Virginia set to enact a flurry of laws boosting cleaner, cheaper power

As power-hungry data centers and rising fuel prices put the squeeze on anxious voters last fall, Virginia Democrats secured a governing trifecta in Richmond partly on a promise to rein in energy costs.

Now, with a 60-day legislative session in the rearview mirror as of March 14, newly elected Gov. Abigail Spanberger and lawmakers in her party look primed to deliver on that pledge in spades.

Democrats, who grew their majority in the House of Delegates last November and have controlled the Senate since 2020, still remain divided on whether and how to continue the tax breaks that have helped make Virginia the data center capital of the world; a special session is scheduled next month to resolve the standoff.

But legislators already have plenty of bragging rights. A slew of bills that would maximize use of the state’s grid, pave the way for more batteries and solar arrays of all sizes, and take other steps to lower energy bills are poised to become law with Spanberger’s signature in the coming weeks.

“I think it was a good session for affordability,” said Sen. Schuyler VanValkenburg, a Democrat who represents a suburban Richmond district. ​“I think it was a good session for supply.”

In many ways, Virginia is the poster child for the energy upheaval underway across the country. It’s ground zero for the AI boom and the massive computer warehouses needed to support it, which threaten to spike demand at rates not seen in decades. PJM Interconnection, the regional grid manager, is plagued by backlogs and barely capable of bringing new generation sources online. The cost of fossil fuels, together with the ongoing addition and upkeep of poles and wires, is contributing to skyrocketing utility bills.

Amid these pressures, the state hasn’t wavered from a law mandating 100% carbon-free electricity by midcentury — even as the Trump administration has repeatedly threatened to derail Coastal Virginia Offshore Wind, the largest offshore wind farm in the country, and as congressional Republicans have slashed incentives and other inducements for solar and energy efficiency.

All that context was top of mind as lawmakers began their session this year, said Del. Phil Hernandez, a Democrat from Norfolk. ​“The assignment was crystal clear,” he said. ​“It really doesn’t matter where you are in Virginia: Electricity prices are salient. People are concerned, rightly, about the upward trajectory.”

From immense solar farms to balcony solar

Democrats’ strategy for tackling those worries was twofold, said VanValkenburg: to boost solar and storage, and to better utilize existing transmission and distribution infrastructure. ​“These are the two things we can do that are the cheapest, the fastest to get online, and the fastest way to save ratepayers money,” he said.

VanValkenburg has been on a long quest to speed the deployment of large-scale solar, promoting bills in 2024 and 2025 to ease local solar restrictions; they failed to become law. But the third time might be the charm. His latest attempt, Senate Bill 347, prohibits outright bans on large-scale solar while still leaving ultimate siting decisions up to local governments. It cleared both chambers last month and awaits Spanberger’s signature — though it’s among the few energy measures she hasn’t taken an explicit position on.

“I hope she signs it,” VanValkenburg said. ​“At the end of the day, this bill doesn’t mandate a single piece of solar. It just creates a better conversation, which I think will get us more solar.”

While that measure would pave the way for adding immense solar farms capable of powering thousands of homes, lawmakers also legalized a much smaller variant: balcony solar. Come January, Virginians should be able to buy and plug in the devices on their balcony or yard in the span of a few hours — avoiding permitting and utility red tape and shaving as much as 15% off their energy bills.

Lawmakers also sought to boost rooftop solar arrays this session, chiefly by increasing targets for these types of installations. The 2020 Virginia Clean Economy Act called on Dominion to get at least 1% of its electricity from renewable energy projects less than 1 megawatt in capacity. A bill sponsored by VanValkenburg, which now sits on the governor’s desk, would increase that number to 5%.