Virginia solar rebates and incentives: 2026 guide

Going solar in Virginia is more affordable than most people realize. While your state may not have the flashiest incentive programs in the country, there are still meaningful ways to reduce your system costs—and more importantly, solar's real value comes from decades of electricity savings, not just upfront rebates.

Virginia homeowners have access to some incentives that can help offset installation costs. But the biggest financial advantage of going solar? Dramatically lowering your electric bills for 25-30 years, especially as utility rates keep climbing. Here's what you need to know about solar incentives in Virginia.

Virginia offers some solar incentives, which can help lower the price. Here are the ones to know about:

Solar renewable energy credits (SRECs)

The Virginia Clean Economy Act (VCEA) set a renewable portfolio standard that requires utilities to generate a certain amount of renewable energy. Under this program, you can earn one SREC for each megawatt-hour (MWh) of clean electricity your panels produce, which can then be sold to utilities to count towards their renewable generation.

SREC prices vary based on market demand, but you can expect to earn about $22.50  per SREC. To start selling SRECs, register your system through your utility company. From there, an aggregator or broker will handle the purchase and sale of your SRECs with the utility.

In addition to the great rebates and incentives above, Virginia also offers a solar property tax exemption, meaning you don't need to pay a higher property tax for adding solar panels to your house.

If you connect your solar panel system to the grid, you can benefit from net metering, one of the best solar panel incentives available in Virginia. 

With net metering, you earn credits when you send excess electricity from your solar panels to the grid. When the sun isn't shining and you need to pull electricity from the grid, your utility will apply the credits to your bill. Net metering makes it so you will owe very little, or even nothing, on your electric bills with solar panels.

In Virginia, net metering rules are pretty consumer-friendly. Dominion Energy and Appalachian Power Company offer net metering at the full retail rate of electricity, which is a one-to-one transaction. 

Here are a few nuances to keep in mind:

• You can roll over credits month to month. Then, at the end of your 12-month billing cycle, you can either choose to roll over your remaining credits into the next cycle or receive payment at the avoided-cost rate.

• To participate in net metering, your solar panel system’s capacity must be sized appropriately. This means it must be under 25 kW and it cannot exceed 100% of your expected annual energy consumption (based on your previous 12-month billing history). 

• There’s a limit to how many people can participate in net metering in Virginia; it’s available on a first-come, first-served basis. Once the aggregate capacity limit is reached for the year, no new participants can enroll in net metering—or they can enroll, but only at lower credit rates. As of this writing, the aggregate capacity limit is 6% of the peak-load forecast from the previous year, with 1% reserved for low-income utility customers and 5% available for everyone else.

It’s worth noting that in May 2024 under Case No. PUR-2024-00047, the Virginia State Corporation Commission (SCC) directed Appalachian Power Company and Dominion Energy to file new net metering proposals. 

Appalachian Power Company submitted its proposal in August 2024, proposing lower compensation rates for new net metering customers. Dominion Energy is due to submit their proposal in May 2025. While no changes have been implemented yet, they’re coming, so keep an eye out for updates to net metering rules in Virginia in 2025.

Virginia doesn't offer any state-specific battery incentives, but you can also use your battery to boost your energy independence and provide backup power during an outage.

If you're looking for solar installers in Virginia, here are some popular suggestions: