Solar Incentives in Virginia
Virginia homeowners who install solar in 2026 have access to several active state-level programs. Under Virginia Code § 56-594, the State Corporation Commission administers a net energy metering program for residential systems up to 25 kW; customers receive bill credits for self-generated power, and compensation for annual excess generation is set by SCC rule — rates vary by utility and are not uniform statewide. Residential solar systems at or below 25 kW DC are wholly exempt from state and local property taxation under § 58.1-3661, and qualifying solar equipment may also be exempt from state and local taxation as certified pollution control equipment under § 58.1-3660. Customers of Dominion Energy Virginia and Appalachian Power can alternatively subscribe to shared solar facilities and receive bill credits under SCC-approved program rules; a separate statute provides a comparable shared solar option for multifamily residents served by Dominion Energy Virginia and Old Dominion Power. Commercial and multifamily property owners may also access C-PACE financing through participating localities.
On the federal side, the residential Clean Energy Credit under Internal Revenue Code § 25D — commonly referenced as the 30% solar tax credit — expired for systems placed in service after December 31, 2025, under the One Big Beautiful America Act (Pub. L. 119-21). Homeowners installing a new residential system in 2026 do not qualify for that federal credit, which meaningfully lengthens expected payback periods compared to recent years.
Virginia's residential electricity rate averaged approximately 17.05 cents per kilowatt-hour as of March 2026, up about 2.16 cents year-on-year. Higher electricity rates generally improve the bill savings value of self-generated solar power, partially offsetting the loss of the federal credit, though actual payback depends on system size, financing, utility, and individual usage.
Figures here are verified as of June 2026 against official sources; programs and rates change with every legislative session and SCC rate case, and the Virginia State Corporation Commission (scc.virginia.gov) and Virginia Department of Taxation are the authoritative sources for current rules.
Federal credit update. The federal residential Clean Energy Credit (the 30% “solar tax credit” under §25D) expired for systems placed in service after December 31, 2025. New 2026 residential installs do not qualify; a 2025 install can still be claimed on a 2025 return (IRS Form 5695). What this means for 2026 →
Current solar incentives in Virginia
Net Energy Metering (Va. Code § 56-594)
Virginia law requires the State Corporation Commission to run a net energy metering program for customers who generate their own power from renewable energy. Eligible systems are capped at 25 kW for residential customers and 3 MW for nonresidential customers, and may include battery storage and smart inverters. Net metering is available first-come, first-served until aggregate customer generation reaches 6% of each utility's prior-year adjusted Virginia peak-load forecast (5% open to all customers, 1% reserved for low-income customers). The SCC notes the program is under review, with updated guidance expected.
| Amount | Bill credit for self-generated power; compensation for annual excess generation is set by SCC rule. Caps: 25 kW residential / 3 MW nonresidential; 6% aggregate participation cap per utility. |
|---|---|
| Who qualifies | Customers of investor-owned utilities and electric cooperatives in Virginia who own/operate (or contract for) a renewable energy facility on their premises intended primarily to offset their own use. |
| Administered by | Virginia State Corporation Commission |
Source: Va. Code § 56-594; SCC Regulations Governing Net Energy Metering (20VAC5-315) Official source →
Shared Solar Programs (Dominion Energy Virginia and Appalachian Power)
Virginia's shared solar programs let utility customers subscribe to a portion of a shared solar facility run by a licensed subscriber organization and receive bill credits for their subscription's share of the output. Separate statutes cover Dominion Energy Virginia (§ 56-594.3) and Appalachian Power (§ 56-594.4, created by 2024 legislation), with SCC rules governing each program. Subscriber organizations must be licensed by the SCC (facilities over 500 kW) or certified exempt (under 500 kW).
