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.
Programs Available in Virginia
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 (VCEA) of 2020. The VCEA mandates that Dominion Energy Virginia achieve 100% clean electricity by 2045 and Appalachian Power reach 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.
For homeowners, Virginia's incentive picture is straightforward but limited: there's no state solar tax credit, no sales tax exemption for solar, and the federal 30% ITC expired in December 2025 under the One Big Beautiful Bill Act. What Virginia does offer is net metering at the full retail rate through Dominion Energy, a property tax exemption (varies by locality), and a growing community solar program for residents 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 (NOVA), Richmond, Hampton Roads, and the Charlottesville area. Appalachian Power covers the western part of the state. The solar economics differ meaningfully between these two utility territories.
Virginia Solar at a Glance
Avg. Electric Bill
~$135/month (varies — NOVA tends higher)
Solar Market
Top 10 nationally for growth
How Much Do Solar Panels Cost in Virginia?
Virginia averages 4.2–4.8 peak sun hours per day, with the highest values in the southern and central regions (Richmond, Virginia Beach) and 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 massive utility-scale projects under the VCEA mandate. Residential rooftop installations have also increased, particularly in Northern Virginia (Fairfax, Loudoun, Arlington counties), 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–$3.10/watt range.
The State Corporation Commission (SCC) oversees utility regulation, including net metering policy and interconnection standards. The SCC has generally been deliberate — solar-friendly legislation passes through the General Assembly, and the SCC implements the details.
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.
Typical economics (2026, no federal credit): • Average 7 kW system cost: $18,900–$21,700 • Property tax exemption: varies by locality (saves $200–$500/year where available) • Annual electricity savings: $1,200–$1,800 (at Dominion rates of ~$0.13–$0.15/kWh) • Estimated payback period: 12–16 years • System warranty/lifespan: 25–30 years
Where solar works best in Virginia: • Northern Virginia homeowners with high electricity bills ($150+/month — 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) • Long-term homeowners (12+ year horizon)
Where returns are slower: • Appalachian Power territory in western VA (lower rates, fewer installer options) • Heavily shaded lots in wooded areas • Homes planning to sell within 5–7 years (though solar does increase home value)
After payback, electricity from your system is essentially free for the remaining 10–15+ years. Long-term savings over 25 years typically exceed $25,000–$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 • Annual true-up occurs in April — remaining excess credits are typically zeroed out • Interconnection application is handled through Dominion's online portal • The aggregate net metering cap has been raised multiple times and is not currently a binding constraint for most residential customers
Appalachian Power: • Also offers net metering for residential systems • Terms are set by SCC-approved tariffs • Customer base is smaller and more rural, with lower solar adoption
Community solar: • Virginia's community solar program is expanding under the VCEA framework • Allows renters, condo owners, and homeowners with unsuitable roofs to subscribe to shared solar projects and receive bill credits • Dominion has been required to develop community solar capacity
Important: The SCC reviews net metering policies periodically. While the current full retail rate is favorable, future proceedings could adjust compensation. Homeowners should factor this possibility into long-term calculations, though Virginia's legislative support for clean energy provides more policy stability than some other states.
Solar Tax Exemptions in Virginia
Virginia's tax treatment of solar is uneven — it depends on your locality:
Property tax exemption: • Virginia Code allows localities to exempt solar energy equipment from local property taxes • Adoption varies by county and city — many populous jurisdictions (Fairfax County, Arlington, Virginia Beach) have adopted the exemption, but not all have • Check with your county commissioner of revenue to confirm whether the exemption applies in your jurisdiction
Sales tax: • Virginia does NOT exempt solar equipment from its 5.3% sales tax (4.3% state + 1% local) • This adds approximately $1,000–$1,500 to a typical residential installation
What Virginia does NOT offer: • State solar income tax credit • State solar rebate program • State battery storage incentive
The lack of a state tax credit means the financial case for solar rests on net metering savings, the property tax exemption (where available), and the long-term hedge against rising Dominion Energy rates. The federal ITC expiration in December 2025 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 this is utility-scale, but the legislation signals long-term commitment to storage as part of the grid mix.
For residential customers, there is no Virginia-specific battery storage incentive. The federal battery ITC expired alongside the solar ITC in December 2025, so homeowners bear the full cost ($10,000–$15,000 installed).
Practical reasons to consider storage in Virginia: • Hurricane and tropical storm exposure, particularly in Hampton Roads and the Virginia Beach area — multi-day outages happen • Northern Virginia's dense population and high summer temperatures can strain the grid during peak demand periods • Self-consumption optimization — if Virginia moves toward reduced net metering rates in the future, batteries would help preserve solar value
Dominion Energy has explored "bring your own battery" pilot programs for grid support. If these programs expand, residential battery owners could receive 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 property tax exemption in many localities. There is no state solar tax credit, no sales tax exemption, and the federal 30% ITC expired 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?
