Alexandria, VA Solar Panels
Solar Power in Alexandria
If you’re an Alexandria, VA homeowner thinking about solar panel installation for your home, you’re in the right place. Virginia’s electricity prices have risen 21% since 2020 — and more Alexandria residents are turning to solar to take back control of their energy bills.
This guide covers everything you need to know about solar installation in Alexandria — how it works, what to expect, and whether it makes sense for your home.
How Much Do Solar Panels Cost in Alexandria, VA?
Using real installation data from Alexandria and surrounding communities — including Annandale, Springfield, and Belle Haven — this calculator gives you an honest, local estimate of what solar panels might cost for your home.
System
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Key Takeaways
- Alexandria homeowners can save up to ~$69,000 over 25 years by going solar, with a typical system paying for itself in under 12 years.
- Virginia electricity rates have risen over 20% since 2021 — solar lets you generate your own power and reduce your dependence on rising utility costs.
- Alexandria offers a 5-year, 100% property tax exemption on solar plus Virginia net metering and SRECs, making local incentives some of the strongest in the region.
Alexandria Electricity Prices
Electricity costs in Alexandria have been climbing steadily — and understanding what you’re paying is the first step toward managing it.
Virginia’s electricity rates rose from 12.0 cents per kWh in 2021 to 14.5 cents per kWh in 2024 — an increase of over 20%. While still below the national average of 16.5 cents per kWh, the upward trend is clear.
Solar panels allow Alexandria homeowners to generate their own electricity, reducing their dependence on utility rates that have shown consistent year-over-year increases. The energy your panels produce is energy you don’t have to purchase from the grid.
Because solar systems typically last 25 years or more, locking in a predictable energy source today can provide meaningful long-term insulation from future rate increases — giving homeowners greater stability in their monthly energy costs over time.
Price of Energy: Virginia vs National Average
Alexandria Area Utility Providers
Alexandria, VA homeowners are served by two main utility providers — Dominion Energy and Northern Virginia Electric Cooperative. Based on 2023 data (the most recent available), both charge 13.9¢ per kWh for electricity.
At 13.9¢ per kWh, Alexandria rates sit just below Virginia’s 2023 state average of 14.3¢ and well below the national average of 16.0¢. That said, Virginia electricity prices have risen steadily in recent years — a trend worth watching.
Even at today’s rates, the average Alexandria household spends hundreds annually on electricity. As rates continue to rise over time, solar can help offset a meaningful portion of that cost — making long-term planning worth considering.
Alexandria Utilities Electricity Rates
Virginia Solar Incentives
Alexandria homeowners have access to several solar incentives in Virginia that can meaningfully reduce the cost of going solar.
These include Virginia’s net metering program, SRECs (credits earned per megawatt-hour that can be sold to utilities), and a 5-year, 100% property tax exemption offered directly by the City of Alexandria on qualifying solar equipment.
The federal residential solar tax credit is no longer available, but state and local incentives still apply. Those who lease solar through Palmetto’s LightReach program benefit from a simpler process — Palmetto applies the commercial ITC and passes savings through as lower monthly payments.
| Incentive | Type | Description | Source |
|---|---|---|---|
| Virginia Solar Renewable Energy Certificate (SREC) Program | SREC | Virginia solar owners earn one SREC for every 1 MWh of electricity their system produces, which can be sold to utilities for approximately $22.50–$75 per certificate. | Learn More |
| Virginia Net Metering Program | Net Metering | Virginia’s net metering program allows solar customers to earn full retail-rate bill credits for excess electricity sent to the grid, with important changes proposed for new customers in 2026. | Learn More |
| City of Alexandria Solar Equipment Property Tax Exemption | Property Tax Exemption | Alexandria offers residential and commercial property owners a 5-year, 100% property tax exemption on the cost and installation of solar panels. | Learn More |
| Virginia Community Solar Program (Shared Solar) | Rebate | Virginia’s Shared Solar Program allows customers to subscribe to a portion of a community solar facility and receive bill credits for their share of the energy produced, with a guaranteed 10% savings. | Learn More |
| Virginia Solar for All (EPA Grant Program) | Rebate | Virginia received over $156 million in EPA Solar for All funding to develop solar programs that enable low-income and disadvantaged communities to access and benefit from residential solar. | Learn More |
| VirginiaSAVES Green Community Program | Rebate | VirginiaSAVES offers low-interest financing for renewable energy and solar projects to commercial and industrial businesses, nonprofits, and local governments in Virginia. | Learn More |
| Virginia Commercial PACE (Property Assessed Clean Energy) Financing | Rebate | Virginia’s Commercial PACE program offers property-secured, long-term financing covering 100% of eligible solar and battery storage project costs for commercial properties in participating localities. | Learn More |
Created under the Virginia Clean Economy Act (VCEA) of 2020, Virginia’s SREC program allows residential solar owners to earn one Solar Renewable Energy Certificate for every 1,000 kWh (1 MWh) of electricity their solar panels produce. Utilities are required to purchase these certificates to meet their Renewable Portfolio Standard (RPS) obligations, creating a real market for your solar generation.
