solar programs in cooperative service territories. Additionally, CCSA and solar developers were and are encouraged to engage with ODEC to pursue opportunities under existing or future community and shared solar programs. Virginia’s Electric Cooperatives will remain open to other opportunities to bring the benefits of off-site localized solar to all of their members.

Perhaps most importantly, CCSA and VMDAEC resolved to continue their discussions and meeting together beyond the completion of this Report.
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(*1) VMDAEC expresses its gratitude to all of the electric distribution Cooperatives that participated in this process and contributed to the drafting of the Report. In particular, Delaware Electric Cooperative and Choptank Electric Cooperative, while being members of VMDAEC, contributed their expertise on these issues freely, even though they are located in Delaware and Maryland, respectively. 

(*2) See, e.g., Solar Company Shuts Down Suddenly, Leaving Virginia Residents Searching for Answers, WRIC News, available at https://www.wric.com/news/taking-action/solar-company-shuts-down-suddenly-leaving-virginiaresidents-searching-for-answers/ (last accessed Nov. 16, 2022).