Virginia Solar Power Incentives, Tax Credits, and Rebates of 2025

The solar industry in Virginia, US, is rapidly growing, and most homeowners and business owners are installing solar panels to reduce their electricity bills. The US government offers various financial programs encouraging people to adopt solar energy as their primary power source. The government launched tax credits and incentive programs to cut the upfront cost of any solar project. Whether you want a solar system for your home or a business site, you can easily avail of those programs to get a tax credit of up to 30%. 

In this blog, I’ll highlight the Virginia solar power incentives 2025, tax credits, and rebates.

What are the Federal Solar Tax Credits in Virginia 2025?

The average cost of solar systems in Virginia is $37000. The maximum Virginia solar tax credit the US government allows Virginia citizens is 30% of the total price, around $11000. The tax credit applies to anyone who buys solar panels, wind turbines, inverters, and energy-saving batteries. Remember, you won’t get a tax credit if you get the solar system on lease. 

How Much are Local Virginia Solar Rebates?

Solar companies in Virginia provide various options for individuals looking to harness solar energy for their needs. This includes incentives and rebates of up to 30% of the total project cost. Additionally, state-level rebates, such as net metering, are available for efficient energy improvements. The local Virginia Solar Rebates are non-refundable and can only be availed for PV solar panels. 

Virginia Property Tax Exemption for Solar Panels

If you’re a Virginian thinking about putting solar panels on your home, the good news is that the state has a property tax exemption for solar systems. That is, if you install solar panels, the value of your home will not increase your property taxes. Typically, your taxes increase if you put something on your home that increases its value, like an extra bedroom or patio. But Virginia is so dedicated to clean energy that they’re happy to make an exception in the case of solar power.

The good news? Not only will you be lowering your electricity bill, but you’ll also lower your property tax bill. You’ll even qualify for additional state or Virginia solar incentives 2025. In the long term, solar panels can pay for themselves in savings. And by tapping into the power of the sun, you’ll lower carbon emissions, so it’s a smart choice for your wallet and the environment.

If you’re considering solar, this exemption is just one more excellent reason to do it. By making clean energy more affordable, Virginia is giving homeowners and businesses the power to invest in a cleaner future without breaking out the checkbook for higher property taxes. So, now is the perfect time to go solar!

Net Metering in Virginia

Virginia pays residential customers a one-to-one retail rate for electricity they generate from solar to the grid if the system size is less than 25 kW. Commercial or other non-residential customers are paid a one-to-one retail rate with a system size limit of 3,000 kW.

In Virginia, systems cannot be used for more than a year. Customers may occasionally over-size a system for a future electric vehicle or other worthwhile electrification purchase (under utility rules). However, if a customer generates too much solar electricity in 12 months, the customer can roll over the credit or receive payment at the avoided cost rate.

Within Energy’s service territory, residential systems more significant than 15 kW (AC rating) are billed standby charges. The standby charges are calculated based on the level of peak power demand consumed at the site. Solar energy customers with systems between 15 and 25 kW are also billed these other transmission and distribution standby charges. 

Virginia Solar Panels Cost and Savings

As of March 2025, installing a solar panel system in Virginia costs $2.84/W. A 5 kW system, for instance, will cost about $14,217 upfront without incentives but between $12,084 and $16,350. When you deduct the federal tax credit, the average price reduces by 30%.

It will likely go unmentioned, but more significant solar panel systems cost more. We price by cost per watt ($/W) so that you can easily compare prices and factor in the minor variations in system size.

Average solar cost by system size in Virginia

While a 5 kW system will cost you $14,217 in Virginia, enlarging the system by half doubles its cost, so you’ll pay about twice that for a 10 kW system. The more expensive, however, the more you’ll receive as a credit on your federal tax return.

Which Solar System Is Right for Your Home?

