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As the cost of electricity rises, more and more people are choosing solar power as a cost-effective and environmentally friendly option. If you’re considering installing solar panels in Virginia, you’ll be happy to know that there are numerous incentives and programs available to make the process more affordable. In this guide, we’ll explore the benefits of installing solar panels for both residential and commercial customers, including how it can save you money on electricity bills, increase your property value, and reduce your environmental impact. We’ll also take a closer look at the various incentives and programs available, such as federal tax credits, state tax exemptions, net metering policies, and solar renewable energy credits. Furthermore, we’ll provide examples of reputable solar installers in Virginia, and explain the technical standards and limitations of the federal tax credit. Lastly, we’ll highlight Virginia’s property tax exemption for small-scale solar systems, net metering policies, and the option to earn money by selling solar renewable energy credits. So let’s dive in and explore the world of solar power in Virginia!

Virginia’s Incentives and Benefits

If you’re a resident or business owner in Virginia considering switching to solar power, there are numerous incentives available to help make the transition more affordable. When you install solar panels, you have the opportunity to lower your electricity expenses, boost the worth of your property, and minimize your ecological footprint. In Virginia, there are federal tax credits, state tax exemptions, net metering policies, and solar renewable energy credits that you may be eligible for. It’s important to choose a reputable solar installer who can guide you through the technical standards and limitations of the federal tax credit. You can also take advantage of Virginia’s property tax exemption for small-scale solar systems and net metering policies, which allow you to earn money by selling solar renewable energy credits. By learning about and utilizing these incentives, you can make a positive impact on the environment while also saving money.

Virginia residents and businesses can reap many benefits from installing solar panels, ranging from reducing energy bills to increasing property values and promoting environmental sustainability. In addition to the direct savings on electricity bills, Virginia offers various incentives and programs to encourage solar adoption. For example, homeowners and businesses may be eligible for a federal tax credit of up to 26% of the cost of their solar system installation, which can significantly reduce the upfront cost. Virginia also exempts small-scale solar systems from property taxes, making it more affordable for homeowners to invest in solar energy. Additionally, net metering policies allow solar system owners to sell excess energy back to the grid, resulting in credits on their electricity bills. By installing solar panels and taking advantage of the available incentives and programs, Virginia residents can not only save money but also contribute to a cleaner and more sustainable energy future.


Federal Tax Credit

The most important incentive for anyone who wants to go solar is the federal Residential Clean Energy Credit. This is a 30% tax credit that applies to solar panel systems purchased from the beginning of 2022 through 2032. This means that if you buy a new solar system during this period you can deduct 30% of its cost from your federal income taxes.

For example, if you buy a $20 000 solar system in 2023 you can claim a $6 000 tax credit when you file your taxes for that year. This will reduce your tax liability by $6 000 or increase your refund by that amount.

 The federal tax credit is available for both residential and commercial customers as long as they own their systems. However, there are some limitations and requirements that apply such as:


  • The system must be installed by December 31st of the year that you claim the credit
  • The system must be placed in service by December 31st, 2032
  • The system must meet certain technical standards set by the IRS
  • You must have enough tax liability to use the credit


If you don’t have enough tax liability to use the full credit in one year you can carry over any unused portion to future years until 2033 or until it is exhausted whichever comes first.


Virginia Solar – Tax Exemption

Another incentive for going solar in Virginia is the property tax exemption. This means that if you install a small-scale solar system on your home or farm after January 1st 2023 you will not have to pay any property taxes on it.

Over time, you could potentially save a significant amount of money as property taxes are determined by the evaluated value of your property. Solar systems have a significant increase on the value of a home with the largest and most recent study indicating an increase of approximately $30 000 for a 10kW system in VA.

However this increased value will not affect your property taxes thanks to this exemption. As long as your system is less than 25 kW for residential customers or less than 500 kW for agricultural customers it will be declared a separate class of taxable property and exempted from taxation by any county city town district or other political subdivision.


Virginia Solar Panels – Net Metering Policy

Net metering is another policy that benefits solar customers in Virginia. It allows them to get credit for any excess electricity they produce with their systems and send back to the grid.

