Virginia Solar Incentives, Tax Credits and Rebates (2026)

Virginia solar incentives at a glance

Residential solar panel incentives in Virginia

Virginia offers several ways to reduce or avoid the upfront cost of solar. Here’s what homeowners should know about current Virginia solar incentives, net metering and financing options.

Solar property tax exemption

Virginia residential solar systems with a capacity of 25 kW or less are fully exempt from state and local property taxes. Most home installations fall below this limit.

This means the value added by a qualifying solar system should not increase your property tax bill. Larger systems and other certified solar equipment may qualify for a full or partial local exemption when the county, city or town has adopted the required ordinance.

Essentially, your property tax bill won’t go up because your solar panels increase the market value of your home. In Charlottesville, Roanoke and Loudoun County, the exemption applies to both residential and commercial installations.

Shared Solar Program

Virginia’s Shared Solar Program lets you subscribe to part of an off-site solar project and receive credits on your electric bill. It can be an option if you rent, have a shaded roof or do not want to install and maintain your own system.

Dominion Energy’s program originally included 200 MW of capacity, and the state authorized the release of an additional 525 MW on July 1, 2026. The expansion includes capacity intended to serve low-income customers, who are exempt from the program’s utility minimum bill.

Appalachian Power added 50 MW of program capacity on July 1, 2026, with another 50 MW scheduled to become available by Jan. 1, 2028.

Pro tip

Shared solar does not always guarantee savings for every subscriber. Compare the subscription charge, utility minimum bill, and expected bill credits before enrolling.

Local Virginia solar incentives

Some Virginia cities and counties offer additional solar tax benefits, reduced permit fees or financing programs. Availability depends on where you live. For example, Charlottesville offers a five-year real estate tax credit for qualifying certified solar equipment.

What to know about net metering in Virginia

Net metering lets you send extra solar power to the grid and use those credits to offset electricity you draw later. In Virginia, credits are tracked over a 12-month period.

How it works

• Excess solar production offsets electricity you use from the grid
• Credits carry through a 12-month netting period
• If you still have excess generation at the end of the year, it may be paid out at a lower rate than the retail price of electricity
• Rates and requirements vary by utility

Dominion Energy rules

Most home solar systems are smaller than 20 kW. Dominion Energy Virginia customers with systems larger than 20 kW AC may have to pay additional monthly standby charges.

The State Corporation Commission approved changes to Dominion’s net metering program in April 2026. Under the new tariff:

• Customers keep the 12-month netting period
• Eligible new or modified systems pay a $1 monthly administrative fee
• Excess energy remaining at the end of the year is credited at 5.829 cents per kilowatt-hour

Appalachian Power customers and electric cooperative members are not subject to Dominion’s standby charges. Municipal utilities, including the city of Danville, set their own net metering rules.

Pro tip

Ask your electricity provider about its current credit rate, fees and annual true-up rules before estimating your solar savings.

Solar renewable energy certificates

Virginia homeowners may also earn solar renewable energy certificates, or SRECs, based on how much electricity their systems produce.

How SRECs work

• You earn one SREC for every megawatt-hour of qualifying solar electricity generated
• You may be able to sell SRECs for additional income
• SREC prices change with supply and demand, so earnings are not guaranteed

Homeowners generally own their system’s SRECs unless they sell or transfer the rights. If you lease your panels or enter a power purchase agreement, check the contract carefully because the solar company may keep them.

Virginia requires Dominion to meet part of its renewable energy target with electricity or certificates from smaller in-state projects. This may support demand for Virginia SRECs, but their value can fluctuate.

How much are solar panels in Virginia?

Solar panel costs in Virginia before any financial incentives typically range from $13,636 to $27,271.

Your system size greatly affects how much you pay overall. The typical size for solar systems in Virginia is 6.9 kW. You might need a larger or smaller system, depending on your average household energy usage.

Average solar cost by system size in Virginia

How can I pay for solar panels?

Getting solar panels is like buying a car. You could pay cash, but many finance or lease instead. A solar loan works like most other types of loans — there is an application process, and you pay it back over time with interest.

Leases and power purchase agreements (PPAs) can reduce your upfront cost, but the solar company generally owns the equipment. Check the contract carefully to determine who receives SREC income and other ownership-related benefits.

» SOLAR PANELS: Lease vs. buy

Federal solar programs

Virginia homeowners who claimed the 30% federal solar tax credit before it expired at the end of 2025 may still qualify for other federal programs that support home energy upgrades.

• Energy-Efficient Mortgages: FHA-insured Energy Efficient Mortgages let homebuyers and homeowners finance the cost of solar panels and other qualifying energy improvements into their home loan.
• Fannie Mae Green Financing: Fannie Mae offers green financing with preferential pricing for multifamily properties that invest in solar and other efficiency upgrades; this is less relevant to single-family homeowners but may apply to larger residential developments.

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.

FAQ

Bottom line

Although there aren’t as many incentives as some other states, appealing tax breaks, low interest loans and other initiatives make going solar worthwhile for many Virginia homeowners.

The ConsumerAffairs Research Team conducted an in-depth analysis to determine the average costs of going solar and incentives in other states. Turns out, it’s worth it for many homeowners, particularly for Virginians.

Solar costs vs. savings: Virginia and nearby states