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Last updated: May 2026
Avg. sun hours/day
4.5 hrs
Avg. electricity rate
$0.13/kWh
Active incentives
3
1:1 retail-rate net metering for residential systems ≤ 25 kW under Dominion Energy Virginia and Appalachian Power. Subject to programmatic caps and standby charges for larger systems.
Virginia's net-metering rules administered by the State Corporation Commission (SCC) provide 1:1 retail-rate compensation for residential customer-generators ≤ 25 kW. Annual reset varies by utility — Dominion and Appalachian Power both cash out unused credits at avoided cost on the customer's anniversary. The Virginia Clean Economy Act (VCEA) of 2020 expanded net-metering caps and removed the prior 5%-of-utility-peak system-cap. Standby charges may apply to systems ≥ 10 kW depending on territory; review with your utility. Cooperatives (Rappahannock Electric, Northern Neck Electric, etc.) operate separately under VCEA-mandated minimums.
Local option exemption: counties and cities may exempt residential solar PV from local property tax assessment under Virginia Code § 58.1-3661. Most major Virginia jurisdictions have adopted the exemption.
Virginia Code § 58.1-3661 enables local governments to exempt or partially exempt qualifying solar energy systems from property tax. Adoption is at the county or city level via local ordinance. Major adopters include Fairfax County, Loudoun County, Prince William County, Arlington, Alexandria, and Richmond. The exemption typically covers 100% of assessed value attributable to the system, but specifics vary by locality. Confirm with the local Commissioner of the Revenue or Real Estate Assessor.
Limited sales tax exemption for solar PV equipment ≥ 20 MW under specific economic-development-zone provisions. Standard 5.3% Virginia sales tax applies to most residential solar equipment.
Virginia does not provide a general residential sales tax exemption for solar PV equipment. The 5.3% combined state and local sales tax applies to typical residential installations. Limited exemptions exist for utility-scale projects ≥ 20 MW under economic-development zone provisions; these do not apply to residential rooftop. Some installer-vendor structures may use exemption certificates if the installer registers as a manufacturer of renewable energy generation; confirm invoice treatment.
Expired for systems placed in service after December 31, 2025.
Federal Section 25D expired 2026-01-01. Virginia's modest electricity rates and limited state-level incentive stack make post-ITC residential solar payback longer than many peer states — typically 12–14 years for 2026 installations, with stronger economics in Northern Virginia where rates are higher. See /guides/solar-after-itc-expired.
Our calculator uses Virginia's actual sun hours (4.5 hrs/day) and electricity rates.
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