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Home solar in Virginia

Virginia regulators kept 1-for-1 net metering for new rooftop solar in both Dominion (April 2026 order) and Appalachian Power (August 2025 order) territory, and 2026 laws added 625 MW of shared solar, faster online solar permits and plug-in balcony solar from 2027.

Facts checked 2026-11-01, each with a source link below. Programs change often: confirm with your utility, installer and a tax professional before you sign.

17.6¢average home price per kWh (EIA, August 2026)
Strong case for solarFull retail credit with 12-month banking survived both utility reviews, power prices are rising (17.6 cents/kWh in August 2026, up from 15.9 a year earlier), and homes up to 25 kW are exempt from property tax. Solar credit (SREC) income is small, about $35 per 1,000 kWh, and the rule change mostly cuts pay only for power left over at the end of each year.

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Net metering Net metering changing

Each kWh you send to the grid offsets a kWh you buy, and extra credits roll month to month at full value over a 12-month period. Homes can install up to 25 kW, sized up to 150% of past yearly use (Dominion) or 100% (Appalachian Power). New 'NEM 2.0' rules keep this, add a $1/month fee for new Dominion customers, and pay only a lower rate (about 5-6 cents/kWh) for any power left over at the end of the year; current customers keep the old rules. Residential systems above 20 kW pay a monthly standby charge in Dominion territory. Source

  • 2025-08-29: SCC final order for Appalachian Power (PUR-2024-00047) keeps 12-month netting; year-end excess credited at about 5.7 cents/kWh for new customers; existing customers grandfathered 25 years
  • 2026-04-30: SCC final order for Dominion (PUR-2025-00079) approves NEM 2.0: 12-month netting kept, $1/month admin fee, application fee rejected, Dominion's bid to take customers' RECs rejected
  • 2026-05-20: SCC clarification order confirms netting stays energy-based over the full year
  • 2026-07-29 (about): Dominion's revised NEM 2.0 tariff due 90 days after the order
  • Cap: net metering open first-come until 6% of each utility's peak load (5% any customer, 1% low-income)

Solar credits (SRECs) Limited

Homeowners own the renewable energy certificates (RECs) their panels make and can sell them, usually through a broker after registering in PJM-GATS. Dominion must buy RECs from Virginia solar 1 MW or smaller for 4.5% of its sales in 2026-2030 and 5% in 2031-2045; the shortfall payment for these is $75/MWh. Prices are low: a broker quoted about $34.50 per 1,000 kWh for 2026 Virginia distributed RECs (November 2026), so expect roughly $30-50 a year for a typical home system. Source

Rebates and incentives

Virginia distributed solar RECs

About $34.50 per 1,000 kWh (2026 vintage, broker quote, Nov 2026)

Virginia solar systems 1 MW or smaller registered in PJM-GATS

open performance payment Source

Local property tax exemption, small solar (Va. Code 58.1-3661 A)

100% exemption from state and local property tax on the solar equipment

Solar systems 25 kW DC or smaller

open tax credit Source

Local option exemption for certified solar equipment (Va. Code 58.1-3661 B)

Full or partial, set by each locality, for at least 5 years

Residents of cities/counties that adopted an ordinance; equipment certified by the local building department

open tax credit Source

Taxes

Property tax: exempt: solar systems 25 kW DC or smaller are wholly exempt from state and local property tax; larger certified equipment can get a full or partial exemption where the locality has opted in.
Sales tax: none found: no Virginia sales tax exemption for home solar equipment was found. Source

Solar laws

  • Virginia Clean Economy Act net metering rules (Va. Code 56-594) (2020). Raised the net metering cap to 6% of each utility's peak load (1% saved for low-income customers), lets homeowners keep their RECs, and required SCC reviews that produced the 2025 (Appalachian) and 2026 (Dominion) successor tariffs. Source
  • HB 1255 (2026, Chapter 762): net metering standby charge (2026). Raised the size at which residential net metering customers pay a monthly standby charge to more than 20 kW AC (from 15 kW). Source
  • SB 254 / HB 807 (2026, Chapters 671/670): Dominion shared solar expansion (2026). Adds 525 MW of shared (community) solar in Dominion territory, released by 2026-07-01, on top of the full 200 MW first phase; 75 MW may serve mostly low-income subscribers and low-income customers pay no minimum bill. Source
  • SB 255 / HB 809 (2026, Chapters 674/673): Appalachian Power shared solar expansion (2026). Adds 50 MW of shared solar on 2026-07-01 and 50 MW more by 2028-01-01 (after the first 50 MW), with net crediting on bills by 2027-07-01; low-income subscribers must save at least 10%. Source
  • SB 382 / HB 590 (2026, SB 382 = Chapter 634): Smart Solar Permitting Platform (2026). Virginia Energy must launch an online platform by 2027-07-01 that instantly issues permits for eligible home solar; localities must accept it (or a similar automated tool) by 2028. Source
  • HB 395 / SB 250 (2026, Chapters 1052/998): plug-in balcony solar (Va. Code 56-596.8) (2026). From 2027-01-01, customers may use certified plug-in solar devices up to 1,200 W per home or apartment without utility approval, interconnection or fees; they must notify the utility on an SCC form first. Source
  • HOA and condo solar rights (Va. Code 55.1-1820.1 and 55.1-1951.1) (2022). An association cannot ban solar on your own property unless its recorded declaration does; it may set reasonable rules on size and placement, but not rules that raise cost 5% or more or cut output 10% or more (shown by a NABCEP-certified designer). Source

Community solar

Available but limited: Dominion's 200 MW shared solar program is full and 2026 laws add 525 MW (released by 2026-07-01); Appalachian Power's program adds 50 MW in 2026 and 50 MW by 2028.

Timeline

  1. Virginia Clean Economy Act raises net metering cap to 6% and requires future SCC net metering reviews.
  2. HOA/condo solar rights move to Va. Code 55.1-1820.1 and 55.1-1951.1.
  3. Appalachian Power net metering review opens (PUR-2024-00047); 2024 laws create Appalachian shared solar and expand Dominion's.
  4. SCC keeps 1-for-1 net metering for Appalachian Power; year-end leftover power for new customers paid about 5.7 cents/kWh.
  5. General Assembly session ends; shared solar, permitting, balcony solar and standby-charge bills passed.
  6. Action date for 2026 energy bills: shared solar (SB 254/255, HB 807/809), permitting (SB 382) and HB 1255 become law (per bill trackers); a ceremonial signing followed on 2026-05-12.
  7. Balcony solar law (HB 395/SB 250) approved (date per secondary sources).
  8. SCC final order on Dominion NEM 2.0 keeps 12-month netting; $1/month fee; current customers grandfathered.
  9. SCC clarification order on Dominion NEM 2.0; reconsideration petitions denied.
  10. 525 MW Dominion and 50 MW Appalachian shared solar capacity released.
  11. Work group report due on fees for the state solar permitting platform.

Federal tax credits

The 30% federal tax credit for homeowners who buy solar (Section 25D) ended for systems placed in service after December 31, 2025, so buying no longer earns a federal credit. If you lease or sign a power purchase agreement (PPA), the panels belong to a company that may still claim a business credit under federal deadlines that tighten through 2027. Ask your installer whether that savings is in your price.

Sources

Last checked 2026-11-01. Incentives are not guaranteed and can change or run out. Confirm every figure with your utility, installer and a tax professional before you sign. This page is general information, not tax, legal or financial advice.

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