Selecting the right solar system size starts with thoroughly examining your home’s energy consumption. Understanding how much electricity your home uses daily and which appliances are causing your bill will allow you to determine the most suitable solar system size. An inefficiently sized system will be wasteful – a system that is too small will not be able to meet your energy needs, while an oversized system will produce unnecessary expenses. What you need is to get a balance that maximizes energy production and minimizes costs. From a 5kW solar energy system in Virginia to a more extensive 10kW solar system in Virginia, understanding the capacity and output of each system is the secret to making the right decision.

At Nedes, Virginia’s leading solar company, we realize that each home has varying energy needs. That is why we offer personalized solar solutions.

Benefits of Going Solar in Virginia

With its history and landscape, Virginia offers residents the benefits of urban and rural living. When Virginia residents choose green energy by installing solar panels on their roofs, they help the state achieve its goal of maintaining its natural beauty and becoming a cleaner state.

Aside from being part of the green revolution, solar energy offers Virginia residents various solar incentives. Here to walk you through the advantages you will get when you adopt clean, renewable energy so you can maximize the use of your solar panel system.

• Financial Savings

One of the best benefits of the solar system is financial savings. It can significantly reduce your electricity bill, and if you produce excess electricity, you can earn credits by sending it back to the grid.  

• Environmental Impact

If you choose solar energy, you will be less likely to depend on fossil fuels, reducing your carbon footprint. The solar system provides an eco-friendly environment that doesn’t pollute the atmosphere. 

• Energy Independence

The solar system generates electricity through sunlight, reducing the need to depend on external sources or the grid. It can foster energy independence for you. 

Is It Worth Going Solar in Virginia?

In Virginia, investing in a solar system is worthwhile, as it can help you financially and be beneficial for the environment. You won’t be worried about the state’s rising electricity rates. Moreover, going solar in Virginia can increase your property value, and if you go with the net metering model, you can receive credits for the electricity you produce. 

How to Choose the Best Virginia Solar Panel Company?

The solar installation firm you hire to do your install can be the difference between an expensive, ineffective system and a reliable, money-saving machine. Before you spend your money, you’ll want to know how to pick the best solar panels and know you can do the job.

1. Read Reviews, Testimonials, and References

One of the simplest methods of gaining an impression of what it is like to work for a company is to ask people already working there.

Ask for referrals from businesses, friends, and family. Ask them for a list of references or customers. 

Glass door and other sites can also provide insight into how the company operates beneath the shiny sales facade.

2. Evaluate Their Past Projects & Experience

It is pleasant to be unique occasionally, but not in your solar panel array. Find out if the solar firm installed arrays of the same size and magnitude as yours. Look at their website to determine if they list prior project details, or call to ask if you can see an installation like yours in your vicinity.

You can also be sure about their quality and expertise by making sure they possess qualifications from exemplary solar organizations. 

3. Review Their Warranties

Solar equipment has factory-issued warranties. The warranties for the panels are 25 to 30 years, and the warranties for the inverter are 10 to 25 years. Others go beyond the standard by offering extended warranties that guarantee their work and the construction of the system. These provide cover and assurance for your investment.

For example, we at Nedes.us back our systems with our Warranty, including 10 years of warranted performance, workmanship warranty, and system monitoring. We write a check to our customers when their system does not meet our warranted level of performance.

4. Meet the Team

Inquire of them who will be conducting work on your project. Full-service installers hire in-house professionals for each step, from design through installation to monitoring and maintenance.

Other companies may employ subcontractors for any number of stages. They are likely less qualified and experienced than a full-service installer.

5. Check Their Mission & Values

A company’s mission statement and values provide you with a peek at the DNA of a company. They provide a measure of how you will be treated as their customer. Choose a company that operates in line with your values.

Final Words!

Going solar in Virginia is very beneficial, especially if you run a home or a business site. There is no doubt that electricity prices are increasing in Virginia, so installing a solar system can save you money. Additionally, you can set up a net metering system to earn credit by producing an excess amount of electricity and sending it back to the grid. 

If you want one, contact Nedes.us, one of the leading companies in Virginia providing professional solar installation services.