Quick Answer
Virginia has improved significantly since the Clean Economy Act (2020). Full retail net metering, property tax exemption (up to 80%), and strong solar rights make it attractive. An 8 kW system costs $24,000-$32,000 with 10-14 year payback. No state tax credit or SRECs, but Dominion's policies are improving and the market is growing.
Virginia Solar Overview
From my experience:
Virginia has come a long way since the Clean Economy Act passed in 2020. It used to be one of the harder states for residential solar, but Dominion's policies have improved. The lack of SRECs still hurts compared to Maryland next door, but if you are in Northern Virginia with those high incomes and property values, solar is increasingly making sense. The payback is longer than I would like, but the market is trending in the right direction.
Virginia's solar market has grown rapidly since the passage of the Virginia Clean Economy Act in 2020. While the state still lacks some incentives found elsewhere, improved net metering and strong solar rights make Virginia an increasingly attractive market.
[Editor's Note, Jan 2026]:Virginia solar policies continue to evolve. Dominion Energy programs change periodically. Verify net metering terms and any available rebates with your utility and installer.
Virginia Solar Snapshot
Average system cost: $24,000-$32,000 (8 kW system)
Payback period: 10-14 years
Net metering: 1:1 retail credit available
Growing market: Rapid solar adoption increase (Source: EnergySage Marketplace Data, 2025)
Payback period: 10-14 years
Net metering: 1:1 retail credit available
Growing market: Rapid solar adoption increase (Source: EnergySage Marketplace Data, 2025)
Why Virginia Is Good for Solar
- Improved net metering: Full retail rate for excess energy
- Property tax exemption: Up to 80% of added value exempt
- Strong solar rights: HOAs cannot prohibit solar
- Growing market: More installers and competition
- Good sunshine: Solid solar resource statewide
Challenges in Virginia
- No state tax credit: No income tax credit available
- No SRECs: Unlike neighboring Maryland
- Moderate rates: Electricity not as expensive as Northeast
- Dominion dominance: One utility serves most of state
Solar Costs in Virginia
Average Installation Costs
| System Size | Cost Range | Typical Home Size |
|---|---|---|
| 6 kW | $18,000-$24,000 | 1,500-2,000 sq ft |
| 8 kW | $24,000-$32,000 | 2,000-2,500 sq ft |
| 10 kW | $30,000-$40,000 | 2,500-3,500 sq ft |
| 12 kW | $36,000-$48,000 | 3,500+ sq ft |
Cost Per Watt
- Virginia average: $3.00-$3.80 per watt
- Northern Virginia: $3.20-$4.00 per watt
- Hampton Roads: $2.90-$3.60 per watt
- National average: $2.75-$3.50 per watt
Virginia Solar Incentives
Federal Tax Credit (2026)
- Purchased systems: The 30% residential credit (Section 25D) ended December 31, 2025
- PPA/Lease: Section 48E still provides 30% through 2027—passed to you as lower payments
- Already installed: Systems installed before 2026 still qualify
State Incentives
- State tax credit: None available
- SRECs: No SREC market in Virginia
- Property tax exemption: Local option—up to 80% exempt
- Sales tax exemption: Limited exemption available
Property Tax Exemption
Virginia allows localities to exempt up to 80% of solar system value from property taxes. Many Virginia counties and cities have adopted this exemption. Check with your local assessor to verify your area participates. (Source: industry data and EnergySage analysis)
Utility Programs
- Dominion: Check for any current rebate programs
- Appalachian Power: May have programs available
- Co-ops: Some offer member incentives
Note: Utility programs change frequently. Verify current offerings with your utility.
Net Metering
Virginia's net metering rules improved significantly with the Virginia Clean Economy Act and subsequent legislation.
How Virginia Net Metering Works
- 1:1 credit: Full retail rate for excess energy
- Monthly rollover: Credits carry to next bill
- Annual true-up: Excess paid at avoided cost end of year
- System size: Up to 25 kW for residential (can be higher)
Net Metering by Utility
- Dominion Energy: Standard net metering available
- Appalachian Power: Net metering available
- Electric co-ops: Required to offer net metering
- Municipal utilities: Policies may vary
Virtual Net Metering
Virginia allows certain virtual net metering arrangements:
- Shared solar: Options for those who can't install rooftop
- Community solar: Growing market in Virginia
- Check eligibility: Rules vary by utility and situation
Major Utilities
Dominion Energy Virginia
- Coverage: Most of Virginia—~2.7 million customers
- Net metering: Available for residential solar
- Interconnection: Established process
- Rates: ~$0.12-$0.15/kWh depending on plan
Appalachian Power (AEP)
- Coverage: Southwest Virginia
- Net metering: Available
- Smaller territory: In Virginia context
Electric Cooperatives
- Many across Virginia: NOVEC, Rappahannock, Mecklenburg, others
- Net metering: Required by state law
- Policies vary: Check your specific co-op
- Often competitive rates: Worth comparing
VA-Specific Considerations
Regional Differences
Northern Virginia (NOVA)
- Strong market: High incomes, environmental awareness
- Higher costs: Labor and overhead more expensive
- Many installers: Competitive options
- Dominion territory: Mostly Dominion customers
Hampton Roads
- Good solar: Coastal sun exposure
- Hurricane consideration: Proper installation important
- Dominion territory: Standard policies apply
- Growing market: Increasing adoption
Richmond Area
- Good mix: Urban and suburban opportunities
- Moderate costs: Between NOVA and rural
- Strong market: Good installer presence
Southwest Virginia
- Appalachian Power: Different utility
- Lower costs: Generally cheaper installation
- Fewer installers: May have fewer options
- Good sun: Mountain areas can have good exposure
HOA Rules
Virginia has strong solar rights protections:
- Cannot prohibit: HOAs cannot ban solar panels
- Limited restrictions: Can't significantly impact efficiency
- Virginia Code § 67-701: Protects solar rights
- Still follow process: Submit to architectural review
Virginia Solar Rights
Virginia law protects your right to install solar. HOAs cannot prohibit solar energy collection devices or impose restrictions that significantly increase cost or decrease efficiency. (Source: industry data and EnergySage analysis)
Weather and Production
- Annual production: ~1,200-1,350 kWh per kW installed
- Good sunshine: Solid solar resource across state
- Four seasons: Expect seasonal variation
- Snow: Occasional—panels typically self-clear
The Bottom Line
Is Virginia Good for Solar?
Virginia is a solid and improving market for solar:
- Good net metering: Full retail credit for excess
- Strong solar rights: HOA protections in place
- Growing market: More competition drives prices down
- Property tax benefits: Available in most areas
Best Candidates for Virginia Solar
- Higher electricity bills: $120+/month
- Good roof: South-facing, minimal shading
- Long-term homeowner: Plan to stay 10+ years
- Dominion customers: Well-established solar process
Challenges to Consider
- No federal credit for purchases: As of 2026
- No state tax credit: No income tax incentive
- No SRECs: Unlike neighboring Maryland
- Longer payback: 10-14 years typical
Questions to Ask Installers
- Does my locality offer the property tax exemption?
- What's my expected payback period?
- How does Dominion's interconnection process work?
- Are there any utility rebates currently available?
- How does a PPA compare to purchasing now?
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