Virginia Solar Incentives, Net Metering & Cost (2026)
Written by Aditya Patil · Last updated 2026-09-24
Virginia offers some of the strongest solar policies in the South, featuring guaranteed 1:1 full retail net metering protected by a recent 2026 SCC ruling, plus a thriving SREC market for ongoing income.
$185
Avg. monthly bill
17.22¢/kWh
Avg. rate
1:1 Retail
Net metering
~$20-$40/credit
SREC value
2026 market range
Cost of solar in Virginia
While robust public data for average installed costs across Virginia is currently limited (the LBNL Tracking the Sun dataset does not have enough recent, verified residential samples for the state to establish a reliable median), typical national pricing suggests homeowners can expect strong returns.
Virginia residents benefit from average electricity rates of 17.22¢/kWh and use around 1,075.5 kWh per month. Even without exact state-level cost medians, the combination of the federal clean energy credit (§25D) and ongoing SREC income typically makes solar a highly compelling investment in the Commonwealth.
Incentives & SRECs
Virginia's primary ongoing financial incentive is the SREC market, established under the Virginia Clean Economy Act (VCEA). Homeowners can register their systems to mint and sell certificates to utilities.
| Program | Amount / Benefit | Status |
|---|---|---|
| Virginia Solar Renewable Energy Certificates (SRECs) | Varies by market demand. A 10 kW system typically generates about 12 SRECs per year. In 2026, Virginia SRECs have traded at values typically ranging from $20 to $40 per credit, depending on the broker and market conditions. | open |
| Local Option Property Tax Exemption for Solar | Exempts the added value of the solar energy equipment from local property taxes. | open |
Net metering / export rules
Virginia law guarantees 1:1 full retail net metering for residential customers of investor-owned utilities like Dominion Energy and Appalachian Power (APCo) for systems up to 25 kW. This policy ensures that the solar energy you send to the grid is valued at the same rate you pay to consume power.
In an important victory for solar owners, the Virginia State Corporation Commission (SCC) issued an order in April 2026 rejecting utility proposals to shift toward lower avoided-cost rates for daily exports. As a result, the 1:1 credit structure is securely maintained.
| Policy | Full Retail Net Metering (1:1) |
| System size limit | Up to 25 kW for residential |
| Rollover | Month-to-month as kWh credits |
| True-up | Annual true-up at avoided-cost rate |
| Regulatory status | Affirmed by SCC in April 2026 |
Exports are credited at the full retail rate on a 1:1 kWh basis. Banked credits roll over month-to-month. At the end of the 12-month true-up period, if a customer has generated more energy than they consumed over the entire year, the utility compensates the remaining net excess generation at a lower "avoided-cost" rate. Customers interconnecting after the April 2026 SCC order may also be subject to a nominal monthly administrative fee (e.g., $1/month) depending on the utility tariff.
Top utilities
| Utility | Residential rate | Customers |
|---|---|---|
| Virginia Electric & Power Co | 14.09¢/kWh | 2,383,548 |
| Appalachian Power Co | 17.02¢/kWh | 465,283 |
| Rappahannock Electric Coop | 14.89¢/kWh | 169,489 |
Residential rate and customer counts are from EIA data. Rates reflect the blended average cost across standard residential tiers.
Batteries & VPP programs
Dominion Energy Virtual Power Plant (VPP) Pilot
Authorized by the 2025 Community Energy Act and approved by the SCC, Dominion Energy is launching a VPP pilot program. The program aggregates distributed energy resources like home batteries to support the grid during peak demand. Enrollment is expected to begin in late 2026. Participants will receive financial compensation (such as bill credits) for allowing the utility to dispatch their stored energy, with final tariff details expected in November 2026.
Lease vs. buy in Virginia
Most homeowners in Virginia choose to buy their solar systems with cash or a solar loan to maximize the financial return of 1:1 net metering and to retain ownership of their SRECs. However, leasing options remain available. Under a lease, the solar company typically claims the federal tax credit and keeps the SRECs. See our lease vs. buy vs. PPA guide to compare options.
Estimate your own numbers
Curious what a system would cost for your home? Use our solar calculator with your own usage to see customized estimates.
FAQ
Does Virginia have true 1:1 net metering?
Yes, Virginia law guarantees full 1:1 retail net metering for residential customers of investor-owned utilities like Dominion Energy and Appalachian Power. Your excess solar generation is credited at the same retail rate you pay for electricity. In April 2026, the Virginia State Corporation Commission (SCC) issued an order protecting this structure.
How do Solar Renewable Energy Certificates (SRECs) work in Virginia?
Through the Virginia Clean Economy Act, utilities must purchase SRECs to meet clean energy goals. Homeowners can mint and sell these certificates for the solar power they generate. A typical 10 kW system generates about 12 SRECs annually, and in 2026, they typically trade between $20 and $40 per credit depending on market conditions.
Does Virginia offer a solar property tax exemption?
Virginia offers a Local Option Property Tax Exemption. This means cities, counties, and towns have the authority to exempt the added value of a solar system from local property taxes, but it is not a statewide guarantee. You must check with your specific municipality to see if they have adopted this exemption.
Data sources
Last updated 2026-09-24
- U.S. Energy Information Administration — Electricity Data Browser — accessed 2026-09-24
- NREL PVWatts — accessed 2026-09-24
- NREL Solar Resource Data — accessed 2026-09-24
- LBNL Tracking the Sun (public data file, host-owned residential systems) — accessed 2026-09-24
Written by Aditya Patil