Wrapping Up the 2025 Virginia Legislative Session: Energy Policy in a High-Stakes Year

The 2025 Virginia legislative session launched on January 8, with a rapid sprint toward crossover on February 4, and concluded on February 22. Over 45 days, lawmakers raced to pass critical legislation. With a high-stakes governor’s race and House elections looming in November, Advanced Energy United’s Virginia policy team advanced key energy policies while navigating a challenging landscape.

Shaping the Future of Solar Siting 

Solar legislation was off to a strong start when the first energy legislation of the year to successfully pass out of the Commission on Electric Utility Regulation (CEUR) was proposed legislation to refine the approval process for solar and battery storage projects. However, Governor Youngkin’s direct challenge to the Virginia Clean Economy Act (VCEA) along with references to the preservation of local authority in his 2025 state of the Commonwealth address set the stage for an intense fight. A growing rural-urban divide shaped debates, with the basic rights of local property owners to determine the best use of their land clashing with what opponents mischaracterized as an attack on local authority.  

A coalition of clean energy industry associations led by United along with environmental partners came together during the twilight hours of session to reach an agreement around solar siting. The broad group of stakeholders walked into the committee hearing with a solution that would have improved the status quo. However, these efforts were not enough to move the legislation forward. Targeted opposition and political obstacles impacted the ultimate vote. Despite this setback, United feels confident that our work with the coalition and members in the General Assembly has laid the foundation for a more fruitful siting conversation post-session and into next year. Legislative leaders have already expressed interest in continuing the work and are looking for United’s continued leadership in working with a broad range of stakeholders and interests. The status quo is unacceptable, as restrictive local ordinances and moratoriums have placed one-third of the state’s land off-limits for solar and storage projects, jeopardizing Virginia Clean Economy Act (VCEA) goals and economic growth.  With Virginia’s energy demand projected to grow by 5.5% annually, stable solar and storage development is critical. Siting reform will remain a priority for United in Virgina as we gear up for an eventful election season and a critical opportunity to further educate, inform and message around the need for practical reform. 

Passage of the CARE Package 

Despite a challenging political climate, the session yielded some major victories, some of which received bipartisan support. United played a pivotal role in advancing The Community Access to Renewable Energy (CARE) Act—a transformative package of bills designed to supercharge local clean energy production, reduce dependence on foreign fuels, and empower Virginians with greater control over their energy costs and security. These included: 

• The Distributed Generation Expansion Act (HB 1883/SB 1040), which unleashes Virginia’s solar potential by increasing solar project capacity from 1 MW to 3 MW and expanding the small renewable carve-out from 1% to 5% by 2028, passed the General Assembly with broad bipartisan support. It further unlocks underutilized spaces such as parking lots, landfills, and brownfields, tripling their renewable energy capacity from 200 MW to 600 MW. By eliminating the outdated 50 kW cap on power purchase agreement pilots, this bill removes barriers to clean energy access and strengthens local energy resilience.
  
  
• The Community Energy Act (HB 2346/SB 1100) sets a groundbreaking precedent by directing Dominion Energy to launch a 450 MW voluntary Virtual Power Plant pilot program. This program will aggregate solar, battery storage, smart devices, and electric vehicle charging technologies to manage peak demand efficiently while enhancing grid stability and lowering costs for consumers. 

Additional Legislative Wins 

Virginia also took major strides in clean energy policy beyond the CARE Package.

• Energy Storage Targets & Regulations (SB 1394/HB 2537) set ambitious goals for energy storage. The bill also directs the Department of Energy to develop model ordinances and explore financial incentives to expand long-duration energy storage, ensuring Virginia’s grid remains resilient and future-ready.  

• Integrated Resource Plan Reform (SB 1021/HB 2413) modernizes how Virginia plans for its energy future. By extending the planning horizon from 15 to 20 years and requiring utilities to consider cutting-edge grid-enhancing technologies before greenlighting new transmission projects, this bill ensures a smarter, more transparent energy planning process. Additionally, it mandates greater stakeholder access to modeling data, fostering accountability and informed decision-making. 

• A huge win for grid modernization, the Advanced Conductors for Grid Modernization Act (HB 1822), which requires utilities to incorporate advanced conductors in all new 230 kV+ transmission lines and replacements of 69 kV+ lines, received broad bipartisan support in both chambers. Starting in 2026, the State Corporation Commission (SCC) cannot approve any new high-voltage lines unless they comply. This bipartisan victory highlights the affordability, efficiency, and economic benefits of next-generation grid technologies. 

• The Electric Vehicle Rural Infrastructure Program (HB 1791) takes a bold step toward equitable EV adoption by establishing a fund covering 70% of non-utility costs for private developers installing EV chargers in eligible rural areas. This critical investment in rural electrification overcame four years of roadblocks to pass the Senate. 

Looking Ahead 

While cost pressures have created a more challenging environment for advancing new efforts, this legislative season showcased there is interest in focusing on solutions that provide customers with more options to reduce their energy bills. United’s team will continue to focus on expanding support on both sides of the aisle as we lean into the upcoming gubernatorial election season. We will work to elevate the build-it priorities while showcasing the importance of the VCEA to the state’s efforts in meeting growing load demand, attracting new investment and building a more robust advanced energy resource mix in the state.