Virginia
Virginia Solar Incentives 2026 — Net Metering & Tax Exemptions
Virginia exempts solar equipment from sales tax and solar added home value from property tax. Dominion Energy's legacy net metering credits on-site use at retail, and the State Corporation Commission has been reviewing a successor for new customers, so confirm the terms that apply when you sign.
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Incentive categories
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Program entries
17.22¢
Avg rate / kWh
17.6 yrs
Simple solar payback
$26,048
25-yr net solar savings
Good
Solar potential
Solar Incentives in Virginia
Dominion Energy Net Metering
Legacy program; successor under SCC review
Under Dominion's legacy net metering program, exports offset later usage and annual surplus is settled at an avoided-cost rate. Dominion proposed, and the State Corporation Commission has been reviewing, a successor with real-time netting and an avoided-cost export credit for new customers.
Eligibility: Dominion Energy Virginia residential customers with solar; confirm which terms apply when you sign.
EV Incentives in Virginia
Dominion EV Charger Rewards
$125 + $40/year
$125 rebate on a Level 2 charger plus an annual $40 participation reward for enrolling in Dominion's managed charging program.
Eligibility: Dominion Energy Virginia residential customers with an eligible charger.
Heat Pump Incentives in Virginia
Dominion Heat Pump Rebate
Up to $500
Rebates up to $500 toward ENERGY STAR-qualified heat pumps, central air conditioners, and heat pump water heaters.
Eligibility: Dominion Energy Virginia residential customers.
Federal HEAR Framework (State Availability Varies)
Statutory household cap up to $14,000
Federal law sets measure and household caps, but consumers can use rebates only where the state or territory program is active and funded. A listed cap is not an available award.
Eligibility: Income, equipment, project, state-program, and funding rules apply; confirm availability with the administering state program before purchase.
Get Free Solar Quotes for Your Home
Open the external EnergySage marketplace to request and compare itemized solar proposals.
Your estimated 25-year savings: $26,048
We are not affiliated with EnergySage and receive no commission or referral fee. The button opens an external site; review its terms and privacy policy.
Is Solar Worth It in Virginia?
Virginia solar payback is moderate — about 17.6 years in our planning model — driven by average electricity rates (17.22¢/kWh) and good sun (4.5 hrs/day). The Virginia Clean Economy Act (VCEA) is steadily improving the solar policy landscape, and Dominion Energy's expanding programs make VA a growing solar market with an improving long-term trajectory.
Nationally, EnergySage reports the average U.S. homeowner saves about $60,500 over 25 years by going solar, without the expired federal credit (page updated June 2026). Actual savings vary by state, electricity rate, export rules, and system size.
Key Advantage
Virginia's 4.5 peak sun hours/day is solid, and the VCEA mandates Dominion Energy to reach 100% clean energy by 2045.
Watch Out For
Virginia's 17.22¢/kWh electricity rate is below average, and there is no state solar tax credit or SREC program. Appalachian Power Company customers in western VA have fewer solar program options than Dominion customers.
Solar Cost & Savings in Virginia (8 kW System)
| Item | Amount |
|---|---|
| Gross install cost | $31,840 |
| Net install cost | $31,840 |
| Annual energy savings | $1,810 |
| Simple payback period | 17.6 years |
| 25-year net savings | $26,048 |
The federal residential solar tax credit (Section 25D) is not available for expenditures after Dec 31, 2025 and is not included above. State and utility incentives may still apply and are listed separately.
* Planning example for an 8 kW system: $3.98/W installed (LBNL 2024 national median; no state-specific sample), 4.5 peak sun hrs/day, one 20% system derate, 0.5%/yr panel degradation from year two, and 17.22¢/kWh escalating 2.5%/yr. It assumes all production offsets electricity at the retail rate; actual self-consumption and export credits vary by utility tariff. Tax credits require eligibility and sufficient tax liability.
Get Free Solar Quotes for Your Home
Open the external EnergySage marketplace to request and compare itemized solar proposals.
Your estimated 25-year savings: $26,048
We are not affiliated with EnergySage and receive no commission or referral fee. The button opens an external site; review its terms and privacy policy.
How to Go Solar in Virginia: Step-by-Step
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Verify your utility — Dominion vs. Appalachian Power
Dominion Energy Virginia and Appalachian Power have different net metering terms. Confirm your utility's current terms before sizing your system.
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Apply for sales tax and property tax exemptions
Virginia exempts solar energy equipment from state sales tax (5.3%) and exempts solar systems from added property tax assessment. Confirm your installer applies the sales tax exemption at purchase. File a property tax exemption with your county's Commissioner of Revenue after installation.
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Check Dominion's interconnection timeline
Dominion's residential solar interconnection queue has grown with VA solar adoption. Confirm current interconnection timelines (typically 60–120 days) at dominionenergy.com. Installation date does not equal bill credit start date — plan your timeline accordingly.
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Get several quotes and compare price per watt
Virginia has a growing installer base, particularly in Northern Virginia, Richmond, and Hampton Roads. Use EnergySage for multiple quotes from both national and local installers. The 25-year panel + 10-year workmanship warranty is the market standard minimum.
Frequently Asked Questions — Solar & Clean Energy in Virginia
Is solar worth it in Virginia in 2026?
Solar is viable in Virginia with a moderate return. With 4.5 peak sun hours/day and 17.22¢/kWh rates, modeled payback on an 8 kW system is about 17.6 years. Dominion's current net metering credits on-site use at retail, but the State Corporation Commission has been reviewing a successor that would credit exports at an avoided-cost rate, so confirm the terms that will apply to you. Note: The federal 25D ITC expired Dec 31, 2025.
What solar incentives are available in Virginia?
Virginia offers: (1) Dominion Energy net metering (successor terms under SCC review), (2) sales tax exemption on solar equipment, and (3) property tax exemption on solar added home value. Virginia has no state solar tax credit. The federal 25D ITC expired Dec 31, 2025.
How does Dominion Energy net metering work in Virginia?
Under Dominion's legacy net metering program, exports offset later usage and annual surplus is settled at an avoided-cost rate. Dominion has proposed, and the State Corporation Commission has been reviewing, a successor for new customers with real-time netting and an export credit rate based on avoided cost. Confirm which terms apply when you sign.
What is the Virginia Clean Economy Act and how does it affect solar?
The VCEA (2020) requires Dominion Energy to reach 100% carbon-free electricity by 2045 and raised the cap on Virginia's net metering program. For homeowners, it signals a long-term supportive policy environment — even if current direct incentives remain limited.
Recommended Products for Virginia
Product examples are provided for comparison only. Confirm electrical compatibility, installer requirements, warranty terms, and any current utility incentive before purchase.
Calculate Your Virginia Savings
The Solar ROI link preselects Virginia's planning inputs, including the listed electricity rate (17.22¢/kWh). Other tools open with their own defaults; review every input before calculating.
Browse Other States
Data Sources & Methodology
Incentive data: DSIRE, U.S. DOE Home Energy Rebates, IRS residential credit guidance, and linked state program pages. Electricity rates: EIA Electric Power Monthly, Table 5.6.A (June 2026). Solar resource: NREL PVWatts reference with state-level planning inputs, not an address-specific API result. Installed price: LBNL Tracking the Sun (Residential systems installed in 2024), a median rather than a quote. The 2.5% annual rate change is a model assumption, not a forecast. Sources and methodology reviewed 2026-09-06. Always verify current amounts with the administering agency and utility.