Virginia homes pay about 17.6 cents per kWh, close to the national average, and the state keeps full-retail, one-to-one net metering. You keep any SRECs your system generates. Residential systems of 25 kW or less are exempt from Virginia property tax. The 30% federal homeowner credit ended after December 31, 2025, so 2026 buyers plan without it.
Virginia is a real solar state now, not a fringe one. Rooftop systems here run on full-retail net metering, your solar renewable energy certificates stay yours, and a small residential system pays no state property tax on the value it adds. Power prices sit close to the national average rather than at Northeast highs, so the math is about steady, long-run savings, not a quick windfall. This page covers what solar costs in Virginia, the incentives that actually apply in 2026, how net metering works at Dominion versus Appalachian Power, and how to tell if it is worth it for your home.
What solar costs in Virginia
Virginia residential electricity runs about 17.6 cents per kWh (EIA Electric Power Monthly, Table 5.6.A, May 2026), which is close to the national average of roughly 18.4 cents and below most of the Northeast. That matters for expectations: solar in Virginia is a solid long-term investment rather than the fast payback you see in a high-rate state, because every kilowatt-hour your roof makes offsets a moderately priced grid kilowatt-hour. Your real number depends on your own rate, roof, and usage. For a full cost and payback breakdown, see our Virginia solar cost and payback guide. For the full data set behind these figures, see our Virginia solar data and statistics.
Production is the other half of the cost picture. Estimate your roof’s likely output with NREL’s free PVWatts calculator; actual output depends on pitch, orientation, and shading.
According to MySolarFY’s analysis (August 2026), a typical 7 kW rooftop system in Richmond produces about 9,409 kWh a year (modeled with NREL PVWatts), which at Virginia’s roughly 17.6 cents per kWh offsets about $1,650 of grid power in a year. Treat that as an estimate; your production and rate set your actual figure.
Virginia solar incentives in 2026
Virginia’s stack is built on durable rules rather than cash rebates: full-retail net metering, customer-owned SRECs, and a property-tax exemption for home-sized systems. None of them depend on the federal tax credit that ended after 2025. Here is what each one does and the fine print worth knowing.
| Incentive | What it does in 2026 | Who benefits | Source |
|---|---|---|---|
| Net metering | Full-retail, one-to-one kWh bill credit for the power you export, credited monthly | The homeowner | Virginia Energy |
| SRECs | One certificate per 1,000 kWh generated; Virginia has no mandatory residential SREC market, so any sale is on a limited, voluntary market where prices vary | The system owner keeps them | Virginia SCC order (2026) |
| Property-tax exemption | Residential systems of 25 kW or less are exempt from state and local property tax; larger certified equipment is exempt only where the locality adopts the option | The homeowner | Code of Virginia 58.1-3661 |
| Federal residential (Section 25D) | The 30% homeowner credit ended for expenditures made after December 31, 2025 | No 2026 homeowner-buyer | IRS |
On SRECs, be realistic. Under the Virginia State Corporation Commission’s 2026 Dominion order, the certificates your system earns remain your property rather than the utility’s (pv magazine coverage of the SCC order). Virginia does not run a mandatory retail-compensation SREC market like Maryland or New Jersey, so treat SREC income as a limited, voluntary-market maybe, not a guaranteed line item. Verify whether a buyer and a current price exist before you count on it.
On property tax, size decides. A home-sized system of 25 kW or less is exempt from Virginia property tax statewide, so your assessment does not rise because you added panels (Code of Virginia 58.1-3661). Larger certified solar equipment is exempt only in localities that have adopted the local option, so if your system is unusually large, verify your county or city ordinance.
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Net metering in Virginia
Virginia law gives customers of the investor-owned and cooperative utilities full-retail net metering: each kWh you export offsets a kWh you later import at the retail rate, credited on your monthly 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 rather than to sell power back at scale. For a plain-English walk-through of how the credit works, see how net metering credits your solar exports. For the Virginia specifics, including the 25 kW residential cap, the annual true-up, and Dominion’s standby charge, see our 2026 Virginia net metering guide.
The 2026 Dominion decision kept it intact. In its 2026 order on Dominion Energy Virginia’s “NEM 2.0” filing, the State Corporation Commission preserved one-to-one kWh crediting and left existing solar customers grandfathered under their current terms (pv magazine; Dominion net metering). New Dominion interconnections add a small monthly administrative charge and pay any year-end surplus at a lower export rate rather than full retail, so confirm the current tariff figures with Dominion before you size a system. To see how the monthly credit lowers your bill, read how solar lowers your electricity bill.
