Virginia

Virginia's net-metering law applies to residential generating systems up to 10 kilowatts (kW) in capacity and non-residential systems up to 500 kW in capacity. Net metering is available on a first-come, first-served basis until the rated generating capacity owned and operated by customer-generators reaches 1% of an electric distribution company's adjusted Virginia peak-load forecast for the previous year. Net metering is available to customers of investor-owned utilities and electric cooperatives, but not to customers of municipal utilities.  
 
Net metered energy is measured by a meter capable of gauging (but not necessarily displaying) power flow in both directions. Monthly net excess generation (NEG) is carried forward to the next month. At the end of each 12-month period, the customer has the option of carrying forward eligible excess NEG to the next net metering 12-month period or selling the NEG to the utility. The amount of credit to be carried forward to a subsequent net metering period may not exceed the amount of energy purchased during the previous annual period.* In the case of selling the NEG to the utility, the customer must submit a written request to establish a power purchase agreement with the utility prior to the beginning of the net metering period. The investor-owned utility must pay avoided cost.  
 
Systems must comply with the National Electrical Code Article 690, Institute of Electrical and Electronic Engineers (IEEE) Standard 1547 (July 2003), and Underwriters Laboratories (UL) standards. Utilities may require (and usually do require) an external, lockable disconnect switch at their expense.  
 
Recently, in April 2009, the Governor signed legislation (HB 2155) making changes to net metering in Virginia. System size caps for net metering were not changed, but HB 2155 allows utilities to approve a higher capacity limit at their discretion. The bill also permits customers that are served on time-of-use tariffs to participate in net metering. Finally, the bill addresses ownership of renewable energy certificates. It specifies that the customer-generators own the RECs associated with their renewable electrical generating facility, and at the time that a customer enters into a power purchase agreement with the utility, the customer has a one-time option to sell RECs to the utility. This provision does not preclude the customer and utility from voluntarily entering into an agreement for the sale and purchase of excess electricity or RECs at any other time. The SCC must issue regulations implementing HB 2155.  
 
* For example, if a customer-generator bought 1,500 kilowatt-hours (kWh) from a utility during the first 11 months of the annual period, and then generated 2,000 kWh of excess electricity in the 12th month, the customer could carry forward 1,500 kWh to the following month, and the remaining 500 kWh would be granted to the utility.