Solar Panel Cost in Virginia (2026 Estimate)

BySunMetricLab Editorial Team·Independent solar research and calculators

Data last updated September 10, 2026 · ranks #35 of 50 states for modeled payback

Virginia averages about 4.5 peak sun hours a day (about average for the US) with an approximate residential electricity rate near 14¢/kWh, on the lower end nationally. In the model used here, an 8 kW system in Virginia produces roughly 10,510 kWh a year and trims about $1,500 off annual electricity costs, paying back its net cost in about 11.4 years. That is a middle-of-the-pack payback, so whether solar is worth it in Virginia often comes down to your specific rate, roof, and any state or utility incentives.

Estimated system cost and payback in Virginia

Costs assume roughly $3.00/watt installed for Virginia; the net column applies a 30% federal credit for comparison with quotes that include it. Savings and payback use the state's sun hours and rate above.

The 30% federal Residential Clean Energy Credit ended for systems paid for after December 31, 2025 under the 2025 federal budget law. Net-after-credit figures apply only if you still qualify (for example a 2025 expenditure, or a leased system where the installer passes a credit through). Confirm with a tax professional.

What moves the numbers in Virginia

Two inputs drive most of the difference between states: how much sun a system sees and what each offset kilowatt-hour is worth. Virginia's 4.5 sun hours set production, and its roughly 14¢/kWh rate sets what that production saves. The bigger unknowns are your roof, shading, and how your utility compensates exported power, since a lower export rate can pull real savings below the retail-rate figure above.

Net metering and export credits in Virginia

Net metering in Virginia was expanded by the 2020 Clean Economy Act, which raised the residential limit to 25 kilowatts, allowed systems sized up to 150 percent of the previous year's usage, and lifted the aggregate program cap for Dominion Energy and Appalachian Power to six percent of peak load. Exports are credited at the full retail rate and carry forward month to month, and at the end of each twelve-month period you can either keep rolling credits or sell the surplus to the utility at avoided cost.

The same law authorized minimum monthly bills for net metering customers, which the State Corporation Commission has applied to both Dominion and Appalachian Power, and it triggered formal reviews of net metering once each utility's participation reached a set threshold. Appalachian Power's review concluded in 2024 with retail crediting largely preserved, and Dominion's followed; the outcomes are still shaping successor terms, so check the SCC's current orders before assuming today's credit structure will hold for a system installed in 2026. Cooperatives follow similar rules but administer them separately.

Virginia solar incentives beyond the federal credit

Virginia does not offer a state solar tax credit or a statewide rebate for homeowners. Localities may exempt solar equipment from property tax under state code Section 58.1-3661, and many counties and cities have adopted the exemption, so ask your commissioner of the revenue whether yours has. Sales tax applies to installations at the standard rate.

Dominion Energy has run a residential battery pilot that pays enrolled customers for allowing the utility to dispatch their storage, and it periodically offers demand response programs; Appalachian Power's offerings are more limited. Virginia Energy was awarded federal Solar for All funding to serve low-income households, though the status of that federal program has been unsettled since 2025, so verify what has actually launched.

Utilities and rate plans in Virginia

Dominion Energy Virginia serves about two-thirds of the state including Richmond, Northern Virginia, and Hampton Roads; Appalachian Power covers the southwest from Roanoke to the coalfields; Old Dominion Power serves a small far-southwest corner; and thirteen electric cooperatives such as NOVEC, Rappahannock, and Shenandoah Valley serve much of rural Virginia alongside municipal systems in Danville, Manassas, and elsewhere. Dominion's residential rate is close to the national average and carries a growing list of riders, while Appalachian Power's rates have climbed steadily. Retail crediting means each exported kilowatt-hour is worth roughly what you pay, so savings scale with your usage, though the minimum bill sets a floor you cannot go below regardless of how much you generate.