US residential solar · 2026 data

Solar Panels in Virginia

Est. net savings

$19,500

Over 25 Years (model, flat rates) · no federal credit

$20,400 Cost, 8 kW (no federal credit)
12.4 yrs Payback (flat rates)
8.0 kW Example system

Typical result:

  • About 20 panels (400 W) for 8 kW
  • ~$20,400 before incentives
  • No federal homeowner credit in 2026
  • ~12.4 year payback at flat rates
✓ EIA rates & NREL sun data ✓ 2026 federal policy applied ✓ Open methodology
· 10 min read ·By

25 years without solar vs with solar

Assumes 3%/yr rate increases, 0.5%/yr panel degradation and no federal tax credit (the 30% §25D credit ended for systems installed after Dec 31, 2025). How we calculate

Without solar

25-year utility bills

$39,932

Rates rise ~3% per year

With solar

System cost + remaining bills

$20,400

Installed cost, no federal credit

Difference

Estimated 25-year net

+$19,532

Before any state or utility incentives

Numbers on this page are built from public data

Editorial policy No paid placements
Last updated
Data approach EIA rates · NREL sun hours · 2026 federal policy · methodology

Last updated: October 5, 2026. Prices, incentive status and utility rules change often; verify with your installer, utility and tax professional before you sign.

Short answer: In October 2026, an 8 kW home solar system in Virginia costs roughly $20,400 before incentives, and there is no federal homeowner tax credit for systems installed this year. Virginia’s net metering rules were upheld by state regulators in 2025 and 2026, so rooftop solar still earns full retail-rate bill credits. Our model shows payback in about 10 to 12 years, depending on how fast electricity rates rise.

That is a very different picture from guides written before 2026. The 30% federal credit that cut a typical system’s price by thousands of dollars ended on December 31, 2025. The good news is that Virginia electricity is getting more expensive: the EIA-based residential average was about 17.2 cents per kWh in June 2026, and the average Virginia home uses roughly 1,032 kWh a month (EIA-861, 2024 data). More bill to offset means solar can still pay for itself, just more slowly.

This guide covers current system prices, which incentives actually remain, how net metering works with Dominion Energy and Appalachian Power, and a transparent payback model you can adapt to your own numbers.

Virginia Solar at a Glance (October 2026)

MetricCurrent figureSource
Typical installed cost~$2.55/W (range $2.54–$3.67/W)EnergySage, ConsumerAffairs, Palmetto, PowerOutage.us
Example 8 kW system~$20,400 before incentivesEnergySage price table
Federal homeowner credit (25D)Ended Dec 31, 2025IRS / P.L. 119-21
Virginia income tax creditNoneVirginia Energy / DSIRE
Average residential rate~17.2¢/kWh (June 2026)EIA retail sales data
Net meteringRetail-rate credits, 12-month nettingVirginia SCC
Peak sun hours~4.5–5.0 per day by locationNREL PVWatts-based sources

What Does a Solar System Cost in Virginia in 2026?

A typical Virginia home solar system costs about $2.55 per watt before incentives, according to EnergySage marketplace data from October 2026, which works out to about $20,400 for 8 kW. Other published datasets report between $2.54 and $3.67 per watt, mostly because they use different quote samples and methods.

System sizeEstimated cost before incentives (at ~$2.55/W)
5 kW$12,732
6 kW$15,278
7 kW$17,825
8 kW$20,371
9 kW$22,918
10 kW$25,464

Source: EnergySage Virginia marketplace data, October 2026. Costs include installation. Your quote will differ.

Virginia solar costs $2.54 to $3.67 per watt before incentives. At 8 kW, the gap between the lowest and highest figure is about $9,000. Source: ConsumerAffairs (Aug 2026), EnergySage (Oct 2026), Palmetto (2026), PowerOutage.us (Sep 2026).

Chart summary: Three of the four sources cluster between $2.54 and $2.76 per watt, while one reports $3.67. The spread is a reminder that no single average describes your home. At 8 kW, the gap between $2.55 and $3.67 per watt is about $9,000, so itemized quotes from at least three installers matter more than any published average.

What moves your price: system size, roof complexity and pitch, panel and inverter choice, whether you add a battery, and local permitting. Ask each installer for a price per watt, the equipment model numbers, the production estimate in kWh per year, and the warranty terms, so quotes can be compared on the same basis. To estimate your own numbers, use the solar savings calculator.

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Federal and Virginia State Incentives for Solar in 2026

Virginia homeowners who buy solar in 2026 do not receive a federal tax credit. The Residential Clean Energy Credit (Section 25D) was repealed for expenditures after December 31, 2025, by the One Big Beautiful Bill Act (Public Law 119-21), signed July 4, 2025. It applied to solar panels and also to home battery storage. If installation was completed after that date, the IRS treats the expenditure as made in 2026 and the credit cannot be claimed. For more on this topic, see our guide to Solar Panels in Hawaii 2026. For more on this topic, see our guide to Solar Panels in Ohio.

