Solar Calculator for Virginia: Costs, Incentives & ROI
Virginia's solar market is anchored by the Virginia Clean Economy Act of 2020, a landmark state law that mandates Dominion Energy Virginia and Appalachian Power Company to achieve one hundred percent carbon-free electricity generation by 2045 and requires each investor-owned utility to procure significant quantities of solar capacity across the state's planning horizon. The VCEA does not create a direct consumer rebate or state income tax credit for residential solar installations, but its utility-scale procurement mandates drive a competitive and growing installer ecosystem across Northern Virginia, the Richmond metro, Hampton Roads, and the Shenandoah Valley. Net metering in Virginia is governed by the State Corporation Commission under Virginia Code § 56-594 and Dominion Energy's Rider NM tariff, which credits residential customers for excess solar generation at the full retail rate for systems up to twenty kilowatts. Appalachian Power Company, which serves the western portion of the state including Roanoke, Blacksburg, and the New River Valley, offers comparable net metering terms for its residential customers within its Regional Transmission Organization territory. Virginia's moderate electricity rates — typically between thirteen and sixteen cents per kilowatt-hour on a blended basis — produce payback periods that are longer than high-rate states like California or Hawaii but shorter than the deep South, while the state's solid solar resource across its southeastern coastal plain and central Piedmont supports competitive annual production. The primary financial incentive for Virginia homeowners is the federal Investment Tax Credit of thirty percent of the installed system cost, which applies in the year of installation and can reduce tax liability or be carried forward. Use the calculator below to enter your ZIP code and estimate payback period, annual savings, and twenty-five-year return based on current Dominion or Appalachian Power rates.
Incentive data updated: May 2026(may be outdated)
Average Solar Cost in Virginia
Average installed solar costs in Virginia typically range from $2.80 to $3.20 per watt before incentives, based on Lawrence Berkeley National Laboratory Tracking the Sun data and EnergySage marketplace pricing for the Mid-Atlantic and Southeast regions. A standard six-kilowatt residential system costs approximately $16,800 to $19,200 before incentives, near the national average and reflecting Virginia's growing installer base and competitive labor market in the suburban corridors around Northern Virginia, Richmond, and Hampton Roads. The thirty-percent federal Investment Tax Credit reduces the net installed cost to roughly $11,760 to $13,440 for a six-kilowatt system. Virginia does not offer a state income tax credit for residential solar, making the federal ITC the primary financial incentive. Some localities in Northern Virginia and the Richmond metro area have adopted property tax exemptions for solar equipment under Virginia Code § 58.1-3661, which authorizes local governments — but does not mandate them — to exempt solar generating equipment from local real property assessment. Homeowners should verify whether their jurisdiction has adopted this exemption before signing a contract. Installed cost varies by roof type, system complexity, and proximity to the coast, where wind-load requirements in Hampton Roads and Virginia Beach may add modest structural costs. The thirty-percent ITC is the single largest incentive available for Virginia homeowners and applies to the full installed cost of the system before any cash rebates.
- Avg. installed cost
- $3.00/W
- Typical 6 kW system
- $16,800–$19,200
Top Solar Incentives in Virginia
Live incentive data not currently available for Virginia. See the federal incentive guidance via our Solar Tax Credit Calculator.
Electricity Rates in Virginia
Virginia residential electricity rates average approximately fourteen to sixteen cents per kilowatt-hour on a blended basis including delivery and fuel charges, placing the state near the middle of the national range — notably lower than the Northeast or California but above the Deep South. Dominion Energy Virginia, the state's dominant investor-owned utility serving Northern Virginia, Richmond, and Hampton Roads, publishes its Schedule 1 residential rate, which includes both energy and distribution components and has risen gradually over recent rate case cycles as Dominion funds offshore wind and solar capacity required under the Virginia Clean Economy Act. Appalachian Power Company customers in western Virginia typically pay comparable or slightly lower rates reflecting its Appalachian regional generation mix. The moderate rate environment means solar payback periods in Virginia are typically in the eight to twelve year range for average-sized residential systems — longer than in Hawaii or California but reasonable relative to Mid-Atlantic peers like Maryland, where rates are higher. Electricity rates in Virginia have trended upward as VCEA compliance costs are recovered through rate base, and forecasters expect continued modest rate increases through the 2030s as offshore wind interconnection costs are recovered, which improves the long-run economics of solar already installed.
