*Updated for 2021* Learn about all the ways you can cash in on big savings with Virginia solar incentives this year.
Are you thinking about making the transition to solar energy? In that case, you’ll want to know the cost of equipment and installation for your single-family home, and how that cost may be offset significantly by various incentives.
Although Virginia may not have as many incentives as other states, the legislature recently accelerated the drive toward clean energy with passage of the Virginia Clean Economy Act (VCEA), which requires 100 percent of energy from solar and other clean energy sources by 2050. VCEA raises the allowable size of installations on residential and commercial properties, removes unfair fees, and expands the way homeowners can use their solar energy. For instance, if you’re thinking about getting an electric vehicle, the VCEA allows you to plan ahead.
Local Northern Virginia Solar Tax Credits
The State allows counties, cities, or towns to exempt, partially or entirely, the cost of solar energy equipment from local property taxes. The Northern Virginia counties of Fairfax, Loudoun, and Prince William Counties currently offer exemptions for solar systems used primarily for heating, cooling, and hot water systems.
Equipment and installation of solar equipment must be inspected and certified by the Department of Environmental Quality (DEQ) or local building departments. Applicants must adhere to submission requirements and program procedures established by each participating county, and criteria set forth by the Virginia Department of Housing and Community Development.
To learn more about the property tax exemption process, contact your county’s building department or department of tax administration.
Federal Tax Credit
The Solar Investment Tax Credit (ITC) allows homeowners to recoup a big chunk of equipment and installation costs. Homeowners claim the credit when filing federal tax returns. A similar credit is available for businesses.
The dollar-for-dollar credit is worth 26% of the total cost in 2021 and 2022, dropping to 22% in 2023 before sunsetting in 2024.
Now is the time to take full advantage of the credit, which has a huge impact on the total cost of making the transition to solar.
Virginia Solar Renewable Energy Certificates (SRECs)
Virginia homeowners who own a solar system generate solar renewable energy credits (SRECs), and earn hundreds of dollars every year by selling energy back to their utility.
We calculate how much energy you are likely to generate, and we will set up the automatic system to earn and sell your Solar Renewable Energy Certificates (SRECs).
Net Metering in Virginia
Homeowners and commercial property owners can use net metering to get a credit on their electric bills for excess solar energy added back to the grid for use by other utility customers. You can use credits that build up during the summer to offset higher electric bills during the winter months.
When the federal tax is combined with net metering, SRECs, and other incentives, the savings for homeowners can be substantial.
Interested in adding solar panels to your single-family home?