Virginia Geothermal Credits: What Homeowners Need to Know

Researched and reviewed by the GeothermalFinder Editorial Team

Virginia has passed legislation that will create demand for geothermal energy credits. SB508 (2024, Chapter 597) made geothermal heat pumps eligible under the state’s RPS, and Chapter 734 (SB252, signed April 13, 2026) set specific procurement targets: Dominion Energy and Appalachian Power (APCo) must procure geothermal credits equal to 0.5% (2027), 0.75% (2028), and 1.0% (2029 onward) of the RECs used for RPS compliance, with a $100 per MWh base deficiency payment (increasing 1% annually) if they fall short. The SCC must report on the program by November 1, 2028. Credits are tracked through PJM GATS, and Flett Exchange lists Virginia GRECs at approximately $45 per credit as of mid-2026.

This page covers what's known, what's still being decided, and what Virginia homeowners can do right now. For background on how geothermal credits work across all states, see our main geothermal credits guide.

The legislation: from SB508 to Chapter 734

Virginia's geothermal credit market began with SB508 (2024, Chapter 597), which made geothermal heat pumps eligible under the state’s RPS and directed the SCC to conduct a stakeholder process. Then Chapter 734 (SB252), signed by the governor on April 13, 2026, set the specific procurement targets and deficiency payments that will drive the market. (A companion bill, HB1102, became Chapter 733 with identical substance.) Credits are tracked through PJM GATS under business rules the SCC published effective January 1, 2026. Source: Virginia Division of Legislative Services, Summary of Energy Legislation Passed by 2026 General Assembly (April 1, 2026).

Key details under Chapter 734:

• Procurement targets: Dominion Energy and Appalachian Power (APCo) must procure and retire geothermal-system RECs equal to 0.5% (2027), 0.75% (2028), and 1.0% (2029 onward) of the RECs used for RPS compliance
• Deficiency payment: $100 per MWh base (increasing 1% annually, with an availability exemption) — this is what a utility pays if it falls short of its targets. It effectively sets a ceiling on what credits can sell for, and at $100 it is significantly higher than where Maryland credits currently trade (~$87)
• Quarterly RFPs — utilities must issue requests for proposals on a quarterly basis to procure credits
• SCC report due November 1, 2028 — the Virginia State Corporation Commission must report on the program's status

What to expect on pricing

As of mid-2026, Flett Exchange lists Virginia GRECs at approximately $45 per credit. Here's how to think about the range:

• The $100/MWh base deficiency payment sets a ceiling. Under Chapter 734, a utility that falls short of its procurement target pays $100 per MWh (increasing 1% annually). That effectively caps what credits can sell for — and at $100 it is higher than what Maryland credits currently trade for.
• For context: Maryland credits currently trade at ~$87 each, and Pennsylvania credits trade around $26. Virginia's initial ~$45 pricing falls between the two, with a $100 ceiling that leaves room for price growth as demand increases.
• The market is still early. Where Virginia credits ultimately settle depends on how many systems register, how much demand the procurement targets create, and the final program rules.

How Virginia compares with active markets

Maryland and Pennsylvania already have working geothermal credit markets. Virginia's program is still forming, but here are the key differences:

Virginia's $100 base deficiency payment (increasing 1% annually) is significantly higher than Pennsylvania's $45 ACP, and higher than where Maryland credits currently trade (~$87). The initial ~$45 broker listing sits well below the $100 ceiling, leaving room for price growth as demand builds.

How to prepare right now

Compliance obligations don’t begin until ~2027, but you don’t need to wait to act:

1. If you're considering geothermal, start planning.Installation timelines are measured in months, not weeks. Having a system in place before compliance obligations begin means you’re ready to register as soon as the SCC finalises its program details. Compare quotes from geothermal installers in Virginia.
2. If you already have a geothermal system, organize your records.Registration will likely require proof of installation, system specifications, and utility interconnection details (the paperwork connecting your system with your utility). Having these ready means faster registration when the time comes.
3. Watch for SCC announcements.The Virginia State Corporation Commission will publish the program details that determine registration, eligibility, and credit delivery. Those rules will be the definitive guide to how Virginia's program works.
4. Remember the credits are separate from energy savings.Your geothermal system already saves money by reducing heating and cooling costs. Credits are additional income on top of those savings — a bonus, not the primary reason to install.

Frequently asked questions

Get ahead of the launch

Virginia homeowners who install geothermal now get the energy savings immediately and will be positioned to earn credits when the market opens. Get a preliminary sizing estimate with our geothermal loop calculator, then compare quotes from geothermal installers in Virginia.

Sources and methodology

This guide uses official state legislation, regulatory filings, and program documents. All credit values, program parameters, and dates were verified against primary sources as of September 2026. Published amounts are reported as market figures or program estimates — not guarantees. Program details are monitored for changes; homeowners should confirm current terms with the relevant state agency or broker before acting.