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Virtual Power Plant Program: Where the DMV Stands

Virginia and Maryland have both approved virtual power plant programs that pay homes and businesses for battery and EV capacity. D.C. is still at the pilot stage.

By the Go Solar DMV news desk · Nov 5, 2026 · 5 min read

Virtual Power Plant Program: Where the DMV Stands

Key facts

What is a virtual power plant program?

A virtual power plant program lets a utility aggregate customer-owned equipment — solar panels, batteries, EV chargers and smart devices — into a single flexible grid resource it can call on when demand peaks1. Instead of one large plant, the utility draws small amounts from thousands of homes and businesses at once, and pays the owners of those customer-sited distributed energy resources for supporting the distribution grid12.

In the DMV, this is no longer theoretical. Virginia and Maryland have each approved programs within the last year, at different stages and with different payment structures. The District has a demonstration project but nothing a homeowner can sign up for.

Virginia: Dominion's 450 MW virtual power plant pilot

Virginia became the first state to require a utility to pilot a virtual power plant program2. The Community Energy Act, introduced as HB 2346/SB 1100, directs Dominion Energy to launch a 450-MW pilot allowing homes and businesses to aggregate solar panels, batteries, EV chargers and smart devices1. At 450 MW it is described as the biggest VPP pilot program in the country4.

Two details in the statute matter to a homeowner. Residential, commercial and industrial customers are all eligible, and the pilot must include incentives for at least 15 MW of residential battery additions3.

The pilot is approved, not just proposed. The State Corporation Commission approved Dominion's applications in a consolidated final order published on August 35. That order covered Dominion's Phase XIV demand-side management programs, a three-year extension of its income- and age-qualifying efficiency programs, and the Virtual Power Plant pilot, under Case Nos. PUR-2025-00210 and PUR-2025-00211, with program costs recovered through a separate rate adjustment clause6. Dominion's own VPP page confirms the approval7.

The date that sets the dollars is November 15, 2026. The law requires Dominion to propose a program tariff for residential, commercial and industrial customers by that date3, and that separate tariff filing is where the actual dollar amounts for Virginia are expected to be set8. Until it lands, no one can tell a Virginia customer what their battery will earn.

Enrollment timing is unsettled. Dominion's SCC filing describes a VPP Pilot launch in the first quarter of 2027 running through mid-20289, while Dominion's public timeline lists August 2026 as ramp up to launch programs for the VPP Pilot, subject to approval7. A third account has the pilot enrolling Virginia homes around late 20268. Plan on a range, not a date.

Two more points. Solar panels themselves will not be included, because they already send power to the grid through Dominion's net metering program10 — this is a battery-and-devices program, not a second payment for panels. And the law applies only to Dominion Energy Virginia; Appalachian Power customers are not covered3. The pilot runs until July 1, 2028, after which the SCC will review the data, evaluate effectiveness and potentially establish a permanent program11. Utility officials do not expect the VPP to eliminate the need to build more power infrastructure, such as natural gas plants, anytime soon10. More on the state picture is on our Virginia solar incentives page.

Maryland: DRIVE Act pilots, with payment figures already published

Maryland arrived by a different route. The Distributed Renewable Integration and Vehicle Electrification (DRIVE) Act, passed in 2024, recognized bidirectional charging systems as a distributed energy resource and required the Public Service Commission to establish first-in-the-nation interconnection procedures for bidirectional chargers, finalized in mid-202512.

The Commission then issued an order approving virtual power plant and vehicle-to-grid pilot programs that will pay customer-sited distributed energy resources for supporting the distribution grid, applying to BGE, Pepco, Delmarva Power and Potomac Edison12. Timing varies by utility, but the programs are anticipated to be in place for the 2027 summer season, and together the approved pilots target roughly 185.7 MW of peak load reduction — a major increase over the utilities' initial proposals12. The relevant docket is Order No. 9191712.

On compensation, published figures differ depending on which component is being described, so here is each one as stated. Pay-for-performance compensation based on average kW curtailed during dispatch events is listed at $75/kW-season for Pepco and $40/kW-season for Delmarva12. Separately, a performance incentive of up to $300/kW-year is listed, along with a connectivity incentive of up to $150/connected year that was not approved for utility rate recovery because it is not performance-based12. One summary puts the BGE pilot at $150–$300 per kW annually and the Pepco/Delmarva pilot at $300 per kW annually14, and the order text itself contains the figure $300/kW-year for peak shaving15. These appear to describe different payment components, and we would not quote a single headline number to a Maryland customer.

Structurally, BGE's residential bring-your-own-device program pays based on your device's nameplate capacity, and BGE customers can also join through a third-party aggregator14. Pepco and Delmarva share a residential and small commercial program for batteries and EVs, and Pepco is moving existing load management programs from EmPOWER Maryland into the DRIVE Act framework to simplify enrollment14. The Commission also directed the utilities to propose adjustments to net metering compensation for DRIVE Act programs that consider partial, but not full, compensation13 — worth watching if you are modeling solar-plus-storage payback. Maryland is building storage around these programs as well, with distribution-connected targets of 150 MW cumulative by November 1, 2028, and the first 50 MW by November 1, 202716. See our Maryland solar incentives page for the rest.

