The real Virginia solar incentives in 2026 are policy rules, not cash rebates: full-retail, one-to-one net metering, homeowner ownership of any SRECs you earn, and a property-tax exemption for residential systems of 25 kW or less (Code 58.1-3661). Virginia has no statewide rebate, income-tax credit, or sales-tax exemption. The 30% federal 25D credit ended after December 31, 2025.
If you searched for a Virginia solar rebate or a state tax credit, here is the honest picture: Virginia does not hand out cash for going solar. What it gives you instead are durable rules that protect the money your panels save. This guide walks each 2026 incentive one at a time, tells you exactly who qualifies, and flags what you should verify with the source before you count on it. For the wider view of cost, payback, and whether solar fits your home, start with our Virginia solar overview.
What changed for Virginia solar incentives in 2026
One big thing changed at the federal level, and nothing shrank at the state level. The 30% federal residential solar credit (Section 25D) ended for systems placed in service after December 31, 2025, so a 2026 Virginia buyer plans without that 30% back (IRS guidance on the 2025 law change). Virginia’s own supports, net metering, SREC ownership, and the property-tax exemption, are set in state law and did not depend on that federal credit, so they carry into 2026 unchanged. On the utility side, the State Corporation Commission’s 2026 order on Dominion Energy Virginia kept one-to-one net-metering credit and grandfathered existing solar customers (pv magazine coverage of the SCC order).
The Virginia solar incentives that apply in 2026
Here is the full stack a Virginia homeowner can actually use this year, with the fine print that decides who benefits and a primary source for each line.
| Incentive | What it does in 2026 | Who qualifies | Source |
|---|---|---|---|
| Net metering | Full-retail, one-to-one kWh credit for exported power, credited monthly on your bill | Residential customers of Dominion, Appalachian Power, and the cooperatives, up to 25 kW | Virginia Energy |
| Property-tax exemption | Residential systems of 25 kW or less pay no state or local property tax on the added value; larger equipment is exempt only where a locality adopts the option | Home-sized systems statewide; larger ones only in adopting localities | Code of Virginia 58.1-3661 |
| SREC ownership | You keep one certificate per 1,000 kWh generated; any sale is on a limited, voluntary market where a buyer may or may not exist | The system owner (you, if you buy; the company, on a lease or PPA) | Virginia SCC order (2026) |
| Solar-rights protection | An HOA cannot flatly ban rooftop solar on your own property unless the ban is in its recorded declaration; reasonable size and placement rules are allowed | Homeowners in HOAs and condominiums | Code of Virginia 55.1-1951.1 |
| Federal 25D credit | The 30% homeowner credit ended for systems placed in service after December 31, 2025, so it does not apply in 2026 | No 2026 homeowner buyer | IRS |
Net metering: the incentive that does the heavy lifting
With no state rebate to lean on, net metering is where most of your savings live. Virginia law gives customers of the investor-owned utilities (Dominion Energy Virginia and Appalachian Power) and the electric cooperatives full-retail, one-to-one credit: each kilowatt-hour you export offsets a kilowatt-hour you later pull from the grid at the retail rate, credited monthly (SCC net-metering regulations, Chapter 315). Residential systems can net-meter up to 25 kW and are meant to be sized to your own yearly usage. New Dominion interconnections carry a small monthly administrative charge and settle any year-end surplus at a lower export rate rather than full retail, so verify the current tariff figures with the utility before you size a system. For the plain-English mechanics, see how net metering credits your solar exports, and for the Dominion-specific rules read our Dominion Energy Virginia solar and net metering guide.
The 25 kW property-tax exemption, explained
Adding solar raises your home’s value, and normally a higher assessed value means a higher tax bill. Virginia removes that penalty for home-sized systems: residential solar of 25 kW or less is exempt from state and local property tax on the value it adds, statewide, so your assessment does not climb because you installed panels (Code of Virginia 58.1-3661). Above 25 kW, certified solar equipment is exempt only in localities that have adopted the local-option ordinance, so if you are planning an unusually large array, confirm your county or city rule before assuming the exemption applies.
According to MySolarFY’s analysis (August 2026), a typical 6 kW rooftop system in Virginia Beach produces about 8,628 kWh a year (modeled with NREL PVWatts). At Virginia’s residential rate of about 17.6 cents per kWh, full-retail net metering lets that output offset roughly $1,520 of grid power in a year. Treat it as an estimate; your roof, shading, and rate set your real number.
SRECs: yours to keep, but a limited market
Under the SCC’s 2026 Dominion order, the solar renewable energy certificates your system earns remain your property rather than the utility’s (pv magazine coverage of the SCC order). That ownership is the incentive. The caution is the market: Virginia does not run a mandatory retail-compensation SREC market like Maryland or New Jersey, so any sale happens on a limited, voluntary market where a buyer may or may not exist and prices swing. Treat SREC income as a possible bonus, not a guaranteed line in your payback, and verify current buyers and pricing before you count on it.
