Solar Incentives in West Virginia
West Virginia has one active state-level solar incentive available to homeowners in 2026: net metering. Under state requirements, each electric utility must offer net metering to customer-generators who produce electricity on the customer side of the meter using alternative or renewable energy sources, on a first-come, first-served basis under a standard tariff and the Public Service Commission's interconnection rules. Net metering measures the difference between the electricity a customer consumes and what they export to the grid. Compensation for net excess generation is set at a "fair value" rate determined by the Commission within each utility's individual net metering tariff, meaning the specific export rate a homeowner receives varies by utility and should be confirmed directly with the serving utility or the Public Service Commission.
On the federal side, the residential Clean Energy Credit under Internal Revenue Code §25D — commonly known as the 30% federal tax credit — expired for systems placed in service after December 31, 2025, under the One Big Beautiful Budget Act (Pub. L. 119-21). Homeowners installing a new residential solar system in 2026 do not qualify for that credit. The loss of this incentive meaningfully lengthens payback periods compared with prior years, making the economics of a new installation more dependent on local utility rates and net metering compensation alone.
West Virginia's residential electricity rate averaged approximately 16.37 cents per kilowatt-hour as of March 2026, up roughly 0.48 cents from the prior year. A higher rate generally improves the value of solar self-consumption, partially offsetting the loss of the federal credit, though actual payback will depend on system size, utility tariff terms, and site-specific generation.
Figures here are verified as of June 2026 against official sources; programs and rates change with each legislative session and utility rate case, and the Public Service Commission of West Virginia (psc.wv.gov) is the authoritative source for current program details.
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 West Virginia
Net Metering
West Virginia requires each electric utility to offer net metering to customer-generators who generate electricity on the customer side of the meter using alternative or renewable energy sources, on a first-come, first-served basis under a standard tariff and the commission's interconnection rules. Net metering measures the difference between electricity supplied by the utility and electricity the customer's system generates that offsets the customer's use. The Public Service Commission sets the rules and requires utilities to provide a rebate or discount at fair value, as determined by the Commission, for net excess generation delivered to the utility, while ensuring net-metering tariffs do not create cross-subsidization within a customer class.
| Amount | Compensation for net excess generation is the Commission-determined 'fair value' rebate/discount set in each utility's net-metering tariff; not a single statewide rate. Utility net-metering participation is capped at 3% of the utility's prior-year aggregate customer peak demand, with at least 0.5% reserved for residential customer-generators. |
|---|---|
| Who qualifies | Electric retail customers (customer-generators) of West Virginia electric utilities who own or lease and operate a customer-sited alternative or renewable energy system, including residential solar; subject to interconnection rules and utility program caps. |
| Administered by | Public Service Commission of West Virginia |
Source: W. Va. Code s. 24-2F-8; PSC net-metering rules and utility tariffs Official source →
Verification note. Some official source pages for this state block automated access from our servers, so one or more figures here rest on the underlying statute or an official search result pending a final browser check. The cited official source is authoritative — confirm current terms there before you rely on a figure.
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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.