If you’re researching solar in Virginia in 2026 and feeling confused about where things stand, you’re right to be. The landscape changed significantly at the end of 2025 and is actively changing again right now.
The 30% federal Investment Tax Credit expired for new residential installations on December 31, 2025. At the same time, Dominion Energy, Virginia’s largest utility, has proposed dramatic changes to the net metering policy that has made solar financially attractive for the past decade. The State Corporation Commission is expected to issue a ruling on that proposal by May 1, 2026.
Here is the honest truth: Virginia’s solar incentive stack was never as generous as states like Illinois or California. There is no state tax credit. There is no statewide rebate programme. What Virginia has and what has made solar genuinely worthwhile here, is full retail net metering, a growing SREC market, and a property tax exemption that varies by locality.
Two of those three are now under threat or already gone. But solar can still make financial sense in Virginia in 2026, depending on your utility, your location, and how quickly you move. This guide covers everything you need to know.
Virigina Solar Incentives 2026
Current status of all major federal, state, and local solar incentive programmes
| Incentive | Status | Value (Typical System) |
|---|---|---|
| Federal 30% Tax Credit (ITC) | ❌ Expired Dec 31, 2025 | $0 for new installs |
| State Solar Tax Credit | ❌ Does not exist | N/A |
| Statewide Solar Rebate | ❌ Does not exist | N/A |
| Net Metering (Dominion / APCo) | ⚠️ Active — under threat | Full retail rate — SCC ruling by May 2026 |
| SREC Programme | ✅ Active & growing | ~$585–$910/year ongoing |
| Property Tax Exemption | ✅ Active — varies by locality | ~$100–$400/year saved |
| Virginia Solar For All | 🔄 In development | TBD — EPA funded 2024 |
| Virginia Clean Economy Act | ✅ Active | Policy framework, no direct cash |
What Expired — And What It Means for Virginia Homeowners
The federal Residential Clean Energy Credit, the 30% ITC , gave Virginia homeowners a direct tax credit equal to 30% of their total solar installation cost. For a typical Virginia system costing around $22,000 to $28,000, that was worth $6,600 to $8,400 off their federal tax bill.
For systems installed after December 31, 2025, the residential credit is zero.
If your system was installed and operational before December 31, 2025, you can still claim the 30% credit on your 2025 tax return. Speak to a tax professional if this applies to you.
This matters more in Virginia than in some other states because Virginia does not have a state tax credit or statewide rebate to partially offset the loss. In Illinois, Illinois Shines picks up much of the slack. In California, SGIP and the property tax exclusion remain strong. In Virginia, the federal credit was doing most of the heavy lifting, and now it is gone.
Net Metering in Virginia 2026 — The Situation You Must Understand Before Installing
This is the most important section of this entire guide. If you are considering solar in Virginia right now, the net metering situation is the single biggest factor affecting your decision — and most websites aren’t covering it clearly.
How net metering works today in Virginia:
Dominion Energy and Appalachian Power Company currently offer full retail rate net metering on a 1:1 basis. For every kilowatt-hour of excess solar electricity you send to the grid, you receive a credit equal to the full retail rate you pay, approximately $0.14 per kWh for most residential customers. Credits accumulate over a 12-month period and can be rolled over or cashed out at the avoided cost rate at year end.
This policy is what has made solar financially viable in Virginia. Without the federal credit, full retail net metering is now the primary financial engine of a Virginia solar installation.
What Dominion Energy has proposed to change:
In May 2025, Dominion Energy submitted a formal proposal to the Virginia State Corporation Commission to replace full retail net metering with a dramatically reduced export credit structure:
- Replace 1:1 full retail credits (~$0.14/kWh) with an “Export Credit Rate” based on power purchase agreement pricing — approximately $0.095/kWh, representing a ~32% reduction
- Switch from annual netting to half-hourly real-time netting — meaning any solar electricity not immediately consumed in your home earns the reduced credit rate, not the retail rate
- Claim ownership of your Solar Renewable Energy Credits (SRECs) while paying you the lower rate — effectively taking a valuable asset that legally belongs to you
- Charge new application fees of $100 to $750 plus a $1/month administrative fee
The most aggressive version of their proposal would reduce the export credit to as low as $0.048/kWh — a ~65% reduction from current rates, if they also claim your SRECs.