Peak Sun Hours in Virginia
Virginia's solar resource is strongest in the southeastern coastal plain and central Piedmont and weakest in the mountainous western counties. The Northern Virginia suburbs and the Washington, D.C. metro fringe receive approximately 4.5 to 5.0 peak sun hours per day on a horizontal plane, reflecting the Mid-Atlantic cloud pattern influenced by the Appalachians and Atlantic coastal weather systems. Richmond, located in the central Piedmont, averages roughly 4.8 to 5.2 peak sun hours per day — among the better solar resources in the state — benefiting from its inland location and relatively low coastal cloud incidence. Hampton Roads and Virginia Beach, on the southeastern coast, average 4.8 to 5.2 peak sun hours per day as well, though marine cloud can suppress winter production. Roanoke and the Blue Ridge corridor average approximately 4.5 to 5.0 peak sun hours per day, with the Blue Ridge occasionally blocking afternoon sun for systems on western-facing slopes. Southwest Virginia — including Abingdon and the coalfield counties — experiences valley shadow effects that can reduce annual production by ten to fifteen percent compared to open Piedmont sites. NREL PVWatts uses ZIP-code-level Typical Meteorological Year data, so the calculator above captures Virginia's meaningful regional variation rather than a statewide average.
Example ROI for a 6 kW System
- Estimated annual savings
- $1,050
- Payback period
- 10.5 years
- 25-year net savings
- $16,800
Run a personalized estimate with your ZIP code using the Solar ROI Calculator.
Major Cities in Virginia
- Virginia Beach23451
- Richmond23220
- Arlington22201
- Roanoke24011
- Chesapeake23320
Common Questions About Solar in Virginia
Does Virginia have net metering for solar?
Yes. Virginia law requires Dominion Energy Virginia and Appalachian Power Company to offer net metering to residential customers with solar systems up to twenty kilowatts under Virginia Code § 56-594. Excess generation exported to the grid earns a credit at the full retail rate, which offsets future electricity bills. Credits accumulate monthly and roll over to subsequent billing periods; at the end of the annual reconciliation period, any remaining credit is carried forward or paid out at the utility's avoided-cost rate depending on the tariff structure. Dominion's Rider NM tariff governs the specifics of its net metering program and has been the subject of multiple State Corporation Commission proceedings regarding the treatment of excess credits. The full-retail-rate credit is the financially significant element — each kilowatt-hour exported earns the same amount as a kilowatt-hour imported from the grid would cost, making net metering the backbone of residential solar economics in Virginia.
What incentives are available for solar in Virginia?
The primary incentive is the federal Investment Tax Credit of thirty percent of the installed system cost, which applies in the year the system is placed in service and can reduce your federal income tax liability dollar-for-dollar. Virginia does not currently offer a statewide residential solar income tax credit. Some Virginia localities have adopted property tax exemptions for solar equipment under Virginia Code § 58.1-3661, which authorizes — but does not require — local governments to exclude solar generating equipment from real property assessments. Homeowners should contact their county or city assessor to confirm whether the exemption is available in their jurisdiction, as adoption varies significantly across the state — Northern Virginia localities including Fairfax and Arlington have adopted the exemption, while other jurisdictions have not. No utility-administered rebate programs comparable to Oregon's Energy Trust or California's SGIP are currently available from Dominion Energy or Appalachian Power for residential solar.
How does the Virginia Clean Economy Act affect residential solar?
The Virginia Clean Economy Act of 2020 primarily affects utility-scale electricity planning rather than residential customer incentives. The law requires Dominion Energy Virginia and Appalachian Power to achieve one hundred percent carbon-free generation by 2045 and mandates procurement of specific gigawatts of solar and offshore wind capacity on a statutory schedule. For residential homeowners, the VCEA's indirect effects include a growing installer workforce as utilities develop large solar projects, a general policy environment favorable to distributed energy, and the prospect of gradual retail rate increases as utilities recover the cost of VCEA-mandated investments through rate base — which improves the long-run economics of solar already installed at today's rates. The VCEA does not create a residential rebate, state tax credit, or any direct financial incentive for homeowners beyond the net metering framework that predates the law.
Is solar a good investment in Virginia compared to neighboring states?
Virginia sits in the middle of the Mid-Atlantic solar investment spectrum. Maryland homeowners benefit from the SREC market and EmPOWER rebates, pushing payback periods shorter. North Carolina homeowners face no state income tax credit but lower rates and slightly better coastal sun. Virginia's combination of a moderate electricity rate, a solid Piedmont solar resource, full-retail net metering, the federal ITC, and the growing installer competition created by VCEA mandates produces payback periods of eight to twelve years for most residential systems in the Richmond, Northern Virginia, and Hampton Roads corridors — comparable to Mid-Atlantic peers and reasonable relative to a twenty-five-year system lifespan. Southwest Virginia and the Blue Ridge foothills may see slightly longer paybacks due to valley shading and lower grid irradiance. Use the ZIP-code-level calculator above to estimate your specific payback based on your location and current Dominion or Appalachian Power rate.