Are solar panels worth it in Virginia?

7 factors to consider before getting solar panels in Virginia

ConsumerAffairs has heard from thousands of solar customers who have already gone through the installation process, including dozens from Virginia. Here’s what to consider before making the switch.

1. Solar panel installation costs
2. Your energy consumption
3. Virginia solar incentives
4. Net metering buyback rates
5. How you pay
6. How long you stay in your house
7. The solar company you hire

1. Solar panel installation costs: $10,000 to $30,000

Average solar panel costs in Virginia are comparable to the national average. Before the federal solar investment tax credit (ITC), a typical residential system ranges from $14,350 to $28,700. That price drops to between $10,045 and $20,090 after using the full 30% tax credit.

Most installers set the price according to the system's wattage, with a typical cost between $2.50 and $5 per watt. “Cost per watt” is a little like looking at the price per square foot when you buy a house. It helps you compare the value of solar energy systems in different sizes. In Virginia, the average cost per watt is $2.87.

Average solar panel installation cost by system size in Virginia

2. Your current energy consumption

It’s smart to get your electrical loads as low as possible before going solar. That way, you can get a smaller system, which will be cheaper overall. If you have electrical appliances, upgrade those before investing in solar panels.

Homeowners with solar panels typically save $20,000 to $90,000 over 25 years.

You get the most out of solar if the bulk of your appliances are electric. If you also have an electric vehicle, solar panels will save you even more. (This may seem obvious, but solar panels simply generate electricity. They won’t help you save on gas bills.)

A typical Virginia household needs a system with a capacity of 10.95 kW to offset its electricity needs with solar energy. You might need a larger or smaller system, depending on your current energy consumption.

Once you know your current energy consumption, you can calculate your potential savings and the time it should take for your solar installation to pay for itself.

3. Virginia solar incentives: federal and state

The federal solar investment tax credit (ITC) is the most significant incentive for most homeowners going solar. The ITC provides a 30% tax credit on your total system costs, including equipment, labor and permits. It will drop to 26% in 2033 and 22% in 2034.

Virginia also has solar property tax exemptions. A solar property tax exemption means that — for tax purposes — the addition of a solar energy system won’t result in an increase in your property's assessed value. Essentially, your property tax bill won’t go up because your solar panels increase the market value of your home. The cities of Charlottesville, Roanoke, Fairfax and Loudoun County have similar tax incentives for certified solar energy equipment.

» MORE: Virginia solar incentives, tax credits and rebates

4. Net metering in Virginia: retail buyback rate

Net metering lets homeowners with solar panels sell any excess electricity they generate to their local power grid. The time of year you install panels can affect how much you can get out of credits. Residents have 12 months to build credits. So, installing in lower-use months like September maximizes credits for next year’s high-use summer months.

Drew in Suffolk pointed out how the time of year you get panels also affects your bottom line when it comes to net metering:

“The day that you go on the grid, your 12-month timer starts,” he said. “My highest usage months are June, July and August. So, the only way for me to maximize net metering and get the value out of the solar panels would be for me to go on the grid in September. By going on the grid in January, I miss September, October, November and December. That's four months of buildup of credits.”

» GREENEST STATES: Virginia ranked 22nd in 2024

5. How you pay

Of course, spending thousands upfront isn’t always an option. That’s when loans, leases and other agreements come into play.

• Loans: Solar loans work like any other type of loan. They have relatively low fixed interest rates. Once you pay it off, you own your system outright.
• Leases: Leasing panels is one way to get the benefits of solar energy without the high upfront cost. A solar lease works like a car lease — you get to use the panels but don’t own them. Leasing can be good if you have limited savings. Solar lease agreements typically last 20 to 25 years.
• Home equity loans or lines of credit (HELOC): Eligible homeowners can borrow against equity in their house to finance a solar panel system. These often have variable interest rates, meaning monthly payments can increase over time.
• Power purchase agreements: Similar to leasing, a power purchase agreement (PPA) lets homeowners install solar panels without the upfront costs. You sign a long-term contract with a solar services provider to purchase the electricity generated by the panels at a predetermined rate. The provider owns and maintains the panels throughout the agreement, which usually lasts 10 to 25 years.
• Property Assessed Clean Energy (PACE): In Virginia, PACE financing is available if paying upfront isn’t feasible.

6. How long you plan to stay in your house

It takes years for electric bill savings to make up for the initial cost — about 10.5 years on average in Virginia. If you sell your house and move before then, you might not fully realize the financial benefits of your solar investment.

Solar panels last 25 to 30 years.

A Zillow study found that, on average, houses with solar panels sell for 4.1% more. Let’s say you spend $25,000 putting solar panels on a house that costs $400,000. It might sell for $16,400 more in a few years, according to Zillow. But you miss out on $60,802 in total avoided utility costs over 25 years.

In other words, don't get solar panels just because you want to sell your house soon. Consider a home improvement project with a better return on investment, like remodeling the bathroom or kitchen, instead.

