Virginia's solar landscape in 2026 is improving but still developing. Dominion Energy — which serves the majority of the state — now offers net metering at full retail rate, and the state's 4.7 peak sun hours per day (better than most Midwest and Northeast states) supports solid production. At $0.160/kWh, electricity rates are above the national average. The gap: there's no Virginia state income tax credit for solar, which extends payback compared to high-credit states.
Disclaimer: All cost and savings estimates use Lawrence Berkeley National Laboratory Tracking the Sun 2024 cost data and EIA Electric Power Monthly 2025 rate data. Section 25D residential solar credits expired December 31, 2025. Get at least three installer quotes before deciding.
Key Takeaways
- A typical 8 kW Virginia system costs ~$22,400 at $2.80/watt (LBNL 2024) — no federal 25D credit applies in 2026
- Dominion Energy offers full retail net metering at $0.160/kWh (EIA 2025) for residential solar systems
- Virginia has no state solar income tax credit — payback depends on electricity savings and net metering credits alone
- Estimated payback: 10–13 years — reasonable over a 25-year panel lifespan but slower than high-incentive states
Virginia Solar Costs in 2026
At $2.80/watt, Virginia is near the national median for solar installation costs. An 8 kW system — appropriate for a typical Virginia single-family home — runs approximately $22,400 before incentives. With 4.7 peak sun hours per day averaged across the state, that system produces roughly 13,800 kWh annually — solid output for the mid-Atlantic region.
At $0.160/kWh, Virginia's electricity rates are above the national average of $0.161/kWh (roughly at parity as of EIA 2025). That means each kWh of solar production saves $0.160 — not as high as Massachusetts ($0.289/kWh) or Maryland ($0.195/kWh), but meaningfully better than Ohio ($0.142/kWh) or Colorado ($0.142/kWh).
| System Size | Cost at $2.80/W | Annual Production (4.7 hrs) | Annual Savings at $0.160/kWh |
|---|---|---|---|
| 6 kW | $16,800 | ~10,300 kWh | ~$1,648 |
| 8 kW | $22,400 | ~13,800 kWh | ~$2,208 |
| 10 kW | $28,000 | ~17,200 kWh | ~$2,752 |
Dominion Energy Net Metering in Virginia
Virginia's net metering law (Virginia Code § 56-594) requires Dominion Energy, Appalachian Power, and other investor-owned utilities to offer net metering for residential solar systems. Dominion — which serves Northern Virginia, Richmond, Hampton Roads, and much of the state — credits solar exports at the full retail rate.
This is a meaningful policy. For Dominion customers, every kWh exported to the grid earns $0.160 in credit — the same rate they pay to import power. Summer surplus production offsets winter grid purchases through an annual true-up, which is particularly useful in Virginia's climate where winter production drops significantly.
Virginia's Clean Economy Act (passed 2020) set Dominion on a path toward 100% carbon-free electricity by 2045 and mandated continued solar-friendly policies. Net metering protections are part of that framework, providing some policy durability.
What Virginia Is Missing: No State Solar Credit
Virginia has no state income tax credit for residential solar installations. This is the primary difference between Virginia and high-credit peers like Maryland (which has SRECs) or New York (25% credit, $5,000 cap) or Massachusetts (significant SMART program payments).
Without a state credit or SREC program, Virginia's solar ROI framework is:
- Net metering savings at $0.160/kWh (strong)
- Property tax exemption (available but varies by locality — Virginia Code § 58.1-3661 allows localities to exempt solar equipment; not all localities have adopted it)
Virginia homeowners should check with their county or city assessor to confirm whether the local solar property tax exemption has been adopted in their jurisdiction. Northern Virginia localities (Fairfax County, Arlington, Alexandria) have generally adopted favorable solar assessment policies; rural localities vary.
Northern Virginia vs. Rest of State
Virginia's solar resource varies meaningfully by geography. Northern Virginia (DC suburbs) and the Hampton Roads area benefit from 4.7–5.0 peak sun hours per day. Southwest Virginia and the Appalachian foothills see 4.2–4.5 peak sun hours, producing 10–15% less per panel for the same system size.
| Region | Peak Sun Hours/Day | 8 kW Annual Production | Annual Savings ($0.160/kWh) |
|---|---|---|---|
| Northern Virginia / DC suburbs | ~4.8 | ~14,100 kWh | ~$2,256 |
| Richmond / Hampton Roads | ~4.7 | ~13,800 kWh | ~$2,208 |
| Southwest Virginia | ~4.3 | ~12,600 kWh | ~$2,016 |
What to Do Next
Confirm whether you’re in Dominion Energy or Appalachian Power territory.
Dominion Energy and Appalachian Power both offer net metering, but their rate structures differ. Your utility and rate tier determine your actual per-kWh savings — check your electricity bill for utility name and rate.
Check your county’s solar property tax exemption status.
Virginia localities can adopt a solar property tax exemption under § 58.1-3661, but not all have. Contact your county or city assessor to confirm whether solar added value is exempt in your jurisdiction before finalizing your ROI calculation.
Run your personalized ROI estimate.
Virginia’s 10–13 year payback range shifts significantly based on your actual electricity rate, roof orientation, and shading. Use your annual kWh usage and ZIP code for a site-specific estimate.
Get at least three competing installer quotes.
Virginia’s solar market is growing rapidly, with strong installer competition in Northern Virginia and the Richmond metro. Multi-quote buyers save an average of 15–20% on system cost using platforms like EnergySage or SolarReviews.
See your Virginia payback in one minute
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Thinking about whole-home electrification? Our Whole-Home Bundle Calculator shows the combined savings from solar, a heat pump, and EV charging at Virginia’s electricity rates.
Bottom Line
Virginia solar in 2026 works — but the absence of a state tax credit or SREC program means the economics are more dependent on electricity savings and net metering credits than in neighboring Maryland or mid-Atlantic states. The 10–13 year payback is viable over a 25-year panel lifespan for homeowners planning to stay in their home. Northern Virginia and Hampton Roads homeowners, with better sun and higher local electricity prices, see the strongest case.
Related Guides
- Solar Panel Cost by State in 2026 — See how Virginia compares to every other state for costs and incentives.
- Is Solar Worth It in 2026? — National payback analysis to put Virginia’s numbers in context.
- Net Metering Guide 2026 — How Virginia’s net metering policy compares to other states.
- Home Solar Panels: The Complete 2026 Guide — Everything you need to know before getting your first solar quote.
