Solar Panels in Virginia (2026 Guide)

Q: How much do solar panels cost in Virginia in 2026?

Roughly $2.65 to $3.05 per watt before incentives — about $13,250 to $15,250 for a 5 kW system and $26,500 to $30,500 for 10 kW.

Q: Does Virginia have a solar tax credit?

No state income-tax credit, but solar is exempt from sales tax, many localities exempt it from property tax, and you can sell SRECs for income. The federal credit expired December 31, 2025.

Q: Does Virginia have net metering?

Yes — full retail-rate (1:1) net metering, reaffirmed by state regulators in April 2026. Residential systems up to 25 kW; systems under 15 kW avoid standby charges.

Q: What are SRECs worth in Virginia?

Around $20 to $25 per credit in 2026 (prices fluctuate). A 10 kW system earns roughly 12 to 14 per year, sold through a broker.

Virginia is one of the steadier solar markets in the Southeast right now. In April 2026, state regulators reaffirmed full retail net metering for homeowners, the state has an active market where you can sell solar credits (SRECs), and solar equipment is exempt from sales tax. The federal credit is gone, but those pieces — plus rising utility rates — keep the math working. Here's what's available in 2026.

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How Much Do Solar Panels Cost in Virginia?

Virginia installs average roughly $2.65–$3.05 per watt before incentives. For a typical home system:

5 kW system: ~$13,250–$15,250
10 kW system: ~$26,500–$30,500

Your real price depends on your roof, equipment, and installer. See our 2026 solar cost breakdown.

Virginia Solar Incentives in 2026

No federal tax credit in 2026

The 30% federal residential solar tax credit expired December 31, 2025 and is not available for systems installed in 2026. A lot of older pages still show it — ignore that. See our 2026 tax credit guide.

SRECs — sell your solar credits

Virginia has an active market for Solar Renewable Energy Credits (SRECs). You earn one for every 1,000 kWh your system produces, and you can sell them through a broker for extra income — a 10 kW home system generates roughly 12–14 SRECs a year. Recent prices have been modest (around $20–$25 per credit in 2026, and they move with the market), but it's a real recurring income stream on top of your bill savings.

Sales tax exemption (100%)

Solar equipment is fully exempt from Virginia sales tax, trimming your upfront cost by whatever your local rate would have added.

Property tax exemption (local option)

Virginia law lets cities and counties exempt solar from local property tax, so your system doesn't raise your tax bill. It's adopted by many localities but not all — worth a quick check with your county or city, since it's a local decision.

Income- and age-qualifying help

Dominion Energy runs an Income- and Age-Qualifying Solar Program for eligible customers. (Note: the state's federally funded "Solar for All" program is in limbo as of 2026 due to a federal funding dispute, so don't count on it — but the Dominion program is worth checking if you qualify.)

Net Metering in Virginia

Good news here: in April 2026, the State Corporation Commission reaffirmed full retail-rate (1:1) net metering for residential systems. Every kWh you export is credited at the full retail rate and offsets a kWh you'd otherwise buy. A few specifics:

Residential systems can be sized up to 25 kW (and up to 150% of your annual usage in Dominion territory).
Systems under 15 kW avoid standby charges entirely — which covers the large majority of homes. Larger residential systems (15–25 kW) can face standby fees, so most homeowners size to stay under that line.

In plain terms: for a typical home system, you bank a full-price credit for the power you send to the grid and draw it down when you need it.

Major Virginia Utilities

Two utilities serve most of the state: Dominion Energy (the largest, covering eastern and central Virginia) and Appalachian Power (APCo) in the west. Virginia's residential rates run around 16–17¢ per kWh — near the national average and rising, as Dominion has filed for increases. Rising rates make every kWh your panels offset more valuable over time.

Is Solar Worth It in Virginia in 2026?

For most owner-occupied homes with good sun, yes. The federal credit is gone, so payback is longer than it was — but Virginia stacks up several real advantages: 1:1 retail net metering just reaffirmed, an active SREC income stream, a full sales-tax exemption, and local property-tax exemptions in many areas, all against rising, near-average electricity rates. It works best for higher-usage homes that stay under 15 kW (to avoid standby charges) and monetize their SRECs. Because you can't claim a federal credit either way, buying generally beats leasing. A custom quote for your utility shows your real payback.

Frequently Asked Questions

How much do solar panels cost in Virginia in 2026?
Roughly $2.65–$3.05 per watt before incentives — about $13,250–$15,250 for 5 kW and $26,500–$30,500 for 10 kW.

Does Virginia have a solar tax credit?
No state income credit, but solar is sales-tax exempt, many localities exempt it from property tax, and you can sell SRECs. The federal credit expired December 31, 2025.

Does Virginia have net metering?
Yes — full retail (1:1) net metering, reaffirmed by regulators in April 2026. Residential up to 25 kW; under 15 kW avoids standby charges.

What are SRECs worth in Virginia?
Around $20–$25 per credit in 2026 (prices fluctuate). A 10 kW system earns roughly 12–14 per year.

Why is solar worth it without the federal credit?
Retail net metering, SREC income, a sales-tax exemption, and rising near-average rates keep payback reasonable.

Sources

Net metering (Apr 2026 SCC ruling): Solar United Neighbors VA. SRECs: Flett Exchange. Incentives & tax exemptions: EnergySage. Costs & rates: EnergySage, ElectricChoice. Federal credit expiration: IRS OBBB guidance.