New analysis finds shared solar can reduce VA energy costs by $2.5 billion
State officials, community organizations, and clean energy developers gathered today at Apex Clean Energy’s headquarters to celebrate the opening of 625 megawatts (MW) of new shared solar capacity in Virginia, enough power for 125,000 households and triple the amount of projects that could previously be built in the Commonwealth. The 2026 expansion of Virginia’s shared solar program is aimed at keeping electricity costs down for Virginians amid the data center boom and regional rate hikes.
The event featured a panel discussion on the progress of shared solar in Virginia, particularly in light of recent PJM capacity auction results, which signal continued upward pressure on electric bills across the region.
Aurora Energy Research also released their new report, “The Value of Shared Solar in Virginia,” at the event. The independent analysis finds that adding 2 gigawatts (GW) of shared solar in Virginia — equal to about 6% of the state’s installed electricity generation capacity — could save Virginia ratepayers a net $2.5 billion over 20 years, even after accounting for the additional out-of-market revenue needed to make the projects economically viable.
According to the report, those savings break down across several categories:
● Capacity costs: $2.2 billion in savings, as shared solar reduces peak demand and helps ease the capacity shortfalls that have driven up prices in PJM’s capacity auctions.
● Transmission costs: $500 million in savings, since shared solar’s smaller, distributed footprint can be sited closer to high-load areas, easing grid congestion and reducing the need for new transmission buildout.
● Electricity prices: $400 million in savings, as shared solar’s daytime generation lowers wholesale power prices.
● Renewable Energy Certificates (REC): $200 million in savings from increased REC supply.
Additionally, the report found that shared solar could help offset the cost impact of delays to Virginia’s planned transmission upgrades by as much as 77%, and that 2 GW of shared solar could reduce power-sector carbon dioxide emissions across the PJM grid by nearly 11 millionmetric tons through 2045 by displacing fossil fuel generation. Aurora Energy Research emphasized that the study took a neutral, data-driven approach.
“As the Aurora report shows, strategic investments in shared solar or community solar can result in significant savings to ratepayers over time,” David Gahl, Executive Director , Solar and Storage Industries Institute. “Expanding shared solar in Virginia makes dollars and sense, helps keep utility costs down, and provides electricity where it is needed. This is a great example of what can happen when a broad coalition of policymakers, communities and industry partners come together to advance smart energy solutions that benefit consumers and the grid.”
“Virginia’s 2026 shared solar expansion is a practical, near-term solution to rising energy costs driven by PJM rate increases,” said Chief Energy Officer Josephus Allmond. “This study demonstrates the value of further expanding access to shared solar, which will help us lower utility bills, make better use of our existing grid, and ensure more Virginia families benefit from affordable, reliable, clean, and homegrown energy.”
“Shared solar expansion in the Appalachian Power Company service territory was one of many policies the Energy Commission of Virginia recommended to the General Assembly in 2026 as a way to continue investing in Virginia’s electric grid infrastructure for a more affordable, reliable and clean energy system,” said Carrie Hearne, Executive Director of the Energy Commission of Virginia. “The research out today identifies multiple grid benefits from shared solar facilities, ultimately saving ratepayers significant costs from across Virginia, while delivering clean energy in a reliable fashion.”
“Shared solar is filling a key gap in terms of clean energy and affordability services that we can provide to Virginians who rent their homes,” said Rosina Snow, Energy Navigator, Local Energy Alliance Program. “People are excited about renewables and appreciate the ability to choose where their energy is coming from — I’ve seen really strong interest from almost everyone I talk to about enrolling in shared solar.”
“Virginia’s shared solar expansion allows residents to benefit directly from local solar projects through lower electric bills in a time of increasing affordability challenges, and at the same time moves us closer to reaching our climate goals,” said Carolyn Pugh, Director of Climate Policy, Community Climate Collaborative. “We hope to see a growing shared solar program that supports agrivoltaics, job creation, and the generation of clean, affordable energy in our region.”
“Community scale solar is an opportunity for farmers to diversify their operations and to create a new revenue stream for their farms. It helps to financially be more solvent,” said Jess Gray, CEO, Gray’s LAMBscaping. “There are many other benefits to the farmer including the rejuvenation of the land they choose to put into solar, creating better pastures, and also keeping land for future generations.”
“Virginia’s leadership on shared solar is opening the door to affordable clean energy for Virginians who haven’t had access before—renters, small businesses, and families who can’t put solar on their own roof,” said Eamon Perrel, Chief Commercial Officer, Apex Clean Energy. “These projects reflect Apex’s commitment to delivering infrastructure that lowers energy costs and demonstrating what a modern and resilient grid can mean for the Commonwealth.”
“The analysis presented today makes clear that shared solar isn’t just beneficial to subscribers, it will lower energy bills and costs across the board for all Virginians,” said Brandon Smithwood, VP of Policy, Dimension Energy. “Governor Spanberger and shared solar champions in the Virginia General Assembly’s recent expansion of shared solar is shielding Virginians from PJM price spikes — while others in the region are saddled with historically high energy bills.”