Solar rights: what your HOA can and cannot do
Virginia protects your right to install solar. A community association cannot prohibit a solar energy collection device on your own property unless that prohibition is written into the association’s recorded declaration, though it may set reasonable restrictions on size, place, and manner (Code of Virginia 55.1-1951.1 for property owners’ associations; 55.1-1820.1 for condominiums). If your HOA pushes back, ask to see the exact recorded covenant language before you assume solar is off the table.
See which solar programs apply at your Virginia address
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What Virginia does not offer
Knowing what is missing keeps you from chasing a program that does not exist. As of August 2026, Virginia has:
- No statewide cash rebate for residential solar.
- No state income-tax credit for going solar.
- No statewide sales-tax exemption on residential solar equipment.
- No mandatory renewable-portfolio SREC market that guarantees a price for your certificates. The Virginia Clean Economy Act sets utility clean-energy targets, but there is no required retail SREC payment for homeowners, so treat SREC sales as voluntary and uncertain.
That is why the Virginia case is built on net metering and the property-tax exemption compounding over a 20-to-25-year system life, not on a one-time check. For how the numbers pencil out, see our Virginia solar cost and payback guide. For why the 30% federal residential credit no longer applies after it ended on December 31, 2025, read our federal solar tax credit update.
How ownership changes which incentives you keep
How you pay decides who keeps each benefit. If you buy the system with cash or a solar loan, you own it and you keep the net-metering credits, any SRECs, and the property-tax exemption. If you lease or sign a power-purchase agreement (PPA), a third-party company owns the panels: it keeps the SRECs, while you still see net-metering bill credits and a lower or fixed power price with no up-front cost.
| How you pay | Who owns the system | Net-metering credits | SRECs and property-tax exemption |
|---|---|---|---|
| Cash or solar loan | You | You keep them | You keep any SRECs and the property-tax exemption |
| Lease or PPA | A third-party company | You still see the bill credits | The company keeps the SRECs; the property-tax exemption still applies to the equipment |
A separate commercial clean-electricity credit (Section 48E) can apply to a leased or PPA system, but the business that owns it claims that credit, not you (IRS). No path gives a 2026 Virginia homeowner the federal residential 25D credit, which ended after December 31, 2025.
Verify each incentive before you count on it
Incentive terms move, so confirm the current details from the source before you sign anything:
- Net metering: ask your installer to pull your utility’s current net-metering tariff so the export rate, any monthly charge, and year-end treatment are quoted from the utility’s own schedule, not a statewide summary.
- Property tax: confirm your system is 25 kW or less for the statewide exemption; above that, verify your county or city has adopted the local option.
- SRECs: ask whether a buyer and a current price exist for Virginia certificates before treating them as income.
- HOA rules: request the recorded declaration language, not a verbal “no,” before assuming a ban is enforceable.
MySolarFY matches you with licensed installers that serve your area so you can compare real local quotes and confirm these details in writing. Browse other states on our solar by state guide.
Frequently asked questions
What are the main Virginia solar incentives in 2026? The durable ones are full-retail, one-to-one net metering, homeowner ownership of any SRECs your system earns, and a property-tax exemption for residential systems of 25 kW or less. Virginia has no statewide rebate, income-tax credit, or sales-tax exemption, and the 30% federal 25D credit ended after December 31, 2025.
Does Virginia have a solar tax credit in 2026? Virginia has no state solar tax credit. The federal residential credit (Section 25D) that offered 30% back ended for systems placed in service after December 31, 2025, so a 2026 Virginia buyer plans without it. Virginia’s benefits are net metering and the property-tax exemption instead.
Is there a property-tax exemption for solar in Virginia? Yes, for home-sized systems. Residential solar of 25 kW or less is exempt from Virginia state and local property tax on the value it adds, so panels do not raise your assessment (Code of Virginia 58.1-3661). Larger certified equipment is exempt only in localities that adopted the local-option ordinance.
Can I sell SRECs in Virginia? You keep any SRECs your system earns, but Virginia does not run a mandatory retail-compensation SREC market like Maryland or New Jersey. Any sale happens on a limited, voluntary market where a buyer may or may not exist and prices vary, so verify current buyers and pricing before counting SREC income.
Does Virginia offer a solar rebate or sales-tax exemption? No. As of August 2026 Virginia has no statewide cash rebate, no state income-tax credit, and no statewide sales-tax exemption for residential solar. The value comes from full-retail net metering and the property-tax exemption compounding over the life of the system.
Reviewed by the MySolarFY team. Figures were verified against the linked Virginia (Virginia Energy, Virginia SCC), Code of Virginia, EIA, NREL, and IRS sources as of August 2026; incentive amounts, net-metering tariffs, and utility rules change, so confirm current terms with each source 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 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.
