VA SB175

Increases the renewable energy requirement for small-scale solar, wind, or anaerobic digestion resources (one megawatt or less) from 1% to 4.5% of RPS requirements for 2026-2030 and 5% for 2031-2045 compliance years for Phase II Utilities.

Raises the minimum solar generation capacity required on previously developed project sites from 200 megawatts to 1,000 megawatts out of the 16,100 megawatts Phase II Utilities must procure by December 31, 2035.

Increases the third-party ownership requirement for small-scale solar projects (three megawatts or less) from 35% to 65%, meaning utilities must purchase more capacity from non-utility-owned facilities.

Delays the in-state REC requirement from the 2025 compliance year to 2027, when at least 75% of all RECs used by Phase II Utilities must come from resources located in Virginia.

Expands power purchase agreement provisions to allow eligible customer-generators to enter third-party agreements and sell electricity to the utility at avoided cost rates, with agreements lasting up to 25 years.