Utility-Scale Solar Projects in Virginia

Virginia has emerged as one of the most active utility-scale solar markets in the southeastern United States, driven by statutory mandates, corporate renewable energy procurement, and retiring coal generation capacity. This page covers the definition, mechanics, regulatory structure, classification, and permitting framework for utility-scale solar facilities in Virginia — projects typically exceeding 5 megawatts (MW) in nameplate capacity that deliver power directly to the electric grid rather than to a single on-site consumer. Understanding these projects is essential for landowners, local governments, and policy analysts tracking the state's energy transition.

• Definition and Scope
• Core Mechanics or Structure
• Causal Relationships or Drivers
• Classification Boundaries
• Tradeoffs and Tensions
• Common Misconceptions
• Checklist or Steps
• Reference Table or Matrix

Definition and Scope

Utility-scale solar refers to photovoltaic (PV) or concentrating solar power (CSP) installations whose primary purpose is wholesale electricity generation delivered to a transmission or distribution grid. In Virginia, the threshold most commonly used by regulators and the Virginia Department of Energy (VDOE) is a nameplate capacity of 5 MW AC or greater, though Dominion Energy Virginia and Appalachian Power Company (APCo) apply their own interconnection thresholds that begin distinguishing "large generator" applications at 2 MW.

These projects differ structurally from rooftop or small commercial systems. They occupy dedicated land parcels — Virginia's utility-scale solar installations have been sited on tracts ranging from roughly 400 acres to more than 6,000 acres — and they require interconnection agreements with a transmission operator (PJM Interconnection for most of Virginia) or with the local distribution utility.

Scope and coverage limitations: This page addresses utility-scale solar facilities located within the Commonwealth of Virginia and subject to Virginia regulatory jurisdiction. It does not address residential systems, community solar subscriptions (covered separately at community solar programs in Virginia), or projects sited in other states even if serving Virginia load. Federal energy law (FERC jurisdiction, PURPA) intersects with state regulation but is not the primary subject here. Projects under 5 MW may be subject to different permitting tracks and are not the focus of this reference.

For a broader conceptual foundation of how Virginia solar energy systems operate at all scales, see the Virginia solar energy systems conceptual overview.

Core Mechanics or Structure

A utility-scale solar facility in Virginia consists of five principal components:

1. PV array field — rows of ground-mounted solar panels, typically single-axis tracking systems that follow the sun's azimuth, increasing energy yield by 15–25% compared to fixed-tilt arrays (U.S. Department of Energy, Solar Energy Technologies Office).
2. Inverter stations — string or central inverters convert DC output from panels to AC power at distribution voltage, then step up through a project substation transformer to transmission voltage.
3. Collection system — underground or overhead medium-voltage cabling (typically 34.5 kV) aggregates output from inverter clusters to the project substation.
4. Interconnection substation — steps voltage to match the utility's transmission line (115 kV, 230 kV, or 500 kV in PJM Virginia zones).
5. SCADA and metering — supervisory control and data acquisition systems provide real-time generation monitoring and enable grid operator dispatch commands; revenue-grade metering is required by PJM's metering standards.

Battery energy storage is increasingly co-located with utility-scale PV. Virginia's Virginia Clean Economy Act (VCEA) — enacted in 2020 — includes energy storage targets that incentivize paired storage-solar projects.

Most Virginia utility-scale projects operate as merchant generators or under power purchase agreements (PPAs) with utilities obligated under VCEA renewable portfolio standard (RPS) requirements. Dominion Energy Virginia's integrated resource plans have included procurement of thousands of MW of solar through competitive PPA solicitations.

Causal Relationships or Drivers

Three reinforcing drivers govern the growth of utility-scale solar in Virginia:

Statutory mandates. The VCEA (Va. Code Ann. § 56-585.5) requires Dominion Energy Virginia to achieve 100% renewable energy by 2045 and Appalachian Power Company by 2050. Dominion is required to build or procure 16,100 MW of solar and onshore wind by 2035 under the Act's schedule. This statutory obligation creates a mandatory demand floor for new utility-scale solar capacity.

