Can I still get a federal tax credit for solar in Virginia in 2026?

No. The Residential Clean Energy Credit (Section 25D) expired on December 31, 2025. The only federal benefit available in 2026 is through third-party-owned solar leases under Section 48E, but construction must have begun before July 4, 2026. Most homeowners purchasing systems outright in 2026 cannot claim a federal credit. Focus on Virginia state incentives instead.

Does Virginia have net metering?

Yes. Virginia's investor-owned utilities (Dominion Energy Virginia and Appalachian Power) are required to offer net metering at the full retail rate for residential solar customers, under state law. Electric cooperatives have their own programs that vary by co-op, so confirm the specific tariff with your provider before installing.

How much can I save with solar in Virginia over 25 years?

Average savings range from $25,000 to $40,000 depending on your location, utility, system size, and electricity usage. Northern Virginia and areas served by Dominion Energy typically see higher savings due to higher electricity rates.

What is Virginia's property tax exemption for solar?

Virginia authorizes a local-option property tax exemption on residential solar equipment. Most Virginia counties and independent cities have adopted the exemption, which removes the added home value from solar panels from property tax assessment. A small number of localities have not adopted it, so confirm with your local commissioner of the revenue's office that the exemption applies at your address.

Is there a state income tax credit for solar in Virginia?

No. Virginia does not offer a state income tax credit for residential solar installations. Virginia also does not have a standing residential PV sales tax exemption. The main state-level support is the local-option property tax exemption (adopted by most Virginia localities) and retail-rate net metering at the major investor-owned utilities.

What is the average payback period for solar in Virginia?

Without the federal tax credit and without any statewide upfront rebate, most Virginia homeowners now break even on their solar investment in 10 to 13 years, depending on electricity rates, system size, and whether the local property tax and sales tax exemptions apply. After payback, you benefit from 12+ years of essentially free electricity.

Virginia Solar Incentives, Costs & Backup Power (2026)

Virginia Solar in 2026: The Honest Picture

Virginia’s solar market has matured significantly since 2020. The state now has over 180,000 installed systems, and electricity rates continue to climb, making solar a practical investment for many homeowners. However, the landscape shifted dramatically in 2026 with the expiration of the federal Residential Clean Energy Credit.

For decades, the 30% federal tax credit made solar affordable for millions of Americans. That credit is gone as of January 1, 2026. Virginia homeowners can no longer claim it on their tax returns. This is a real change that affects your financial calculation.

The good news: Virginia has filled part of that gap with state-level supports. A local-option property tax exemption (adopted by most localities) and retail-rate net metering at the major investor-owned utilities remain in place. Virginia does not have a standing statewide residential PV sales tax exemption (the narrow pollution-control equipment exemption applies to certified large-scale projects, not typical rooftop installs) and does not run a statewide upfront residential solar rebate. Electricity rates in Virginia remain above the national average, especially in Northern Virginia and areas served by Dominion Energy. This means your solar savings are still meaningful, even without the federal credit, though paybacks are now longer than they were when the federal credit applied.

This guide walks you through realistic costs, actual savings scenarios, available incentives, and how to choose a qualified installer.

Average Solar System Cost in Virginia (2026)

A typical 6 kW residential solar system in Virginia costs between $24,000 and $29,000 before incentives. This breaks down roughly as follows:

Equipment (panels, inverter, racking, wiring): $12,000 to $14,000
Labor and installation: $8,000 to $10,000
Permits, interconnection, and soft costs: $4,000 to $5,000

Virginia does not exempt residential solar PV equipment from state sales tax (Virginia’s narrow pollution-control equipment exemption applies to certified large-scale projects, not standard residential rooftop installs), so the standard 5.3% to 6% state and local sales tax is included in your installer’s quoted price. Net cost typically lands around $24,000 to $28,500 before the property tax exemption is monetized over time. Virginia also does not have a statewide upfront solar rebate. Older sales materials that cite a “Virginia Solar Rebate” of $2,500 or a “5.75% Virginia solar sales tax exemption” are inaccurate.

System costs vary by region. Northern Virginia (Fairfax, Arlington, Loudoun counties) tends to be slightly higher due to labor costs and roof complexity. Rural areas and the Shenandoah Valley often see lower installation costs. Get quotes from at least three local installers to compare pricing and equipment quality. EnergySage publishes regional cost benchmarks that can help you validate quotes.

