Virginia: SCC suspends Dominion's costly solar requirements

Baine takes part in a panel discussion at a ChamberRVA event — The Business of Climate Summit — at the Science Museum of Virginia's Dewey Gottwald Center on March 23, 2023.

Dominion Energy must suspend requirements for equipment that can add millions of dollars to costs when businesses and public bodies install solar panels to cut their energy use, the State Corporation Commission ordered.

The company set out the requirements in December for commercial customers’ solar projects generating between 250 to 1,000 kilowatts, roughly enough electricity for 63 to 250 homes, when connecting with its system.

Those requirements include picking up costs for substation improvements, relay panel equipment and fiber cable connections that Dominion said are necessary for safety and for reliable delivery of electricity to its customers.

Dominion said the requirements were needed to maintain reliable and safe delivery of electricity. It said solar arrays between 250 and 1,000 kilowatts can have a big impact on the grid if they cause faults that aren’t addressed quickly.

An SCC hearing examiner found that Dominion needed SCC approval before implementing the new interconnection requirements.

The new requirements led Henrico County to suspend plans for a 686 kilowatt solar array at the James River Juvenile Detention Center, after Dominion estimated preliminary costs for a metered connection to its system would be $2.25 million, or possibly more.

“The project cannot absorb these costs, so it is on hold indefinitely,” Henrico’s energy manager Carrie Webster said, in an email submitted with a solar industry group’s petition asking the SCC to suspend the Dominion interconnection requirements.

Staunton-based Secure Solar Futures said Dominion said it would have to pay nearly $1 million for substation improvements, power line switches and fiber for a 995-kilowatt project.

This artist rendering provided by Dominion Energy shows the Dulles Solar and Storage project that is planned for around Dulles International Airport.

The cost of Prince William County’s plan for a 973-kilowatt solar array at its Freedom High School jumped by $1 million or more because of the Dominion requirements, Jennifer Rokasky, energy coordinator for the county’s schools, said in a memo attached to the SCC petition.

The relay panel can cost $250,000, and engineering and construction costs to install it can cost an additional $200,000 to $1.2 million, the Virginia Distributed Solar Alliance, a group of solar developers, told the SCC.

Fiber connections for communication between a solar array and a substation can cost $150,000 to $250,000 a mile. One solar developer said Dominion told it a 710-kilowatt project would have to cover $276,000 of upgrades at a substation.

In its order suspending the new requirements, the SCC said it “has neither disregarded, nor taken lightly, Dominion’s claims regarding safety and reliability,” but said the company should seek specific authority from its regulators before taking additional new measures.

The SCC also declined to order measures the solar group sought, including nullifying current contracts and refunding payments.

Employees of Sun Tribe install solar panels on top of Powhatan Middle School Wed., Nov. 13, 2019.

Dave Ress (804) 649-6948

[email protected]

Growth and Development Reporter

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