Virginia Solar Guide 2026

Dominion Energy territory with decent solar resources and moderate electricity rates. Here's how Virginia solar economics stack up.

Updated March 2026 · Sources: Virginia SCC, DSIRE, EnergySage, NREL · Research by Dana Mercer
#15 solar state Good solar resources
Avg install cost $2.85/W Before incentives · Q1 2026 · EnergySage
Electricity rate 12¢/kWh Statewide avg · EIA Jan 2026
Peak sun hrs/day 4.5 hrs State avg · NREL data
Typical payback 9-11 yrs After ITC only
Solar rank #15 Installed capacity · SEIA 2025

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Here's the Virginia solar situation: Dominion Energy serves most of the state and offers straightforward net metering. Good solar resources (4.5 peak sun hours) and moderate electricity rates create decent economics, though not as attractive as northeastern states with higher rates.

If you're paying Dominion rates in Richmond or Virginia Beach, solar delivers moderate returns with strong environmental benefits. The economics improve for high-usage households and those looking for energy independence.

Virginia solar incentives (2026)

Incentive Type Amount Status Expires
Federal ITC (Solar Tax Credit) Federal tax credit 30% of system cost Active Dec 2032 (steps down)
Net Metering Export credit Full retail rate credit Active Ongoing
Property Tax Exemption Tax exemption 100% of added value Active Ongoing
Sales Tax Exemption Tax exemption 100% on solar equipment Active Ongoing
State Tax Credit State tax credit None available Not available

Virginia offers solid net metering and tax exemptions but no state tax credits. Federal ITC remains the primary incentive.

Virginia solar install costs (Q1 2026)

System size Gross cost After 30% ITC Annual savings est. Payback (est.)
4 kW $11,400 $7,980 ~$650/yr ~12.3 years
6 kW $17,100 $11,970 ~$975/yr ~12.3 years
8 kW $22,800 $15,960 ~$1,300/yr ~12.3 years
10 kW $28,500 $19,950 ~$1,625/yr ~12.3 years

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