Real Virginia Homeowner Savings (Sample Scenarios)

Savings depend on your location, utility, electricity usage, and system size. Here are five realistic examples:

Richmond (Dominion Energy, 6 kW system, $26,500 net cost):

Annual electricity offset: 7,200 kWh
Annual savings: $1,080 (at $0.15/kWh)
25-year savings: $26,500
Payback period: 12 years

Arlington (Dominion Energy, 7 kW system, $30,500 net cost):

Annual electricity offset: 8,400 kWh
Annual savings: $1,470 (at $0.175/kWh, higher Northern Virginia rates)
25-year savings: $36,250
Payback period: 10 years

Charlottesville (Dominion Energy, 5 kW system, $21,500 net cost):

Annual electricity offset: 6,000 kWh
Annual savings: $900 (at $0.15/kWh)
25-year savings: $22,000
Payback period: 13 years

Roanoke (Appalachian Power, 6 kW system, $25,500 net cost):

Annual electricity offset: 6,800 kWh
Annual savings: $1,020 (at $0.15/kWh)
25-year savings: $25,000
Payback period: 12 years

Virginia Beach (Dominion Energy, 6.5 kW system, $28,000 net cost):

Annual electricity offset: 7,800 kWh
Annual savings: $1,170 (at $0.15/kWh)
25-year savings: $28,750
Payback period: 12 years

These scenarios assume no major changes in electricity rates, stable system performance, and no additional incentives beyond state programs. Actual results vary based on roof orientation, shading, and local utility rates.

Virginia Solar Incentives Still Available in 2026

Property Tax Exemption (Local Option)

Virginia authorizes localities to exempt solar equipment from property tax assessment, and most counties and independent cities have adopted the exemption. Where it applies, the added value of a solar system does not increase your home’s assessed value for property tax purposes. Over 25 years, this exemption saves a typical homeowner $3,000 to $5,000 in property taxes. Confirm with your local commissioner of the revenue that the exemption is in force at your address, especially in smaller localities.

Sales Tax: No Residential PV Exemption

Virginia does not have a standing statewide sales tax exemption for residential solar PV equipment. The state’s certified pollution-control equipment exemption is administered narrowly and in practice does not extend to typical residential rooftop solar installations. Treat any installer quote that depends on a “Virginia solar sales tax exemption” or a 5.3% to 6% waiver as inaccurate unless they can show you the specific Virginia DEQ certification covering your system.

No Statewide Solar Rebate

Virginia does not have a statewide upfront residential solar rebate program. You may see older marketing materials cite a “Virginia Solar Rebate” of up to $2,500, but no such state program exists. Treat any quote that depends on that “rebate” with skepticism. Real cash incentives in Virginia come from net metering and, in narrow circumstances, the certified pollution control equipment sales tax exemption.

Net Metering (Investor-Owned Utilities)

Dominion Energy Virginia and Appalachian Power are both required to offer retail-rate net metering to residential solar customers under Virginia law. When your solar system generates more electricity than you use, the excess flows to the grid and you receive a credit at the full retail rate on your next bill. Electric cooperatives operate their own net metering or net billing programs that vary by co-op, so verify your co-op’s specific tariff before committing to solar.

Renewable Portfolio Standard (RPS) under the Virginia Clean Economy Act (VCEA)

Virginia’s Renewable Portfolio Standard, established by the Virginia Clean Economy Act (VCEA) in 2020, requires Dominion Energy Virginia and Appalachian Power to reach 100% clean electricity by 2050 (2045 for Dominion). The VCEA replaced earlier voluntary policies and has driven significant utility-scale solar investment. While not a direct residential incentive, it supports a deeper installer base and competitive market pricing. (“REPS” is North Carolina’s program name; Virginia’s analogous policy is the VCEA-driven RPS.)

For a comprehensive list of Virginia incentives, visit the DSIRE database, which tracks state and utility programs in real time.

Is Solar Worth It in Virginia Without the Federal Credit?

Yes, for most homeowners. The federal credit’s expiration is significant, but Virginia’s state incentives and rising electricity rates make solar financially viable.

Here is the decision framework:

Payback Period: Most Virginia homeowners now break even in 10 to 13 years. After payback, you enjoy 12+ years of essentially free electricity (panels typically last 25 to 30 years). If you plan to stay in your home for at least 12 years, solar is worth considering.

Electricity Rate Trajectory: Virginia’s electricity rates have risen 3% to 4% annually. If rates continue climbing, your savings accelerate. A system that breaks even in 10 years at today’s rates may break even in 8 years if rates rise 4% per year.

