Is solar worth it in Virginia?
For a typical Virginia home in 2026, solar is worth it: about a 12.3-year payback and $36,620 saved over 25 years after paying for the system. Check your own home, because roofs, usage and utilities vary a lot.
- Payback, typical home
- 12.3 yrs9.1 kW, paying cash
- Electricity price
- 16.5¢per kWh, U.S. 18.0¢
- Solar production
- 1,380kWh per kW per year
- Exports credited at
- RetailFull retail net metering
The numbers for a typical Virginia home
| Electricity use | 1,047 kWh a month (Virginia average) |
|---|---|
| Best-value system | 9.1 kW, producing 12,555 kWh a year (100% of use) |
| Price | $25,795 at about $2.95/W |
| First-year savings | $2,004 |
| Payback | 12.3 years |
| 25-year net | $36,620 (7.3% a year return) |
| Rate increase assumed | 3.0% a year, from Virginia's 2015–2025 history |
Paying cash, no federal credit, 5% discount rate, microinverters, $25 per kW a year for maintenance and repairs. Methodology.
Why it comes out this way
- Electricity costs 16.5¢ per kWh, close to the U.S. average of 18.0¢.
- Most utilities credit exported solar at or near the retail rate, so you get full value for midday surplus.
- A typical system here produces about 1,380 kWh per kW per year (ranked #26 of 51).
- There is no federal tax credit for homeowners who buy in 2026, which adds several years to payback compared with 2025.
Net metering and export rules in Virginia
Full retail net metering. Virginia keeps 1:1 net metering with annual netting for Dominion and Appalachian Power. Solar offsets your usage at retail and credits roll over for 12 months; only surplus left at year end is paid at a low rate (Dominion ~5.8 c/kWh under the 2026 'NEM 2.0').
kWh exports offset usage 1:1 at retail; annual net excess paid at avoided cost (+1 c for Dominion NEM 2.0 = 5.829 c/kWh; APCo reduced to ~5.7 c in Aug 2025 order).
- Netting: annual
- Unused credits: kWh credits roll over for 12 months; annual surplus paid at excess rate (Dominion 5.829 c/kWh for NEM 2.0).
- System size limit: 25 kW
- Fixed charges: Dominion NEM 2.0: $1/month administrative charge; application fee rejected. Residential systems >15 kW may face standby charges.
- Last major change: SCC Final Order 2026-04-30 (PUR-2025-00079) Dominion NEM 2.0, clarified 2026-05-20; SCC order Aug 2025 for APCo. Existing customers grandfathered.
- Pending: Reconsideration petitions on Dominion order filed May 2026 (outcome not verified).
Read net metering explained to see why export rules can swing payback by years.
| Utility | Export credit | Notes |
|---|---|---|
| Dominion Energy Virginia | 15¢/kWh | NEM 2.0 (from 2026-04-30): annual netting retained; year-end surplus at 5.829 c; $1/mo admin fee; 30-minute data collection only. |
| Appalachian Power (VA) | 14¢/kWh | Aug 2025 SCC order kept 12-month netting and retail offset, no standby/grid charges, 6% cap; annual excess rate cut to ~5.7 c/kWh (avoided cost plus REC value). |
Solar incentives in Virginia
The federal 30% Residential Clean Energy Credit ended for systems installed after December 31, 2025. What that means.
| Program | Type | What you get | Status |
|---|---|---|---|
| Residential solar property tax exemption | property tax exemption | Solar installations under 25 kW are a separate class of property exempt from state/local property taxes (SB 686, 2022). Eligibility: Residential and mixed-use systems <25 kW. | active |
| Virginia SRECs | srec | Virginia RPS solar/DG RECs; values uncertain (EnergySage cites ~$22.50 per SREC). Eligibility: VA-sited systems in PJM-GATS. | unknown |
What solar costs in Virginia
A fair cash price is around $2.95 per watt before incentives. For the 9.1 kW system that fits a typical home, expect roughly $22,800 to $32,200; smaller systems cost more per watt.
How many homes have solar
- Homes with net-metered solar (2025)
- 74,360
- Share of homes
- 2.0%
- Residential solar capacity
- 605 MW
- Growth over the past year
- +19.3%
Sources: EIA-861 (2025), EIA small-scale solar estimates, LBNL Tracking the Sun and state interconnection data.
