What impact, if any, will the stadium solar array have on Dominion's projected renewable energy credits (RECs) and compliance obligations?

Short answer: The new solar array at the future Car‑Max Park stadium will add a modest amount of renewable electricity to Dominion Energy Virginia’s portfolio, generate a handful of Renewable Energy Credits (RECs) and give the company a small “head‑start” toward meeting its state‑mandated renewable‑energy (and associated carbon‑reduction) obligations. The exact quantitative impact on Dominion’s projected REC totals and compliance schedule cannot be quantified from the press‑release alone, but the project will nonetheless be a positive, though modest, contribution to the company’s overall compliance strategy.

1. What the news tells us (and what it doesn’t)

Because the press release is a high‑level announcement, the only concrete conclusion we can draw is that the project will generate renewable electricity and therefore generate REC(s) in the state’s compliance system. The magnitude of the impact depends entirely on the missing data listed above.

2. How a new solar array typically affects a utility’s REC accounting

1. Generation → REC creation

   • Every megawatt‑hour (MWh) of electricity produced from a qualifying renewable source (solar PV in this case) generates one Renewable Energy Credit (REC) under most state RPS programs.
     
   • The REC is a “trackable” unit that can be used by the generator (or a parent company) to meet its RPS obligations, sold on a REC market, or retired for a corporate sustainability claim.

2. Compliance credits vs. compliance “obligations”

   • Compliance credits are the RECs themselves; utilities must surrender enough RECs each compliance period to meet the percentage‑of‑sales renewable requirement set by the state (Virginia’s “Clean Energy Act” or similar).
     
   • Compliance obligations refer to the overall requirement: a given percentage of a utility’s total electricity sales must be generated from eligible renewables (or otherwise sourced via RECs).
     

3. Impact of a single project

   • Scale – A stadium‑roof solar system typically ranges from 0.5 MW to 2‑3 MW (depending on roof size, shading, and local design standards). That size usually translates to ~500–1,500 MWh of annual output.
     
   • REC generation – The same 500‑1,500 MWh would produce an equivalent number of RECs. In a state‑wide RPS program that may be a fraction of a percent of a large utility’s total compliance requirement (for a utility the size of Dominion, which serves > 2 million customers and delivers > 70 TWh annually).
     
   • Compliance cushion – While the absolute contribution is modest, it reduces the shortfall the utility must make up with larger‑scale renewable projects or purchased RECs.
     
   • Strategic value – Small‑scale “distributed” solar projects are often easier to bring online quickly, thereby front‑loading compliance credits and providing early‑year relief for a compliance period that runs on a calendar‑year basis.

3. What the stadium solar array most likely does for Dominion’s REC and compliance picture

Example (illustrative, not from the press release)

Assume: 1 MW DC solar array, 1,500 MWh annual production, 0.5 t CO₂‑ avoided per MWh, 1 REC per MWh.

Bottom line: Small but tangible—the project is a “nudge” in the right direction but is not a game‑changing, bulk‑renewable source for Dominion’s overall RPS compliance.

4. What would be needed to quantify the impact precisely

1. Capacity and output – MW capacity and expected annual MWh generation for the stadium‑roof system.
   
2. REC eligibility – Confirmation that the system is certified under Virginia’s Clean Energy Act (or the relevant state RPS).
   
3. REC allocation plan – Whether Dominion will retain the RECs for its own compliance, sell them, or retire them for a corporate ESG claim.
   
4. Current REC portfolio – Dominion’s current REC inventory, short‑fall, and timeline for meeting the next RPS reporting deadline (e.g., 2026 compliance year).
   
5. Regulatory details – Exact percentage target for the jurisdiction (e.g., 20% renewable by 2030) and any “bonus” credits for “distributed generation” or “solar‑only” projects.

When Dominion releases its 2025‑2026 “RPS compliance” report, it will list the “new solar projects” and the “REC generated from each”. Those numbers will give the definitive impact.

5. Bottom‑line answer to the user’s question

• Yes, the stadium solar array will generate Renewable Energy Credits that can be applied toward Dominion Energy Virginia’s Renewable Portfolio Standard (or equivalent) compliance.
  
• However, because the stadium‑roof system is relatively modest in size, it will only incrementally increase Dominion’s REC inventory and marginally reduce its need to purchase or generate additional RECs from larger projects or the market.
  
• In practice, the project will help Dominion meet its compliance obligations more easily, but it will not by itself satisfy any significant portion of the utility’s overall REC requirement. The real benefit lies in adding clean, local generation, providing a small “early‑credit” advantage, and supporting the utility’s broader sustainability narrative.

In short: the solar array is a positive, though small‑scale, contribution that will add a handful of RECs and slightly lower the amount of external REC purchases Dominion must make to satisfy its regulatory obligations. The exact magnitude of that benefit will be clear once the project’s capacity and annual generation are disclosed, or when Dominion’s next SEC/energy‑regulator filing lists the new REC numbers.