Average residential solar costs in Virginia range from $2.70 to $3.10 per watt. A 7 kW system costs approximately $18,900–$21,700. Without the federal ITC, payback periods are 12–16 years depending on your utility territory and electricity usage. Northern Virginia homes with higher bills tend to see shorter payback periods.
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 are trued 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 still intact, and solar resource is solid at 4.2–4.8 peak sun hours. The main weakness is the lack of a state tax credit and the federal ITC expiration. Payback periods of 12–16 years are longer than sunbelt states but still result in significant long-term savings.
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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Calculate My SavingsSolar Companies in Virginia
8 verified installers serving Virginia
Nova Solar
EliteNova Solar has become the most trusted name in solar for DC, Maryland, and Virginia because of our commitment to quality, honesty and value. As a referral-based business, we believe educating customers about the benefits of solar and helping them weigh all their options is the best way to produce happy customers and grow the industry as a whole. A top-quality solar system necessitates expert design, top-of-the-line products, and superb workmanship. Our design professionals create custom solutions for homeowners, making use of all their best available roof space as well as sheds, barns, carports, and anything else that can produce the best outcome for each project. We use the highest-quality equipment money can buy and encourage our customers to research our solar modules, inverters, and racking equipment. We take great pride in the craftsmanship of our systems and believe that a beautiful solar array with no rooftop conduit, visible junction boxes, or noticeable attachments is the best advertisement of all. Of all the factors contributing to Nova Solar’s success, we believe trustworthiness is the most important. We get it- researching solar systems is complicated and customers want honest, expert information and opinions without being upsold. A lot of times that means telling a client they have too much shade to make solar a viable option, that an energy audit may provide a better value than a solar system, or that a competing technology might be a better answer for a particular situation- and we are okay with that. Nova Solar often gets asked how it’s possible for us to achieve the prices we do given the high-quality of the equipment we use. The answer is a fanatical dedication to operational efficiency. We have no dedicated sales staff and our advertising expenses are virtually nonexistent. The efforts we take to scrutinize our overhead cost enables us to provide systems to customers that are a great value and helps grow the word of mouth on which our company thrives.
Sunbum Solar & Roofing
PremierSunbum Solar & Roofing is a solar and roofing installation contractor proudly serving Virginia ,North Carolina, and Maryland customers for over 20 years. In addition to manufacturer warranties, and our workmanship warranty, we provide an additional third party 30-year warranty from Solar Insure that is backed by an insurance policy from Zurich North America. This gives our customers peace of mind knowing that their investment is protected for the long term. We offer financing options that are designed to meet our customers needs.
Nedes LLC
PremierAt NEDES LLC, we don’t just install solar — we design systems that deliver. Our focus is on only the premium quality, Brilliant services, highly competitive pricing and peace of mind for the end consumer. Whether you're looking to cut your utility bills, increase your home's value, or make a smart environmental choice, we offer tailored solar solutions with top-tier materials, 25-year warranties, and a seamless customer experience from start to finish. We use and recommend as well as offer only premium equipment at highly competitive pricing, ensuring full utility offset when feasible, and back every system with performance guarantees plus various warranties including lifetime support. Our engineering team carefully designs each layout for efficiency, aesthetics, and future readiness — including battery compatibility. Triple layered Warranty model for lasting peace of mind which include warranties from NEDES, extended warranties from Manufacturer itself as well as the Lifetime 3rd party warranty. We bring local experience and national-level standards. And because we know your time matters, we move fast — without cutting corners. We install and you take control of your energy future with a system built to last — and perform.
Palmetto Energy
PremierPalmetto is leading the world into a clean energy future by making it easy for homeowners across the United States to switch from fossil fuels to solar energy. Our end-to-end approach takes the guesswork out of solar savings, guarding individual and natural resources from unnecessary waste.
Lumina Solar
PreferredOur founding and management team has over 50 years of combined residential solar experience. We have built our company efficiently to offer our customers a high quality experience. At Lumina, everything is about the customer. We make the process of going solar simple and enjoyable. We take care of all potential hassles, paperwork, and permits. Our goal is to help you get the best possible return from your solar panels. We work tirelessly to offer the best possible price and drive value up for our customers. We are a full-service solar company, handling the entire process for you. From sale to installation, you will be dealing solely with Lumina Solar. We provide the highest quality components and ensure the most seamless installation possible. We have a variety of cash, loan, and PPA options to help find what works best for each customer.
Advanced Roofing & Solar
VerifiedWe're local and you'll have our whole team's attention to create a custom solar solution.
Southern Exposure Solar
VerifiedSelect your local Richmonders to gain 25 year protection for your roof penetrations, solar panels, microinverters, and service on those components all backed by 120+ year old manufacturer CertainTeed with their Solstice Gold Warranty. Southern Exposure Solar is your trusted local partner for solar solutions in Virginia with plenty of references and great reviews to qualify that we are the right contractor for your big solar project. Please note that our W-2 employees complete all installations. Give us a call today to learn more! 804-965-4040
Ipsun Solar
VerifiedWe 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.
Supplier data sourced from the EnergySage API via our backend. Ratings and reviews are verified by EnergySage.
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