A scroll compressor includes a compressor shell having first and second scroll members. The scroll members each have a base and a generally spiral wrap extending from its base. The generally spiral wraps of the first and second scroll members interfit to define compression chambers. A shaft causes the second scroll member to orbit relative to the first scroll member. At least one bypass port is formed in a base of one scroll member, and communicates with at least one of the compression chambers. The bypass port communicates with a passage leading to a suction pressure chamber within the compressor shell. A solenoid valve is movable between a reduced capacity position and a full capacity position, and selectively supplies a pressurized fluid to a fluid valve associated with the bypass port, such that movement of the solenoid can control whether the bypass port is open or closed.