Virginia’s 2025 Legislative Progress: Key Steps Toward a Cleaner, Smarter Future

Every General Assembly Session is an opportunity to improve the Commonwealth’s position as a climate leader, or pass policy that takes us back. 2025 wasn’t a perfect year – there was a lot left on the table – but it’s important to celebrate the wins when they do come. This year significant improvements were made towards a cleaner, smarter, and more resilient future. From strengthening the landmark climate law known as the Virginia Clean Economy Act (VCEA), to piloting an innovative approach to distributing clean energy to our homes and businesses, Virginia took some small, but significant, steps forward. 

 

Quick note: Since many of these bills use “megawatts” as a metric, you should know that 1 megawatt can power about 500 - 1,000 homes. 

 

Expanding Battery Storage for a More Resilient Grid

 

Energy storage is a critical component of transitioning to a renewable energy future. With more solar and wind energy coming online, we need better ways to store this clean energy for use when the sun isn’t shining or the wind isn’t blowing. The more we store, the less reliant on fossil fuels we become. 

One of the most significant pieces of legislation this year is the passage of HB2537 (Sullivan) and SB 1394 (Bagby), which establishes ambitious goals for energy storage across Virginia. This bill requires Appalachian Power (ApCo) to petition for at least 780 megawatts of short-duration energy storage capacity by 2040 and 520 megawatts of long-duration energy storage capacity by 2045. Similarly, Dominion Energy must seek out 5,220 megawatts of short-duration energy storage capacity by 2045 and 3,480 megawatts of long-duration energy storage capacity by 2045

 

Expanding Solar by Getting Rid of Unnecessary Limitations


Solar energy is not only the cheapest form of energy, it’s also a vital way to reduce reliance on dirty power plants that harm our climate and communities. The problem (or was if the Governor doesn’t veto this bill) is that Virginia had a limitation on how much solar residents and communities could build. SB1040 (VanValkenburg) and HB1883 (Callsen) increased the limitation on local solar projects (residential rooftop and small-scale community solar farms) from 1% to 5% of our energy. The bills also increase the maximum size of such projects from 1 MW to 3 MW, which will allow for more efficient solar farms. Additionally, the legislation ensures that non-utility entities will be able to own a larger percentage of these projects, giving more ownership to local communities to benefit from clean energy development.

 

Improving the Utility Integrated Resource Plan (IRP) Process

Virginia’s monopoly utilities, Dominion Energy and Appalachian Power Company, must seek state approval for their long term plans (called Integrated Resource Plans). In an effort to improve the transparency of Virginia’s energy system, SB1021 (Surovell) and HB2413 (Mundon King) make critical reforms to the utility IRP process. The bills extend the planning timeframe for utilities from 15 to 20 years, providing a clearer vision for the future of energy generation in the state. Additionally, they require Dominion and ApCo to consider grid-enhancing technologies (GETs) as alternatives to building new transmission infrastructure. This is a huge win for those of us who believe we must focus on modernizing and optimizing the grid before we invest in costly and often environmentally disruptive new transmission lines. 

 

Virtual Power Plants: A Smart Way To Deliver Electricity

A new and innovative initiative came with the passage of SB1100 (Hashmi) and HB2346 (Hernandez), which create a pilot program for virtual power plants (VPPs). A Virtual Power Plant is a network of energy resources , such as residential solar panels, home batteries, electric vehicles, and even school bus batteries, that work together to function like a single power plant. Tapping into more, and cleaner energy resources to power communities reduces the need to build more fossil plants. These resources are managed through advanced software systems that allow them to deliver electricity, helping to balance supply when energy demand is at its highest. 

 

Expanding EV Charging Infrastructure in Rural Areas

Access to clean transportation should not only be reserved for urban and more affluent areas. This year’s HB1791 (Sullivan) helps make electric vehicles (EVs) more accessible to rural and low-income communities by covering up to 70% of installation costs for EV chargers in underserved areas. While the expansion of EV charging infrastructure is a necessary step toward achieving a cleaner transportation system, it’s just one piece of the puzzle. We’ll need to continue investing in this infrastructure to ensure all Virginians who want an electric vehicle have the necessary access and infrastructure to own one.

 

Small Wins Set Up Big Potential

While 2025 was not without its challenges, the laws passed this year are a meaningful step forward for Virginia’s clean energy future as we work harder than ever to stop the worsening effects of climate change. From expanding solar energy to improving utility planning and piloting new technologies like virtual power plants, these legislative wins will help set the stage for more ambitious climate action in the years to come. As we look ahead, it’s important to recognize these steps and continue pushing for stronger policies that will accelerate our transition to a clean, sustainable future. 


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