Virginia HB 1133: Virginia Solar Energy and Battery Energy Storage Systems Program; established.

Bill Text

2026 SESSION

INTRODUCED

26105280D

HOUSE BILL NO. 1133

Offered January 14, 2026

Prefiled January 14, 2026

A BILL to amend the Code of Virginia by adding in Chapter 19 of Title 45.2 an article numbered 4, consisting of sections numbered 45.2-1918 through 45.2-1922, and by adding in Article 13 of Chapter 3 of Title 58.1 a section numbered 58.1-439.12:13, relating to Department of Energy; Virginia Solar Energy and Battery Energy Storage Systems Program and tax credit; solar energy and battery energy storage projects.

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Patrons—Reid and Hernandez

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Referred to Committee on Finance

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Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding in Chapter 19 of Title 45.2 an article numbered 4, consisting of sections numbered 45.2-1918 through 45.2-1922, and by adding in Article 13 of Chapter 3 of Title 58.1 a section numbered 58.1-439.12:13 as follows:

Article 4.

Virginia Solar Energy and Battery Energy Storage Systems Program.

§ 45.2-1918. Definitions.

As used in this article, unless the context requires a different meaning:

"Qualified commercial and industrial project" means a new solar energy and short duration battery energy storage project (i) approved by the Department pursuant to § 45.2-1921; (ii) that began construction on or after July 1, 2026; and (iii) used for commercial or industrial use as determined by the customer rate class used to determine billing related to such project.

"Qualified project" means a qualified commercial and industrial project, qualified residential project, or a qualified utility-scale project.

"Qualified residential project" means a new solar energy and short duration battery energy storage project or a new standalone short duration battery energy storage project (i) approved by the Department pursuant to § 45.2-1920; (ii) in service on or after July 1, 2026; and (iii) used for residential purposes as determined by the customer rate class used to determine billing related to such project.

"Qualified utility-scale project" means a short duration battery energy storage project added to an existing solar facility or a new standalone short duration battery energy storage project (i) approved by the Department pursuant to § 45.2-1921; (ii) that began construction on or after July 1, 2026; and (iii) used for utility-scale use as determined by the customer rate class used to determine billing related to such project.

"Short duration battery energy storage project" means the installation of battery energy storage equipment and technology that is capable of absorbing energy, storing such energy for less than 10 hours, and redelivering such energy after it has been stored.

"Solar energy project" means the installation of a system of components designed to convert solar radiation into useable thermal or electrical energy.

§ 45.2-1919. Virginia Solar Energy and Battery Energy Storage Systems Program.

The Virginia Solar Energy and Battery Energy Storage Systems Program is hereby established and shall be administered by the Department for the purposes of (i) coordinating and supporting the development of solar energy and short duration battery energy storage industries and projects by other public or private entities; (ii) evaluating and approving solar energy and short duration battery energy storage projects as qualified projects for the purposes of the tax credit in § 58.1-439.12:13; and (iii) determining which items and services are considered eligible project costs for a given qualified project. The Department may consult with research institutions, businesses, nonprofit organizations, and stakeholders as the Department deems appropriate.

§ 45.2-1920. Qualified residential project requirements.

A. The Department shall evaluate and approve solar energy and short duration battery energy storage projects as qualified residential projects for the purposes of the tax credit in § 58.1-439.12:13. To receive approval as a qualified residential project, the following conditions shall be met:

1. The project shall be fully operational and installed in the Commonwealth by the time specified in subdivision 4;

2. The project meets the qualifications of one of the provisions of the federal Inflation Reduction Act (P.L. 117-169) as of June 30, 2025, that would have qualified for federal tax credits or other federal incentives;

3. The project is in service on or after July 1, 2026, but prior to the expiration of the tax credit in § 58.1-439.12:13, and construction is certified to be completed within five years of the date on which construction began; and

4. The energy storage portion of the project provides a minimum storage duration of up to two hours.

B. No solar energy and short duration battery energy storage project shall receive a tax credit pursuant to § 58.1-439.12:13 without approval by the Department pursuant to this section.

§ 45.2-1921. Qualified commercial, industrial, and utility-scale project requirement