State & Local Programs

Virginia Solar Panel Cost & Incentives

How much do solar panels cost in Virginia? Compare solar panel installation costs across 0 state, utility & local incentive programs. Find solar panels for your home, heat pump rebates, EV charger incentives & more.

Last updated: March 1, 2026

Virginia solar quick facts

Data verified March 1, 2026

Key solar metrics for Virginia homeowners in 2026.
Average system cost	$2.70–$3.10/watt before incentives
Average electric bill	~$135/month (varies, NOVA tends higher)
Peak sun hours	4.2–4.8 hours/day
Net metering	Full retail rate (up to 25 kW), SCC reviews periodically
Top utility	Dominion Energy Virginia (~65% of customers), Appalachian Power
Solar adoption	Top 10 nationally for growth

Federal update: The 30% solar ITC (Section 25D) and home improvement credits (Section 25C) expired Dec 31, 2025. Programs listed below are state, utility, and local programs sourced from Rewiring America.

Programs Available in Virginia

0 Programs

No programs found for Virginia yet.

Program data sourced live from the Rewiring America API. Utility rates from OpenEI. City solar costs from EnergySage. No data is hardcoded. Run the calculator for your personalised estimate.

Solar Panels for Home in Virginia: Overview

Virginia has become one of the most active solar markets on the East Coast over the past five years, propelled by the Virginia Clean Economy Act of 2020. The VCEA mandates that Dominion Energy Virginia reach 100% clean electricity by 2045 and Appalachian Power hit the same target by 2050. That kind of legislative commitment has driven utility-scale solar development and created a more favorable environment for residential solar than most southeastern states have.

For homeowners, the incentive picture is straightforward but limited. There's no state solar tax credit, no sales tax exemption for solar, and the federal 30% ITC ended in December 2025. What Virginia does have: net metering at the full retail rate through Dominion Energy, a property tax exemption (locality-dependent), and a growing community solar program for people who can't or don't want rooftop panels.

Dominion Energy Virginia serves roughly two-thirds of the state's electricity customers, covering Northern Virginia, Richmond, Hampton Roads, and the Charlottesville area. Appalachian Power covers the western part of the state. The solar economics differ meaningfully between the two territories.

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Virginia Solar at a Glance

Avg. System Cost

$2.70–$3.10/watt before incentives

Peak Sun Hours

4.2–4.8 hours/day

Avg. Electric Bill

~$135/month (varies, NOVA tends higher)

Net Metering

Full retail rate (up to 25 kW), SCC reviews periodically

Top Utility

Dominion Energy Virginia (~65% of customers), Appalachian Power

Solar Market

Top 10 nationally for growth

How Much Do Solar Panels Cost in Virginia?

Virginia averages 4.2 to 4.8 peak sun hours per day. The highest values are in the southern and central regions (Richmond, Virginia Beach), with slightly less in the mountain west and Northern Virginia. The state's solar resource is similar to North Carolina and better than Maryland or Pennsylvania.

Virginia's installed solar capacity has grown from under 1 GW to over 5 GW, driven primarily by utility-scale projects under the VCEA mandate. Residential rooftop installations have also increased, particularly in Northern Virginia (Fairfax, Loudoun, and Arlington counties), the Richmond metro, and Virginia Beach.

The installer market is well-developed. Ipsun Solar, headquartered in Northern Virginia, is one of the largest Virginia-based residential installers. SunPower, Solar Energy World, and several other national and regional companies serve the market. Competition keeps pricing in the $2.70 to $3.10 per watt range.

The State Corporation Commission oversees utility regulation, including net metering and interconnection standards. The SCC has generally been deliberate, with solar-friendly legislation passing through the General Assembly and the SCC implementing the details. That separation tends to produce stable policy.

Is Solar Worth It in Virginia? Installation Cost & Savings

Solar is a solid investment for Virginia homeowners, especially those in Dominion Energy territory with higher-than-average electricity bills.

A typical 7 kW system costs $18,900 to $21,700 here. The property tax exemption (where it applies) saves $200 to $500 per year. Annual electricity savings come in at $1,200 to $1,800 at Dominion rates around 13 to 15 cents per kWh. Payback periods land at 12 to 16 years, and the system itself carries a 25 to 30 year warranty.

Where solar works best in Virginia: Northern Virginia homeowners with monthly bills above $150 (common with summer AC in NOVA), Dominion Energy customers with full retail net metering, south-facing roofs in the 4.5+ peak sun hour zones (central and southern VA), and homeowners with a 12+ year horizon. Where returns are slower: Appalachian Power territory in the western part of the state (lower rates, fewer installer options), heavily shaded lots, and homes about to be sold within five to seven years (though solar does add some home value at sale).

After payback, electricity from your system is essentially free for the remaining 10 to 15+ years. Twenty-five-year savings typically run $25,000 to $35,000 depending on rate increases and system production.

Net Metering in Virginia

Virginia offers net metering for residential systems up to 25 kW through both Dominion Energy and Appalachian Power.

Dominion Energy Virginia credits excess generation at the full retail rate. Monthly excess credits roll forward, and the annual true-up happens in April, when any remaining excess credits are typically zeroed out. Interconnection runs through Dominion's online portal. The aggregate net metering cap has been raised multiple times and isn't currently a binding constraint for most residential customers.

