Appalachian Power (APCo) serves southwest Virginia, from Roanoke and Lynchburg to Bristol. It credits home solar at full-retail, one-to-one net metering over a 12-month period, and the Virginia SCC preserved that in its 2025 order rejecting APCo’s proposed cut. APCo power runs about 16.8 cents per kWh. The 30% federal homeowner credit ended after December 31, 2025.
If Appalachian Power is your electric utility, this is how rooftop solar pays you back in 2026. APCo, an American Electric Power company, serves southwest and western Virginia, a different footprint from Dominion Energy, and it credits the power your panels export under Virginia’s full-retail net-metering rules. In August 2025 the State Corporation Commission rejected APCo’s own proposal to slash those credits, so one-to-one net metering held for APCo customers, which is the single most important fact for a southwest Virginia homeowner weighing solar right now. This page covers APCo’s net metering, the 2025 fight that preserved it, how to interconnect, APCo’s Shared Solar option, and how to tell if solar is worth it on your account.
Appalachian Power Virginia at a glance
APCo runs the net-metering and interconnection process across its southwest Virginia territory. Here is the shape of it in 2026, with the figures that move over time flagged so you verify them before you commit.
| Detail | What to know |
|---|---|
| Service territory | Southwest and western Virginia, including the Roanoke, Lynchburg, Blacksburg, Salem, Pulaski, Wytheville, and Bristol areas; this is APCo’s footprint, distinct from Dominion Energy’s |
| Residential rate | A typical APCo residential customer using 1,000 kWh a month was billed about $168 effective May 2026, roughly 16.8 cents per kWh all in; your APCo rate schedule and bill set your exact figure. Verify the current rate |
| Net metering | Full-retail, one-to-one kWh credit over a 12-month netting period; residential systems up to 25 kW |
| Standby charge | APCo’s Virginia net-metering materials do not list a residential standby charge, and Virginia solar advocates note APCo residential net-metering customers are not billed demand charges. Verify current terms with APCo before you size a large array |
| Year-end surplus | Any surplus left after the 12-month period is bought back at an avoided-cost rate the SCC set near 5.6 cents per kWh in its 2025 order, far below retail, so sizing to your own usage is the smart move |
| Before you switch on | APCo must approve interconnection and set a bidirectional meter before the system runs on the grid |
| Source | APCo Virginia net metering FAQ |
According to MySolarFY’s analysis (August 2026), a typical 7 kW rooftop system in Roanoke, in Appalachian Power’s southwest Virginia territory, produces about 9,019 kWh a year (modeled with NREL PVWatts), which at APCo’s roughly 16.8 cents per kWh offsets about $1,515 of grid power in a year. Treat that as an estimate; your roof, shading, and rate set your actual figure.
How APCo credits your solar: net metering
APCo credits every kWh you export at the full retail rate, one for one, and reconciles your account over a 12-month period. Under Virginia law, APCo customers get full-retail net metering. The power your panels send to the grid offsets the power you later pull back, at the retail rate, netted on your bill (Virginia Energy; SCC net-metering regulations, Chapter 315). Residential systems can net-meter up to 25 kW, and the system is meant to be sized to your own annual usage, not to sell power back at scale. For a plain-English walk-through of the mechanics, see how net metering credits your solar exports.
The 2025 SCC decision kept it intact for APCo. APCo asked the State Corporation Commission to cut what it pays for excess solar, proposing to credit exports at roughly 4.9 cents per kWh and to switch to instantaneous netting instead of the 12-month period. In August 2025 the SCC rejected that proposal and preserved one-to-one, full-retail net metering for APCo residential customers (Solar United Neighbors; Virtue Solar coverage of the SCC order). The catch is at year-end: any surplus left after the 12-month period is bought back at an avoided-cost rate, not full retail, which is why oversizing to chase a big annual check does not pay. To see how the monthly credit lowers your bill, read how solar lowers your electricity bill.
| What you earn | How it is valued | Who receives it |
|---|---|---|
| Net-metering credits | Full retail, one for one, per kWh you export, netted over 12 months | The APCo account holder |
| Year-end surplus | An avoided-cost rate the SCC set near 5.6 cents per kWh in 2025, well below retail | The account holder |
| SRECs | One per 1,000 kWh; limited, voluntary market, so verify a buyer and price | The system owner |
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The 2025 APCo net-metering fight, and why it matters
APCo tried to weaken net metering in 2025, and homeowners kept it whole. Starting in 2024, APCo asked the SCC to pay far less for exported solar, proposing an export credit around 4.9 cents per kWh and a shift to instantaneous netting, which would have measured exports second by second instead of over a 12-month period. Both changes would have cut the value of a rooftop system on an APCo account. Solar United Neighbors and other parties intervened, and in August 2025 the SCC rejected the proposal and left one-to-one, full-retail net metering in place for APCo customers (Solar United Neighbors).
