Virginia

Virginia’s Solar Property Tax Exemption allows homeowners with qualifying solar energy systems to reduce or eliminate the property tax impact of installing solar panels. Under this state program, solar equipment is classified as a separate property class, and local governments can choose to exempt this value from property taxation.

For residential systems up to 25 kilowatts DC, the equipment is automatically 100% exempt from state and local taxation. For other qualifying solar installations, the tax exemption is determined by local ordinance and must be granted for at least 5 years. To qualify, homeowners must apply through their local building department for certification. If approved within one year of installation, some localities may make the exemption retroactive to the installation date and provide reimbursement for taxes already paid. The financial benefit varies based on your local property tax rate and the value of your solar system.

Virginia’s Solar Renewable Energy Certificates (SRECs) program allows homeowners with solar installations to earn certificates for the clean energy they produce. Each SREC represents 1 megawatt-hour (MWh) of solar electricity generation. These certificates can be sold through the PJM-Environmental Information Services (PJM-EIS) Generation Attribute Tracking System (GATS), providing solar owners with additional income beyond electricity savings.

To participate, Virginia solar system owners must register their system through the GATS process administered by PJM-EIS. Homeowners can manage their SRECs themselves, work with a broker/aggregator, or include them in a Power Purchase Agreement. While Virginia doesn’t currently have a separate SREC-specific market, certificates can still be sold in the broader renewable energy certificate marketplace. The program has different eligibility requirements for two periods: 2021-2024 and 2025 onwards, with generation resources needing to be located either in Virginia or within the PJM region and meeting the state’s definition of renewable energy.

Virginia’s Net Metering program allows solar homeowners to receive full credit for excess electricity their systems generate and send back to the grid. Under this program, both Dominion Energy and Appalachian Power Company (APCo) customers receive 1:1 credit for solar energy – meaning for every kilowatt-hour (kWh) your solar panels send to the grid, you’ll receive a credit for one kWh on your electric bill. This essentially allows your electric meter to run backward when your system produces more electricity than you’re using.

The financial benefit varies based on your utility provider. Dominion Energy customers can carry over unused credits month-to-month, and at the end of the year, can either continue rolling them over or receive payment at Dominion’s avoided cost rate (approximately 3-5 cents per kWh). APCo customers enjoy an even more flexible arrangement, with excess credits rolling over indefinitely with no expiration. This program effectively reduces your electricity bills by offsetting the cost of power you would otherwise purchase from the utility, potentially saving hundreds or thousands of dollars annually depending on your system size and energy usage patterns.

While there are no specific deadlines for enrolling in net metering, connecting your solar system to the grid requires application and approval from your utility company. Both residential and commercial customers are eligible, though system size limitations may apply based on your utility’s specific requirements. For the most current eligibility details and application procedures, we recommend contacting your utility provider directly.