In Virginia, a typical residential solar panel system costs $9,652 to $27,271, depending on the size of your system and what financial incentives you qualify for.
Jump to insightThe federal solar investment tax credit (ITC) is the best financial incentive for most Virginia homeowners to buy solar panels.
Jump to insightVirginia residents can get the retail rate when they sell excess solar power to the local grid.
Jump to insightResidential solar panel incentives in Virginia
The best way to save on solar is to take advantage of the federal solar investment tax credit (ITC). The ITC provides a federal income tax credit equal to 30% of your system’s cost if you install your solar energy system before the end of 2032.
The ITC is based on the total cost of your solar equipment, labor and permits to get your solar up and running. For example, if you spend $10,000 installing a solar photovoltaic (panel) system, the ITC is worth $3,000. If in the year your system becomes operational you owe $15,000 in taxes, the ITC reduces what you owe to $12,000.
To get your ITC, you have to claim it on your federal taxes for the year you started using your system by filing Form 5695.
Federal solar tax credit expires at the end of 2025
The ITC is now set to expire at the end of the year, much earlier than previously scheduled. The credit was expected to drop gradually, then fully expire in 2035 — but those future step-downs have been eliminated under the “One Big Beautiful Bill,” signed in July of 2025. This means you have until Dec. 31, 2025, to install and pay for a system to qualify for the 30% credit.
Solar property tax exemptions
The commonwealth of Virginia has granted municipalities the authority to exempt homeowners from local property taxes on renewable energy systems installed on their residential properties.
This means that, for tax purposes, getting a solar energy system won’t cause 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.
In Fairfax County and elsewhere, the exemption applies to both residential and commercial installations. However, to qualify for such a tax exemption, the systems must undergo inspection by either the local building department or the Virginia Department of Environmental Quality. The purpose of this inspection is to validate the system's value, which will then be used to calculate the appropriate tax credit amount.
The city of Charlottesville, the city of Roanoke and Loudoun County have similar tax incentives for certified solar energy equipment.
Additional solar incentives in Virginia
Check DSIRE for the most comprehensive source of information about solar incentives and policies in Virginia.
| Incentive type | Amount | Eligible solar equipment | Applicable sectors | Administrator | |
|---|---|---|---|---|---|
| Arlington County Green Building Program | Green building incentive | Varies | Passive solar, solar water heat, solar space heat, solar photovoltaics | Commercial, construction, residential, installers/contractors, multifamily residential | Arlington County |
| Energy Project and Equipment Financing | Loan program | Varies | Solar water heat, solar space heat, solar thermal electric, solar thermal process heat, solar photovoltaics | Local government | Virginia Resource Authority |
| Commercial Solar Property Tax Exemption | Property tax incentive | 80% to 100% | Passive solar, solar water heat, solar space heat, solar thermal electric, solar photovoltaics, solar pool heating | Commercial, industrial, schools, agricultural | Virginia Department of Energy |
| Small Business & Non-Profit Loan Program | Loan program | Varies | Solar photovoltaics | Commercial, nonprofit | Virginia Small Business Financing Authority |
What to know about net metering in Virginia
Some people store extra solar energy in batteries to use later. Others use net metering. With net metering, you sell excess energy back to the electric company. Your utility company pays you back with bill credits. Here are some qualifications for net metering in Virginia:
- Homes can have systems up to 25 kilowatts (kW).
- Businesses can have systems up to 3,000 kW.
- Credits carry over from year to year, but they cannot exceed what you paid the company for power.
If you're a net-metering customer with Dominion Power, you’ll need to pay "standby charges" for both transmission ($1.40 per kW every month) and distribution ($2.79 per kW every month). This applies to you if you own and run (or are planning to own and run) an electric generation system with a capacity that's more than 10 kW but less than 20 kW. The city of Danville has its own net metering program for commercial and residential properties.
How much are solar panels in Virginia?
After considering the federal solar tax credit, solar panel costs in Virginia typically range from $9,652 to $19,304.
Leasing or entering a power purchase agreement (PPA) is often cheaper upfront, but you won’t be eligible for the federal solar tax credit and other financial incentives.
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
| 5 kW | 6 kW | 7 kW | 8 kW | 9 kW | 10 kW | |
|---|---|---|---|---|---|---|
| Before federal tax credit | $13,636 | $16,363 | $19,090 | $21,817 | $24,544 | $27,271 |
| After federal tax credit | $9,652 | $11,582 | $13,513 | $15,443 | $17,373 | $19,304 |
Solar resources in Virginia
Below are some additional resources that can help you go solar in Virginia.
