Solar energy in Virginia

Solar panel installation comes with a significant price tag, averaging $35,920 in Virginia. The price may be shocking initially, but the long-term savings can be even more surprising. There are several financing options and incentives to make solar more affordable. Once you recover the initial cost, you can begin to save thousands on electricity bills over time by generating your own energy.

Virginia is an excellent place to install solar on your home. Thanks to the state’s continued investment in renewable energy, it ranks in the top 10 for solar energy generation. According to the Solar Energy Industries Association (SEIA), solar energy generation in Virginia currently accounts for over 5.7% of electricity, enough to power nearly 498,000 homes. 

Powering your home with green energy from solar panels can help you save money on energy bills and reduce your carbon footprint. Learn more about solar energy in Virginia, including the cost of solar panels and incentives to decrease the total cost.  

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Cost of solar panels in Virginia

Solar panels are a major investment, and the price will not be the same for every homeowner. The cost of your custom solar panels in Virginia is determined by your annual energy usage, the number of panels in your system, and any necessary electrical or roof repairs. Based on data fromFind Energy and the Lawrence Berkeley National Laboratory, the average price per watt for a Virginia solar array is $3.59, which is lower than the $3.67 national average. 

Find Energy estimates the average home in Virginia needs a 10-kilowatt (kW) solar system to cover its energy usage. You can estimate the total price by multiplying system size and price per watt, giving you a total of $35,920 in Virginia. Here’s the equation: 

($3.59 X 10 kW) X 1,000 = $35,920

The following table compares the cost of the average system size in Virginia to the national average based on the price per watt.

How does Virginia solar save you money?

Rising electricity rates encourage residents to search for energy alternatives, like solar power. Solar panels are long-lasting and can save you thousands over the panel’s lifetime.

After considering the federal solar incentive and the $166.40average Virginia electricity bill as of June 2023, you can expect a payback period of about 12.5 years. Considering that the average solar panel system has a lifespan of 25–30 years, you are left with over a decade of pure savings. Rising electricity rates may also increase your potential savings from solar. 

Your annual average consumption will determine how large of a system you need to cover your entire home’s energy usage. The following table details solar costs by system size. Your selected solar company will help you estimate the right system size.

*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.

Factors determining Virginia solar panel costs

Explore the following table to learn more about the factors determining the total cost of solar for your home. 

Virginia solar incentives 2023

Virginia residents, including those in Richmond and Arlington, can benefit from solar panel programsacross the state. Virginia solar incentives offset the total cost to make solar more affordable. There are no state-level Virginia energy tax credits in 2023, but there is a property tax exemption. Most incentives only apply to those who own the solar system, including financed systems — if you lease a solar system, you cannot take advantage of the following incentives. 

Solar incentives in Arlington

Arlington offers a Green Building Incentive Program as part of the county’s Community Energy Plan to be carbon-neutral by 2050. Carbon neutrality means the city’s carbon output is offset by other means, like solar energy production. The goal is to incentivize renewable energy-efficient and sustainable construction practices to reduce carbon emissions, which negatively impact the air quality and human health. Going carbon-neutral reduces harmful environmental impacts and improves the quality of life. 

Requirements for the Green Building Incentive Program:

• Leadership in Energy and Environmental Design (LEED) Gold v4 or v4.1 status
• Meet energy optimization requirements to ensure energy efficiency above the LEED baseline
• Sustainable practices, including equity, interaction with nature, and pollution reduction
• Attain Energy Star Building Certification post-occupancy

Solar incentives in Blacksburg

The Town of Blacksburg was the first community in Virginia to start a solar campaign with SolSmart. Blacksburg does not have a solar co-op program at this time but offers helpful resources to residents interested in solar. Here are a few resources provided on the town’s website.

• Blacksburg Climate Action Plan
• Solar permit checklist
• Solarize Blacksburg HOA presentation

Solar incentives in Richmond

SolSmart GOLD recognized the City of Richmond as one of the top-rated cities for solar access. The city set a sustainability goal, known as RVAgreen 2050, to reduce greenhouse emissions by 45% by 2030 and reach zero emissions by 2050. As part of the sustainability goal, the state offers the SolarizeRVA program, which provides free solar consultations to learn about solar options and ways to reduce energy consumption. The consultation can help you determine if your roof is suitable for solar, if you should include a battery storage system, and other potential questions.

• SolarizeRVA’s goal is to reach 1,000 solar installations in Richmond.
• SolarizeRVA is not a solar panel company — it is a program offered by Viridiant.
• Viridiant is a nonprofit in Virginia supporting sustainable construction with educational opportunities and technical support. Check Virdiant’s events page for upcoming solar education opportunities.

Why choose solar energy in Virginia?

The benefits of solar power include the following. 

• Lower energy costs: Installing solar panels on your home can help lower your monthly energy bill and protect you from rising electricity rates. Net metering and Renewable Energy Credits (RECs) help offset energy costs and increase savings over time. 
• Improve energy independence: Most solar owners stay connected to the grid, but their reliance on power is greatly reduced with solar panels. When you rely less on the grid, you can worry less about increasing electricity rates because you are generating your own power.
• Go green: Traditional electricity generation use fossil fuels, which harm the environment by emitting carbon dioxide and contributing to climate change. Solar energy, on the other hand, is a renewable resource. Its generation process doesn’t emit harmful greenhouse gasses, reducing your carbon footprint and improving air quality. 

