If you live in Virginia and are just starting to consider solar panels for your home, you likely have a lot of questions. For decades, your utility was the only game in town, when it came to getting electricity at home. Having a new option — solar panels at home — is an exciting development.
If you’re looking to save some money and maybe gain some resilience and independence from your utility, solar may be the right choice for you. Find answers to your questions about going solar in Virginia and tips on finding a reliable solar company below.
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Does Solar Make Sense in Virginia?
When you think of solar power, you might think of traditionally sunny places like California, Texas, or Arizona. But often the success of a state’s solar industry relies on its policy.
Virginia has valuable incentives — like net metering and solar renewable energy credits — that mean going solar has a good chance of reducing your electricity bill.
Virginia ranks in the top 10 states for solar installations, according to the Solar Energy Industries Association, and will need to keep up that momentum to reach its goal of 100% zero carbon energy by 2050. Whether is makes sense for you to add to Virginia’s solar installations will come down to your electricity costs, the available incentives, and how soon your savings will match your costs.
Price of electricity
The average cost of electricity in Virginia was 14.26 cents per kilowatt hour during 2023, according to the US Energy Information Administration. That’s slightly cheaper than the national average of 16.62 cents/kWh.
Some Virginians may be able to choose their electricity supplier and find a rate different from their electric utility. In general, the more you pay for electricity to start, the more you can save by going solar.
Price of solar
The cost to install solar on your roof depends on a lot of factors: the local cost of labor, the complexity of your roof, and the size of your system to start. As a result, the cost of installing solar varies by state, city, and even house.
The national average cost of solar, according to the Solar Energy Industries Association, was $3.24 in the first half of 2024. After a slight, inflation-related increase in the last few years, solar prices are falling again. That follows the long term downward trend of the last decade and longer. According to data from the Lawrence Berkeley National Laboratory, solar prices are down about 30% in the last decade and about 70% in the last two decades.
National estimates paint with a broad brush. The best way to get an accurate idea of the cost of solar on your property is to get a quote from a reputable solar company.
Available sunlight
Solar panels need sunlight to generate electricity, but residential solar markets can thrive in places that aren’t known for being really sunny. Virginia gets an average of 4.25-4.75 peak sun hours per day, according to the National Renewable Energy Laboratory.
How much sunlight your specific roof gets is a more important figure. If your roof is heavily shaded by trees or buildings, solar panels may not be a good fit.
Outages
Along with savings, solar panels can deliver reliability, too. When paired with a battery of sufficient size, solar panels can keep the lights on when the power goes out. Without a battery, most solar panel systems are designed to shut down with the grid for safety reasons.
In 2022, the average Virginian experienced nearly 10 hours of outages, according to the Energy Information Administration. (Some utility customers may have had longer outages while others had none.) If avoiding power outages is really valuable to you, solar and storage could be a good fit.
Solar Incentives in Virginia
While solar panel prices are decreasing over time, they still represent a significant investment. Luckily, homeowners who go solar in Virginia can qualify for some of the most valuable incentives available.
Federal tax credit
The Residential Clean Energy Credit, often called just the solar tax credit, is a federal tax credit for those who install solar panels at their homes. When you install solar at home, you can reduce the federal taxes you owe by 30% of the cost of the system. In order to take advantage of the credit, you’ll need to owe or have paid taxes, but if your credit is worth more than the taxes you owe, you can roll the excess over into future years.
Everyone’s tax situation is different, so be sure to consult your tax professional about the details of your situation.
Net metering
If your solar panels generate more electricity than you can use, you can use that electricity to charge a battery, if you have one, or send it back to the grid.
Most Virginians will have 1-to-1 net metering available to them, where they receive bill credits for every kilowatt-hour they send to the grid at the retail rate. Under net metering, If you bought 200 kilowatt-hours of electricity and sent 200 back to the grid, you’d have a bill of zero. Any excess credits carry forward to future months at the retail rate. Once a year, any banked credits will be paid out at a lower avoided cost rate.