Current SREC prices in Virginia range from approximately $22.50 to $35 per certificate, with a state-mandated price cap of $75 per SREC. Each SREC is valid for 5 years from the year it is generated, giving you flexibility in when to sell. You do not need to be a Dominion Energy or Appalachian Power customer to participate — any Virginia solar owner is eligible.
To start earning SRECs, you must complete the utility interconnection process and then register your system with an SREC aggregator or broker (such as SRECTrade) within the same calendar year as your interconnection date. Once registered, your system will typically begin generating SRECs within two months, and your broker will sell them on the market on your behalf automatically.
Virginia’s net metering program, governed by Virginia Code §56-594, allows residential solar customers to earn credits on their electricity bills for excess power their solar panels send to the grid. Dominion Energy currently offers net metering at the full retail rate — a one-to-one credit — for residential systems up to 20 kW. Credits roll over month to month, and any remaining credits at the end of a 12-month billing cycle can be carried forward or paid out at the avoided-cost rate.
Important 2026 Update: Dominion Energy has proposed changes to net metering compensation for new customers. Dominion’s NEM 2.0 proposal would shift to real-time (half-hourly) netting and base credit rates on distributed solar PPA rates rather than the full retail rate. An SCC evidentiary hearing was scheduled for January 20, 2026, and a final order is expected mid-2026.
Grandfathering Protection: Customers who install solar and connect to the grid before the SCC issues its final order on net metering changes will be grandfathered under the existing full retail-rate rules. The aggregate capacity limit for net metering is 6% of each utility’s prior-year peak-load forecast (1% reserved for low-income customers, 5% for all others), and enrollment is first-come, first-served.
The City of Alexandria provides a property tax exemption for solar energy equipment available to both residential and commercial property owners. The exemption is valued at 100% of the cost and installation of qualifying solar panels and is deducted from the assessed value of the property each year for a period of five years.
This means that for five consecutive years after installation, the full value added to your property by your solar system will not be subject to Alexandria city property taxes. For a typical residential solar installation costing $20,000–$30,000, this can represent hundreds of dollars in annual property tax savings.
Property owners must apply to the City of Alexandria’s Office of Real Estate Assessments to receive this exemption. This local incentive complements Virginia’s statewide solar property tax exemption, providing Alexandria solar owners with strong, layered protection against property tax increases resulting from their solar investment.
Virginia’s Shared Solar (Community Solar) Program allows utility customers to benefit from solar energy without installing panels on their own property. Participants subscribe to a portion of a larger, shared solar facility and receive credits on their electricity bills based on their share of the energy produced by that facility.
There are two subscription options: the Block Option, where customers purchase fixed blocks of solar energy (each block = 100 kWh, costing $2.013/month, with residential customers able to buy up to 5 blocks); and the 100% Match Option, which allows participants to match all of their electricity use with solar energy at an additional $0.02013 per kWh. Participants receive a guaranteed 10% savings on the subscribed portion of their utility bill.
This program is ideal for renters in Alexandria, homeowners with shaded or unsuitable roofs, or anyone who wants to support solar energy without the upfront cost of installation. No equipment purchase or installation is required — simply sign up through your utility. Contact the Virginia Department of Energy or your utility provider for current availability and enrollment details.
The Virginia Solar for All program was established after the Virginia Department of Energy was selected to receive more than $156 million through the U.S. EPA’s Solar for All grant competition. The program is specifically designed to expand access to solar energy for low-income and disadvantaged communities across the Commonwealth.
The funding is being used to develop long-lasting solar programs that enable qualifying households to deploy and directly benefit from distributed residential solar. This may include financial assistance, subsidized installations, community solar subscriptions, and other mechanisms to reduce or eliminate the upfront cost barrier for eligible residents.
Eligibility is targeted toward low-income households and residents of disadvantaged communities. Interested residents of Alexandria should contact the Virginia Department of Energy for the latest information on program availability, eligibility requirements, and how to apply as funds are deployed.
The VirginiaSAVES Green Community Program provides low-cost, low-interest financing to private commercial and industrial businesses, nonprofits, and local governments to fund a wide range of renewable energy and energy projects in Virginia. Solar panel installations are among the eligible project types under this program.
The program is designed to remove the financial barrier of upfront capital costs for organizations looking to invest in solar and clean energy. Financing terms and interest rates are structured to make projects economically viable, with the goal of shortening payback periods and improving the return on investment for participating organizations.
This program is not available to individual residential homeowners but is an excellent resource for business owners, nonprofits, and local government entities in Alexandria seeking affordable financing for solar installations. Contact the Virginia Department of Energy for current program terms, interest rates, and application details.
Virginia’s Commercial Property Assessed Clean Energy (C-PACE) program provides an innovative financing mechanism for commercial, industrial, and nonprofit property owners to fund solar energy and battery storage installations with no upfront costs. Project costs are repaid through a special assessment on the property’s tax bill, with repayment terms extending up to 30 years.