Incentive2026 status for Virginia homeowners
Federal 30% residential credit (25D)Ended for systems completed after Dec 31, 2025. Unused credit from a 2025 or earlier system can still be carried forward.
Virginia state income tax creditNone for residential solar.
Property tax exemptionResidential and agricultural solar up to 25 kW is a separate, exempt class of property under Va. Code § 58.1-3661, so added home value from solar is not taxed.
Net meteringActive at Dominion Energy and Appalachian Power (details below).
SRECsCustomers keep ownership of their renewable energy certificates; the SCC rejected Dominion’s attempt to claim them. Values fluctuate.
Solar for All (EPA)Virginia’s $156 million award was cancelled in 2025. Do not rely on it.

What about leases and PPAs? With a lease or power purchase agreement, a company owns the system. Those companies can still claim a separate commercial federal credit through 2027 under current law, and some may price that into their offers. That does not mean a lease is cheaper over time. Compare the contract’s escalator, term and buyout terms against a purchase before deciding, and have a tax professional confirm how any credit applies to you.

What about batteries? The homeowner credit for storage ended with 25D, so a battery in 2026 is a resilience purchase rather than a tax-advantaged one. It can make sense for homes that lose power during storms, but it lengthens payback.

This is general information, not tax advice. Confirm your situation with a tax professional.

How Net Metering Works With Dominion Energy and Appalachian Power

Net metering lets your solar system send surplus power to the grid and receive bill credits for it. In Virginia, surplus is credited at the retail rate and netted over a 12-month period, so summer production can offset winter bills.

Dominion Energy Virginia. Dominion asked the State Corporation Commission (SCC) to replace retail-rate credits with a lower export rate. In its final order on April 30, 2026, the SCC kept the existing energy-based, annual netting structure. Credits still carry forward month to month at full value. The main change is for excess left at the end of the 12-month period, which is now credited at about 5.8 cents per kWh. The SCC also rejected a proposed application fee and Dominion’s claim on customers’ SRECs, according to published summaries of the order.

Appalachian Power (APCo). The SCC rejected APCo’s proposal to cut the value of exported solar in 2025 and left the current net metering structure in place. The 6% statutory cap on participation was also kept, and APCo is currently well below it.

What this means for system size. Because year-end surplus is worth far less than a retail-rate credit, the best-value system usually offsets about 100% of your annual usage, not more. Net metering rules also limit system size relative to your past usage and set a residential size cap, so confirm the current limits with your utility before design. To model how netting applies to your usage, try the solar net metering calculator.

Virginia receives roughly 4.5 to 5.0 peak sun hours per day depending on location and panel tilt, based on NREL-derived data. That is close to the U.S. average, which means Virginia’s solar economics depend more on electricity rates and net metering than on exceptional sunshine.

Solar Payback Period and Long-Term Savings in Virginia

Without the federal credit, expect payback of roughly 10 to 12 years for a typical Virginia home. EnergySage reports a Virginia average of about 12 years. We built a simple model to show how sensitive that figure is to electricity price growth.

Model assumptions (illustrative, not a quote):

InputValueBasis
System8 kWExample size
Cost$20,400$2.55/W, EnergySage
Production, year 110,400 kWh1,300 kWh per kW, a conservative planning figure; check yours with NREL PVWatts
Electricity rate16.3¢/kWhTrailing 12-month Virginia residential average, EIA data
Panel degradation0.5% per yearPlanning assumption
Netting1:1 retail credit, usage fully offsetVirginia net metering
An 8 kW Virginia system nets $19,532 to $45,452 over 25 years with no federal credit. Model: $20,400 cost, 10,400 kWh in year 1, 16.3 cents per kWh, 0.5 percent yearly degradation, 0 to 4 percent yearly rate growth. Source: EnergySage cost data, EIA rates, our model.

Chart summary: If electricity rates stay flat, the system breaks even in about 12.4 years and ends year 25 about $19,500 ahead. If rates rise 2% a year, payback falls to about 11.2 years and the 25-year gain is about $30,500. At 4% annual growth, payback is about 10.2 years and the gain is about $45,500. Year 1 bill savings are about $1,695, or roughly $141 a month. The takeaway: the further rates climb, the better the economics, and the model is most sensitive to your actual rate, usage and installed price.

