
Fast-Growing Solar Market in the Mid-Atlantic
$1,100/yr
Avg. Annual Savings
4.9 peak hrs/day
Peak Sun Hours
11–15 years
Payback Period
$13,000–$20,000
Avg. System Cost
Overview
Virginia's solar market has been growing rapidly, driven by the Virginia Clean Economy Act which mandates 100% renewable electricity by 2045. Dominion Energy and Appalachian Power have been expanding their solar programs, and the state offers a property tax exemption that makes the investment more attractive.
Virginia homeowners benefit from net metering, utility rebate programs, and Note: the 30% federal ITC expired December 31, 2025.
Benefits
Virginia homeowners save an average of $1,100/yr after going solar.
Virginia offers property tax exemptions, net metering credits, and other state-level incentives that reduce your net cost. The federal 30% ITC expired Dec 31, 2025.
Solar panels increase your home's resale value — and are excluded from property tax in most states.
Lock in your electricity rate and protect against rising utility costs for 25+ years.
Available Incentives
Dominion Energy Virginia offers rebates for residential solar installations through its solar programs, reducing your upfront system cost.
Virginia law requires Dominion Energy and Appalachian Power to offer net metering to residential solar customers.
Virginia localities may exempt solar installations from property tax assessments. Check with your local government for specific exemption availability.
The federal 30% residential solar tax credit (Section 25D) expired December 31, 2025 and is no longer available for new purchases in 2026. Virginia homeowners should focus on state-specific programs including property tax exemptions, net metering, and any available utility rebates.
The federal solar tax credit expired December 31, 2025 — here's what that means for Virginia homeowners and what options remain.
The 30% federal residential solar tax credit expired December 31, 2025. Virginia does not have a state-level solar income tax credit, making it one of the few states where the ITC expiration has the most direct impact on homeowner economics. The full system cost is now out-of-pocket before any utility-level savings. A typical 8 kW system in Virginia that cost ~$11,200 after the ITC now costs $16,000–$18,000 upfront.
Dominion Energy Virginia has offered rebates for residential solar installations through its Renewable Generation program. Rebate availability and amounts change annually based on program funding — homeowners should verify current terms directly with Dominion before purchasing. Appalachian Power (AEP Virginia) customers in western Virginia have limited solar rebate options; net metering remains the primary financial driver.
Virginia's net metering law requires Dominion Energy and Appalachian Power to credit excess solar generation at the retail rate. With electricity rates averaging $0.14/kWh and 4.5 peak sun hours per day, solar payback in Virginia runs 11–15 years in 2026 — longer than states with active state credits. Property and sales tax exemptions for solar equipment remain intact statewide.
Common Questions
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