Section-by-section summary of HB 395

§ 1 — Definitions

HB 395 begins with a definitions section that locks in the technical scope of everything that follows. The key defined terms, and why they matter:

"Plug-in solar system" is defined as a solar photovoltaic system with an AC output rating of 1,200 watts or less that connects to the building's electrical system through a standard electrical outlet — not through a dedicated subpanel or utility interconnection. That phrase "standard electrical outlet" is load-bearing: it's what distinguishes a plug-in system from a conventional rooftop installation and why it doesn't require a licensed electrician or utility interconnection agreement.

"Compliant plug-in solar system" means one that meets both the wattage cap and the UL 3700 certification requirement. Only compliant systems get the benefit of the law's anti-restriction provisions. A system that is over 1,200 W AC or lacks UL 3700 certification is not protected under HB 395 — even if it's otherwise installed correctly.

"Residential dwelling unit" follows the definition already established in the Virginia Residential Landlord and Tenant Act (§ 55.1-1200), covering apartments, condominiums, townhouses, and single-family homes used as primary residences. The law applies to residential tenancies; commercial and mixed-use occupancies are outside its scope.

§ 2 — Equipment standards

The equipment standards section sets the technical floor that every compliant system must meet. As of July 1, 2026, it is unlawful to sell or offer for sale in Virginia any plug-in solar system that does not carry UL 3700 certification (or an equivalent standard adopted by the SCC).

UL 3700 is the national safety standard specifically developed for plug-in photovoltaic systems. It tests the complete system — panel, microinverter, cabling, and plug — against anti-islanding, backfeed safety, thermal performance under sustained AC load, ground-fault protection, and (where applicable) basic cybersecurity. See the UL 3700 article for a full breakdown of what the standard tests.

The 1,200 W AC cap is also embedded in the equipment standards section. It's measured at the microinverter output, not at the panel's DC nameplate rating. A pair of 700 W DC panels attached to a 1,100 W AC microinverter is compliant; a single panel connected to a 1,300 W AC inverter is not, even if the panel itself is only 400 W DC.

§ 3 — Landlord restrictions (§ 55.1-1234.1)

Section 3 is the heart of HB 395 for renters. Codified at § 55.1-1234.1 of the Code of Virginia, it prohibits landlords who own four or more rental units in Virginia from refusing to allow a tenant to install a compliant plug-in solar system.

The prohibition is not absolute — it comes with three structural limits. First, the tenant must provide written notice at least 30 days before installation. Second, the landlord may impose "reasonable restrictions" on how the system is installed, as long as those restrictions don't significantly increase the cost or decrease the efficiency of the system. Third, the tenant must remove the system and restore the installation area to its original condition at lease end.

Subsection (B)(3) — the "significantly increases cost or decreases efficiency" test — is the operative limit on what counts as a reasonable restriction. See the reasonable restriction article for a full breakdown of how courts and legal-aid practitioners are applying this standard in early 2026.

Subsection (C) contains a critical anti-waiver provision: any lease clause that purports to waive a tenant's rights under § 55.1-1234.1 is void as contrary to public policy. Landlords cannot contract around HB 395's protections, and a tenant who signs a lease with such a clause is not bound by it.

§ 4 — HOA & condo authority (§ 67-701.1)

Section 4 extends HB 395's framework into the homeowner association and condominium context, adding § 67-701.1 to the Code of Virginia adjacent to the existing Virginia Solar Rights Act at § 67-701.

The structure is parallel to the landlord restriction section: HOAs and condo boards may not prohibit compliant plug-in solar systems installed within an owner-member's exclusive-use space. They may impose reasonable architectural conditions — color, placement, mount type — but cannot impose conditions that effectively prevent installation.

Historic districts receive a carve-out. Where a property is subject to a local historic preservation ordinance with its own architectural review authority, that review authority retains some power over visible installations. The carve-out is narrow — it applies only to installations visible from a public way in a formally designated historic district — but it means HB 395's protections don't entirely override local historic ordinances.

Insurance fee authority is also addressed: associations may not impose insurance requirements on members that exceed the actual incremental risk created by a compliant plug-in solar system. The "incremental risk" standard is new to Virginia HOA law and is expected to be the subject of SCC guidance before January 2027.

§ 5 — Manufacturer disclosure requirements

Effective July 1, 2026, manufacturers of plug-in solar systems sold in Virginia must include a standardized disclosure label on every product. The label must include the UL 3700 certification number, the system's AC output rating, and a plain-English statement that the system is designed for use under Virginia HB 395.

This provision does two practical things. First, it gives consumers a simple way to verify compliance at the point of purchase — the certification number on the label can be cross-referenced against UL's public listing directory. Second, it gives landlords and HOAs a reliable basis for verifying compliance when a tenant submits an installation notice.

The SCC is authorized to adopt regulations specifying the exact format and content of the disclosure label. As of mid-2026, the SCC's stakeholder working group has circulated a draft label specification but has not finalized it. Products that were manufactured before July 1, 2026 and lack the label may still be sold through existing inventory if they carry a UL 3700 certification — the label requirement applies to new manufacturing, not to previously made product.

