Virginia Solar Incentives, Tax Credits & Rebates 2026
State-program snapshot: 2026-01 · Federal status reviewed: 2026-08-06Cost Context
An illustrative 11.4 kW system using the historical observed average cost in Virginia is $0. New federal residential credit for a 2026 installation: $0. Modeled annual savings before financing: $2,114.
Federal Residential Credit Status
Residential Clean Energy Credit
Ended for new 2026 systems0% for property placed in service in 2026
IRS guidance states that the 30% credit applied to qualified residential clean-energy property installed from 2022 through December 31, 2025. It is not available for property placed in service after that date.
Eligibility
No new residential credit for a system first placed in service in 2026. A previously earned unused credit may be eligible for carryforward under IRS rules.
Primary source
IRS Residential Clean Energy Credit guidance ↗Virginia State Program Snapshot
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.
State and utility programs can change between reviews. Confirm eligibility, funding and deadlines with the administering agency or utility before relying on this snapshot.
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
State-program sources: DSIRE, state energy offices and utilities; snapshot dated 2026-01. Programs, funding and eligibility can change without notice. Federal residential status reviewed against IRS guidance on August 6, 2026.