Going Solar With Appalachian Power? What Virginia Homeowners Should Know Before Signing

The Short Version

As of October 2026, new Appalachian Power (APCo) solar customers in Virginia are placed on a tariff called Rider N.M.S. II, which has applied to most customers who applied after November 27, 2025. Your solar still offsets your usage at the full retail rate, and credits are netted over a 12-month period. But any extra electricity left over at the end of that year is forfeited unless you've signed a separate purchase agreement with APCo, which pays $0.0566 per kWh for residential customers. Your system also can't be sized to produce more than 100% of your expected annual use.

Here's what that means if you're comparing solar offers in southwest or western Virginia.

How APCo Net Metering Works Today

APCo's current Virginia tariff (Tariff No. 28, effective November 27, 2025) says:

• Each month, you're billed only for your net energy: what you pulled from the grid minus what your system sent back.

• Extra energy in a month isn't paid out. It's carried forward as a credit against usage on later bills.

• Fixed charges still apply. Even in a month with zero net usage, you still pay the non-usage charges on your rate schedule.

• At the end of each 12-month period, any extra energy you still have is forfeited, unless you have a purchase agreement in place. With one, APCo pays the residential rate of $0.0566/kWh within 30 days after the period ends.

• Timing matters. You have to make the written request for that agreement before the 12-month period begins.

That year-end rate is far below what a kWh is worth when it offsets your own usage, so the best fit is a system sized to match what you use.

For background on how net metering works in general, see our guide to net metering in Virginia.

What the SCC Decided

These rules come from the State Corporation Commission's (SCC's) review of APCo's net metering program, which state law (Va. Code § 56-594) required. In its August 29, 2025 Final Order (Case No. PUR-2024-00161), the SCC:

• Kept the 12-month netting period. APCo had proposed changing how credits were netted, and the SCC declined.

• Approved the new Rider N.M.S. II for new customers, with year-end excess valued at APCo's avoided cost plus $0.0054/kWh for avoided renewable-energy compliance costs.

• Added no new fees or standby charges. The SCC said the current customer charge is enough "at this time," but noted it may need to be revisited as more customers go solar.

• Kept the 6% program cap.

Customers already on the original rider could stay on it. Customers who qualify as low-income can pick whichever of the two riders suits them better. We covered the decision when it came out in our September 2025 article. As of this writing, we haven't found a newer APCo net metering case pending at the SCC.

Size Limits and the Program Cap

• 100% of your usage. In APCo's territory, a system installed after July 1, 2020 can't be larger than 100% of your expected annual consumption, based on your previous 12 months of use.

• 25 kW for homes. State law caps residential net metering systems at 25 kilowatts.

• The 6% cap. Net metering is capped at 6% of APCo's adjusted Virginia peak-load forecast. Of that, 5% is open to everyone and 1% is reserved for low-income customers. The October 2026 Virginia Energy Plan puts APCo's current penetration at less than 1%, so the cap isn't close.

If a quote assumes you'll add an EV or heat pump later, ask how it was sized. APCo approves size based on your past usage. Our system sizing guide explains how sizing should work.

How APCo Differs From Dominion

Dominion's rules differ, so advice written for Dominion customers may not apply to you:

Both utilities keep annual netting and the 6% cap. For Dominion details, see how Virginia protected net metering for Dominion customers.

Questions to Ask Before You Sign

• Which rider will I be on? For most new customers it's N.M.S. II. Make sure the savings estimate uses APCo's rules, not Dominion's.

• What percent of my annual usage will this system produce? Ask to see the 12 months of usage it's based on.

• Does the estimate count on year-end payments? Forfeited extra energy is worth nothing, and paid extra energy earns $0.0566/kWh.

• Who files the interconnection paperwork? APCo requires approval before you turn the system on. For homes, the standard review window is 30 days.

• For leases: How does the monthly payment and any escalator compare with your actual APCo savings under these rules?

More questions are in our guide on what to ask before signing a solar agreement.

Final Thoughts

APCo customers still get full retail value for solar that offsets their own usage over the year. What changed is the extra: under N.M.S. II, energy beyond your annual use earns little or nothing. A well-sized system and a quote built on APCo's actual rules are what protect you.

Have an APCo solar quote and want a second opinion? We'll review it for free, with no pressure.

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Sources

SCC orders and filings

• Final Order, Case No. PUR-2024-00161 (Appalachian Power net metering), Virginia State Corporation Commission, August 29, 2025

• Final Order, Case No. PUR-2025-00079 (Dominion net metering), Virginia State Corporation Commission, April 30, 2026

• Staff letter accepting Dominion NEM 2.0 tariff filing, Case No. PUR-2025-00079, SCC Division of Public Utility Regulation, August 3, 2026

Appalachian Power

• Virginia S.C.C. Tariff No. 28 (Rider N.M.S. and Optional Rider N.M.S. II), Appalachian Power, net metering sheets effective November 27, 2025

• Installing Generating Equipment, Appalachian Power

Virginia law and policy

• Va. Code § 56-594, Net energy metering provisions, Virginia Law Library

• 20VAC5-315-30, Company notification, Virginia Administrative Code

• 2026 Virginia Energy Plan, Virginia Energy, October 2026