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2022 Virginia Solar Incentives, Tax Credits, Rebates & Grants

This page has been updated to include 2022 Virginia solar incentives, rebates, and tax credits. Learn about all the ways you can cash in on big savings and offset the cost of solar panel installation in Virginia.

Although there may not be as many Virginia solar incentives as there are in other states, there are a few you can take advantage of. 

The Virginia Clean Economy Act

Virginia legislature recently accelerated the drive toward clean energy with the 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 Virginia solar 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 Power Tax Credits

Virginia 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 in Virginia 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 Virginia solar power property tax exemption process, contact your county’s building department or department of tax administration.   (Please see sources at the end of the document).

Federal Tax Credits for Virginia Residents

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. 

This Virginia solar incentive 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 Virginia solar incentives, the savings for homeowners can be substantial. 

Virginia Solar Rebates and Grants

No Northern Virginia solar rebates or grants are currently available, but more incentives for home solar power systems may come online. 

For additional information on going solar in Northern Virginia, check out our free Virginia Homeowner’s Guide to Solar Installation.

Interested in adding solar panels to your single-family home? We can help you take advantage of any applicable Virginia solar incentives.