Virginia Regulators Reject Appalachian Power Proposal to Change Net Metering

Homeowners in Appalachian Power territory may be hearing questions about net metering and whether the rules around rooftop solar are changing.

As of today, the answer is clear: they are not.

The Virginia State Corporation Commission has issued a final order rejecting Appalachian Power’s proposal to alter how customer-owned solar energy is credited. The decision preserves the existing net energy metering structure for residential and commercial customers.

For homeowners considering solar—or those who already have it—this ruling provides stability and clarity.

What Appalachian Power Requested

Appalachian Power asked the Commission for permission to revise its net metering program, arguing that customers who generate their own solar energy and export excess power to the grid are credited at a rate higher than the utility believes reflects the value of that energy.

Under the proposal, exported solar energy would no longer be credited using the existing retail netting framework. Instead, compensation would be shifted toward a lower, avoided-cost valuation for energy delivered to the grid.

In practical terms, this would have changed how solar production offsets a customer’s own electricity usage over time.

How Net Metering Works Today

Under the current structure, customer-owned solar systems operate on a 12-month net energy measurement period.

That means:

• Solar energy produced on site is used by the home first

• Excess energy exported to the grid is credited

• Those credits can be applied later—across hours, days, or months—within the same annual period
  
  

This annual netting structure is what allows seasonal production and seasonal usage to balance out over the course of a year.

The Commission’s Findings

After reviewing Appalachian Power’s proposal, the Commission determines that the existing net metering program does not create undue cost shifting to customers without solar.

In its ruling, the Commission recognizes that distributed solar provides a range of benefits that extend beyond simple energy delivery, including reductions in system losses and broader grid efficiencies. When those factors are considered together, the Commission finds that the current program remains reasonable for both participating customers and the broader ratepayer base.

As a result:

• The 12-month net metering structure remains intact

• Energy produced on site continues to offset a customer’s own usage at the retail rate

• No new standby charges or connection fees are imposed

• The existing participation cap remains unchanged
  
  

In short, the rules customers rely on today stay in place.

How Excess Energy Is Treated

The Commission does allow Appalachian Power to compensate annual excess generation—energy produced beyond a customer’s total yearly consumption—at an avoided-cost rate, provided that rate accounts for all relevant factors required under state law.

This treatment applies only in cases where a system produces more energy over the year than the customer uses and where a separate agreement is in place for that excess power. Most residential systems are designed to closely match annual usage, meaning this provision does not affect typical homeowners.

Why This Decision Matters

By affirming the existing structure, the Commission provides regulatory continuity for homeowners and businesses who are evaluating solar under Appalachian Power’s service territory.

The decision reinforces that:

• Solar system design assumptions remain valid

• Annual netting continues to function as expected

• Homeowners can plan around known billing rules
  
  

For many people, that predictability is just as important as the technology itself.

Putting This in Context

Utilities across the country periodically revisit net metering as energy systems evolve. Proposals do not always result in changes, and outcomes vary by region and regulator.

In this case, Virginia regulators determine that maintaining the current approach aligns with state law and reflects the aggregate costs and benefits of distributed energy resources.

The Takeaway

For Appalachian Power customers, net metering continues unchanged.

The Commission’s decision preserves the annual netting framework that allows solar production to offset household usage over time, providing clarity for homeowners who already have solar and those who are still evaluating it.

As always, understanding how utility policy actually works—rather than reacting to proposals alone—helps homeowners make informed, confident decisions.

VirginiaSolar.org exists to help Virginia homeowners understand how utilities, regulators, and solar policies work in practice—so decisions are made with clarity, not confusion.

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