- What the SCC is expected to decide: The Virginia State Corporation Commission must issue a formal order by May 1, 2026. The ruling could accept Dominion’s proposal, reject it, or issue a modified version. If any changes are approved, they would apply only to new installations after the rule takes effect, systems already connected to the grid would retain their current net metering terms.
- ⚠️ Critical timing note: If the SCC approves changes to net metering, installations completed before the effective date will be grandfathered under the current full retail rate for the life of their interconnection agreement. This is a genuine reason to act before May 2026 if you have been considering solar in Dominion territory.
- Appalachian Power Company (APCo): APCo submitted its own net metering reduction proposal in August 2024 — proposing similar cuts to export credit values for new solar customers. Both utilities have proposals pending simultaneously before the SCC.
| Scenario | Export Rate | Impact on Payback |
|---|---|---|
| Current (full retail) | ~$0.14/kWh | 9–12 years |
| Dominion proposal (with SRECs) | ~$0.095/kWh | 13–16 years |
| Dominion worst case (no SRECs) | ~$0.048/kWh | 18–22 years |
Solar Renewable Energy Credits (SRECs) — Virginia’s Ongoing Income Stream
The SREC programme is Virginia’s most underappreciated solar incentive — and in 2026, it is becoming more valuable, not less.
Under Virginia’s Clean Economy Act (VCEA), utilities are required to source a certain percentage of their electricity from solar. To meet these requirements, they purchase Solar Renewable Energy Credits from system owners. You earn one SREC for every 1,000 kWh of electricity your solar panels generate — roughly one SREC per month for a typical residential system.
- Current SREC values: SRECs in Virginia currently trade at approximately $22.50 to $70 per credit depending on market demand and timing. For a typical 11–14 kW Virginia system generating 12–14 SRECs per year, that’s approximately $270 to $980 in annual SREC income ongoing, every year, for the life of your system.
- Why SREC values are expected to rise in 2026: Virginia’s VCEA mandates that utilities source 1% of electricity from solar, a requirement that increases to 3% in 2026 and 5% in 2028. More demand from utilities chasing a higher mandate, with a relatively fixed supply of residential solar systems, should push SREC prices upward. This is a genuine long-term tailwind for existing and new Virginia solar owners.
- How to sell your SRECs: Your installer typically handles SREC registration. You can also register directly with an SREC broker such as SRECTrade or sell to Dominion Energy directly. Dominion offers to purchase RECs from net metering customers, though market rates through a broker are often higher.
To own your SRECs you must own your solar system. Leases and PPAs transfer SREC ownership to the installing company in most contracts. Always verify SREC ownership terms before signing any contract — and be aware that Dominion’s proposed net metering changes would attempt to claim your SRECs as part of a bundled arrangement.
Property Tax Exemption — Varies by Locality
Virginia law gives counties, cities, and towns the authority to exempt solar energy equipment from local property taxes — but it does not require them to do so. Whether you benefit from this exemption depends entirely on where you live.
How the exemption works where offered: Virginia’s residential property tax exemption structure is tiered:
- First 5 years: 80% of the system’s assessed value is exempt
- Next 5 years: 70% of the assessed value is exempt
- Remaining system life: 60% of the assessed value is exempt
At Virginia’s average property tax rates, a $20,000 solar installation could save a qualifying homeowner approximately $100 to $400 per year depending on their local tax rate and the applicable exemption percentage.
Localities known to offer the exemption include:
- Fairfax County
- Loudoun County
- Albemarle County
- Arlington County
- City of Charlottesville
What to do: Contact your local county assessor or department of tax administration before installation to confirm whether your locality participates and what documentation is required. Your installer should also be familiar with your county’s process.
Virginia Solar For All — In Development
Virginia received significant federal funding from the EPA’s Solar For All initiative in 2024, part of the $7 billion programme allocated under the Inflation Reduction Act to expand solar access for low-income households across the country.
As of early 2026, Virginia’s Solar For All programme is in development. The funding is intended to create or expand solar programmes that make installations accessible to households earning at or below 80% of Area Median Income, including renters and residents of multi-family properties.
What this means right now: The programme is not yet accepting applications for residential homeowners. Watch for updates from the Virginia Department of Energy and your local utility. When launched, this could represent significant value, potentially covering a substantial portion of installation costs — for income-qualifying households.
