Virginia Solar Incentive Programs
Virginia Savings Estimator
Estimate your annual savings based on your electric bill and utility territory.
Virginia Solar Programs, 2026
Dominion Energy Virginia offers one of the strongest net metering policies in the Southeast. Excess solar generation credits your account at the full retail electricity rate, the same rate you pay for grid power, for every kilowatt-hour your system produces beyond your home's immediate consumption.
- Credit rate: Full retail rate (currently ~13 to 14¢/kWh for most residential customers)
- Carryover: Excess credits roll forward month-to-month within a 12-month netting period; year-end excess is paid only if you sign a power purchase agreement with Dominion
- Annual true-up: Any remaining credit at year-end is paid out or forfeited depending on rate class, confirm with Dominion at interconnection
- System size limit: Up to 25 kW for residential (standby charges apply above 20 kW AC; system may not exceed 150% of expected annual use); nonresidential up to 3 MW
- Interconnection: Dominion's Customer Solar program; typical timeline 4 to 8 weeks
The Virginia State Corporation Commission (SCC) issued a significant ruling in September 2025 restructuring APCo's net metering tariff. The ruling preserves the full retail rate for most customers while introducing a tiered export credit for generation above annual consumption.
- Monthly offset: Full retail rate credit for generation up to 100% of monthly usage, preserved unchanged
- 12-month banking: Unused credits bank for 12 months at full retail rate, preserved unchanged
- Above 100% annual use: New customers exporting generation beyond their annual consumption receive approximately 5.7¢/kWh (the avoided cost rate) for that surplus only
- Existing customers grandfathered: Customers interconnected before the September 2025 ruling are grandfathered on full retail net metering terms for 25 years from their interconnection date
- Practical impact: Most residential systems sized to meet ~80 to 100% of annual usage are unaffected; oversized systems earning large exports see reduced credit on surplus generation only
Virginia Code §58.1-3661 mandates a full property tax exemption on solar energy equipment for all localities statewide. This is not an optional county-level program, it applies uniformly across all 95 Virginia counties and independent cities.
- System size: Mandatory full exemption for residential systems up to 25 kW DC
- Coverage: The added assessed value attributable to the solar installation is completely excluded from real property tax calculations
- Application: Notify your local assessor's office at time of installation; most localities auto-apply upon receiving permit records
- Larger systems: Systems above 25 kW may receive partial exemption depending on locality
Virginia solar owners may sell the Renewable Energy Certificates (RECs) generated by their systems. Each REC represents one megawatt-hour (MWh) of solar electricity produced and carries environmental attributes that utilities and corporations purchase to meet renewable energy mandates.
- Dominion REC purchase program: Dominion Energy Virginia purchases RECs from qualifying residential solar customers at approximately $10 per REC annually
- Generation basis: A 10 kW system producing ~12,000 kWh/year generates approximately 12 RECs, worth ~$120/year under Dominion's program
- Important trade-off: Selling RECs means you cannot claim your electricity as "renewable", only the buyer can make that claim. Some homeowners prefer to retain RECs for personal environmental claims.
- Alternative markets: RECs can also be sold on open spot markets (PJM-GATS), though prices fluctuate and volume from a single home system is small
Virginia does not provide a sales tax exemption for residential solar equipment. Virginia's combined sales tax (5.3% in most areas, 6% in Northern Virginia, Hampton Roads and Central Virginia, 7% in the Historic Triangle) applies to solar panels, inverters, racking, and installation materials at the time of purchase.
- Solar equipment for commercial and industrial applications may qualify for certain exemptions, consult a tax professional
- Some contractors may separately classify labor from equipment on invoices; labor is generally not subject to sales tax, but equipment is
The federal 30% Investment Tax Credit (ITC) for residential solar installations, established under the Inflation Reduction Act, expired on December 31, 2025. No federal income tax credit is available for residential solar systems whose installation is completed on or after January 1, 2026.
- Systems whose installation was completed in 2025 or earlier that have not yet claimed the credit may still be eligible, consult a tax professional
- Commercial and utility-scale solar may have different rules under separate federal provisions, verify with a tax advisor
- No successor federal residential solar credit has been enacted as of the September 2026 verification date
Virginia Utility Territories
| Utility | Service Area | Net Metering Rate | Key Note |
|---|---|---|---|
| Dominion Energy Virginia | Northern VA, Richmond, Hampton Roads, Central VA | Full retail, monthly carryover | Serves majority of VA population; straightforward program |
| Appalachian Power (APCo) | Roanoke, Lynchburg, NRV, SW Virginia, Blacksburg | Full retail up to 100% use; ~5.7¢/kWh above (new customers) | Sep 2025 SCC ruling; existing customers grandfathered 25 yrs |
| Electric Cooperatives | Rural areas statewide (e.g., Shenandoah Valley, Southside, Northern Neck) | Varies by co-op; many at retail rate | Contact your co-op directly; rates and limits differ. Examples: Central Virginia EC, Rappahannock EC, BARC Electric |
| Municipal Utilities | Selected independent cities and towns | Varies; many follow state retail rate guidelines | Examples: Bristol Virginia Utilities, Harrisonburg Electric Commission, Danville Utilities. Verify directly. |
Get quotes from Virginia solar installers
Local installers know the Virginia incentive landscape. Compare quotes and see exactly what you'd save with a system sized for your home.