 This reduces their monthly utility bills and helps them offset their initial investment costs.

Utilities in Virginia must offer net energy metering providing compensation for monthly net excess generation at the full retail rate. This means that if you produce more electricity than you consume in a month you will get a credit on your bill equal to the amount you would have paid for that electricity at your regular rate.

For example if you consume 800 kWh of electricity from the grid but produce 1000 kWh with your solar system in one month you will have a net excess generation of 200 kWh. Your utility will then credit this amount at their retail rate which could be around $0.12 per kWh depending on where you live. This means that instead of paying $96 (800 x $0.12) for electricity that month you will only pay $72 (600 x $0.12). your next bill at the same rate. However if you have a net excess generation for a whole year you will get a credit at a lower rate which is called the avoided cost rate. This is the amount that your utility would have paid to buy electricity from another source.

The avoided cost rate varies by utility and time of year but it is usually much lower than the retail rate. For example it could be around $0.04 per kWh for Dominion Energy customers. This means that if you have an annual net excess generation of 1000 kWh you will only get a credit of $40 (1000 x $0.04) instead of $120 (1000 x $0.12).

Therefore it is advisable to size your solar system so that it matches your annual electricity consumption as closely as possible. This way you can maximize your savings and avoid losing money on your excess generation.

Net metering is available for residential customers with systems up to 20 kW and non-residential customers with systems up to 100 kW.

The aggregate capacity limit for net metering in Virginia is 1% of each utility’s adjusted peak load forecast for the previous year. This means that once this limit is reached the utility can stop accepting new net metering applications.


Solar Renewable Energy Credits (SRECs)

Another way to earn money from your solar system in Virginia is by selling solar renewable energy credits or SRECs. These are certificates that represent the environmental benefits of producing one megawatt-hour (MWh) of electricity from solar sources.

SRECs are created by registering your solar system with an SREC tracking platform such as PJM-GATS or NC-RETS. You can then sell your SRECs to utilities or other buyers who need them to meet their renewable energy goals set by the state or federal government.

By 2035, Virginia utilities are obligated to produce a specific portion of their electricity from renewable energy sources under the state’s renewable portfolio standard (RPS). The RPS includes a carve-out for solar energy which means that at least 1% of the renewable energy must come from solar sources.

Utilities can comply with this requirement by either generating their own solar power or buying SRECs from other solar generators. The price of SRECs depends on supply and demand but it can range from $10 to $50 per MWh depending on the market conditions.

For example, if you produce 10 MWh of solar electricity in one year you will create 10 SRECs. If you sell them for $25 each you will earn $250 in addition to your net metering savings.

However, not all utilities in Virginia are required to participate in the RPS program. Only Dominion Energy and Appalachian Power are obligated to follow the rules set out by the Virginia Clean Economy Act (VCEA) which established the RPS in 2022. Smaller municipal utilities and electric cooperatives can opt out of the program if they choose to do so.

Therefore before you decide to sell your SRECs you should check with your utility if they are buying them and at what price. You should also compare different SREC markets and platforms to find the best deal for your situation.


Virginia Solar Installation for Your Home or Business

Virginia is an excellent location for solar installation due to its abundant sunshine and favorable policies. If you’re interested in installing solar panels in Virginia, there are several reputable companies to choose from. One such company is SunPower, which has been in business for over 30 years and offers a range of solar panels with high-efficiency ratings. Their panels have been rated as the most efficient on the market and come with a 25-year warranty. Another option is Sigora Solar, a locally-owned company with a focus on community solar projects. They offer a variety of financing options to make a solar installation more accessible to customers with different budgets.

When installing solar panels, it’s essential to comply with technical standards and limitations in order to be eligible for the federal tax credit. This includes using solar panels that meet certain efficiency ratings and following certain installation guidelines. In Virginia, the state offers a property tax exemption for small-scale solar systems, making solar installation even more affordable. Furthermore, the state implements net metering regulations which enable clients to receive credits on their electricity bills for producing surplus solar energy that can be supplied back to the power grid.