Virginia Clean Economy Act — The Policy Behind the Market
The Virginia Clean Economy Act (VCEA) is the legislation that drives Virginia’s solar incentive ecosystem. Signed into law in 2020, it establishes Virginia’s mandate for 100% carbon-free electricity by 2045 for Dominion Energy and 2050 for Appalachian Power.
For homeowners, the VCEA matters because it:
- Creates the mandatory demand for SRECs that gives them their value
- Establishes the net metering requirement that Dominion is now trying to weaken
- Expanded the allowable size of residential solar systems
- Removed restrictive fees and limitations on solar installation that previously existed
- Supports community solar pilot programmes for renters and multi-family residents
The VCEA is the foundation. The question in 2026 is whether the SCC will allow Dominion to undermine its net metering provisions.
Dominion Energy vs Appalachian Power — Which Territory Are You In?
Your utility determines almost everything about your solar economics in Virginia.
| Feature | Dominion Energy Northern · Central · Eastern VA | Appalachian Power Western · Southwest VA |
|---|---|---|
| Service Area | Northern, Central, Eastern VA | Western, Southwest VA |
| Residential Rate | ~$0.14/kWh | ~$0.12/kWh |
| Net Metering Cap | 20 kW residential | 20 kW residential |
| Net Metering Status | ⚠️ SCC ruling May 2026 | ⚠️ SCC ruling pending |
| SREC Programme | ✅ Yes | ✅ Yes |
| Solar Interconnection | Standard process | Standard process |
- Dominion Energy territory covers the majority of Virginia’s population — Northern Virginia, Richmond, Hampton Roads, and most of Central Virginia. If you are in Dominion territory, the proposed net metering changes affect you directly.
- Appalachian Power territory covers Western and Southwest Virginia, Roanoke, the New River Valley, and the Blue Ridge Highlands area. APCo filed its own net metering reduction proposal in August 2024, so customers in both territories face similar risks.
- Rural electric cooperatives in Virginia are not required to offer net metering under state law, though some do voluntarily. If you are served by a co-op, confirm your net metering terms directly before installing — they are not subject to the same SCC proceedings as Dominion and APCo.
How Much Do Solar Panels Cost in Virginia in 2026?
The average solar installation in Virginia costs $2.65 per watt before incentives, according to EnergySage February 2026 marketplace data. Virginia costs slightly above the national average, reflecting higher installation complexity in some markets and a less concentrated installer base than states like California or New Jersey.
For a typical system:
| System Size | Gross Cost | Best For |
|---|---|---|
| 8 kW | $21,200 | Smaller home, low usage |
| 10 kW | $26,500 | Average 3-bed home |
| 13 kWTypical | $34,450 | Average VA home energy use |
| 15 kW | $39,750 | Larger home or EV charging |
The average Virginia home requires approximately 13–14 kW to fully offset electricity usage. Virginia homes tend to use more electricity than the national average due to heating and cooling demands from its mixed climate.
Is it still worth it in 2026?
| Cost / Incentive | 2025 With ITC | 2026 Without ITC |
|---|---|---|
| Gross System Cost (13 kW) | $34,450 | $34,450 |
| Federal Tax Credit (30%) | − $10,335 | $0 — expired |
| SREC Income (Year 1) | ~$650 | ~$650 |
| Net Out-of-Pocket | $23,465 | $33,800 |
| Annual Electricity Savings | ~$1,400 | ~$1,400 |
| Annual SREC Income | ~$650 | ~$650–$900 ↑ rising |
| Estimated Payback Period | ~10–11 years | ~15–16 years* |
*Payback assumes current full retail net metering remains in place. If Dominion’s proposed changes are approved, payback could extend to 18–22 years for new installations in Dominion territory.
The honest answer: without the federal credit and with net metering under threat, the financial case for solar in Virginia in 2026 is significantly weaker than it was in 2025. It is not gone, particularly in areas with strong SREC values and full retail net metering, but it requires more careful analysis than it did 18 months ago.
Virginia Solar by City — Does Location Matter?
