How Net Metering Works in Virginia

If you’ve been thinking about going solar in Virginia, you’ve probably noticed that the conversation has shifted a lot recently. Electricity bills are climbing. Dominion Energy received approval for an $11.24 per month rate increase in 2026, with another $2.36 increase on the way in 2027. At the same time, the federal solar tax credit that made solar more affordable for millions of homeowners expired for new residential installations at the end of 2025.

So where does that leave Virginia homeowners who are considering solar today?

The short answer: solar is still very much worth it in Virginia in 2026. The long-term financial case for solar has always been built on decades of electricity savings, not just a single tax credit. And with utility rates heading in one direction, the value of generating your own clean energy at home is only growing.

At Solar Energy World, we’ve been helping Virginia homeowners go solar since 2009. Here’s an honest look at what the numbers mean for you.

Virginia’s Solar Landscape in 2026: What’s Changed

The biggest change for Virginia homeowners this year is the expiration of the federal 30% Residential Clean Energy Credit. This credit ended for residential systems installed after December 31, 2025, following the passage of the One Big Beautiful Bill Act signed on July 4, 2025.

Here’s a quick summary of where things stand heading into 2026:

If you had your solar system installed and commissioned before the end of 2025, you can still claim the credit when you file your taxes. That’s good news if you made the switch last year.

For homeowners going solar in 2026, the focus now shifts entirely to state and local incentives. And while Virginia doesn’t offer a state-level solar tax credit, there are still several valuable programs available that make solar a financially sound decision.

Virginia Solar Incentives Still Available in 2026

Net Metering

Net metering in Virginia allows you to send any excess electricity your solar panels produce back to the utility grid in exchange for credits on your electric bill. When the sun isn’t shining at night or on cloudy days, you draw from those credits instead of paying full price for electricity.

Both Dominion Energy and Appalachian Power Company offer net metering to residential customers at the full retail electricity rate, currently around $0.15 per kilowatt-hour. That’s a one-to-one exchange, meaning every kilowatt-hour you send to the grid is worth just as much as one you’d buy back from it.

Key eligibility requirements:

• Your system must be sized under 25 kW
• Your system cannot be designed to produce more than 100% of your home’s annual energy use
• Net metering is available on a first-come, first-served basis
• Aggregate capacity is capped at 6% of each utility’s prior year peak-load forecast

One important note: the Virginia State Corporation Commission has directed both Dominion Energy and Appalachian Power to file new net metering proposals, which means the program’s terms could change for systems installed in the future. If you’ve been on the fence about going solar, this is a good reason to act sooner and lock in today’s favorable terms.

Solar Renewable Energy Credits (SRECs)

As explained in our guide to SRECs and Renewable Energy Credits, SRECs are certificates you earn for the clean electricity your solar panels generate. Every time your system produces one megawatt-hour (1,000 kilowatt-hours) of electricity, you earn one SREC.

Virginia utilities are required to purchase SRECs to meet the state’s Renewable Portfolio Standard, which sets a goal of generating 100% of Virginia’s electricity from renewable sources by 2050. You can store and sell your SRECs through the Generation Attribute Tracking System (GATS).

The exact value fluctuates based on market conditions, but it’s real money that helps your system pay for itself faster.

Property Tax Exemption

Installing solar panels increases your home’s value, which is great news if you ever sell. As we cover in Do Homes with Solar Panels Sell for More?, that added value can be significant. But it could also mean a higher property tax bill. Virginia’s property tax exemption is designed to make sure that doesn’t happen.

Under Virginia law, cities and counties can exempt solar energy equipment from local property tax assessments. Here’s how the exemption breaks down over the life of your system:

Participation varies by locality. Most Virginia municipalities have adopted the exemption, but it’s a good idea to confirm with your local government or ask your Solar Energy World advisor to verify your eligibility.

Virginia Solar Incentives at a Glance

What Does Solar Cost in Virginia in 2026?