7. The solar company you hire

We’ve heard from dozens of solar customers in Virginia. In the best-case scenario, it’s easy, and you’re happy with your system’s performance. In the worst-case scenario, you end up paying thousands for mid-tier solar equipment from a company with poor customer service and no follow-up or support.

One of the most common complaints is related to pushy sales reps who make promises that can’t be delivered. That’s why it’s so important to thoroughly research and verify claims made by sales teams before making a decision. Use The National Renewable Energy Laboratory’s PVWatts Calculator to estimate how much electricity a solar panel can produce over a year on your house — just type in your address. Project Sunroof is a free solar savings estimator powered by Google Earth imagery.

Monthly costs: solar payments vs. savings

Think of going solar in terms of your monthly costs. Given rising energy costs in Virginia and elsewhere, financing solar panels makes sense as long as your monthly loan payment is less than what you would be paying the utility company anyway.

Is my house a good candidate for solar panels?

Going solar ends up being worth it for many homeowners as long as their house is a good candidate to support the panel installation. Here’s what to think about before you commit:

• How much sunlight do I get? Solar panels need regular exposure to sunlight to produce the most energy possible. Virginia averages 3.5 to 4 peak sun hours each day. However, lots of shading — like trees or tall buildings above your roof — could make your solar system less efficient.
• What is the size and angle of my roof? Virginia (and the rest of the United States) is in the Northern Hemisphere, so solar panels perform best on south-facing roofs. The worst place to install would be on north-facing roofs, especially if those roofs have a high pitch. For example, if the only place you can install is a north-facing roof with a 30-degree pitch, your costs will likely go up by 30% to 40%.
• What is the condition of my roof? If you have to replace your roof, do that before you install solar panels. Solar panels are designed to last up to 30 years, so you want your roof to last just as long. Otherwise, it could cost thousands to remove the panels, fix your roof and reinstall the panels.

Pros and cons of solar panels in Virginia

There are a few things to consider before going solar in Virginia. First, the state only gets around 3 1/2 to 4 peak sun hours daily. That may not be enough sunlight to power your home or business without buying a lot of solar panels.

Also, the average cost of solar panels is a little higher than the national average. This could make solar out of reach for those on a budget. The average time it takes to pay off solar (if you pay cash) in the state is around 10.5 years, which may be prohibitive to some.

Benefits of solar panels in Virginia

Like a lot of residents, Chong in Arlington is satisfied with the decision to go solar. Chong’s electric bill went down drastically, plus they got a good deal on a loan and took advantage of the 30% solar tax credit.

• Cheaper energy bills: The average homeowner in Virginia uses a lot of power, which adds up to a lot of savings when you switch to solar. Going solar now means that your monthly energy expenses will be more predictable (and very often significantly lower). Solar panels also protect you from future energy cost increases.
• Better for the environment: Traditional energy sources like coal and natural gas release carbon dioxide and other harmful pollutants into the air. Solar panels generate electricity from sunlight, a clean and renewable energy source. Installing solar panels on your roof helps the environment primarily by reducing greenhouse gas emissions and dependence on fossil fuels.
• Higher home resale value: Installing solar panels can significantly increase a home's value. According to the study mentioned above, houses with solar panels sell for 4.1% more on average. The exact increase in value varies by location, with homes in active solar markets sometimes seeing even higher boosts.

Drawbacks of solar panels in Virginia

One resident, Deborah, in Buchanan, told us she regretted the decision. Her solar batteries stopped working, making the panels effectively useless, and the company did not help find a solution. (This is why it’s so important to research equipment before you buy it.)

• Solar equipment is expensive: Even with rebates and other financial incentives, the price typically starts between $10,000 and $30,000. It’s even more expensive if you want a solar battery for energy storage. Solar battery costs are generally between $7,000 and $18,000. Getting a solar battery might be strategic if net billing rates continue to decline in Virginia. That way, you can store energy at home instead of tapping into the local grid when you need to.
• Potential roof leaks: The installation process involves drilling holes into the roof to anchor the panel mounting systems. If not done correctly, this can lead to leaks or structural damage. 
• Energy production varies: Solar panels are dependent on weather conditions and seasonality. Solar panels still work on cloudy days, but less available sunlight does affect how efficiently they produce energy. Snow cover may also temporarily reduce efficiency until it's removed or melts off.

» MORE: Solar energy pros and cons

Find solar companies in Virginia

A good solar company helps you navigate local incentives, permitting and net metering policies. Compare our picks for Virginia’s top solar companies to learn more.

Bottom line: Is going solar in Virginia worth it for you?

Going solar in Virginia might be easier than you think. The main obstacle to going solar is the high upfront cost of purchasing and installing solar panels, inverters and other equipment. For a lot of homeowners, it ends up being worth it as long as their cost savings over time outweigh the initial investment. Others are happy to go solar for the environmental benefits alone.

Solar costs vs. savings: Virginia and nearby states