Yes — primarily because of which utility serves your address and your local property tax exemption status.
| City / Region | Main Utility | Property Tax Exemption | Solar Outlook 2026 |
|---|---|---|---|
| Northern Virginia Fairfax, Loudoun |
Dominion | ✅ Strong exemptions | ✅ Good High property values · strong SREC market |
| Richmond | Dominion | Varies by county | ⚠️ Moderate Awaiting SCC ruling |
| Hampton Roads Norfolk, Virginia Beach |
Dominion | Varies | ⚠️ Moderate Good sun · awaiting SCC ruling |
| Charlottesville Albemarle County |
Dominion | ✅ Active | ✅ Good Strong local support · SREC income |
| Roanoke | Appalachian Power | Varies | ⚠️ Moderate APCo proposal also pending |
| Southwest Virginia | Appalachian Power | Limited | ⛔ Cautious APCo changes may reduce savings |
Is Solar Still Worth It in Virginia in 2026? The Honest Verdict
It depends on three things: your timeline, your utility territory, and your honest assessment of payback period tolerance.
Act before the SCC ruling (by May 1, 2026) — strongest case:
If you install and interconnect before any SCC-approved changes take effect, you are grandfathered under current full retail net metering. You avoid the proposed credit reductions. Your SREC income is locked in. The payback without the federal credit is approximately 15–16 years on a 25-year asset — not exceptional, but rational, particularly with SREC values projected to rise.
Install after an unfavourable SCC ruling — weaker case:
If Dominion’s full proposal is approved, a new installation in Dominion territory faces a 55–65% reduction in export credit value. Combined with the loss of the federal credit, the financial case for solar in Dominion territory becomes difficult to justify for most homeowners unless SREC values rise substantially.
If the SCC rejects or significantly modifies Dominion’s proposal — good case:
Full retail net metering plus growing SREC income plus property tax exemption makes Virginia solar financially viable even without the federal credit — at approximately 15–16 year payback on a 25-year system.
The bottom line for Virginia homeowners in 2026: timing has never mattered more. The May 1, 2026 SCC ruling deadline is the most important date in Virginia solar right now.
Why Installer Choice Matters in Virginia
In Virginia, your installer’s knowledge of the SREC registration process and your utility’s interconnection requirements directly affects how much you earn and how quickly your system comes online.
Before signing any contract, ask:
- Will you register my system for SREC trading, and who retains SREC ownership?
- Are you familiar with the current SCC proceedings on net metering?
- Can you complete interconnection before the SCC ruling deadline?
- Do you have experience with my specific utility’s interconnection process?
- What is your CSLB or state contractor licence number? (verify independently)
Any experienced Virginia solar installer should answer all of these clearly and in writing.
Frequently Asked Questions
Is the federal solar tax credit available in Virginia in 2026?
No. The residential 30% ITC expired for new installations completed after December 31, 2025. Systems installed before that date can still claim the credit on a 2025 tax return.
Does Virginia have a state solar tax credit?
No. Virginia does not offer any state-level solar tax credit.
Does Virginia have a statewide solar rebate?
No. There is no statewide solar rebate programme in Virginia. The only financial incentive programmes available are net metering, SRECs, and locally-administered property tax exemptions.
What are SRECs and how do I sell them in Virginia?
Solar Renewable Energy Credits are certificates representing 1 MWh of clean electricity your panels generate. You earn approximately 12–14 per year on a typical Virginia system. You can sell them through a broker like SRECTrade or directly to Dominion Energy. Currently worth approximately $22.50 to $70 per credit.
What is happening with net metering in Virginia?
Dominion Energy has proposed reducing export credits from the current full retail rate (~$0.14/kWh) to approximately $0.09 to $0.05/kWh. The Virginia State Corporation Commission must issue a ruling by May 1, 2026. Systems installed before any approved changes take effect will be grandfathered at the current rate.
Does Virginia have a property tax exemption for solar?
Yes, but it is not statewide. Virginia law allows local governments to offer it, but does not require them to. Check with your specific county or city before installing.
Is solar still worth it in Virginia in 2026?
For homeowners who act before the SCC ruling on net metering — and who are in localities with active property tax exemptions — yes, at approximately 15–16 year payback. If the SCC approves Dominion’s full proposal for future installations, the financial case weakens significantly.
Data Sources:
- EnergySage Virginia Solar Cost Data, February 2026
- Virginia State Corporation Commission — Case No. PUR-2024-00047
- Virginia Clean Economy Act (VCEA) — SCC Documentation
- Dominion Energy Net Metering Proposal, May 2025
- Appalachian Power Net Metering Proposal, August 2024
- Solar United Neighbors — Virginia Net Metering Campaign
- Virginia Department of Environmental Quality — Solar Incentives
- WattBuild SREC Virginia Analysis, August 2025
- EnergySage SREC Virginia Data, February 2026