- City of Fredericksburg green incentives & rebates
- Green and Alternative Energy Job Creation Tax Credit
- Solarize Virginia
- Virginia Department of Energy
- Virginia Energy Sense
- Virginia PACE Authority
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.
| Company | Customer rating | Pro install | Payment options | Year founded | |
|---|---|---|---|---|---|
 ION Solar | Learn More | 4.2 |  | Cash, loan | 2013 |
 Blue Raven Solar | Get Started | 3.5 | | Cash, loan, lease, PPA | 2014 |
 Sunrun | Get Started | 4.3 | | Cash, loan, lease | 2007 |
 Project Solar | Learn More | 4.3 | | Cash, loan | 2016 |
 ShopSolar | Learn More | 4.7 |  | Cash, loan | 2018 |
FAQ
Can I get solar panels for free in Virginia?
You can’t get solar panels for free, but you can reduce your starting costs with a lease or a PPA. These options get you a solar system with little to no upfront costs and a flat monthly fee or a payment for how much electricity you use.
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.
You can enter a solar lease or power purchase agreement with little to no upfront costs. PPAs work very similarly to leases. The biggest downside to both is that you’ll be disqualified from many of the best financial incentives, like the 30% federal solar tax credit. It also might make your house harder to sell since a new buyer must take over the lease agreement.
Virginians can also take advantage of the PACE financing for residential projects. The program will pay for 100% of your solar installation costs, and you pay the program back through a fee that's added to your property tax. It takes around 10 to 20 years to pay this type of loan back.
» SOLAR PANELS: Lease vs. buy
How much can I save with solar panels in Virginia?
On average, Virginia homeowners with solar panels avoid $41,992 in utility costs over 25 years. Even if you don’t generate 100% of your energy needs, you can still save a lot of money versus paying traditional utility bills. In Virginia, solar panels usually pay for themselves within 12.86 years.
» EXPLORE: Where solar savings go the furthest
How do I know if my house is a good candidate for solar?
It’s best to have plenty of unshaded roof space that faces south or west for optimal sun exposure. It’s also smart to upgrade any old, inefficient appliances first. Reducing your electrical loads now means you can get a smaller system, which will be cheaper.
The condition of your roof matters too — if it needs replacement soon, do that before installing solar panels. Installing solar panels on an old roof might mean you have to remove the panels, replace your roof and then reinstall the panels. This will cost around $5,000 for a 19-panel setup.
Solar photovoltaic (PV) technologies, more commonly known as solar panels, absorb sunlight and convert it into usable electricity. If you have a lot of shading around your house, they might not get enough sun to power your home.
Is my HOA allowed to restrict solar panels?
In Virginia, a homeowners association can limit the size and location of your solar panels.
What has Virginia’s investment in solar been so far?
Total solar investments in the state amount to $6.4 billion, according to the Solar Energy Industries Association.
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
| 6-kW system cost (before incentives) | 10-kW system cost (before incentives) | Typical system size needed* | Average cost per watt | Total utility power cost savings** | |
|---|---|---|---|---|---|
| Kentucky | $15,771 | $26,285 | 7.3 kW | $2.63 | $18,380 |
| Maryland | $15,823 | $26,372 | 8.2 kW | $2.64 | $75,628 |
| North Carolina | $13,875 | $23,125 | 7 kW | $2.31 | $29,610 |
| Tennessee | $18,277 | $30,462 | 6.7 kW | $3.05 | $2,846 |
| Virginia | $16,363 | $27,271 | 6.9 kW | $2.73 | $41,992 |
| West Virginia | $18,573 | $30,955 | 8.4 kW | $3.10 | $63,643 |
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- DSIRE, "Virginia Programs.” Accessed March 29, 2024.
- EnergySage, "The cost of solar panels in Virginia.” Accessed March 29, 2024.
- Solar Energy Industries Association, "Virginia Solar." Accessed March 29, 2024.
- SolarReviews, "How much do solar panels cost in Virginia?" Accessed March 29, 2024.
- Virginia Law, “Certified solar energy equipment, facilities, or devices and certified recycling equipment, facilities, or devices.” Accessed July 11, 2024.
- Solar United Neighbors, “Homeowners associations and solar access in Virginia.” Accessed Aug. 21, 2023.
- Virginia PACE Authority, “Frequently Asked Questions.” Accessed Aug. 21, 2023.
