Discover your exact solar savings potential in Virginia. We factor in local utility rates, sun hours, and state-specific incentives to give you an accurate ROI estimate.
DISCLAIMER: All estimates are approximations based on regional averages. Actual savings vary by location, roof orientation, utility provider, and installer. This calculator does not guarantee specific savings.
Electricity rates last updated: August 2026 (source: EIA)
Find out how much you can save based on your location and current energy usage.
Virginia's average residential electricity rate is roughly 16–17.6¢/kWh depending on the source — near, or modestly above, the national average. Rates vary by utility, rate schedule, and season, so confirm your current rate on your utility bill or with Dominion Energy or Appalachian Power directly. At 16–17¢/kWh, each kilowatt-hour your solar panels generate displaces meaningful electricity spend. Unlike states with very low rates (10–12¢/kWh), Virginia's rates are high enough to make self-consumed solar genuinely cost-effective — especially given the property tax and sales tax incentives described below.
Virginia's net metering landscape was at the center of a significant regulatory battle in 2026 that directly affects homeowner economics. Dominion Energy proposed cutting net metering credits by roughly 32% — from approximately $0.14/kWh down to approximately $0.095/kWh — and shortening the credit rollover window from a full 12 months down to just 30 minutes. Had this passed, it would have dramatically reduced the value of solar for existing and future Dominion customers. Virginia's State Corporation Commission rejected Dominion's proposal in a May 2026 ruling, instead approving a 'NEM 2.0' framework that closely resembles the original, more favorable net metering rules. Residential systems are capped at 20 kW. The 2020 Virginia Clean Economy Act raised the statewide net metering capacity cap from 1% to 6% of each utility's peak demand, significantly expanding access. This is an evolving regulatory area — net metering terms can change in future rate cases, and Virginia homeowners should confirm current credit rates and rollover terms directly with Dominion Energy or Appalachian Power before signing a contract.
Under Virginia Code § 58.1-3661(A), residential rooftop solar systems with a nameplate capacity of 25 kW DC or less are automatically and wholly exempt from both state and local property taxation — no local ordinance, separate application, or annual filing is required. This is a meaningful benefit: installing a typical home solar system (most residential installations fall well below 25 kW) will not increase your property tax bill regardless of how much value it adds to your home. For solar equipment above the 25 kW threshold — uncommon for standard residential rooftop systems — a property tax exemption may only be available if the local county, city, or town has separately opted in by ordinance. That larger-system caveat does not typically affect ordinary home rooftop installations.
Virginia exempts solar energy equipment purchases from state sales tax, and this exemption is generally applied automatically by installers as part of the purchase price. Some sources describe an alternate path — a state income tax deduction of 20% of the sales tax paid on solar equipment, capped at $500 — rather than a pure point-of-sale exemption. Both mechanisms exist depending on how a given transaction is structured. For most residential purchasers, the savings show up as a reduction in the installed system price rather than a separate credit to claim. Confirm with your installer how the exemption applies to your specific quote, and consider consulting a tax professional to verify which approach applies to your situation.
Virginia averages roughly 3.5 to 4.1 peak sun hours per day statewide — below the national average of approximately 5.0 peak sun hours per day. However, these figures vary significantly by region: coastal areas including Virginia Beach, Norfolk, and Richmond tend to see higher sun exposure, in the 4.7–4.8 peak sun hours per day range. Western mountain areas of the state typically receive less. Be cautious of production estimates built on national averages or figures from sunnier mid-Atlantic or southeastern states — ask any installer to use NREL PVWatts data specific to your Virginia ZIP code and your actual roof orientation.
The 30% federal residential solar tax credit (Section 25D) expired December 31, 2025 under the One Big Beautiful Bill Act and does NOT apply to solar energy systems installed in 2026 or later. Many installer websites and online solar calculators still display a 30% federal credit in 2026 cost estimates — that figure no longer applies to new residential purchases. Virginia homeowners buying a system outright in 2026 should not include a federal income tax credit in their financial projections. The primary available incentives are Virginia's net metering program, the automatic property tax exemption under § 58.1-3661(A), and the sales tax exemption on equipment. If you are exploring a solar lease or power purchase agreement (PPA), ask the installer in writing whether any federal commercial Investment Tax Credit (Section 48E ITC) passthrough is factored into their pricing.
Everything you need to know about solar incentives, costs, and savings in your area.