Solar renewable energy credits
Solar owners in Virginia are eligible to sell solar renewable energy credits (SRECs) for every 1,000 kilowatt-hours their solar panels generate. SRECs represent the renewable benefits of solar energy, and utilities can purchase them to meet their renewable energy obligations.
SRECs are typically sold on a SREC trading platform and the price varies with supply and demand. If you lease your solar panels, the SRECs will likely go to the company that owns the solar panels.
Property tax exemption
Solar panels typically increase the value of your property. In Virginia, solar panels are exempt from property taxes.
See how much you can save by going solar with Palmetto
Solar Payback Period in Virginia
Before buying solar panels, you’ll probably want to estimate your solar payback period, the time it takes for your overall savings to match your overall costs. The specifics of your solar payback period will depend on the ultimate cost of your system and how much you stand to save each month, but here’s how you can estimate it.
Take the total cost, subtract any incentives, and divide that total by your estimated annual savings.
( total cost - total incentives ) / annual savings = payback period in years
Let’s assume you purchase a 7 kilowatt system at the national average cost of solar, $3.24 per watt, for a total cost of $22,680. You claim the full Residential Clean Energy Credit available to you — $6,804 — for a total cost of $15,876. You estimate that you’ll save about $125 each month, or $1,500 each year. It will take an estimated 10.5 years to pay back your solar panels.
( $22,680 - $6,804 ) / $1,500 per year = 10.58 years
Estimating your solar payback period isn’t an exact science. Some of the factors might change over time. For one, electricity rates generally increase over time. While the 2023 average electric rate in Virginia was 14.26 cents per kilowatt-hour, 10 years earlier in 2013 it was 10.84 cents per kWh, meaning it increased by about 31%. While it’s impossible to predict exactly what electricity rates will do in the future, the long term trend is upward.
If electricity gets more expensive in the future, your payback period could be shorter, since your savings will increase.
Credit: US EIA
Virginia Utilities and Rooftop Solar Panels
While some people are motivated to go solar to reduce their reliance on their utility, a utility plays a role in the process of going solar. Your utility’s rates and net metering policy will affect your savings, and it will grant your system permission to operate, one of the final steps in switching on your solar panel system.
| Utility | Electric rate (cents/kWh) | Net metering type | Max system size | Max system offset |
|---|---|---|---|---|
| Appalachian Power Co | $15.88 | 1-to-1 net metering | 36.25 kW | 100% |
| Danville Utilities | $15.65 | 1-to-1 net metering | 29 kW | |
| Dominion Energy | $13.92 | 1-to-1 net metering | 15 kW | 150% |
| Northern Virginia Electric Co-op | $13.92 | 1-to-1 net metering | 29 kW | 100% |
| Rappahannock Electric Co-op | $14.81 | 1-to-1 net metering | 29 kW | 100% |
| Shenandoah Valley Electric Co-op | 13.69 | 1-to-1 net metering | 29 kW | 100% |
Average electricity rate taken from US EIA data.
Gas utilities and home electrification
If you use natural gas in your home, you have two energy bills: one from your electric utility and one from Columbia Gas of Virginia, Virginia Natural Gas, Washington Gas, or another gas utility. Home electrification — the process of removing gas from your home by installing electric appliances and devices — can eliminate your gas bill. When paired with solar, home electrification can provide significant overall savings, too. If you’re a customer of one of Virginia's major gas utilities, or use propane or oil for heating, home electrification may make your home cheaper to run, greener, and a bit healthier too.
Leasing Solar Panels in Virginia
Virginia allows third party ownership of solar panels. Third party ownership means homeowners can put solar panels on their roof without owning them. Instead, they’ll pay the panels’ owner a set monthly fee for the equipment (through a lease) or for the power they generate (through a power purchase agreement, or PPA). When the amount you pay for your lease or PPA is less than the amount you save on your electricity bill, you save money overall.
Leases and PPAs are typically multiyear agreements, though many include the option to buy out your lease at certain points throughout the agreement. Palmetto’s LightReach Energy Plan offers buyouts starting in year five.
