Energy Storage Target
This is a requirement on Virginia's electric utilities, not a rebate or incentive you apply for, so there is no application or payment to you. It pushes Appalachian Power and Dominion Energy Virginia to build large amounts of battery and other storage, which can support grid reliability. Contact your utility or the Virginia State Corporation Commission for questions about how it may affect your service.
The mandate creates demand for utility-scale storage, including lithium-ion, with Dominion required to reach 4,000 MW by 2030 and Appalachian Power 150 MW by 2030, plus new long-duration targets. At least 35% of storage facilities put into service must be purchased by the utility from a third party, which opens opportunities for independent developers. Individual projects are capped at 500 MW, or 800 MW for Dominion, and the SCC will set new interim targets for 2031 through 2045 by January 1, 2027.
Established by H.B. 1526 in 2020 and expanded by H.B. 895 in April 2026, this target applies to investor-owned utilities, with Phase I covering Appalachian Power and Phase II covering Dominion Energy Virginia. Appalachian Power must reach 780 MW of short-duration storage by 2040 and 520 MW of long-duration storage by 2045, while Dominion must reach 16,000 MW short-duration and 4,000 MW long-duration by 2045, with interim 2025 and 2030 targets set by the SCC. The SCC must set new interim targets for 2031 through 2045 by January 1, 2027, and at least 35% of storage facilities put into service must be purchased from non-utility entities.
Program details
- Program ID
- 22134
- Last updated
- 6/2/2026
Eligibility
- Sectors
- investor-owned utility municipal utilities cooperative utilities
- Technologies
- lithium-ion
Program summary
Note: H.B. 895, enacted in April 2026, increased the energy storage targets for Appalachian Power Company and Dominion Energy and adopted new targets for long-duration storage. The summary below reflects the new targets adopted by H.B. 895.
H.B. 1526, enacted in April 2020, established an energy storage target for the investor-owned utilities in Virginia. These targets were subsequently amended. There are different goals for Phase I (Appalachian Power Company) and Phase II (Dominion Energy) utilities. The Virginia General Assembly only adopted final targets for each utility to meet in 2040 (initially ending in 2035, but amended by H.B. 895), but the Virginia State Corporation Commission adopted interim targets for 2025 and 2030. H.B. 895 directed the Virginia State Corporation Commission to set new interim targets for years 2031 through 2045 by January 1, 2027.
For Phase I Utilities (i.e. Appalachian Power Company) the storage requirements are:- 25 MW by December 31, 2025
- 150MW by December 31, 2030
- 780 MW short-duration storage by December 31, 2040
- 520 MW long-duration storage by December 31, 2045
- 260 MW between 10 and 24 hours of storage capacity
- 260 MW more than 24 hours of storage capacity
For Phase II Utilities (i.e. Dominion Energy Virginia) the storage requirements are:
- 250 MW by December 31, 2025
- 4,000 MW by December 31, 2030
- 16,000 MW short-duration storage by December 31, 2045
- 4,000 MW long-duration storage by December 31, 2045
- 2,000 MW between 10 and 24 hours of storage capacity
- 2,000 MW more than 24 hours of storage capacity
The maximum energy storage project is 500 MW in size, except for Phase II Utilities, which can produce up to 800 MW in a single project. Beginning July 1, 2020, at least 35% of energy storage facilities put into service must be purchased by the utility from an entity other than the utility itself.
Contact & resources
Please verify current program details with the administering agency before making any financial decisions.