Dominion versus Appalachian Power
Which utility serves you changes the fine print. Dominion Energy Virginia covers most of the state, from Northern Virginia and Richmond to Virginia Beach and Norfolk in Hampton Roads. Appalachian Power (APCo) serves southwest Virginia. Both follow the statewide full-retail net-metering rule, but each has its own tariff, so the exact charges and year-end treatment differ.
| Detail | Dominion Energy Virginia | Appalachian Power (APCo) |
|---|---|---|
| Service area | Most of Virginia, including Northern Virginia, Richmond, and Hampton Roads | Southwest Virginia |
| Net metering | Full-retail, one-to-one monthly kWh credit | Full-retail monthly kWh credit under statewide law; verify APCo’s tariff details |
| Residential standby charge | Applies only to systems larger than 20 kW AC, so a typical rooftop home is not charged | Verify with APCo’s current Virginia tariff |
| Recent policy | 2026 SCC order kept one-to-one crediting; existing customers grandfathered | Governed by the same statewide net-metering law and SCC rules |
| Where to confirm | Dominion net metering | Virginia Energy |
The practical takeaway: most Virginia rooftops are well under 20 kW, so the Dominion standby charge does not apply. For the full breakdown of net metering, the standby charge, and interconnection on a Dominion account, see our Dominion Energy Virginia solar and net metering guide. If you are in APCo territory, ask your installer to pull the current APCo net-metering tariff so the export and any fixed charges are quoted from the utility’s own schedule, not a statewide summary.
Solar rights and HOAs in Virginia
Virginia protects a homeowner’s right to install solar. A community association cannot prohibit you from putting a solar energy collection device on your own property unless that prohibition is written into the association’s recorded declaration; associations may still 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.
Is solar worth it in Virginia?
For most Virginia homeowners who own their system, yes, though the payback is steady rather than dramatic. Because the state’s power price sits near the national average, the return comes from full-retail net metering plus the property-tax exemption compounding over a 20-to-25-year system life, not from a single large check. How you pay decides how much of that you keep.
| How you pay | Up-front cost | Who owns it | SRECs and net metering |
|---|---|---|---|
| Cash | Full system price | You | You keep the SRECs and the net-metering credits |
| Solar loan | Little or none, financed over time | You | You keep the SRECs and the net-metering credits |
| Lease or PPA | No up-front cost where you qualify | A third-party company | The company keeps the SRECs; you still see net-metering bill credits |
If you own the system with cash or a loan, you keep the net-metering credits, any SRECs, and the property-tax exemption. If you lease or sign a PPA, the company that owns the panels keeps the SRECs and your benefit is a lower or fixed power price with no up-front cost; lease and PPA terms typically run 20 to 25 years and may include an annual price escalator. Neither path gives a 2026 Virginia homeowner the federal residential credit, which ended after December 31, 2025. A separate commercial credit (Section 48E) can apply to a leased or PPA system, but the business that owns it claims that credit, not you (IRS). For a deeper payback walk-through, see the financial case for whether solar panels are worth it, and for what the federal change means, read the 2026 federal solar tax credit update.
How to choose a solar installer in Virginia
Virginia has a deep market of licensed installers. Rather than chasing a “best” list, screen any company against objective criteria:
- NABCEP certification, the industry’s professional standard for PV installers.
- A valid Virginia contractor license (Class A or B with the appropriate electrical specialty) through the Virginia DPOR.
- A clear workmanship and equipment warranty in writing.
- Real Virginia experience, verifiable reviews, and help with your utility’s interconnection paperwork.
- A written production estimate and a transparent quote you can compare. For a checklist, see the right questions to ask a solar installer.
MySolarFY matches you with licensed installers that serve your area so you can compare real local quotes side by side, with no obligation. Browse other states on our solar by state guide, or learn more about the MySolarFY team and how we work.
Frequently asked questions
What solar incentives does Virginia offer in 2026? Virginia’s durable benefits are full-retail, one-to-one net metering, customer ownership of any SRECs you generate, and a property-tax exemption for residential systems of 25 kW or less. Virginia has no statewide solar rebate or state income-tax credit in 2026, and it does not run a mandatory residential SREC market, so treat SREC income as a limited, voluntary-market possibility. The 30% federal homeowner credit ended after December 31, 2025.
Does Virginia have net metering? Yes. Customers of the investor-owned utilities (Dominion Energy Virginia and Appalachian Power) and the cooperatives get full-retail, one-to-one net metering, credited monthly, for residential systems up to 25 kW. In its 2026 order on Dominion’s plan, the State Corporation Commission kept one-to-one kWh crediting and grandfathered existing customers, while new Dominion interconnections carry a small monthly administrative charge and a lower year-end surplus rate, so confirm the current tariff before you size a system.
Do you keep your SRECs in Virginia? Yes. Under the SCC’s 2026 Dominion order, the solar renewable energy certificates your system earns remain yours. But Virginia does not have 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 vary. Verify current buyers and pricing before counting SREC income in your payback.
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, so adding panels does not raise your assessment (Code of Virginia 58.1-3661). Larger certified equipment is exempt only in localities that have adopted the local-option ordinance, so confirm your county or city rule if your system is unusually large.
Can my HOA stop me from going solar in Virginia? Generally no. A community association cannot prohibit solar on your own property unless the ban is written into its recorded declaration, though it may set reasonable restrictions on size, place, and manner (Code of Virginia 55.1-1951.1 and 55.1-1820.1). If your association objects, ask to see the exact recorded covenant language before assuming solar is not allowed.
Is solar worth it in Virginia? For most owners, yes, as a steady long-term investment. Virginia’s power price is near the national average, so the return builds from full-retail net metering and the property-tax exemption over a 20-to-25-year system life rather than from a fast payback. Owning the system through cash or a loan captures the most value; a lease or PPA trades that ownership for no up-front cost and a lower or fixed power price.
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.