Third party ownership agreements typically include an escalator — a set percentage that your payments go up each year. When electricity rates rise faster than your utility rates, you stand to save more by the end of your lease or PPA than at the beginning.
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Solar Panel Maintenance in Virginia
Solar panels have a long lifespan — most are under warranty for 25 years — which means there’s a long time for things to go wrong. Luckily, solar panels are typically low maintenance.
Still, you should carefully consider the warranties installers offer you and their reputation for customer service and customer reviews. Palmetto offers Palmetto Protect, its monitoring and maintenance plan. Depending on the level of your plan, you could receive proactive monitoring, speedy service, and a 95% performance guarantee.
One bit of regular maintenance you might do yourself (or have done for you) is cleaning your solar panels. Because dirt, dust, leaves, bird droppings, and more block sunlight from reaching your panels, clearing them away can boost electricity production. Be sure to follow the manufacturers recommendations and avoid doing anything that could damage or scratch your panels.
Finding the Best Solar Company in Virginia
One of the most important decisions you’ll make in the process of going solar is which company you’ll work with. Since solar installers typically handle the permitting, design, and installation, and can be your partner after installation is complete, it’s an important decision that requires some research.
You should always read company reviews and, if possible, talk to friends and neighbors who have experience with the company. In your conversations with them, make sure you get your questions answered and have time to make the decision on your own terms. If you’re rushed or pressured, it may be a sign of a bad solar deal. Make sure you understand the company’s obligations to you after installation, too, and try to get a feel for how it responds when issues arise.
Most importantly, go into the process informed. Knowing the incentives available to you and the benefits solar panels can and can’t deliver will protect you from the worst actors looking to take advantage of poorly informed people.
If you’re interested in going solar, use Palmetto’s solar savings calculator to see what you could save or contact a solar advisor today.
Palmetto Reviews
“After the system was installed we saw a huge decrease in our electric bills, and a huge decrease in our winter bills even with the lack of sunlight during the winter.” Jim F. Google Review
“The process was explained every step of the way they educated me on what to expect. They kept me informed throughout the process. Customer service is great!” Maria H. Google Review
“From project formation to final instructions, my solar team was knowledgeable, enthusiastic and patient with my many questions. They explained everything thoroughly, neither talking down to me nor inundating me with techno-babble. My solar panels are also providing an unexpected benefit- my attic is much cooler due to their shading effect. 100% recommend Palmetto Solar!” Lissa H. Google Review
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Frequently Asked Questions
Does solar make sense in Virginia?
Virginia is a leading state for solar installations and key incentives make it possible for homeowners to join in the movement. The state already has solar to power more than 670,000 homes. With a goal to reach zero-carbon electricity by 2050, solar should be a big part of the state’s plans moving forward.
Are solar panels worth it in Virginia?
With 1:1 net metering in place and the possibility of selling SRECs, there’s plenty of support in the state that could make solar panels a winning financial move. How much you can actually save is always dependent on factors specific to your home and your energy use. Reach out today to get an estimate tailored to you.
Does solar increase your home value in Virginia?
Solar panels typically increase the property value of a house. Virginia has a property tax exemption for solar panels.
How much does it cost to go solar in Virginia?
The cost of going solar varies by state and by the details of any one project. Roof complexity, the size of the system, the local cost of labor, and whether or not you’re including a battery and other additional equipment all have an effect on the price. According to one national estimate, residential solar panels cost $3.24 per watt to install.
Does Virginia have net metering?
Many of Virginia’s utilities offer 1-to-1 net metering. Under that plan, solar panels help you avoid buying electricity at the retail rate and earn you credits at the retail rate for the electricity you send back to the grid.
Disclaimer: This content is for educational purposes only. Palmetto does not provide tax, legal, or accounting advice. Please consult your own tax, legal, and accounting advisors.
Andrew BlokWriter and EditorAndrew has worked as a journalist and writer for four years, over half of those dedicated to covering solar. He currently lives in Tucson, AZ, where you might run into him walking his dog and birding while dodging the heat. He has degrees in English education and journalism.
