Virginia - Dominion Energy 15 kW AC System Size Limit

LightReach is implementing a 15 kW AC limit in Dominion Energy Virginia beginning January 1, 2026.

All new M1 submissions starting in 2026 must be 15.0 kW AC or less based on the total inverter nameplate rating. While Dominion allows residential customers to interconnect up to 25 kW, a monthly Standby or Demand Charge of over $6 per kW of peak demand usage is billed per month for solar customers with a system size over 15 kW AC.

For a large energy consumer, demand usage is on average 6-8 kW per month totaling $36-$54 in estimated standby charges in addition to the existing $8 Basic Customer Charge. To avoid the Standby Charges outlined in Schedule 1 and maximize customer savings, Palmetto LightReach is restricting systems to 15 kW AC.

Dominion is vague on the exact calculation of AC kW. Their interconnection portal's (i) information tooltip states, "The Rated Capacity in kilowatts AC should reflect the actual expected maximum AC system output after all system de-rates have been applied."

The most accurate input is the total inverter AC nameplate rating. However, you may be able to justify adding a derate using the CEC Weighted Efficiency of the inverter, which is often 98-99%. For example, two Tesla inverters, model 1538000-xx-y [240V], are rated 7.6 kW AC each with a 98% CEC weighted efficiency 2 * 7.6 kW = 15.2 kW * 98% = 14.9 kW AC. Efficiency ratings are on the inverter's datasheet and the CEC equipment list.

Ultimately, Palmetto LightReach is neutral on the formula you use for AC kW as long as it is 15.0 or below in Dominion's Interconnection Application, and is approved by Dominion. If your inverter nameplate rating is above 15 kW AC, LightReach will require proof that you submitted an AC kW size of 15.0 or smaller.

Click Here - Understanding Schedule 1

Schedule 1 details three Standby Charges for systems over 15 kW AC

Distribution Standby Charge of $3.42 per kW of demand
Transmission Standby Charge of $1.32 per kW of demand
Rider T1 Transmission Charge of $1.605 per kW of demand

Total $6.35 per kW per month as of December 2025

If the customer receives service under Section XXV – Net Metering and their renewable generator’s AC capacity exceeds 15 kW, they will be billed a Distribution Standby Charge of $3.42 per kW of demand. This charge is reduced by the amount in II.A.2., but cannot be less than zero.

Paragraph II.B. does not apply to Customers receiving Electricity Supply Service from a Competitive Service Provider, except for the non-bypassable charges listed in the Exhibit of Applicable Riders.

Total $6.35 per kW per month as of December 2025

Dominion measures demand based on the highest average usage in ANY 30-minute interval during the billing period. This means an EV owner charging in the middle of the night could still be hit with peak usage measured overnight.

Click Here - Interconnection Portal

A.	Does Dominion allow solar systems larger than 15 kW AC? If so, what is the drawback?	Yes, Dominion allows residential systems up to 25 kW AC. However, systems above 15 kW incur monthly Standby/Demand Charges of more than $6 per kW, significantly increasing ongoing costs.
B.	What is the most accurate AC kW input when submitting the interconnection application?	The total inverter AC nameplate rating is the strongest and most defensible measurement of system AC capacity.
C.	How does Dominion measure monthly peak demand for Standby/Demand Charges?	Dominion measures demand based on the highest average usage in any 30-minute interval during the billing cycle. This means a customer could trigger a high demand charge even from overnight EV charging.
D.	How does Schedule 1 affect customers interconnected under Section XXV - Net Metering?	If the customer’s renewable generator exceeds 15 kW AC, Dominion charges three different standby charges totaling over $6 pre kw of monthly demand usage
E.	Why is Palmetto LightReach restricting residential solar systems to 15 kW AC?	Systems above 15 kW AC trigger Dominion’s monthly Standby/Demand Charge—typically $36–$54 per month for large energy consumers—on top of the $8 Basic Customer Charge. By limiting systems to 15 kW AC, LightReach helps customers avoid these charges and maximize savings.