| Amount | Subscribers receive bill credits at rates set under SCC-approved program rules; varies by utility — see SCC Rules Governing Shared Solar (Case PUR-2024-00122). |
|---|---|
| Who qualifies | Retail customers of Dominion Energy Virginia or Appalachian Power; programs include minimum-bill provisions and capacity reserved for low-income customers under the statutes. |
| Administered by | Virginia State Corporation Commission / Dominion Energy Virginia / Appalachian Power |
Source: Va. Code §§ 56-594.3, 56-594.4; SCC Case PUR-2024-00122 Official source →
Multi-Family Shared Solar Program
A separate statute establishes shared solar for multifamily housing in the service territories of Dominion Energy Virginia and Old Dominion Power. Residents of apartment buildings or condominiums can subscribe to a shared solar facility serving their building and receive credits on their utility bills, under SCC rules adopted in Case PUR-2020-00124.
| Amount | Bill credits per SCC-approved multifamily shared solar rules; varies by utility. |
|---|---|
| Who qualifies | Multifamily residential customers of Dominion Energy Virginia and Old Dominion Power. |
| Administered by | Virginia State Corporation Commission / Dominion Energy Virginia / Old Dominion Power |
Source: Va. Code § 56-585.1:12; SCC Case PUR-2020-00124 Official source →
Property Tax Exemption for Residential Solar (≤25 kW) and Local Option Exemption (§ 58.1-3661)
Solar facilities of 25 kW (DC) or less installed under § 15.2-2288.7 (serving a home or property's own electricity needs) are a separate class of property and are wholly exempt from state and local taxation under the Virginia Constitution. In addition, any county, city, or town may by ordinance fully or partially exempt certified solar energy equipment, facilities, or devices from local property tax, so treatment of larger or other solar equipment varies by locality.
| Amount | 100% exemption from state and local taxation for residential-scale solar up to 25 kW DC; local-option full or partial exemption for other certified solar energy equipment. |
|---|---|
| Who qualifies | Owners of solar facilities of not more than 25 kW DC installed per § 15.2-2288.7 (mandatory exemption); owners of certified solar energy equipment in localities that have adopted an exemption ordinance (local option). |
| Administered by | Local commissioners of the revenue / local governing bodies |
Source: Va. Code § 58.1-3661 Official source →
Solar and Energy Storage Pollution Control Tax Exemption (§ 58.1-3660)
Certified pollution control equipment, which Virginia law defines to include qualifying solar photovoltaic and energy storage projects, is a separate property class exempt from state and local taxation, including state sales and use tax. For solar PV, the exemption is tiered by project size and interconnection date: full exemption for projects of 5 MW AC or less with interconnection requests on or after January 1, 2019 (and for certain pre-2019 projects up to 20 MW), and 80% of assessed value for larger projects. Virginia Energy certifies whether a facility qualifies.
| Amount | 100% exemption for solar projects ≤5 MW AC (interconnection request on/after Jan 1, 2019) and certain ≤20 MW projects; 80% of assessed value exempt for qualifying larger projects (20-150 MW tiers by interconnection date). |
|---|---|
| Who qualifies | Business-owned or -operated solar PV and energy storage projects certified by the Virginia Department of Energy as pollution control equipment. |
| Administered by | Virginia Department of Energy (certification); Virginia Department of Taxation / localities |
Source: Va. Code § 58.1-3660 Official source →
Commercial Property Assessed Clean Energy (C-PACE) Financing
Virginia authorizes localities to run C-PACE loan programs that finance renewable energy, energy and water efficiency, resiliency, stormwater, environmental remediation, and EV infrastructure improvements on commercial real estate, including multifamily properties. Loans are repaid through a voluntary special assessment lien on the property. Eligible properties are assessable commercial real estate anywhere in the Commonwealth where the locality has opted in.
| Amount | Financing terms set by private capital providers under locality programs; no fixed state incentive amount. |
|---|---|
| Who qualifies | Owners of commercial real estate (including multifamily) in Virginia localities that have established C-PACE programs; single-family residential is not eligible. |
| Administered by | Participating localities and their program administrators |
Source: Va. Code § 15.2-958.3 Official source →
Compare solar incentives across all states → · Check what applies to you →
Programs verified as of June 2026 against official state and federal sources (each cited above); refreshed quarterly as legislatures and utility rate cases change the rules. How we verify this data. This page is informational only — not tax or legal advice.