VA HB562

Authorizes Virginia electric cooperatives to establish virtual power plant programs starting January 1, 2027, without State Corporation Commission approval, requiring only board of directors approval and an informational filing

Defines virtual power plants as aggregations of distributed energy resources (up to 5 megawatts each) that are coordinated to provide grid services such as capacity, energy, or ancillary support

Requires cooperatives to evaluate federal funding opportunities and conduct competitive solicitations if offering incentives for residential battery storage purchases

Mandates a stakeholder process and program design that includes enrollment incentives, opt-out provisions for grid events, and increased incentives for customers in historically economically disadvantaged communities

Eligible technologies must not emit carbon dioxide and may include battery storage, smart thermostats, and managed electric vehicle charging systems, with pay-for-performance compensation mechanisms