Declining levelized cost of energy (LCOE). The U.S. Energy Information Administration (EIA) tracks utility-scale solar LCOE; figures published in the EIA's 2023 Annual Energy Outlook show utility solar among the lowest-cost new generation resources in most U.S. regions, including the Mid-Atlantic.

Corporate renewable procurement. Virginia hosts the largest concentration of data centers in the world (Northern Virginia Data Center Alley), and technology companies have signed long-term PPAs with utility-scale solar projects to meet corporate sustainability commitments. This private demand supplements utility procurement, supporting project finance.

Retiring fossil generation. As coal and natural gas plants retire under state air quality regulations and economic pressure, utility-scale solar fills capacity gaps in Virginia's generation portfolio. The State Air Pollution Control Board administers Virginia's implementation of Clean Air Act requirements that accelerate fossil retirements.

For the complete regulatory framework governing these drivers, see regulatory context for Virginia solar energy systems.

Classification Boundaries

Virginia utility-scale solar projects are classified along three primary axes:

By ownership model:
- Utility-owned — constructed and owned by Dominion Energy Virginia or APCo, regulated through Virginia State Corporation Commission (SCC) rate cases.
- Independent power producer (IPP) — third-party developer sells power via PPA to a utility or corporate offtaker; the developer owns the facility.
- Customer-sited large commercial — projects exceeding 1 MW but serving a large single customer behind-the-meter are classified separately and are not utility-scale under PJM's definitions.

By interconnection queue:
- Transmission-level (bulk electric system) — projects interconnecting at 115 kV or above enter PJM's generation interconnection process governed by FERC Order No. 2023 and PJM's Open Access Transmission Tariff.
- Distribution-level large generator — projects interconnecting below transmission voltage use Dominion's or APCo's large generator interconnection procedures, which reference FERC Order 845.

By land use designation:
- Greenfield agricultural — sited on working or fallow farmland; subject to Virginia's local zoning ordinances and sometimes Uniform Standards under Va. Code § 15.2-2232.
- Brownfield/industrial redevelopment — sited on previously developed land; may require environmental remediation review.
- Forest conversion — triggers additional review under Virginia Department of Forestry guidelines and may face local opposition.

The boundary between community solar (≤150% of subscriber load, per Virginia SCC rules) and utility-scale projects is statutory. Projects exceeding the community solar capacity threshold by definition operate as utility-scale generators.

See also agricultural solar installations in Virginia for classification nuances specific to agrivoltaic and dual-use farmland projects.

Tradeoffs and Tensions

Land use vs. energy production. Virginia's most productive solar resource regions overlap with its most productive agricultural counties (Southside and the Piedmont). Local governments face pressure from farming constituencies opposing large-scale land conversion. A 100 MW solar project typically requires 600–800 acres of land, displacing agricultural uses for 25–35 year project lifetimes.

Local tax revenue vs. state RPS compliance. Utility-scale solar projects pay local real property taxes and machinery and tools taxes, but at rates negotiated through revenue-sharing agreements (often $1,400–$2,000 per MW annually, per Virginia Association of Counties data). Some localities argue these rates undercompensate for infrastructure impacts; others compete to attract projects. Virginia's property tax exemption for solar framework creates additional complexity at the local level.

Grid integration costs. Large solar additions require transmission upgrades whose costs are allocated through PJM's cost allocation methodology. Upgrade costs can add $20–$80 per MWh to a project's effective interconnection cost depending on queue position and grid conditions, potentially affecting project viability.

Environmental permitting tensions. Utility-scale projects must obtain Virginia DEQ permits for stormwater (Virginia Stormwater Management Program, 9 VAC 25-880) and potentially for impacts to wetlands or streams. These reviews can add 12–24 months to project timelines. Projects in sensitive viewsheds or near historic resources trigger additional review (see solar energy and historic properties in Virginia).

