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

A typical residential solar panel installation costs $35,408 in Virginia. That doesn't include the cost of a solar storage battery, which can add $7,000 to $18,000 to your total system costs.

The size of your system is another big cost factor. A typical Virginia household needs a system with a capacity of 13.94 kW to offset its electricity needs with solar energy. You might need a larger or smaller system, depending on your current energy consumption.

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.

Average solar panel costs in Virginia are comparable to the national average. In Virginia, the average cost per watt is $2.54.

Average solar panel costs by system size in Virginia

2. 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.

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 older electrical appliances, upgrade those before investing in solar panels.

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

3. Virginia solar incentives

The 30% federal solar tax credit is gone, but Virginia still has a few programs that can make solar more affordable:

• Property tax break: Qualifying home solar systems up to 25 kW are exempt from state and local property taxes.

• RECs: If you own the renewable energy certificates your system produces, you may be able to sell them through the PJM REC market for extra income.

• Shared solar: If rooftop solar isn’t an option, you may be able to subscribe to an off-site solar project and get credits on your electric bill.

The cities of Charlottesville, Roanoke and Loudoun County have additional tax incentives for certified solar energy equipment.

» MORE: Virginia solar incentives

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.

Real-world example

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.”

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.

• Solar loans work like any other type of home improvement loan. There’s an application and approval process. You pay it back over time (with interest) each month.

• Leasing solar panels lets you set up a system without the high upfront costs. Monthly payments usually range $150 to $250. Agreements last 20 to 25 years.

• Power purchase agreements are similar to leases. PPAs 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

» SOLAR PANELS: Lease vs. buy

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 10.4 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.

It's true that solar panels can increase the value of your home. But they can also complicate a sale. This is especially true if you lease your system, since the buyer may need to take over the contract.

If you think you’ll move in the next couple of years, you may want to consider a home improvement project with a better return on investment, like a kitchen or bathroom remodel.

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.

We suggest using the NRL's PVWatts Calculator to estimate how much electricity solar panel system can produce over a year on your house.

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 10.4 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 can reduce your exposure to future utility rate 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.

Virginia solar FAQ

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