Overall, the benefits of installing solar panels in Virginia are clear, and with the right incentives and installers, it can be an affordable and environmentally-friendly choice for residential and commercial customers alike. If you’re considering a solar installation, be sure to research reputable installers and take advantage of available incentives and programs to maximize your savings.


Virginia Solar Companies for Sustainable Energy Solutions

Virginia has a vibrant solar industry, with several solar companies offering a range of services, from installation to maintenance and repair. SunPower is a company that has been operating for more than three decades and is renowned for producing top-notch solar panels that have excellent efficiency ratings. They also offer a range of financing options to help customers make the switch to solar power without breaking the bank. Another option is Sigora Solar, a locally-owned company that has a strong focus on community solar projects. They offer a variety of financing options, including a lease-to-own program, to make a solar installation more accessible to customers with different budgets.

In addition to these companies, there are several other Virginia solar companies that offer installation and maintenance services. One such company is Solar Services, which has been providing solar installation services since 1986. Their range of services includes design, installation, and maintenance, and they have expertise in serving customers from both residential and commercial sectors. Another company worth considering is Convert Solar, which offers a range of solar services, including installation, maintenance, and repair. They also offer free consultations to help customers determine if solar is right for their needs. With so many reputable Virginia solar companies to choose from, customers can find the right provider to meet their needs and help them make the switch to clean, renewable energy.


Virginia Solar Installers

If you are ready to go solar in Virginia you will need to find a reliable and qualified installer who can help you design install and maintain your system. There are many factors that affect the performance and cost of your system such as:

  • The size and type of your roof or ground space
  • The orientation and tilt angle of your panels
  • The shading and weather conditions at your location
  • The quality and efficiency of your equipment
  • The availability and eligibility of incentives


A good installer will be able to assess these factors and provide you with a customized proposal that suits your needs and budget. They will also handle all the necessary paperwork permits inspections interconnection agreements warranties etc.

To find a reputable installer near you you can use online platforms such as EnergySage SolarReviews or Nova Solar Inc which allow you to compare quotes reviews ratings certifications etc. from different installers in Virginia.

You can also ask for referrals from friends family neighbors colleagues etc who have gone solar before or check online reviews testimonials case studies etc.

Some examples of well-known installers that operate in Virginia are:

Nova Solar Inc: A locally owned company based in Manassas VA that has been installing residential commercial agricultural industrial municipal educational military etc systems since 2008.

EcoGen America: A national company based in Philadelphia PA that has been installing residential
and commercial systems since 2015. They offer a 25-year warranty on their panels and a 10-year warranty on their workmanship.

SunPower: A national company and one of the longest-standing installers in the solar industry. They manufacture their own high-efficiency panels and offer a 25-year warranty on their products and services.

Blue Raven Solar: A national company based in Orem UT that has been installing residential systems since 2014. They offer a free consultation zero upfront costs flexible financing options and a 25-year warranty on their panels.

Lumina Solar: A regional company based in Baltimore MD that has been installing residential and commercial systems since 2018. They specialize in custom designs battery storage smart home integration and community solar projects.

These are just some examples of solar installers that you can choose from in Virginia. There are many more options available depending on your location preferences budget etc.

I hope this information helps you make an informed decision about going solar in Virginia. If you have any questions or need more assistance please let me know.

Introducing: The definitive Guide to Residential Solar in the U.S. <==Click here to check it out on

A residential solar system is a great way to reduce your energy costs while doing something positive for your community and the planet. However, when a home solar system is not designed and sold with integrity, it can have a tremendous negative financial impact on the homeowner.

Throughout The Definitive Guide to Residential Solar in the U.S., you will discover the many ways that homeowners have been taken advantage of by smooth-talking solar sales reps. Only to find out, often many months or years after they signed an ironclad contract, that their home solar system is not producing anywhere close to the amount of energy that they were told it would. Many of these homeowners found themselves having to pay a monthly solar bill on top of an electric bill, that they were told would vanish after installing solar panels. This is the unfortunate reality for thousands of solar pioneers and it is the #1 reason that residential solar deserves the bad reputation it has in many markets across the U.S.