Solar in Virginia

Virginia's residential solar policy centers on full retail net metering for systems up to 25 kW under State Corporation Commission rules, with an annual true-up. The decisive recent development is the SCC's final order of April 30, 2026, which rejected Dominion Energy's proposed NEM 2.0 overhaul and preserved 1:1 retail net metering for Dominion territory — covering roughly two-thirds of the state's customers. Appalachian Power and the cooperatives (NOVEC, Rappahannock) operate under their own versions of the framework. Customers retain their net-metering terms for the life of their interconnection.

Virginia offers a property tax exemption (VA Code 58.1-3660) for systems up to 25 kW and a modest SREC market with values around $15/SREC. There is no state income tax credit and no sales tax exemption. The Virginia Clean Economy Act (2020), which mandates 100% clean energy by 2050, keeps the policy direction supportive. The federal Section 25D residential credit expired December 31, 2025; leased and PPA systems may still access Section 48E for projects that began construction before July 6, 2026.

The SCC's preservation of retail net metering in Dominion territory is the policy feature that distinguishes Virginia from neighbors like North Carolina, where Duke has moved to net billing. Homeowners should confirm their utility territory and the current SREC aggregator terms, but the overall policy environment is among the more stable in the mid-Atlantic.

Virginia's 4.7 peak sun hours give it a solid mid-Atlantic resource, with productive summers and a manageable winter dip. The Tidewater and Southside regions run marginally above the state average, the Northern Virginia suburbs near the average, and the western mountains (the Shenandoah Valley, the Blue Ridge) marginally below due to terrain and cloud cover. Hot, humid summers drive air-conditioning load that aligns well with peak solar output.

Because Virginia retains full retail net metering with an annual true-up — and the SCC's April 2026 order preserved that structure in Dominion territory — the optimal strategy is the classic maximize-and-bank model. A south-facing array tilted near latitude (~37–39°) captures the most annual kilowatt-hours, and the summer surplus is banked at the full ~$0.16/kWh retail rate to offset winter consumption. There is no avoided-cost penalty for overproduction. The modest SREC stream reinforces a maximize-output approach.

Mature tree canopy in established Northern Virginia, Richmond, and Charlottesville suburbs is a real shading factor, particularly in summer, and can push some homeowners toward higher-efficiency panels or modest ground mounts where lot size permits. The SCC's preservation of retail net metering makes forward sizing for an EV or heat pump attractive.

Virginia's $3.10/W installed cost is close to the national average, with a typical 8 kW system around $24,800 before incentives. The 30% federal residential credit (Section 25D) ended December 31, 2025, leaving the property tax exemption (VA Code 58.1-3660) and the modest SREC market (around $15/SREC) as the structural offsets. Virginia offers no state income tax credit and no sales tax exemption.

Payback near 14.7 years on the 8 kW model is solid for the mid-Atlantic, driven by the combination of the ~$0.16/kWh retail rate, the favorable net metering (preserved by the SCC's April 2026 order in Dominion territory), and the property tax exemption. The modest SREC income shortens the timeline marginally. Households with high consumption in Dominion or Appalachian Power territory see faster payback than the average.

The SCC's rejection of the Dominion NEM 2.0 proposal is the single most consequential recent development for the Virginia case, preserving the retail-rate export structure that carries the economics. Without that decision, the payback would have stretched as exported surplus lost value. Homeowners should confirm whether they sit in Dominion, Appalachian Power, or cooperative territory, since the export structure and SREC terms differ.