Solar Legislator Score: **
STATE LEGISLATION
State Bill 1416 was enacted in April of 2007, and is referred to as the Voluntary Renewable Energy Portfolio Goal: a 12% conversion to clean energy sources by the year 2022, to be voluntarily achieved by investor-owned utilities. Applicable energy sources are solar thermal electric, photovoltaics, wind, biomass, hydroelectric, geothermal electric, energy from waste, anaerobic digestion, tidal energy, and wave energy; however, solar and wind power receive double credit toward the Renewables Portfolio Standard objectives. Illinois and Missouri are currently the only other two states that have initiated voluntary rather than mandatory compliance with RPS goals.
About the same time, Governor Timothy M. Kaine signed Executive Order 48 requiringall state agencies and institutions constructing or renovating state-owned facilities to meet stringent energy performance standards.
More recently, on September 12, 2007, Governor Kaine announced the Virginia Energy Plan, which “would reduce the rate of growth in energy use by 40 percent, reduce greenhouse gas emissions by 30 percent, and seeks to increase in-state energy production by 20 percent. The Plan also calls for expanded consumer energy education, and capitalizes on areas where Virginia has a strategic advantage for economic development and research and development.” Interestingly, there is no mention of solar energy in the news release (although the article devoted several paragraphs to the Commonwealth’s switch to fluorescent bulbs); more significantly, there are few solar references in the 180-page document provided by the Commonwealth of Virginia which describes the plan.
While it is clear that Virginia’s energy policies attempt to reduce consumption, improve energy efficiency, and utilize clean energy alternatives, it is equally clear that increasing the use of solar energy has not been high on the Commonwealth’s priority list. Virginia earns a solar legislation rating of “poor”.
STATE INCENTIVE PROGRAMS, UTILITY REBATES, UTILITY LOANS, and UTILITY INCENTIVES
Net Metering was implemented in Virginia in 2000 for commercial, residential, nonprofit, schools, local government, state government, and institutional sectors. Rules apply to solar thermal electric, photovoltaics, wind, biomass, hydroelectric, geothermal electric, municipal solid waste, tidal energy, and wave energy. Limits on size were increased in 2004 to the current 500 kW for non-residential and 10 kW for residential. Further changes in 2007 now allow for customers to negotiate payment from the utility company for net excess generation; otherwise monthly excess generation is carried forward as a credit against future billing.
Commercial, industrial, and residential sectors are eligible for a Local Option Property Tax Exemption for Solar, applying to passive solar space heat, solar water heat, solar space heat, solar thermal electric, and photovoltaics. Virginia allows any municipality to fully or partially exempt such installations from property taxes. Cities and counties currently offering an exemption include: Albemarle, Alexandria, Charlottesville, Chesterfield, Dinwiddie, Fairfax, Falls Church, Hampton, Hanover, Henrico, Isle of Wight, King and Queen, Loudoun, Lynchburg, Prince William, Pulaski, Richlands, Roanoke, Spotsylvania, Warren and Wise.
Wind and Photovoltaics are covered under provisions of the TVA - Green Power Switch Generation Partners Program for both commercial and residential installations, but only in the service areas of TVA and other power distributors participating in the Green Power Switch Generation Partners program. This is an incentive of $500 (residential only) plus $0.15/kWh (residential/small-commercial systems with a minimum output of 500 watts AC and a maximum of 50 kW) or $0.20/kWh (commercial with 50 kW maximum – or a higher negotiated system size) for 10 years.
In effect since 1996, the Solar Manufacturing Incentive Grant (SMIG) Program offers up to $4.5 million a year to qualifying new manufacturers of photovoltaic panels for a maximum of six years. The incentive is paid at a sliding rate of up to $0.75 per watt for panels sold in a calendar year, with a maximum of 6 MW. This program is administered jointly by the Virginia Department of Mines, Minerals and Energy, and the Virginia Economic Development Partnership.
The Arlington County - Green Building Incentive Program encourages developers to meet “green” building standards.
EXAMPLE RESIDENTIAL SOLAR INSTALLATION
With nearly 450,000 people, Virginia Beach is the largest city in Virginia and has been a popular vacation spot since the late 1800s. In addition to having “the longest pleasure beach in the world”, it enjoys an historical richness that adds to the appeal which draws 3 million visitors each year. In case you didn’t know, the original settlement was founded in 1607 and named Jamestown, becoming home to the first English settlers to set foot in the New World; and yes, that included the famous Captain John Smith. The city was incorporated as Virginia Beach in 1906.
Among the few things the intrepid colonial settlers DIDN’T have to worry about was the cost or source of electricity. Although today’s residents are favored with the fairly low rates charged by Dominion Virginia Power Company, on average their electrical consumptions is a relatively high 14,700 kWh/year. Both the cost and the source of electrical power are an issue which argues in favor of a solar installation.
Virginia’s solar rating is “good”. To reduce purchased electrical power by 50%, a typical photovoltaic installation in Virginia Beach would require a substantial 600 square feet of roof area. Projected cost for both equipment and installation is a mid-range estimate of $54,000, offset only by a $2,000 federal tax credit. Without rebates or other incentives from the state, its municipalities, or this utility provider, a residential user would have a net cost of $52,000. The homeowner gains the following, however:
Increase in Property Value: $8,280 to $15,147
Exempt from Property Tax: YES
25-year Utility Savings: $17,372 to $31,779
Greenhouse Gas (CO2) Saved:over 25-year system life 151.0 tons
CONSENSUS
The recently announced Virginia Energy Plan could be described as a defining of objectives more than a detailed action plan. The Governor and the State Legislators need to use the new energy plan to incorporate effective solar energy incentives that will give Virginia “a place in the sun” that goes beyond its sandy beaches.
http://www.solarpowerrocks.com/virginia/