Virginia Solar in 2026: The Dominion NEM Defense

For most Virginia homeowners, yes — and the case got materially stronger in 2026. An 8 kW rooftop system costs about $24,800 (3.1/W) and pays back in roughly 14.7 years on ~$0.174/kWh residential rates and 4.7 peak sun hours. The decisive factor is that Virginia retains full-retail 1:1 net metering: the State Corporation Commission's April 30, 2026 final order rejected Dominion Energy's proposed NEM 2.0 overhaul, preserving the classic, homeowner-favorable structure in the state's largest utility territory. The 30% federal residential credit (Section 25D) ended December 31, 2025, but Virginia never offered a state income-tax credit — retail net metering is what carries the case.

Dominion Energy Virginia filed a proposal to move new solar interconnections toward a reduced-export / net-billing structure, similar to what Duke Energy adopted in North Carolina and what the California IOUs did with NEM 3.0. On April 30, 2026, the State Corporation Commission issued its final order rejecting that overhaul, preserving 1:1 retail net metering for Dominion territory — which covers roughly two-thirds of Virginia's electric customers. The decision is the single most consequential recent policy development for Virginia solar, and it materially strengthens the payback case relative to a year ago.

A typical 8 kW array in Virginia runs about $24,800 (3.10/W) before incentives — close to the national average. The 30% federal residential credit (Section 25D) ended December 31, 2025, so owned systems placed in service in 2026 no longer receive it; leased/PPA systems may still capture Section 48E for projects that began construction before July 4, 2026. Virginia's offsets are thinner than the Northeast: a property tax exemption (VA Code 58.1-3660) for systems up to 25 kW and a modest SREC market, but no state income-tax credit and no sales tax exemption.

Yes. Virginia mandates full-retail 1:1 net metering for systems up to 25 kW under SCC rules, with an annual true-up. Dominion Energy Virginia, Appalachian Power, NOVEC, and Rappahannock Electric Cooperative all implement it. Summer surplus is banked at the full retail rate and drawn back through winter — there is no avoided-cost penalty for overproduction. The SCC's April 2026 rejection of Dominion's NEM 2.0 proposal means this structure is preserved for new interconnections, not just grandfathered systems.

Dominion Energy Virginia serves the eastern two-thirds of the state, including Virginia Beach, Norfolk, Chesapeake, Richmond, Arlington, and Charlottesville — roughly two-thirds of all VA customers. Appalachian Power (an AEP subsidiary) serves the western and southwestern tier (Roanoke, Lynchburg, Blacksburg). Northern Virginia Electric Cooperative (NOVEC) and Rappahannock Electric Cooperative cover significant suburban and rural territory. All operate under the SCC's full-retail NEM framework, but cooperatives have their own program specifics — confirm your utility's exact export terms before sizing.

Virginia has a voluntary SREC market (driven by the Virginia Clean Economy Act's Renewable Portfolio Standard) in which residential systems can sell Solar Renewable Energy Credits through brokers. Values currently run around $15/SREC, so a typical 8 kW system earning roughly 7 SRECs per year generates about $105 of additional annual income. It is a modest stream compared to New Jersey's SuSI program (~$77/SREC) — meaningful but not a structural pillar. Sold via brokers; terms vary with the aggregator contract.

Not for the payback math itself. Because Virginia retains full-retail net metering, exported surplus is banked at the full retail rate, so there is no export-rate arbitrage a battery needs to fix. A battery still makes sense for resilience — Virginia sees thunderstorms, hurricane remnants in the Tidewater, and occasional winter ice storms that cause real outages — and for households on time-of-use plans who want to shift evening load. But storage here is a resilience and convenience upgrade, not a structural payback component the way it is under California's NEM 3.0.

Virginia averages about 4.7 peak sun hours per day — a solid mid-Atlantic resource. A south-facing 8 kW array tilted near latitude (~37–39°) typically produces on the order of 10,600 kWh per year. The Tidewater and Southside regions run marginally above the state average, the Northern Virginia suburbs near the average, and the western mountains (Shenandoah Valley, Blue Ridge) marginally below due to terrain and cloud cover. Because full-retail NEM banks the summer surplus, annual production sizing is the right objective.

Virginia exempts solar energy systems up to 25 kW from local property tax under VA Code 58.1-3660, so the installation does not raise your property tax bill. The state offers no income-tax credit and no sales tax exemption for solar equipment. Combined with the modest SREC market (~$105/yr), those are the structural state offsets — thinner than New York's or New Jersey's stacks, but the preserved full-retail net metering is what makes the case work without them.

The 2026 expiration of the Section 25D residential credit sharpens the comparison. A cash purchase or low-interest loan keeps the full net-metering offset, the property tax exemption, and the SREC income, but requires upfront capital and no longer receives a federal credit. A lease or PPA eliminates upfront cost and can still capture Section 48E (for projects that began construction before July 4, 2026), but the developer typically claims the SREC income and sets your monthly payment. Because Virginia's SREC market is modest, the lease-vs-buy divergence is smaller here than in New Jersey — but read who receives the SRECs in any contract.

Look for a Virginia-licensed electrical contractor (or solar contractor with a valid Virginia electrical license) with 5+ years of in-state experience and demonstrated interconnection experience with your specific utility — Dominion, Appalachian Power, NOVEC, or Rappahannock each have distinct interconnection processes. Verify NABCEP certification, ask for recent local references, and confirm the warranty covers both workmanship and equipment. Walk away from any installer who still quotes a 30% federal credit on a 2026 owned-residential system — Section 25D expired December 31, 2025 — and from anyone who cannot clearly state whether you or they receive the SREC income.

Virginia runs full-retail 1:1 net metering for systems up to 25 kW under SCC rules (annual true-up), preserved in Dominion territory by the SCC's April 30, 2026 rejection of Dominion's NEM 2.0 proposal. The state offers a property tax exemption (VA Code 58.1-3660) and a modest voluntary SREC market (~$15/SREC). There is no state income-tax credit and no sales tax exemption. The federal Section 25D residential credit expired December 31, 2025; leased/PPA systems may still access Section 48E for projects that began construction before July 4, 2026. Track current policy with our NEM policy tracker.