The practical takeaway: net metering on an APCo account today works the way solar buyers hope it does, but it is not carved in stone. Utilities file to change these terms periodically, so confirm the current export credit and netting period with APCo, or ask your installer to show you APCo’s current net-metering rider, before you sign.
Does APCo charge a standby fee on home solar?
For a typical APCo home system, no standby charge is listed. APCo’s Virginia net-metering materials do not describe a residential standby charge, and Virginia solar advocates note that APCo residential net-metering customers are not billed demand charges (Solar United Neighbors, Virginia net metering). That is a real difference to understand: standby and demand charges are exactly the kind of tariff detail that varies by utility, so do not assume another Virginia utility’s rules apply to your APCo account.
Because these charges can change with a future tariff filing, verify the current terms directly. Ask your installer to price your system against APCo’s current net-metering rider and confirm there is no standby or demand charge on your residential account before you commit (APCo Virginia net metering FAQ).
How to connect solar to APCo in Virginia
Connecting a home system to APCo follows a set order, and the key rule is that you cannot turn the system on until APCo approves it. The general path is:
- Net-metering and interconnection application. You or your installer file an application with APCo for a residential system of 25 kW or less.
- Review and agreement. APCo reviews the application and issues an interconnection and net-metering agreement to sign and return.
- Install and inspect. The system is installed and passes your county or city electrical inspection.
- Meter set. APCo installs or reconfigures a bidirectional net meter that measures both the power you draw and the power you export.
- Permission to operate. APCo gives the final go-ahead. The system may not run on the grid before that approval.
A licensed installer normally manages this whole process for you and knows APCo’s current forms and timelines. For the questions to ask before you sign, see the right questions to ask a solar installer. Confirm the current application steps on APCo’s generating-equipment page, since utilities update their process periodically.
No roof for panels? APCo’s Shared Solar option
If your roof cannot host panels, or you rent, APCo runs a Shared Solar Program that lets eligible customers subscribe to a portion of a larger community solar project and receive bill credits, rather than installing their own system. Program capacity, eligibility, and credit values are set by the program terms and can fill up, so check current availability with APCo. Shared Solar is a separate path from rooftop net metering, and the economics differ, so weigh both if owning panels is not an option for your home.
The rest of Virginia’s solar benefits on an APCo account
Beyond net metering, Virginia gives APCo customers a few statewide benefits, with a couple of common misconceptions worth clearing up:
- You keep your SRECs. The solar renewable energy certificates your system earns remain yours, one per 1,000 kWh generated. But Virginia does not run a mandatory retail-compensation SREC market like Maryland, so treat any SREC sale as a limited, voluntary-market maybe and verify a buyer and price exist before you count on it.
- A property-tax exemption on home-sized systems. Residential systems of 25 kW or less are exempt from Virginia property tax, so your assessment does not rise because you added panels (Code of Virginia 58.1-3661). Larger equipment is exempt only where the locality has adopted the option, so verify your county or city ordinance for a big system.
- Solar rights against an HOA. A community association cannot flatly prohibit rooftop solar unless that ban is written into its recorded declaration, though it may set reasonable size and placement rules (Code of Virginia 55.1-1951.1).
These benefits and the SRECs go to the system owner, so on a lease or PPA the company that owns the panels typically keeps the SRECs and often the net-metering bill credits too, while your benefit is a lower or fixed power price with no up-front cost.
What changed federally, and what it means for APCo customers
The federal homeowner credit is gone, but Virginia’s net metering and property-tax exemption are not. The 30% federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, under the One Big Beautiful Bill Act, so an APCo customer who buys solar with cash or a loan in 2026 cannot claim it (IRS). APCo’s full-retail net metering and Virginia’s property-tax exemption were not affected. For the full timeline, see what the federal solar tax credit change means in 2026.
One federal exception exists, and it is not yours to claim. A separate commercial credit, Section 48E, is claimed by the business that owns a leased or PPA system, not by the homeowner. For a leased system on an APCo account you do not file for a federal credit yourself; the company that owns the panels does. The 25D homeowner credit, by contrast, ended after December 31, 2025.