§ 6 — The SCC's role

The State Corporation Commission receives three discrete mandates under HB 395: publish an official notification form, convene a stakeholder working group, and adopt any implementing regulations needed to carry out the law's equipment and disclosure requirements.

The official notification form — the document tenants use to give their landlords written notice under § 55.1-1234.1 — must be published by January 1, 2027. Until it's available, the statute's notice requirements can be satisfied with a compliant informal letter or email; see the notification template article for the elements that must be included.

The stakeholder working group, which convened in late 2025, includes representatives from Dominion Energy, Appalachian Power, NOVEC, the Virginia Apartment Management Association, the Community Associations Institute (Virginia chapter), major plug-in solar manufacturers, and consumer advocacy organizations. Its draft form and label specifications have been circulated through mid-2026; the SCC's HB 395 docket (PUR-2025-00147) is the primary source for tracking its work.

The SCC's regulatory authority is limited to implementing rules — it cannot expand or contract the statutory rights established in sections 3 and 4 by regulation. Any SCC rule that purports to add a new ground for landlord or HOA refusal would face a challenge as exceeding the SCC's delegated authority.

§ 7 — Utility rules

Section 7 addresses the relationship between HB 395 plug-in systems and Virginia's electric utilities. The core holding is structural: HB 395 systems are classified as behind-the-meter generation, not grid-export generation, and are therefore not eligible for net metering under § 56-594 of the Code of Virginia.

This classification has practical consequences. A compliant plug-in system offsets the tenant's own electricity consumption in real time; energy that isn't consumed in the moment the panels produce it effectively returns to the grid without a meter credit. Utilities don't pay for it, and the tenant doesn't receive a bill reduction for it beyond the consumption offset.

Utilities are not required to approve or process an interconnection agreement for HB 395 systems. The law specifically exempts these systems from the interconnection requirements that apply to rooftop solar. However, major utilities — Dominion Energy and APCo in particular — have requested that customers submit a voluntary notification before installation. That notification is separate from the tenant's notice to the landlord.

Phased effective dates

HB 395 has three separate effective dates, each unlocking a different layer of the law:

• March 2025: The bill was signed into law and the framework took legal effect. The definitions, structure, and overall scheme are in place — but most operative provisions have delayed effective dates.
• July 1, 2026: Manufacturer disclosure requirements take effect. It becomes unlawful to sell non-UL-3700-certified plug-in solar products in Virginia. The SCC's stakeholder working group must complete its draft form by this date.
• January 1, 2027: Full consumer protections take effect. The landlord anti-restriction provisions at § 55.1-1234.1 become enforceable. The HOA and condo restrictions at § 67-701.1 become enforceable. The SCC must publish its official notification form.

The phased rollout was a deliberate legislative choice: it gave the supply chain time to bring UL 3700-certified products to market before the consumer rights provisions required landlords and HOAs to accept them.

Common questions

Where is HB 395 codified in the Virginia Code?

The tenant-rights provisions are at Code of Virginia § 55.1-1234.1, added to the Residential Landlord and Tenant Act. The HOA and condo provisions are at § 67-701.1, adjacent to the existing Solar Rights Act. The manufacturer disclosure requirements are in § 67-701.2 (new).

Does HB 395 preempt local ordinances?

For systems within the law's technical specifications, generally yes — the statute establishes a statewide floor. Local zoning ordinances cannot classify compliant plug-in systems as "structures" requiring a building permit, and local rules cannot impose greater restrictions than HB 395 allows. Historic district ordinances retain limited authority over visible installations.

Can the SCC modify HB 395's consumer rights by regulation?

No — the SCC's regulatory authority is limited to implementing rules (form formats, label specifications, procedural requirements). It cannot expand or narrow the statutory rights granted in sections 3 and 4. Any regulation that purported to add a new ground for landlord refusal would exceed the SCC's delegated authority and would be subject to challenge.

What happens if a landlord violates § 55.1-1234.1?

HB 395 does not create a dedicated enforcement mechanism or a new cause of action. Tenants whose landlords violate the statute's anti-restriction provisions can seek relief through Virginia's existing landlord-tenant dispute channels — landlord-tenant court, Virginia Legal Aid, or the Virginia Attorney General's consumer protection office.

Does HB 395 apply to subsidized housing?

Public housing authorities and federally subsidized housing may be subject to federal overlay rules that interact with HB 395 in complex ways. The statute itself doesn't carve out federally assisted housing, but federal program requirements can create constraints that aren't present in private-market tenancies. Residents of public or subsidized housing should consult Virginia Legal Aid for situation-specific guidance.

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Sources: Virginia HB 395 (2025 Session); Code of Virginia § 55.1-1234.1; Code of Virginia § 67-701.1; Code of Virginia § 67-701 (Virginia Solar Rights Act); Code of Virginia § 56-594 (net metering); SCC HB 395 Stakeholder Docket (PUR-2025-00147).

This article is for general information and does not constitute legal advice. For guidance on a specific situation, consult a Virginia-licensed attorney or your local legal aid office.

Last updated: July 31, 2026

Related Reading

• Review the legal implementation milestones in our guide to phased 2026–2027 effective dates.
• See how tenant protections operate in practice under landlord restriction limits under § 55.1-1234.1.
• Examine association restrictions in our detailed overview of HOA authority limits under § 67-701.1.