Scenario (rate growth per year)Payback25-year bill savings25-year net gain after system cost
0%12.4 years$39,932$19,532
2%11.2 years$50,899$30,499
4%10.2 years$65,852$45,452

Financing changes the math. A cash purchase gives the fastest payback. A solar loan adds interest, which pushes payback out, and the added cost depends on your rate and term. Compare loan offers on total cost, not just the monthly payment. Run your own figures in the solar payback calculator.

Results vary by home. Payback is shorter if you use more electricity, have an unshaded south-, east- or west-facing roof, or get a lower installed price. It is longer for shaded roofs, smaller bills, or higher per-watt quotes. Systems with a battery cost more and extend payback.

Solar vs utility company · 25-year comparison

25-year totals: 3%/yr rate increases, 0.5%/yr degradation, no federal credit. Methodology

Total utility payments

$39,932

Total solar cost (installed + remaining bills)

$20,400

Net savings

+$19,532

Avg. monthly difference

+$141/mo

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Frequently Asked Questions

Is there still a federal solar tax credit in Virginia in 2026?

No, not for homeowners who buy with cash or a loan. The 30% Residential Clean Energy Credit (Section 25D) ended for expenditures after December 31, 2025, under the One Big Beautiful Bill Act. Homeowners who finished an installation by that date can still claim it on their 2025 return and carry forward unused amounts. Companies that own leased or PPA systems may still claim a separate commercial credit.

How much do solar panels cost in Virginia in 2026?

Roughly $2.54 to $3.67 per watt before incentives, with EnergySage marketplace quotes averaging about $2.55 per watt in October 2026. That is about $20,400 for 8 kW and about $25,500 for 10 kW. With no federal credit, that is generally close to your net cost. Compare at least three itemized quotes.

Does Virginia still have net metering after the 2026 SCC ruling?

Yes. The SCC’s April 30, 2026 order kept Dominion’s retail-rate, 12-month netting structure. Excess left at year-end is credited at roughly 5.8 cents per kWh, so size your system to your annual usage. The SCC also rejected Appalachian Power’s proposed cuts in 2025.

How long is the solar payback period in Virginia without the federal credit?

About 10 to 12 years for many homes. Our 8 kW model gives 12.4 years at flat rates, 11.2 years with 2% annual rate growth, and 10.2 years with 4%. EnergySage reports an average of about 12 years. Your usage, roof, financing and installed price will move the result.

What Virginia solar incentives are left in 2026?

Virginia has no state income tax credit for residential solar. What remains is net metering, the property tax exemption for residential and agricultural systems up to 25 kW (Va. Code § 58.1-3661), and ownership of your SRECs. The EPA’s Solar for All funding for Virginia was cancelled in 2025.

Sources and Methodology

Figures were checked against the sources below in October 2026. The payback model is our own illustrative calculation using the inputs shown above; it is not a quote or a guarantee.

Written by the Green Energy Calculators Editorial Team. This article is educational and is not financial, tax or legal advice.

Frequently asked questions

Direct answers for US homeowners in Virginia.

No, not for homeowners who buy solar with cash or a loan. The 30% Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, under the One Big Beautiful Bill Act signed July 4, 2025. A system finished in 2026 gets $0 from this credit. Homeowners who completed an installation by December 31, 2025 can still claim it on their 2025 return (IRS Form 5695) and carry forward any unused amount. Companies that own leased or PPA systems may still claim a separate commercial credit, so lease and PPA pricing can differ from purchase pricing.

Major electric utilities in this state

Export credits, fees and interconnection rules differ by utility — confirm the current solar tariff with yours before sizing a system.

How these numbers were calculated

Electricity rate
16.83¢/kWh — Virginia average residential price. Source: EIA Electric Power Monthly, Table 5.6.B (year-to-date through July 2026), residential average retail price (July 2026) (EIA)
Solar production
4.7 peak sun hours/day × 0.82 system derate. Approximate state-average daily solar resource (peak sun hours) based on NREL solar resource data (NSRDB); not location-specific — use NREL PVWatts for an address-level estimate. (NREL PVWatts)
Installed price
$3.00 per watt before incentives. Blended 2026 US residential installed price used by this site; EnergySage marketplace reported about $2.60/W (mid-2026); full-market medians are higher.
Federal tax credit
$0 for homeowner-owned systems installed in 2026 — the 30% §25D credit ended Dec 31, 2025 (IRS)
Net metering
Full retail net metering — solar assumed to offset 87% of the bill. Virginia requires retail-rate net metering for residential systems up to 25 kW.
Model
Version 2026.10 · 3%/yr electricity price escalation · 0.5%/yr panel degradation · simple payback = installed cost ÷ year-1 savings
Policy checked
· Full methodology · Report an error

Estimates only — not tax, legal or financial advice. Get at least three installer quotes and confirm incentives with your utility and a tax professional.

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