Is Solar Worth It in Virginia in 2026?
Complete analysis of solar costs, incentives, net metering, and payback for Virginia homeowners — without the federal ITC.
Cost Per Watt
$3.10
installed
Electricity Rate
$0.144
per kWh
Payback (No ITC)
16.3 yr
current reality
Payback (With 30% ITC)
11.4 yr
hypothetical
25-Year ROI
53%
return on investment
Incentive Breakdown — Virginia
Available incentives for a typical 7kW residential solar system in Virginia
Federal ITC (25D)
ExpiredThe federal solar Investment Tax Credit expired on January 1, 2026. No federal credit available for new installations.
State Tax Credit
NoneVirginia does not offer a state tax credit for solar installations.
SREC Market
~$105/yrVirginia has an SREC market with values around $15/SREC.
Property Tax Exemption
Solar system value excluded from property tax assessment
Sales Tax Exemption
No statewide sales tax exemption for solar
Key Incentives: Property tax exemption for solar; SREC market value ~$105/year.
Solar Math — With vs Without Federal ITC
Cost breakdown for a typical 7kW residential system in Virginia
2026 Reality (No Federal ITC)
- System Size
- 7 kW
- Cost per Watt
- $3.10/W
- Gross Cost
- $21,700
- Federal ITC
- $0
- Net Cost
- $21,700
- Annual Savings
- $1,332/yr
- Payback Period
- 16.3 years
Hypothetical (With 30% ITC)
- System Size
- 7 kW
- Cost per Watt
- $3.10/W
- Gross Cost
- $21,700
- Federal ITC (30%)
- -$6,510
- Net Cost
- $15,190
- Annual Savings
- $1,332/yr
- Payback Period
- 11.4 years
Impact: Without the federal ITC, Virginia homeowners face a 4.9-year longer payback period — paying $6,510 more out of pocket.
Net Metering Policy — Virginia
How Virginia compensates your excess solar production
Full retail rate net metering — you earn the same rate you pay for electricity. Best case for solar savings.
Virginia mandates net metering at full retail rate for systems up to 25 kW under SCC rules.
Cost Per Watt Benchmark — Virginia
Virginia Average
$3.10/W
National Average
$3.05/W
Typical 7kW System
$21,700
Virginia's average installed cost is above the national average of $3.05/W
Breakeven Timeline
Without the federal ITC, a typical 7kW system in Virginia breaks even in 16.3 years. With the former 30% ITC, payback would drop to 11.4 years.
Without Federal ITC
16.3
years to break even
With Former 30% ITC
11.4
years to break even
Production Details
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