Virginia still offers full retail net metering. Dominion Energy Virginia and Appalachian Power credit the surplus power your panels send to the grid at your retail rate, about 17.61 cents per kWh statewide (EIA, May 2026). Credits roll forward up to a year, and the residential system cap is 25 kW.
If you are weighing rooftop solar in Virginia, net metering is the rule that decides how much a system actually saves you. It is the billing arrangement that credits the power your panels push back to the grid, and in 2026 Virginia keeps it at the full retail rate. This page is about that one mechanism: how the credits work, the 25 kW residential cap, the standby charge that hits only larger systems, and how net metering is different from selling SRECs. For the wider state picture, see our Virginia solar incentives and cost guide; for how the utility handles it in the largest territory, see Dominion Energy Virginia solar and net metering.
What net metering is worth here. According to MySolarFY’s analysis (August 2026), an 8 kW rooftop system in Richmond produces about 10,753 kWh a year (NREL PVWatts), which is worth roughly $1,890 in avoided electricity in year one at Virginia’s 17.61 cents per kWh residential rate (EIA, May 2026). Full retail net metering is what lets you keep that value on power you export instead of use.
How Virginia net metering works in 2026
Net metering credits the surplus your panels make at the same retail rate you pay for power. When your system produces more than your home is using, the extra flows back onto the grid and your utility logs it as a credit on your bill, netted against what you draw at night and on cloudy days. Virginia measures this monthly and lets any net excess carry forward as a kWh credit for up to a year (Code of Virginia, Section 56-594, as of 2026). The State Corporation Commission recently rejected a Dominion proposal that would have cut net-metering compensation, so the full-retail structure held (Virginia SCC, as of 2026). For a plain-English primer on how export credits work in general, see how net metering credits your solar exports.
| Detail | What to know in Virginia (verify with your utility) |
|---|---|
| Credit rate | Full retail rate on the power you export, netted monthly |
| Statewide residential rate | About 17.61 cents per kWh (EIA, May 2026) |
| Rollover | Net excess carries forward as a kWh credit for up to a year |
| Annual true-up | Any leftover credit is settled at the utility’s lower avoided-cost rate, so size to your own use |
| Residential system cap | 25 kW for residential customers of the investor-owned utilities (verify your utility’s current limit) |
| Standby charge | Dominion applies it only to residential systems larger than 10 kW; a typical home system under 10 kW pays none |
Is Dominion or Appalachian Power your utility?
Verify which utility serves you before you rely on any figure here, because Virginia has two very different investor-owned territories. Dominion Energy Virginia covers most of the state, including Northern Virginia, Richmond, and Hampton Roads, and runs the net-metering and interconnection process there. Appalachian Power (APCo) serves southwest Virginia, including the Roanoke and Bristol areas, on its own tariff. Both utilities follow the same state net-metering law and the 25 kW residential cap, but the details that cost or save you money, such as the exact standby-charge terms and interconnection steps, differ by utility, so confirm the current terms with the name printed on your bill. Parts of Virginia are also served by electric cooperatives and municipal systems that set their own rules, which is another reason to check your provider first.
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The 25 kW cap and Dominion’s standby charge
Two size rules shape how you plan a Virginia system. First, residential net metering is capped at 25 kW for customers of the investor-owned utilities, which is far larger than almost any home needs, so it rarely constrains a normal rooftop (DSIRE Virginia, as of 2026). Second, Dominion is allowed to charge a monthly standby fee, but only on residential net-metered systems larger than 10 kW; a typical home system under 10 kW is not subject to it. If you are considering a system in the 10 to 20 kW range, ask your installer to model the standby charge into the payback, and confirm the current figure with Dominion, since these terms can change.
Note: a Virginia solar bill is rarely exactly zero, and that is normal. Even with full net metering you still pay your utility’s fixed monthly service charge, and any month you import more than you export leaves a balance. Net metering lowers the energy you buy rather than erasing every line on the bill, and at the annual true-up any surplus you did not use settles at the lower avoided-cost rate, so the smart move is to size the system close to your own yearly usage rather than oversize it for credits you will not fully capture.
Net metering versus SRECs: two different things
Net metering credits your bill; an SREC is a separate certificate you may be able to sell. These are often confused, so keep them apart. Net metering is automatic once your system is approved and it lowers your electric bill. A Solar Renewable Energy Certificate, or SREC, is a tradable certificate your system earns for the clean power it generates, and Virginia’s market for these exists because the 2020 Virginia Clean Economy Act set a renewable standard that creates demand (DSIRE Virginia, as of 2026).
Who gets the SRECs depends on who owns the system, and the market is worth verifying before you count on it. If you buy your system with cash or a loan, you own it and you own its SRECs, so you may be able to register and sell them for extra income. On a lease or a power-purchase agreement, the company that owns the panels keeps the SRECs, not you. Virginia does not run a simple, guaranteed residential SREC program, and prices move, so treat any SREC income as a maybe and check a live market rather than baking a fixed number into your quote. This is income on top of the bill savings from net metering, never a replacement for it.
| Question | Net metering | SRECs |
|---|---|---|
| What it is | A bill credit for the power you export | A tradable certificate for the clean energy you generate |
| How you get value | Automatic once your system is approved | You register and sell them; price and access vary, so verify |
| Who keeps it | You, on your electric bill | The system owner: you if you buy, the provider on a lease or PPA |
| Certainty | Reliable, set by state law at the retail rate | Variable income, no guaranteed residential program in Virginia |
What changed federally in 2026
The federal homeowner tax credit is gone, and no Virginia program replaces it. The 30% federal Residential Clean Energy Credit (Section 25D) ended for systems placed in service after December 31, 2025, so a Virginia homeowner who buys solar with cash or a loan in 2026 cannot claim it (IRS, as of 2026). For the full timeline, see what the end of the federal solar tax credit means in 2026. What still carries the math in Virginia is net metering, plus the state’s other incentives; see our guide to solar incentives for how those fit together.
One federal credit remains, and it is not the homeowner’s to claim. A separate commercial credit, Section 48E, is claimed by the business that owns a leased or PPA system, not by the resident. So on a lease or PPA you do not file for a federal credit yourself, because the company that owns the panels does. A 2026 cash or loan buyer cannot claim the 30% federal credit, whatever a sales pitch may suggest, because Section 25D ended after December 31, 2025.
Net metering, cost, and incentives are three different questions
Net metering is only the crediting rule. What a system costs, and which incentives you can stack, are separate topics, so this page stays focused on the credits. For the statewide overview and pricing, use our Virginia solar hub. For the utility-specific process in the largest territory, see Dominion Energy Virginia solar. MySolarFY matches you with licensed installers who serve your area so you can compare real local quotes side by side, with no obligation.
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Frequently asked questions
Written and reviewed by the SolarFY Editor, our editorial team, and cross-checked against our data and methodology. Virginia net-metering terms were verified against the linked Code of Virginia (Section 56-594), the Virginia State Corporation Commission, DSIRE, the U.S. Energy Information Administration, NREL PVWatts, and the IRS as of August 2026. Net-metering rules, the residential cap, standby charges, and SREC market prices can change and vary by utility, so confirm current terms with Dominion Energy Virginia or Appalachian Power before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional about your own situation. Learn more about the SolarFY editorial 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 SREC income goes 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.
