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Virginia

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Oct 21, 2026

By the Virginia Solar Editorial Team

Home Batteries and Dominion's Virtual Power Plant: What Virginia Homeowners Should Know

Dominion will pay some battery owners to help the grid. Here's what's proposed, when enrollment may open, and how it ties to NEM 2.0.

Illustration of a two-story Virginia colonial home with rooftop solar panels and a home battery beside the garage, connected by power lines to a neighboring solar home and a small electrical substation.

Home Batteries and Dominion's Virtual Power Plant: What Virginia Homeowners Should Know

Dominion Energy's virtual power plant (VPP) pilot, approved by Virginia regulators on August 3, 2026, will pay customers who let a home battery, smart thermostat, or EV charger help the grid when demand peaks. Enrollment isn't open yet. Dominion expects to launch in early 2027, and the pilot's first phase must end by July 1, 2028. For most homeowners, VPP payments are a bonus, not a reason on their own to buy a battery.

The Short Version

The State Corporation Commission (SCC) approved Dominion's VPP pilot on August 3, 2026, in Case No. PUR-2025-00211.
Dominion proposed paying owners of existing home batteries $1,000 to enroll, then $294 a year. Final program terms haven't been published.
Enrollment isn't open. Dominion expects the pilot to launch in the first quarter of 2027.
If you net meter, your battery payments will be reduced by the net metering credits you already earn for power you export.
Adding a battery to existing solar under an application Dominion approves on or after May 1, 2027 moves you to NEM 2.0.
The 30% federal tax credit for home batteries isn't available for property placed in service after December 31, 2025.

What Is a Virtual Power Plant?

A virtual power plant is a network of devices people already own, coordinated by software so they act together like one power plant.

When demand spikes, say on a hot summer evening, a battery sends stored energy to the grid or a thermostat adjusts a few degrees. Participants get paid.

The pilot bundles several programs. For homeowners, the main ones are:

Residential Battery Storage Pilot: for customers who already have an approved battery, standalone or paired with solar.
Income- and Age-Qualifying Battery Pilot: a no-cost 13.5 kWh battery, valued at about $20,000, for qualifying customers who took part in Dominion's earlier income-qualified solar pilot.
Bring Your Own Device: approved third-party companies ("aggregators") can enroll customers' devices.
Managed EV charging and smart thermostat programs.

Why Virginia Is Doing This

The pilot comes from the Community Energy Act, passed in 2025 (Code of Virginia § 56-585.1:16). The law:

Required Dominion to file a VPP pilot of up to 450 megawatts by December 1, 2025
Required programs of at least 15 megawatts encouraging residential customers to buy battery storage
Requires Dominion to file for a program tariff by November 15, 2026
Requires the pilot's first phase to end by July 1, 2028, after which the SCC must start a proceeding to set up a permanent program

The SCC said 450 megawatts is a cap, not a target, and told Dominion to plan for its battery programs to reach 15 megawatts by July 1, 2028. Dominion estimates a permanent program in 2030 or later. Advanced Energy United, a clean energy business group, said the approved pilot doesn't properly compensate participants.

The backdrop is rising demand, covered in our post on rising electricity costs.

How the Battery Program Would Work

From Dominion's December 2025 filing (final terms could differ):

Payments: $1,000 at enrollment, then $294 a year, paid twice a year after each season.
Events: 20 to 60 in summer and 10 to 20 in winter, each up to 3 hours, with 24 hours' notice when possible.
Backup reserve: Dominion will keep your battery at a 20% minimum.
Control: Dominion says you can opt out of specific events.

One catch for solar owners: Virginia law (§ 56-594 L) only allows payment for a service net metering doesn't already cover, so the SCC accepted Dominion's method of subtracting your net metering credit from your battery payment.

Questions to Ask Before You Enroll

Is my battery model on Dominion's approved list?
Is a 20% reserve enough backup for my home during an event?
Does extra cycling affect my warranty? Dominion leaves that to battery makers and aggregators, so get it in writing.
If an installer or aggregator enrolls me, who gets paid, and how much?

The NEM 2.0 Detail for Battery Owners

Dominion's NEM 2.0 terms, accepted by the SCC in Case No. PUR-2025-00079, apply to net metering applications Dominion approves on or after May 1, 2027. Existing customers keep their current terms with one important exception: adding capacity to your system, including battery storage, moves you to NEM 2.0. So does buying a home that already has solar.

Under NEM 2.0:

Monthly carryover and the annual true-up stay in place
Leftover credits at the end of your annual period are paid at $0.05829 per kWh
A new $1.00 per month administrative charge applies

Adding a battery to existing solar? Ask your installer when Dominion would approve the application. Our post on how Virginia protected net metering covers the SCC's decision.

Is a Battery Worth It Just for the VPP?

For most homeowners, probably not on its own:

Net metering already credits and carries forward extra solar, which covers much of what a battery would do for your bill.
The IRS Residential Clean Energy Credit isn't available for batteries placed in service after December 31, 2025.
The payments are proposals, and the first phase ends in mid-2028. A permanent program's pay is unknown.

A battery makes the most sense when backup power matters to you: frequent outages, medical equipment, or working from home. Then VPP payments could be a nice bonus. Just don't let anyone count them as guaranteed savings.

Final Thoughts

Getting paid to help the grid is a promising idea. Right now, it's an approved pilot with proposed payments and no enrollment date.

If a battery quote leans on VPP payments, or you're adding storage to existing solar, slow down and get the details in writing. We're happy to take a look, free and with no sales pitch.

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