Without the federal tax credit, it’s natural to wonder whether the upfront cost of solar is still manageable. Here’s where things stand:

Without the 30% federal ITC, the full system cost falls to the homeowner for purchased systems. That’s why many Virginia homeowners are now taking a closer look at $0-down solar leasing. With a lease, you can have solar panels installed on your home for no upfront cost and start saving on your electricity bills right away. Solar Energy World offers flexible financing options to help you find the approach that makes the most sense for your budget and your goals.

How Much Can Virginia Homeowners Save with Solar?

This is the question that really matters, and the numbers are compelling.

Before the 2026 rate increases, the average Virginia residential electricity bill ran around $140 to $150 per month. With the SCC-approved Dominion rate increases now in effect, that average is pushing closer to $165 per month, and it’s not expected to stop there. Virginia’s explosive data center growth is driving unprecedented demand for electricity, and infrastructure investment costs are likely to keep trickling down to residential ratepayers for years to come.

Solar puts you in control of your energy costs. Here’s a savings estimate for a homeowner currently paying $225 per month in electricity, assuming a modest 3% annual utility rate increase:

As our Solar Panel Payback Period Guide explains in more detail, the typical payback period for a solar system in Virginia is currently 9 to 12 years, right in line with the national average. That timeline will vary based on your system size, how you finance your purchase, and which local incentives you’re able to take advantage of.

Is Solar Still Worth It Without the Federal Tax Credit?

We want to be straight with you: losing the 30% federal tax credit is a real change, and it does affect the math for homeowners who purchase their systems outright. But the federal ITC was never the foundation of solar’s financial value. It was a bonus on top of it.

The real value of going solar has always come from decades of electricity savings. Virginia’s rising utility rates actually strengthen the case for solar in 2026. Consider what’s driving those increases:

• Dominion Energy’s first base rate increase since 1992, approved by the SCC in late 2025
• Virginia’s position as the world’s data center capital, with energy demand projected to nearly triple in some scenarios over the next 15 years
• Grid infrastructure upgrades being passed on to residential ratepayers

The sooner you lock in your own source of electricity, the less exposure you have to those rising costs. SRECs, net metering at full retail rates, and property tax exemptions are all still available. And for homeowners who don’t want to pay upfront, $0-down leasing means you can start saving on your electric bill from day one without needing a tax credit to make the numbers work.

Is Your Home a Good Candidate for Solar in Virginia?

Solar works well for a lot of Virginia homes, but it’s not a one-size-fits-all solution. Here’s what to consider:

As for Virginia’s climate, it’s actually a very strong solar state. Virginia ranked #8 in the nation for solar installations according to the Solar Energy Industries Association, and the mid-Atlantic region gets more than enough sunlight to make residential solar highly productive year-round.

Not sure whether your home is a good fit? Solar Energy World offers a free solar analysis that takes your home’s specific characteristics into account and gives you a clear picture of what solar could mean for your energy bills.

Why Choose Solar Energy World in Virginia?

Solar Energy World has been installing solar panels for Virginia homeowners since 2009. To learn more about how Virginia residents can benefit from residential solar, visit our dedicated Virginia resource page. Here’s what sets us apart:

• Every installer is a Solar Energy World employee. We never use subcontractors.
• We back every installation with our Triple Platinum 30-Year Warranty, one of the strongest warranties in the industry
• Our incentive specialists handle SREC enrollment, net metering setup, and property tax exemption applications on your behalf
• Our systems are custom designed for your home’s unique energy needs and roof layout

Going solar is a big decision. We’re here to make it a straightforward one.

The Bottom Line

Solar is still worth it in Virginia in 2026. The federal tax credit is gone, but the financial case for solar remains strong, and in some ways it’s gotten stronger. Rising utility rates, full retail net metering, an active SREC market, and property tax exemptions all add up to a compelling long-term investment for homeowners who are ready to take control of their energy costs.

The one thing that’s true about waiting? Every month you delay is another month of paying whatever Dominion Energy decides to charge you.

If you’re ready to find out what solar could save you specifically, we’d love to help. Get your free solar estimate from Solar Energy World today.