Washington, D.C.: a pilot project, not an enrollable program

Pepco does not currently offer a residential virtual power plant program in the District, so battery economics there are driven primarily by self-consumption and backup value rather than grid dispatch incentives17.

What exists is a demonstration. The DCPSC's Virtual Power Plant / Distributed Energy Resources Management System Pilot Project aims to show grid interactivity and interoperability of buildings and distributed energy resources so they can act as grid resources, and the Commission issued a request for proposals with more than $4.4 million in available funding18. It sits within a broader effort under the Pepco Holdings–Exelon merger agreement, which established a $21.55 million Pilot Project Fund Subaccount, and the pilot must be equitable, scalable and provide an accessible customer enrollment process, particularly for low-to-moderate-income individuals18. In March 2026, Ecosuite and Ecogy Energy were selected by the DCPSC for the Solar Aggregation and Advanced Inverter Project, a five-year pilot exploring VPP usage on the D.C. grid, with sites including a mix of solar generation, battery storage and flexible building or EV charging loads; Pepco is supporting it as a learning opportunity19.

In the meantime, the District's existing economics do the work: Pepco credits excess solar at the full retail rate of 23.9¢/kWh17.

What this means if you are sizing a battery now

In Virginia, a battery installed today is positioned for the pilot, but the payment is not knowable until the November 15, 2026 tariff filing sets the numbers38. In Maryland, the payment structures are published but the programs are anticipated for the 2027 summer season12. In D.C., the case for storage stands on backup and self-consumption17.

In all three, the device that earns is the battery or the EV charger, not the panels — Virginia's pilot excludes solar panels specifically because they are already compensated through net metering10. If you are comparing hardware with program participation in mind, our solar equipment page covers what we install and why.

Questions people ask

What is a virtual power plant, in plain terms?

It is an aggregation of customer-owned solar panels, batteries, EV chargers and smart devices that a utility can call on as a single flexible grid resource1, paying the owners for supporting the distribution grid12.

Does Dominion have a virtual power plant program in Virginia?

Yes. The State Corporation Commission approved Dominion Energy Virginia's Virtual Power Plant Pilot in a final order published August 357. The pilot runs until July 1, 2028, after which the SCC will review the data and potentially establish a permanent program11. It applies only to Dominion Energy Virginia, not Appalachian Power3.

How much does a virtual power plant program pay?

In Virginia, the amounts are expected to be set in a separate tariff filing due November 15, 202638. In Maryland, published figures include $75/kW-season for Pepco and $40/kW-season for Delmarva for pay-for-performance curtailment, a performance incentive of up to $300/kW-year12, and $300/kW-year for peak shaving in the order text15; a third summary lists $150–$300 per kW annually for BGE14. These describe different components, so treat a single headline number with caution.

Can solar panels alone join a virtual power plant program?

Not in Virginia's pilot. Solar panels will not be included because they already send power to the grid through Dominion's net metering program10. The pilot is built around batteries and connected devices.

Is there a virtual power plant program in Washington, D.C.?

Not for residential customers. Pepco does not currently offer one in the District17. The DCPSC is running a pilot project instead, and in March 2026 selected Ecosuite and Ecogy Energy for a five-year project exploring VPP usage on the D.C. grid19.

Sources

  1. Virginia law directs utility to launch virtual power plant pilot program - solarpowerworldonline.com
  2. Virginia Enacts VPP Pilot Program - Electrical Contractor Magazine - ecmag.com
  3. Virginia utility-scale VPP pilot mandate is first amid national push - utilitydive.com
  4. New Laws: Sharing and Distributing Clean Energy Through Virtual Power Plants - vcnva.org
  5. Virginia Energy Regulatory Updates (August 2026) - ReisingerGooch - reisingergooch.com
  6. Bill Up? Let's Break It Down — Dominion Bill Explainer - fairwatt.lovable.app
  7. Virtual Power Plant - dominionenergy.com
  8. Dominion's Virtual Power Plant Is Coming to Virginia - Virtue Solar - virtuesolar.com
  9. 260330144 COMMONWEALTH OF VIRGINIA STATE CORPORATION COMMISSION - scc.virginia.gov
  10. ‘Virtual power plants’ will launch soon in Virginia. Here’s what that means. - whro.org
  11. VA SB1100 - billtrack50.com
  12. Maryland Approves New Vehicle-to-Grid Pilots — VGIC - vgicouncil.org
  13. Choice State PSC Approves VPP, DER Aggregation Pilots - energychoicematters.com
  14. Maryland Solar Incentives, Tax Credits & Rebates 2026 - energysage.com
  15. ORDER NO. 91917 DRIVE Act Implementation ____________________________________ - psc.maryland.gov
  16. PSC updates on storage solicitations and Drive Act pilots; first awards, timelines set - citizenportal.ai
  17. Washington D.C. Solar Incentives, Tax Credits & Rebates 2026 - energysage.com
  18. Virtual Power Plant Pilot Project - dcpsc.org
  19. Virtual power plant demonstration sets up in Washington, D.C. - solarpowerworldonline.com
  20. In Puerto Rico, customers are helping to keep the lights on. Could a Virginia program do the same? • Virginia Mercury - virginiamercury.com

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