If you’re interested in saving money on energy, being more energy independent, and using cleaner, greener power, going solar may be the answer.
Home solar panels generate affordable, renewable electricity. If you decide to get battery backup storage, solar power can keep your lights on during an outage.
In Virginia Beach, you can use federal tax credits, net metering, and more potential incentives to save money right away and for years to come with home solar power. Here's a guide to common questions about going solar in Virginia Beach.
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Does Solar Make Sense in Virginia Beach?
Virginia ranks No. 9 in the nation in states with the most solar capacity installed, with enough capacity to power more than 700,000 homes, plus future investment committed to growing solar usage for many years.
Whether or not solar makes sense for you in Virginia Beach depends on factors specific to your home and your needs. While we can’t look at an individual property here, we can get an idea by looking at the broader picture. To see how solar would work at your house, reach out for a quote.
Price of electricity
Home solar panels let you avoid buying some of your electricity from your utility company. The estimated savings for your home depends, in part, on the electric rate you’re currently paying.
According to the US Energy Information Administration (EIA), the average residential electric rate in Virginia in July 2024 was 14.38 cents per kilowatt-hour. Dominion Energy, the utility that services Virginia Beach, had an electric rate of 13.92 cents perk kWh. Your actual average will depend on whether you have a fixed or variable rate. In general, the more electricity costs, the more you stand to save with solar.
Price of solar
The Solar Energy Industries Association gives the national estimate of residential solar as $3.33 per watt. The cost of solar for your home will take many factors into account, like the size of the system, the local cost of labor, the components you’re using, your roof, your normal energy consumption, and if you’re getting battery storage.
The best way to get the most accurate estimate of what a home solar system will cost is to get a quote from a reputable, professional solar installer.
Credit: NREL
Available sunlight
Virginia Beach gets an average of 4.5-4.75 peak sun hours a day according to the National Renewable Energy Laboratory.
The sunlight you get on your roof and how your panels are installed are more important factors than the region’s average sunlight, though. If your roof is heavily shaded, it won’t be a good fit for solar. A reputable solar installer should do a survey of your roof’s specifications, virtually or in person, as part of the design process.
Outages
Solar power systems, if connected to your area’s utility electric grid, are designed to shut down when the power goes out. Optional battery backup allows you to use your stored power during an outage or at night by temporarily disconnecting your home from the grid.
Virginia residents experienced an average of 221 minutes of power outages in 2023 according to data from the US Energy Information Administration. In 2022, the average was about 593 minutes. If power outages are more than a minor inconvenience for you, solar and storage might be worth it.
Solar Incentives in Virginia Beach
Solar prices have been trending down for years, but solar incentives available in Virginia, like tax credits, tax exemptions, and net metering, are still quite valuable and critical to how you budget going solar.
Federal tax credit
The Residential Clean Energy Credit, often called the federal solar tax credit, gives owners of home solar panels tax credits for up to 30% of the cost of their solar system. You must have a federal tax liability to take advantage of the credit. If your tax liability is too small, you can roll remaining credits over to future years.
The credit is broadly applicable, though there are some restrictions. You can’t claim it for solar panels installed on a rental property for which you are the landlord, for example. It’s always a good idea to consult a financial advisor before counting on any tax credit.
Net metering
With home solar panels, sometimes you will send power to the grid, and sometimes you’ll use energy from the grid. When you send more than you use, net metering is how a utility company compensates you. All investor-owned and cooperative Virginia utility companies use net metering. Virginia’s net metering law applies to residential solar systems up to 25 kW, with additional charges for systems larger than 15 kWs.
In Virginia Beach and Hampton Roads, Dominion Energy uses 1-to-1 net metering. Excess net metering credits can be rolled over month to month on a per kWh basis. At the end of a year, excess credits can be rolled into the next year or paid out as a true-up payment at Dominion’s avoided cost rate.
Solar renewable energy credits
In Virginia Beach, solar panel owners can earn money for the electricity their system produces in solar renewable energy credits. For every megawatt (1,000 kWh) your system generates, you earn one SREC. Institutions that need to meet clean energy standards buy SRECs to help them meet the quota.
Palmetto customers can sign up with SRECTrade, a marketplace platform that takes care of minting, reporting, and selling SRECs. The value of SRECs varies with supply and demand. Dominion customers must register their solar systems with Dominion.
Property tax exemption
Solar panels typically increase property values. In Virginia, there is a graduated property tax exemption on property value increases because of a new solar power installation. The exemption is 80% of the property value increase for the first five years after installation, then 70% for the next five years, then 60% for the rest of the system’s life.
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Solar Payback Period in Virginia Beach
A solar payback period is how long it takes for the savings you get from solar panels to match the initial cost. Calculating the payback period depends on many specifics: The size and specifications of your system, whether you get battery storage as part of your system, and how much electricity you consume are some of the most important factors.
You can estimate your payback period with the following equation.