Electric utilities in Virginia
| Utility | Homes served | Price (2026 est.) | Typical use | Typical-home verdict |
|---|---|---|---|---|
| Dominion Energy Virginia | 2,408,901 | 16.3¢ | 1,049 kWh/mo | Worth it |
| Appalachian Power | 467,581 | 18.4¢ | 1,115 kWh/mo | Worth it |
| Rappahannock Electric Cooperative | 172,883 | 16.7¢ | 1,195 kWh/mo | Worth it |
| Northern Virginia Electric Cooperative | 169,027 | 13.6¢ | 1,142 kWh/mo | Close call |
| Shenandoah Valley Electric Cooperative | 86,656 | 15.6¢ | 1,200 kWh/mo | Close call |
| Southside Electric Cooperative | 57,305 | 16.7¢ | 1,162 kWh/mo | Worth it |
| City of Danville | 38,226 | 17.1¢ | 1,025 kWh/mo | Worth it |
| Central Virginia Electric Cooperative | 35,353 | 17.4¢ | 1,238 kWh/mo | Worth it |
| A & N Electric Cooperative | 33,035 | 15.5¢ | 991 kWh/mo | Worth it |
| Mecklenburg Electric Cooperative | 30,077 | 15.4¢ | 1,050 kWh/mo | Worth it |
| Kentucky Utilities (KU) | 22,759 | 12.8¢ | 1,168 kWh/mo | Not worth it |
| Northern Neck Electric Cooperative | 18,199 | 17.3¢ | 1,197 kWh/mo | Worth it |
| City of Harrisonburg | 18,133 | 12.4¢ | 974 kWh/mo | Close call |
| City of Manassas | 13,945 | 13.3¢ | 1,108 kWh/mo | Close call |
| Bristol Virginia Utilities | 13,648 | 12.5¢ | 1,239 kWh/mo | Close call |
| City of Salem | 11,426 | 16.7¢ | 947 kWh/mo | Worth it |
| Prince George Electric Cooperative | 10,917 | 14.6¢ | 1,394 kWh/mo | Worth it |
| Powell Valley Electric Cooperative | 6,571 | 12.5¢ | 1,097 kWh/mo | Not worth it |
| Virginia Tech Electric Service | 5,750 | 19.9¢ | 801 kWh/mo | Worth it |
Solar by city in Virginia
- Virginia Beach12.1-yr payback · Worth it
- Chesapeake12.3-yr payback · Worth it
- Arlington12.5-yr payback · Worth it
- Norfolk12.1-yr payback · Worth it
- Richmond12.7-yr payback · Worth it
- Newport News12.3-yr payback · Worth it
- Alexandria12.5-yr payback · Worth it
- Hampton12.1-yr payback · Worth it
- Suffolk12.2-yr payback · Worth it
- Roanoke11.7-yr payback · Worth it
- Portsmouth12.1-yr payback · Worth it
- Lynchburg11.4-yr payback · Worth it
- Centreville15.1-yr payback · Close call
- Dale City12.7-yr payback · Worth it
- Reston12.7-yr payback · Worth it
- Harrisonburg12.6-yr payback · Worth it
- McLean12.5-yr payback · Worth it
- Tuckahoe12.6-yr payback · Worth it
- Leesburg12.6-yr payback · Worth it
- Lake Ridge12.9-yr payback · Worth it
- Ashburn12.8-yr payback · Worth it
- Blacksburg11.6-yr payback · Worth it
- Charlottesville12.9-yr payback · Worth it
- Burke12.7-yr payback · Worth it
- Woodbridge12.8-yr payback · Worth it
- Manassas15.5-yr payback · Close call
- Danville10.8-yr payback · Worth it
- Linton Hall12.7-yr payback · Worth it
- Annandale12.3-yr payback · Worth it
- Mechanicsville12.5-yr payback · Worth it
- Oakton12.8-yr payback · Worth it
- Fair Oaks12.8-yr payback · Worth it
- South Riding15-yr payback · Close call
- Petersburg12.8-yr payback · Worth it
- Sterling12.7-yr payback · Worth it
- West Falls Church12.3-yr payback · Worth it
- Springfield12.5-yr payback · Worth it
- Short Pump12.6-yr payback · Worth it
- Tysons12.6-yr payback · Worth it
- Fredericksburg12.8-yr payback · Worth it
- Winchester13.6-yr payback · Close call
- Cherry Hill12.9-yr payback · Worth it
- Staunton12.6-yr payback · Worth it
- Cave Spring11.4-yr payback · Worth it
- Salem12.8-yr payback · Worth it
- Fairfax12.8-yr payback · Worth it
Protect yourself when buying
- Check the license. DPOR Board for Contractors license (Class A/B/C) with Electrical (ELE) specialty, plus licensed tradesman. Look up an installer
- Cancellation rights. Federal law gives you 3 business days to cancel most door-to-door sales over $25. How to cancel
- HOA and solar access. Yes - Va. Code 67-701 limits HOA prohibitions on solar (reasonable restrictions allowed).
- Community solar. Yes - Shared Solar programs (Dominion; APCo program authorized 2025).
Questions about solar in Virginia
Is solar worth it in Virginia in 2026?
For a typical Virginia home, solar is worth it. A 9.1 kW system costing about $25,795 after state incentives saves about $2,004 in the first year and pays back in about 12.3 years. Your result depends on your roof, usage, utility and price, so run the calculator for your address.
How much do solar panels cost in Virginia?
A reasonable cash price is around $2.95 per watt before incentives, or roughly $22,800 to $32,200 for a 9.1 kW system.
Does Virginia have net metering?
Virginia keeps 1:1 net metering with annual netting for Dominion and Appalachian Power. Solar offsets your usage at retail and credits roll over for 12 months; only surplus left at year end is paid at a low rate (Dominion ~5.8 c/kWh under the 2026 'NEM 2.0').
Is there a solar tax credit in Virginia?
The 30% federal credit for homeowners ended for systems installed after 2025. Virginia does not offer a state income tax credit for solar that we're aware of. Solar may be exempt from property tax.
How do I check a solar installer's license in Virginia?
DPOR Board for Contractors license (Class A/B/C) with Electrical (ELE) specialty, plus licensed tradesman.. Look up any installer with the state's license search at https://www.dpor.virginia.gov/LicenseLookup.
Policy research current as of October 2026; sources include pv-magazine-usa.com, whitefordlaw.com, selc.org. Electricity data: EIA, through July 2026. Found something out of date? Tell us.