Should I buy or lease my solar panels?

When you install solar panels on your home, you can choose to either buy or lease your panels. While both have key benefits, buying or financing your solar panels leads to the largest amount of savings over time. When you buy your solar panels, you can take advantage of financial incentives and net metering programs to help you save money.

While leasing solar panels isn’t as cost-effective as buying them, there are still plenty of benefits. Leasing solar panels or entering a power purchase agreement (PPA) are similar options to make solar more accessible with lower upfront costs. The main difference is that in a solar lease, you pay a fixed monthly price, while with a PPA, you pay for the kWh of energy used. 

We recommend thoroughly reading a lease or PPA contract before signing to ensure you understand all of the details. Some agreements include annual escalators, meaning the solar company can increase the prices each year. PPAs and leases are usually long-term contracts and may not be the best idea if you plan to relocate soon.

Community solar in Virginia

Community solar is an option that allows residents to experience the benefits of solar power without having to own or lease solar panels on their property. Virginia community solar programs allow residents to subscribe to solar farms and receive Renewable Energy Credits (RECs) in exchange. Check here to find out if you have community solar available near you.

Depending on your location, Dominion Energy offers a community solar panel  program in Virginia for residents to receive RECs that match a portion or 100% of their energy usage. Dominion Energy is a utility company providing electricity to 2.7 million homes and businesses in North Carolina and Virginia. The community solar program is subscription-based and requires a year-long commitment, then continues on a monthly basis. Electricity is delivered to your home just as it was before subscribing, and solar energy is added to the grid on your behalf. The first facility in Dominion Energy’s community solar program is fully subscribed, but you can pre-enroll for the next available option to support solar energy in Virginia and reduce your carbon footprint. 

Virginia solar companies

With over 200 solar companies in Virginia, picking a quality installer can be a difficult decision. SaveOnEnergy can connect you with a vetted and trusted solar installer near you. Some of the best solar companies in Virginia include ADT Solar, Palmetto, and SunPower. Enter your address and average monthly electricity bill to get an estimate of solar costs and savings for your home. 

Solar Installer	Year founded	Financing options	Warranty terms
	2008	Cash purchase, solar loan	25-year manufacturer warranty and production guarantee
	2010	Cash purchase, solar loan, PPA, or lease	Minimum 12-year product warranty, 25-year performance guarantee
	2018	Cash purchase or solar loan.	30-year performance, 25-year panel, quality-of-work, and roofing warranty
	1985	Cash purchase, solar loan, or lease	25-year full system warranty

How to find the best solar company

Solar contractor and solar company are often used interchangeably, but it’s important to know the difference. Solar contractors are licensed professionals who install, repair, and maintain your solar energy system. Some solar companies only manage the sales and marketing and hire contractors for the installation. Other solar companies have in-house installation teams. Ask your installer for all contact information so you know who to call throughout the process.

Here are questions to consider when selecting a Virginia solar company.

• Do they have proper licenses and certifications? Check your state’s requirements for contractors. Examples may include a contractor’s or electrical license and a North American Board of Certified Energy Practitioners (NABCEP) certification. 
• Have you reviewed former customer experiences? Ask for references or search for reviews from previous customers with similar projects. You want an installer who has experience and provides clear communication throughout the process. 
• Do they offer quality products? Ensure a contractor sources the best solar panelsand inverters from reputable manufacturers. 
• What are the warranty terms? Review your solar warranty terms for length and inquire about the contractors maintenance and repair services to keep your system operating at peak efficiency.

Beware of free solar panels in Virginia scams

While the federal government offers solar incentives, it does not have any programs offering free solar panels. Before providing any information, ensure the solar company is licensed or certified by a trusted organization, such as the NABCEP. We recommend receiving multiple price quotes from a variety of Virginia solar companies to find one that fits your budget. Ask questions when there are outliers and avoid any company or individual offering free solar panels in Virginia. 

Important solar installation factors to consider

Consider the following details when researching solar panels for your home in Virginia. 

• Roof orientation: According to the Department of Energy, solar panels work best on south-facing roofs with slopes between 15 and 40 degrees. 
• Age of roof: If your roof needs repair or replacement, that will be a priority before adding solar panels to your home. Roof repair or maintenance costs should be added into your total cost for accurate financial planning.
• Weather patterns: Solar panels rely on sunlight to generate energy. Solar panels will work in winter and cold climates, but consistently overcast weather conditions could lower solar panels’ efficiency.  
• Shade: Direct sunlight is best for solar panel energy production. Removing obstructions will ensure your panels operate at the highest efficiency. 
• Neighborhood solar policies: Some homeowners associations (HOA) may have restrictions on the use of solar panels. HOAs in Virginia cannot prohibit solar panels but may have limitations on size or require approval.