Best Electricity Rates in Virginia 2026 (Partial Deregulation Guide)

Virginia is one of the most confusing electricity markets in the country. Unlike fully deregulated states like Texas or Pennsylvania, Virginia is partially deregulated — most residential customers are still served by the regulated utility (Dominion Energy or Appalachian Power), but certain customers can shop for competitive electricity supply under specific circumstances. In 2026, with Virginia electricity rates climbing and renewable mandates expanding, understanding your options matters more than ever.

This guide explains exactly who can shop for electricity in Virginia, what the current best rates look like, and how to navigate the state’s unusual rules.

[esi_zip_form]

Is Virginia a Deregulated Electricity State?

Partially. Virginia passed electric restructuring legislation in 1999 (the Electric Utility Restructuring Act), but the state largely reversed course in 2007 with the Re-regulation Act. Today, the rules work like this:

• Most residential customers must take service from their incumbent utility — typically Dominion Energy (covering most of central, eastern, and northern Virginia) or Appalachian Power (covering the southwest).
• Large commercial and industrial customers with peak demand over 5 MW can shop for competitive supply.
• Customers wanting 100% renewable energy can switch to a competitive supplier offering a renewable energy product, even if their incumbent utility doesn’t offer one — this is often called the “renewable opt-in” provision.
• Some smaller commercial customers can aggregate their load to qualify for competitive supply.

Current Virginia Electricity Rates (2026)

As of 2026, Dominion Energy’s residential rate sits around 13.8¢ per kWh, including supply, transmission, and distribution. Appalachian Power’s residential rate is closer to 14.6¢/kWh. Both rates are subject to fuel adjustment clauses that can add or subtract 0.5–2¢/kWh based on natural gas and coal prices.

For comparison, the U.S. residential average sits around 17.2¢/kWh in 2026, so Virginia’s regulated rates are below the national average — which is why the state’s switch-and-save opportunity is more limited than in deregulated states.

Who Can Switch Electricity Suppliers in Virginia?

The most common pathway for residential and small business customers is the renewable energy opt-in. Under Virginia Code § 56-577(A)(5), any customer can choose a licensed competitive supplier offering 100% renewable energy if their incumbent utility does not offer a comparable product. As of 2026, both Dominion Energy and Appalachian Power offer “Green Power Programs,” but those programs use renewable energy certificates (RECs) without changing the underlying supply — opening the door for customers wanting more meaningful renewable supply to switch to competitive renewable suppliers.

Active Virginia renewable suppliers in 2026 include:

• Arcadia Power — Subscription-based clean energy partner; partners with utilities to deliver 50%–100% renewable energy via REC matching
• Inspire Clean Energy — Flat monthly subscription model with 100% wind and solar supply
• CleanChoice Energy — Competitive supply backed by 100% wind and solar generation; available to qualifying Virginia customers

Large Commercial and Industrial Shopping

Virginia commercial customers with peak demand above 5 MW (or aggregated loads above 5 MW) can shop in the full competitive market. Major suppliers serving Virginia C&I include Constellation, Engie, NextEra Energy Services, and Direct Energy Business. These customers typically negotiate 12-, 24-, or 36-month fixed-price supply contracts and can save 15–25% versus regulated tariffs depending on market conditions.

How to Lower Your Virginia Electric Bill (Even If You Can’t Switch Suppliers)

For the majority of Virginia residential customers who cannot switch supply, the path to savings runs through Dominion’s or APCo’s rate plan options:

1. Time-of-Use rates — Dominion offers an optional Schedule 1T residential time-of-use tariff that charges lower rates overnight (12am–6am) and higher rates during peak hours (1pm–7pm summer weekdays). Households that can shift dishwasher, laundry, and EV charging to off-peak hours typically save 5–15%.
2. Smart thermostat and HVAC tune-up rebates — Both Dominion and APCo offer $50–$150 rebates for ENERGY STAR smart thermostats and $100–$400 for HVAC efficiency upgrades. These programs are funded through demand-side management rate riders, so you’re already paying for them.
3. EV charging programs — Dominion’s EV-1 and EV-2 rate riders offer cents-per-kWh discounts for overnight EV charging when paired with a separately metered Level 2 charger.
4. Solar net metering — Virginia’s net metering rules allow residential solar systems up to 25 kW to receive full retail credit for excess generation, making rooftop solar one of the strongest after-tax returns available to Virginia homeowners.

Frequently Asked Questions

Can I switch electricity suppliers in Virginia?

Most Virginia residential customers cannot switch their default electricity supplier. The two exceptions are: (1) you choose a 100% renewable energy supplier, which is allowed by state law, or (2) you are a large commercial customer with over 5 MW of demand.

Why is Virginia partially deregulated?

Virginia passed full electric deregulation in 1999 but reversed most of it in 2007 with the Re-regulation Act, which restored Dominion Energy and Appalachian Power as default monopoly suppliers. The renewable opt-in and large commercial shopping rights were preserved.

Are Dominion Energy’s rates competitive?

Compared to other states, yes — Virginia’s regulated rates are slightly below the U.S. residential average. Compared to fully deregulated state competitive rates, no — most deregulated state suppliers offer rates 1–3¢/kWh below Dominion’s all-in rate.

Will signing up for renewable supply increase my Virginia electric bill?

Usually slightly. Most renewable suppliers in Virginia charge a 0.5–2¢/kWh premium over the Dominion supply rate. For a 1,000 kWh/month household, that’s about $5–20 extra per month for verified renewable energy.

Does Virginia have a Standard Offer Service rate like other deregulated states?

No. Because Virginia is not fully deregulated, there is no Standard Offer Service auction. Dominion and APCo procure their own supply and pass it through to customers under their regulated tariffs.

What happens if I move within Virginia — can I bring my supplier?

If you’re on a renewable opt-in supplier, you can typically transfer service to a new Virginia address within the same utility territory. Crossing utility territories (e.g., Dominion to APCo) requires a new enrollment.

Bottom Line: Virginia Electricity in 2026

Virginia is not a “shop and save” market the way Texas or Pennsylvania is. Most residential customers will continue to take supply from Dominion or Appalachian Power. The two practical paths to savings: (1) switch to a 100% renewable competitive supplier if green energy matters to you, even at a small premium, and (2) optimize within your utility through time-of-use rates, efficiency rebates, and rooftop solar.

[esi_zip_form]