Appalachian Power also offers net metering for residential systems, with terms set by SCC-approved tariffs. The customer base is smaller and more rural, and solar adoption is lower than in Dominion territory.

Community solar is expanding under the VCEA framework. The program lets renters, condo owners, and homeowners with unsuitable roofs subscribe to shared solar projects and receive bill credits. Dominion has been required to develop community solar capacity, and the subscription options have grown over time.

The SCC reviews net metering policies periodically. The current full retail rate is favorable, but future proceedings could adjust compensation, especially as adoption grows. Virginia's legislative support for clean energy provides more policy stability than some other states, but you should still factor in the possibility of changes over a 25-year system life.

Solar Tax Exemptions in Virginia

Virginia's tax treatment of solar is uneven and depends on your locality.

Property tax exemption: Virginia Code allows localities to exempt solar energy equipment from local property taxes, but adoption varies by county and city. Many populous jurisdictions (Fairfax County, Arlington, Virginia Beach) have adopted the exemption; others haven't. Confirm with your county commissioner of revenue before assuming the exemption applies to your situation.

Sales tax: Virginia does not exempt solar equipment from its 5.3% sales tax (4.3% state plus 1% local). That adds about $1,000 to $1,500 to a typical residential installation.

What Virginia doesn't offer: a state solar income tax credit, a state solar rebate program, or a state battery storage incentive.

The lack of a state tax credit means the financial case for Virginia solar rests on net metering savings, the locality-level property tax exemption (where it exists), and the long-term hedge against rising Dominion Energy rates. The federal ITC expiration has widened the gap between Virginia and states like South Carolina that have their own state credits.

Battery Storage Incentives in Virginia

Virginia's VCEA includes an ambitious energy storage target: 2,700 MW by 2035 for Dominion Energy. Most of that capacity is utility-scale, but the legislation signals long-term commitment to storage as part of the grid mix.

For residential customers, there's no Virginia-specific battery storage incentive. The federal battery ITC expired alongside the solar ITC in December 2025, so homeowners bear the full $10,000 to $15,000 installed cost.

Practical reasons to consider storage in Virginia. Hurricane and tropical storm exposure is real, particularly in Hampton Roads and the Virginia Beach area, where multi-day outages happen. Northern Virginia's dense population and hot summers strain the grid during peak demand periods, and outage exposure is a known issue in some neighborhoods. And if Virginia moves toward reduced net metering rates in future SCC proceedings, batteries help preserve solar value through self-consumption.

Dominion Energy has explored "bring your own battery" pilot programs for grid support. If those programs expand, residential battery owners could earn annual payments for allowing their batteries to discharge during peak grid events.

Frequently Asked Questions About Solar in Virginia

What is the Virginia Clean Economy Act and how does it affect solar?

The VCEA (2020) mandates that Dominion Energy reach 100% clean electricity by 2045 and Appalachian Power by 2050. It includes utility-scale solar requirements, a 2,700 MW energy storage target, and community solar expansion. The law signals long-term policy support for solar in Virginia, which helps with investment confidence even though it doesn't directly provide residential rebates.

Are there solar incentives in Virginia?

Virginia offers net metering at the full retail rate through Dominion and Appalachian Power, plus a locality-level property tax exemption in many jurisdictions. There's no state solar tax credit, no sales tax exemption, and the federal 30% ITC expired in December 2025. Community solar subscriptions are expanding under the VCEA for residents who can't install rooftop panels.

How much does solar cost in Virginia?

Residential solar in Virginia runs $2.70 to $3.10 per watt. A 7 kW system costs roughly $18,900 to $21,700. Without the federal ITC, payback periods are 12 to 16 years depending on your utility territory and electricity usage. Northern Virginia homes with higher bills tend to see shorter payback.

Does Dominion Energy offer net metering?

Yes. Dominion Energy Virginia provides net metering for residential systems up to 25 kW. Excess generation earns credits at the full retail rate. Credits roll forward monthly and true up annually (typically in April). The program is available to all Dominion residential customers.

Is Virginia a good state for solar?

Virginia is above average for solar on the East Coast. The VCEA provides legislative backing, net metering at retail rate is intact, and the solar resource is solid at 4.2 to 4.8 peak sun hours. The main weakness is the lack of a state tax credit, which the federal ITC expiration has made more visible. Payback periods of 12 to 16 years are longer than Sunbelt states but still produce significant long-term savings.

Reviewed by the Net-Zero USA editorial team

Last reviewed: March 1, 2026

Sources: Virginia Clean Economy Act (HB 1526), VA State Corporation Commission, Dominion Energy Virginia net metering tariff, Appalachian Power, SEIA VA Solar Spotlight, EIA State Electricity Profiles, Congress.gov (One Big Beautiful Bill Act)

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We are a certified B-Corp, local solar installer in Northern Virginia. Everything, including design, installation, and service, is covered under one roof by our in-house team. Our team has helped thousands of clients transition their homes to clean energy, and we are proud of the quality of equipment, workmanship, and financing options we offer. Our goal is to help make the world a better place for future generations. We are committed to creating a cleaner, safer, more sustainable energy environment.

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