( Total cost - Incentives ) / Annual savings = Payback period in years
Let’s say you buy a 5 kilowatt system at $3.24 per watt for $16,200. After the federal tax credit ($4,860) you land on a final cost of $11,340. If you save an average of $100 each month, your savings will pay back your solar panels in 9.45 years.
($16,200 - $4,860) / ($100 x 12 months) = 9.45 years
A few variables could affect a solar payback period. For instance, the value of SRECs will vary over time. Also, the price of electricity may change. Increased electricity rates will shorten the payback period.
Credit: US EIA
Dominion Energy and Rooftop Solar Panels
When you go solar, your home and system typically remain connected to your utility (unless you’re one of the few people who are completely off grid). Your electric bill is a key consideration in your decision to go solar.
| Utility | Avg. electric rate 2023 (cents/kWh) | Fixed monthly charges | Net metering type | Max size for net metering | Max offset |
|---|---|---|---|---|---|
| Dominion Energy | 13.92 | $7.58 | 1:1 net metering | 15 kW | 150% |
Electricity rates and fees are subject to change. If you utilize a time-of-use rate, your rate will fluctuate throughout the day. Confirm the above details with your utility or your bill.
Gas utilities and home electrification
If you also use natural gas, home electrification can reduce or eliminate your gas bill. Changing gas appliances to electric appliances, or even an electric vehicle, will cut your gas bill and likely raise your electric bill. But utilizing your solar electricity for as much of your electricity as possible will give you the biggest energy cost savings.
Solar Panel Maintenance in Virginia Beach
Solar panels typically do not need a great deal of maintenance. An annual maintenance and system check is a good idea and it’s best done by a licensed professional. In fact, DIY work can void warranty coverage. Palmetto and other solar companies offer protection plans. Palmetto Protect includes system monitoring, maintenance, intelligent issue detection, and top-ranked customer service.
One bit of regular maintenance can be a pro or DIY job: cleaning your solar panels. Follow the manufacturer’s recommendations and don’t use anything that could damage or scratch panels. If you live where you get regular precipitation, rain will clean off your panels just fine.
Finding the Best Solar Company in Virginia Beach
You’re expecting to have solar panels for 25 years or longer, and solar panels are a major financial investment. So, choosing the right solar company to work with is very important. You’ll work with the company on system design, paperwork, and installation.
Here are suggestions about what to look for and check when deciding what company to work with.
- Read reviews, positive and negative, and compare them among companies
- Choose a company that gives you clear answers, time, and no pressure. If you’re frustrated on day one, do you want this feeling for years to come?
- Talk to friends, neighbors, or family who have gone solar to learn about the company they hired
- Check and ask questions about warranties and after-installation plans
Palmetto Reviews
“From project formation to final instructions, my solar team was knowledgeable, enthusiastic, and patient with my many questions. They explained everything thoroughly, neither talking down to me nor inundating me with techno-babble. My solar panels are also providing an unexpected benefit — my attic is much cooler due to their shading effect. 100% recommend Palmetto Solar!” Lissa H. Google Review
“Very efficient system. We are producing more kw hours than what we are consuming. We are doing this month after month. Love Palmetto.” Ron B., Google Review
“Palmetto Solar installed my solar panels and I have seen a significant energy cost decrease. To add to the review, the personnel I have worked with were amazing. They were informative, responsive, truly concerned about my experience, and answered all my questions throughout the entire process. If you are looking for solar, I highly recommend Palmetto Solar.” Darrell M., Google Review
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Frequently Asked Questions
How much does it cost to go solar in Virginia Beach?
Solar costs vary across the country and will even differ from house to house. A national estimate from the Solar Energy Industries Association gives the average cost of residential solar as $3.33 per watt, but your roof, the size of your system, and more will determine the cost of your home solar system.
Where should I start?
Going solar and making such a big change to your home can feel very complex. It’s important to work with a company with experience. You want to work with someone who will develop custom designs and solutions for your home and who gives you the answers and time to make the best decision. To get an idea of how solar panels will work for your life, home, and finances, check out Palmetto's solar savings estimator or contact a solar advisor.
Does Virginia Beach have net metering?
Yes, Dominion Energy has a net metering program. Net metering lets solar system owners get credits on their utility billsbill for the excess solar power their system sends to the utility electric grid.
Does Virginia have a solar tax credit or solar rebate?
Virginia doesn’t have a direct, state-level solar tax credit or solar rebates. Virginians can utilize the federal solar tax credit, the Residential Clean Energy Credit. There is also a state income tax deduction for a portion of the sales tax paid on solar panels and system components.
Disclaimer: This content is for educational purposes only. Palmetto does not provide tax, legal, or accounting advice. Please consult your own tax, legal, and accounting advisors.
Andrew GiermakWriter and EditorAndrew joined Palmetto in Charlotte in August 2024. He’s been a writer in journalism, then in business, going back to almost the 20th century. He’s lived in Indiana, Virginia, Pennsylvania, Virginia again, and now North Carolina for the last 12 years. He likes golf. Is he good at it? Not so much.