How to choose a solar installer in APCo territory
From Roanoke to Bristol, APCo’s southwest Virginia territory has a growing pool of licensed installers to compare. Rather than chasing a “best” list, screen any installer against objective criteria:
- NABCEP certification, the industry’s professional standard for PV installers.
- Proper Virginia licensing and any required local electrical and building permits.
- A clear workmanship and equipment warranty in writing.
- Real experience with APCo interconnection, so the paperwork and permission to operate go smoothly.
- A written production estimate and a transparent quote that is honest about the year-end surplus rate and the current net-metering terms. To weigh payback, see the financial case for whether solar panels are worth it.
MySolarFY matches you with licensed installers that serve your area so you can compare real local quotes side by side, with no obligation. For the statewide picture, see our Virginia solar incentives guide, and if a neighbor is on a different utility, compare our Dominion Energy Virginia solar guide.
Frequently asked questions
Does Appalachian Power offer net metering in Virginia?
Yes. APCo credits every kWh you export at the full retail rate, one for one, and reconciles your account over a 12-month period, so your solar directly offsets the power you buy (APCo Virginia net metering FAQ). Residential systems up to 25 kW qualify. Any surplus left after the 12-month period is bought back at a lower avoided-cost rate, so sizing your system close to your annual usage gives the best result.
Did APCo change net metering in 2025?
No, the change was rejected. APCo asked the State Corporation Commission to cut its export credit to around 4.9 cents per kWh and switch to instantaneous netting, but in August 2025 the SCC rejected the proposal and preserved one-to-one, full-retail net metering for APCo residential customers (Solar United Neighbors). Because utilities file to change these terms periodically, confirm the current export credit and netting period with APCo before you sign.
Does APCo charge a standby fee on residential solar?
APCo’s Virginia net-metering materials do not list a residential standby charge, and Virginia solar advocates note APCo residential net-metering customers are not billed demand charges. Standby and demand charges vary by utility, so do not assume another Virginia utility’s rules apply to your APCo account. Because these charges can change with a future tariff filing, ask your installer to confirm there is no standby or demand charge on your residential account before you commit.
What areas of Virginia does Appalachian Power serve?
APCo serves southwest and western Virginia, including the Roanoke, Lynchburg, Blacksburg, Salem, Pulaski, Wytheville, and Bristol areas. That footprint is distinct from Dominion Energy Virginia, which serves Northern Virginia, Richmond, and Hampton Roads. Your electric bill names your utility, so check it to confirm whether you are an APCo or a Dominion customer before you compare net-metering terms.
What happened to the federal solar tax credit?
The 30% federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, under the One Big Beautiful Bill Act, so an APCo customer who buys solar in 2026 with cash or a loan cannot claim it. A separate commercial credit (Section 48E) can apply to leased and PPA systems, but the business that owns the system claims it, not the homeowner. Virginia net metering and the property-tax exemption were not affected.
How do I connect solar to APCo?
You or your installer file a net-metering and interconnection application with APCo for a residential system of 25 kW or less, APCo reviews and issues an agreement to sign, the system is installed and passes a local inspection, APCo sets a bidirectional meter, and then APCo gives permission to operate (APCo Virginia net metering FAQ). You cannot turn the system on until you have that approval, and a licensed installer usually handles the paperwork for you.
Reviewed by the MySolarFY team. Figures were verified against the linked Appalachian Power, Virginia SCC, Virginia Energy, Code of Virginia, IRS, and NREL sources as of August 2026; the export credit, the year-end avoided-cost rate, and net-metering terms all move over time, so confirm current terms with Appalachian Power and the Virginia State Corporation Commission before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional about your own situation. Learn more about the MySolarFY team and how we work.
MySolarFY is a free service that matches homeowners with licensed solar installers. We are not an installer, financing company, or government program. “No up-front cost” refers to qualifying lease or PPA financing, where eligible homeowners may have no out-of-pocket cost at installation. Lease and PPA terms typically run 20 to 25 years, may include an annual price escalator, and total payments may exceed the cost of a cash purchase; on a lease or PPA the SRECs and bill credits often go to the company that owns the system, not the homeowner. Homeowners do not get the federal residential credit that ended after December 31, 2025. Solar panels are not free and monthly payments apply. Eligibility, savings, incentives, and rates vary and are not guaranteed. See our full disclaimer.
