Virginia Solar Incentives, Tax Credits & Rebates 2024
Last updated: 2026-01Incentive Score
Total Savings Estimate
A typical 8kW system in Virginia costs $0. After the 30% federal tax credit: $0. Estimated annual savings: $1,500.
Federal Investment Tax Credit (ITC)
Federal Solar Investment Tax Credit (ITC)
Tax Credit30% of total system cost
The federal ITC allows you to deduct 30% of the cost of installing a solar energy system from your federal taxes. This applies to both residential and commercial systems with no cap on value.
Eligibility
Available to homeowners who own their solar system (purchased, not leased). Must have sufficient tax liability.
Expiration / Phase-Down
30% through 2032, steps down to 26% in 2033 and 22% in 2034
Virginia State Incentives
Net Metering
Net MeteringFull retail rate for systems up to 25 kW
Dominion Energy and Appalachian Power offer net metering at full retail rate for residential systems.
Virginia Clean Economy Act
policyN/A
VCEA mandates 100% clean energy by 2050 and supports distributed solar growth.
Tax Exemptions
property tax Exemption
Local option: localities may exempt solar from property taxes. Many Virginia localities have adopted this exemption.
sales tax Exemption
Virginia does not exempt solar equipment from the 4.3% state sales tax.
Utility Programs
Dominion Energy
- Net metering
- Community solar
- Solar incentive payments
Appalachian Power
- Net metering
Highlights & Drawbacks
Highlights
- ✓Net metering at full retail rate
- ✓VCEA supports long-term solar growth
- ✓Property tax exemption in many localities
Drawbacks
- !No state solar tax credit
- !No sales tax exemption
- !Moderate electricity rates
- !Longer payback period
Source: DSIRE (Database of State Incentives for Renewables & Efficiency), U.S. Department of Energy, state energy offices. Data reflects programs available as of 2026-01.