Common Misconceptions

"Utility-scale solar projects require only state approval."
False. Utility-scale projects require local zoning approval (special use permit or conditional use permit in most Virginia localities), state permits from Virginia DEQ, PJM or utility interconnection agreements, and — if transmission modifications are involved — FERC filings. No single authority grants blanket approval.

"Solar panels reduce agricultural land value permanently."
Incorrect as a universal claim. Research from the American Farmland Trust documents cases where landowners receive lease payments of $500–$1,500 per acre per year during project operation, exceeding row-crop revenue in low-productivity soils. Land is generally restored to agricultural condition after decommissioning, subject to bond requirements.

"Utility-scale projects can be built anywhere there is sun."
Grid interconnection capacity, not solar irradiance, is the binding constraint for most Virginia projects. PJM's interconnection queue in the Mid-Atlantic region had more than 250 GW of queued generation as of the 2023 queue reform implementation (FERC Order 2023), with interconnection study timelines of 3–5 years for many projects.

"All utility-scale solar in Virginia is regulated by Dominion Energy."
Dominion Energy Virginia serves approximately 2.7 million customers in the central and northern portions of the state, but APCo serves southwestern Virginia, and a set of smaller electric cooperatives serve rural areas under different rate structures and interconnection rules.

Checklist or Steps

The following represents the documented phases of a utility-scale solar project development process in Virginia. This is a reference sequence, not professional advice.

Phase 1 — Site Control and Feasibility
- [ ] Execute option or lease agreement with landowner for target parcel
- [ ] Obtain preliminary title search and confirm no encumbrances blocking solar development
- [ ] Conduct preliminary solar resource assessment using NREL's PVWatts Calculator
- [ ] Complete Phase I Environmental Site Assessment

Phase 2 — Interconnection Application
- [ ] Submit PJM or utility large generator interconnection application with required deposit
- [ ] Receive Feasibility Study, System Impact Study, and Facilities Study results
- [ ] Execute Interconnection Agreement and post security deposit for network upgrades

Phase 3 — Local Land Use Approvals
- [ ] File special use permit application with the relevant county or city
- [ ] Submit required traffic impact study, visual impact analysis, and decommissioning plan
- [ ] Attend public hearings before Planning Commission and Board of Supervisors
- [ ] Negotiate and execute revenue-sharing agreement under Va. Code § 58.1-3660

Phase 4 — State and Federal Permits
- [ ] Apply for Virginia DEQ land disturbance permit and stormwater permit (9 VAC 25-880)
- [ ] File with Army Corps of Engineers if wetland or waterway impacts are present (Section 404, Clean Water Act)
- [ ] Coordinate with Virginia Department of Historic Resources for cultural resources survey

Phase 5 — Construction and Commissioning
- [ ] Execute EPC (engineering, procurement, construction) contract
- [ ] Obtain building permit from local jurisdiction for substation and electrical infrastructure
- [ ] Complete PJM commissioning tests and receive commercial operation date (COD) certification
- [ ] Activate revenue-grade metering and SCADA telemetry per PJM Manual 14

For broader context on how these steps fit into the Virginia solar energy system framework, see the Virginia Solar Authority home.

Reference Table or Matrix

Utility-Scale Solar Project Parameters in Virginia

References

• Virginia Clean Economy Act — Va. Code Ann. § 56-585.5
• Virginia Department of Energy (VDOE)
• Virginia State Corporation Commission (SCC) — Renewable Energy
• Virginia Department of Environmental Quality (DEQ)
• Virginia Stormwater Management Program — 9 VAC 25-880
• PJM Interconnection — Manual 14 (Generator Interconnection)
• [FERC Order No. 2023 — Interconnection Queue Reform](https://www.ferc.gov/media/