Home Value: Studies show homes with solar sell faster and at a premium. The property tax exemption ensures the added value does not trigger higher taxes, making solar a true home improvement.

Environmental Goals: If reducing your carbon footprint matters to you, solar eliminates roughly 8 to 10 tons of CO2 emissions per year for a typical 6 kW system.

Financing Options: If you cannot pay cash, solar loans and leases are available. Loans let you own the system and claim incentives. Leases shift ownership to a third party but require no upfront cost. Leases may still qualify for federal benefits under Section 48E if construction began before July 4, 2026, but this window is closing.

The bottom line: Without the federal credit, solar in Virginia is still a solid investment, but the math is tighter. Get multiple quotes and run a detailed financial analysis with your installer.

Top Cities for Solar in Virginia

Arlington: Highest electricity rates in the state (above $0.17/kWh), strong solar incentives, and high home values make solar a premium investment here. Payback period: 9 to 11 years.
Richmond: Virginia’s capital has moderate electricity rates, good solar resources, and a growing installer base. Payback period: 11 to 12 years.
Charlottesville: Central Virginia location offers solid solar irradiance and reasonable electricity rates. Home of the University of Virginia, the city has strong environmental values and good installer options. Payback period: 12 to 13 years.
Virginia Beach: The state’s largest city benefits from coastal solar resources and Dominion Energy’s retail-rate net metering. Payback period: 11 to 12 years.
Roanoke: Southwest Virginia has good solar resources and lower installation costs than Northern Virginia. Served by Appalachian Power, with retail-rate net metering. Payback period: 11 to 12 years.
Fairfax: Northern Virginia’s tech hub has high electricity rates and strong solar adoption. Payback period: 10 to 11 years.

What to Look for in a Virginia Solar Installer

Licensing and Insurance: Verify the installer holds a Virginia contractor’s license and carries general liability and workers’ compensation insurance. Check the Virginia Department of Professional and Occupational Regulation (DPOR) database.
Certifications: Look for installers certified by the North American Board of Certified Energy Practitioners (NABCEP) or equivalent. This signals technical competence and ongoing training.
Local Experience: Choose installers with at least 5 years of experience in Virginia. They understand local permitting, utility interconnection, and weather patterns. Ask for references from recent customers.
Warranty Coverage: Ensure the installer offers at least a 10-year workmanship warranty and uses panels and inverters with 25-year manufacturer warranties. Understand what is covered and what is not.
Utility Knowledge: The installer should know your specific utility’s net metering policy, rebate programs, and interconnection requirements. They should handle all utility paperwork.
Transparent Pricing: Get itemized quotes that break down equipment, labor, permits, and soft costs. Avoid vague “all-in” pricing. Confirm that sales tax exemption and rebates are applied.
Post-Installation Support: Ask about monitoring, maintenance, and customer service. A good installer provides a monitoring app, handles warranty claims, and responds quickly to questions.

Next Steps for Virginia Homeowners

You now have the information you need to make an informed decision. The next step is to get quotes from qualified installers in your area.

Want solar power without the installer process at all? A solar generator pairs portable panels with a battery in one box that ships to your door — no permits, no roof work, no sales calls. See our Virginia backup power guide for the sizes that fit Virginia homes and outage risks.

Sources for 2026 data: IRS Section 25D guidance (https://www.irs.gov/credits-deductions/residential-clean-energy-credit), DSIRE state incentive database (https://www.dsireusa.org/), Virginia Department of Professional and Occupational Regulation, Dominion Energy Virginia, SEIA state market data (https://www.seia.org/states-map), NREL solar resource maps (https://www.nrel.gov/gis/solar-resource-maps.html), EnergySage state cost benchmarks (https://www.energysage.com/local-data/solar-panel-cost/virginia/), U.S. Energy Information Administration, Virginia Solar Energy Industries Association.

Incentive	Type	Amount
Property Tax Exemption for Solar	Tax Exemption	Local-option 100% exemption on solar equipment value (offered by most Virginia localities)
Sales Tax: No Residential PV Exemption	Sales Tax	Virginia does not have a residential solar PV sales tax exemption; the narrow pollution-control equipment exemption applies to certified large-scale projects, not typical rooftop installs
Net Metering (investor-owned utilities)	Utility Credit	1:1 retail-rate credit for excess generation at Dominion Energy Virginia and Appalachian Power
Virginia Clean Economy Act (VCEA) / state RPS	Market Driver	100% clean electricity by 2050 mandate that supports solar market growth