Solar in Virginia: Incentives, Costs, and Net Metering in 2026

Virginia's average electricity rate of 15.96 cents per kWh and net metering is available through nm1_full_retail. Our analysis shows payback timelines of 12 to 13 years for Virginia without the federal credit. The federal residential credit (Section 25D) expired December 31, 2025 and is not applied to any of these estimates. VirginiaSAVES Green Community Program provides financing support for nonprofits, local governments, and commercial or industrial entities but is not a direct residential cash rebate. No utility cash rebate programs are available to residential customers from Dominion Energy Virginia or Appalachian Power as of June 2026. An in-home assessment using your actual utility bills will give you the most accurate picture for your property.

The federal residential credit (Section 25D) expired December 31, 2025 and is not available for new installations in 2026. VirginiaSAVES Green Community Program provides financing support for nonprofits, local governments, and commercial or industrial entities but is not a direct residential cash rebate. No utility cash rebate programs are available to residential customers from Dominion Energy Virginia or Appalachian Power as of June 2026. Property tax exemption: Virginia provides a graduated, locality-adopted property tax exemption for solar installations, widely adopted across most major Virginia counties and cities as of 2026. For localities that have adopted the exemption: Years 1 to 5: 80% of system value is exempt from property tax assessment. Years 6 to 10: 70% exempt. Years 11 and beyond: 60% exempt. Most major Virginia jurisdictions including Fairfax, Arlington, Chesterfield, and Albemarle have adopted the exemption. Verify with your local jurisdiction before assuming the exemption applies. Sales tax exemption: Virginia provides a full 100% exemption on solar energy equipment including panels, inverters, racking, and components from Virginia's 5.3% state sales tax. The exemption has been in effect since 2017. Verify all current programs and eligibility at dsireusa.org before relying on any incentive in your financial plan.

Virginia currently offers full retail 1-to-1 net metering for residential systems up to 25 kW under both Dominion Energy Virginia and Appalachian Power (APCo), with monthly credit rollover. Both utilities have proposed changes to the State Corporation Commission (SCC) that could cut export credit rates by approximately 50% for new applicants, with Dominion proposing to base credits on distributed solar PPA rates rather than full retail. The SCC held evidentiary hearings in January 2026 and a final ruling is expected mid-2026. Customers who complete interconnection before the SCC issues its final order may be grandfathered at current full retail rates, creating material urgency for 2026 installations. Note: Both Dominion Energy and Appalachian Power have proposed SCC rule changes that could reduce net metering credits by approximately 50% for new applicants. The SCC held hearings in January 2026; a ruling is expected mid-2026. Customers who complete interconnection before the final SCC order may lock in current full retail grandfathering. Verify the current regulatory status with your installer before contracting. Last verified: 2026-06-01. Check current policy at dsireusa.org or verify with your specific utility before contracting.

Permit requirements in Virginia vary by municipality. Verify permit timelines and fees with your installer and local Authority Having Jurisdiction (AHJ). SolarAPP+ automated permitting adoption in Virginia varies by municipality. Verify permit requirements and timelines with your installer and the local Authority Having Jurisdiction (AHJ) for your address.