C-PACE financing can cover 100% of eligible project costs, including solar panels, battery energy storage systems, and related equipment. Because the financing is tied to the property rather than the borrower, it can offer more favorable terms than traditional loans and transfers to the new owner if the property is sold.
Availability is limited to localities in Virginia that have adopted the PACE enabling legislation. Commercial property owners in Alexandria should verify whether their locality participates before pursuing this option. C-PACE is particularly valuable for battery storage projects, which currently have no dedicated state or utility incentive programs in Virginia.
Ready to start saving with solar?
Speak with a Palmetto solar expert to find out exactly how much you can save with Virginia incentives.
Get a Free QuoteAlexandria Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Understanding how seasons affect your solar system helps set realistic expectations for your investment.
Alexandria gets four distinct seasons, with sunny summers and cloudier winters. But like most mid-Atlantic cities, it receives enough annual sunlight to make solar a smart, productive investment year-round.
Solar Production in Alexandria by Month
What Can Your Solar System Power?
Summer Production (July)
In July, your 10 kW system could power:
- 3.6 average homes (15 kWh/day per home)
- or Run central AC for 18 hours AND power all other appliances
- or Fully charge 5.4 Tesla Model 3 electric vehicles
Winter Production (December)
In December, your 10 kW system could power:
- 2 average homes (15 kWh/day per home)
- or Keep your home heating system running for 15 hours
- or Fully charge 3 Tesla Model 3 electric vehicles
Annual Production
Over a year, your 10 kW system could:
- Offset 10 tons of carbon dioxide emissions
- or Equal the environmental benefit of planting 175 trees
- or Save approximately $4,234 in electricity costs
Want to know exactly how much solar can power your home?
Get a personalized solar analysis based on your actual home, energy usage, and roof characteristics.
Get My Custom EstimateSolar Panel Systems in Alexandria
We’ve mapped every solar installation in Alexandria, VA so you can see just how many of your neighbors have already made the switch. Explore the map below to discover which communities and neighborhoods are leading the way toward cleaner, more affordable energy.
Leasing Solar Panels
If you’re not ready to pay for solar panels outright, leasing is a smart alternative — and it’s available to Alexandria homeowners through Palmetto’s LightReach program. Whether you’re served by Dominion Energy or Appalachian Power Company (APCo), a solar lease is an option worth understanding.
With a solar lease, you pay a fixed monthly amount — say, $114/month for a medium-sized home — while Palmetto owns and maintains the system. That means no upfront cost, no repair bills, and no performance worries. Palmetto’s 90% Production Guarantee ensures your system delivers. Compare that to a cash purchase, where you’re responsible for maintenance, repairs, and managing the system yourself over its 25-year lifespan. To learn more about how these two options compare, visit our solar buy or lease guide.
For many Alexandria homeowners, leasing removes the biggest barrier to going solar: the upfront investment. You start saving on your electricity bill from day one, with predictable monthly payments and full system support from Palmetto — making solar accessible without the complexity of ownership.
Go solar without the investment
With LightReach, there are no investment costs to recoup, loan payments to manage, or maintenance needs to take on. As soon as your panels are active, your solar savings are too!
Learn MoreFrequently Asked Questions
Yes, solar makes sense for many Alexandria homeowners. With 4.7 peak sun hours per day, rising electricity rates (up 20%+ since 2021), and local incentives like Alexandria’s 5-year property tax exemption and Virginia’s net metering program, the conditions are favorable. A typical system can save around $69,000 over 25 years.
If upfront cost is a concern, Palmetto’s LightReach solar lease removes that barrier entirely — homeowners can go solar with no money down and start saving from day one.
Yes, Alexandria homeowners have access to net metering through their utility provider. Most Alexandria residents are served by Dominion Energy, which offers 1:1 net metering — meaning you earn a full retail-rate credit for every kilowatt-hour of excess solar energy you send back to the grid. Credits carry over month to month, and any remaining balance at year-end can roll over or be paid out at Dominion’s avoided-cost rate (~3–5¢/kWh).
Residents served by Appalachian Power Company (APCo) also receive 1:1 net metering, with excess credits rolling over indefinitely — though APCo does not pay out unused credits as a check. Note: Dominion has proposed changes to net metering for new customers in 2026, so connecting your system sooner may help you lock in current full retail-rate terms.
Yes, solar panels can increase your home value in Alexandria. According to a Zillow study, homes with solar panels sell for approximately 4.1% more than comparable homes without them. In Alexandria’s competitive real estate market, that can translate to a meaningful boost in resale value.
It’s worth noting that owned solar systems typically add value, while leased systems may require transfer to the buyer. Alexandria’s 5-year, 100% property tax exemption on solar equipment means your home’s increased assessed value won’t immediately raise your property tax bill either.
For Alexandria homeowners, the most accessible way to go solar is through Palmetto’s LightReach lease — with no upfront cost and a low fixed monthly payment starting around $84–$137/month depending on home size. Palmetto owns and maintains the system, so there’s nothing out of pocket to get started.
If you prefer to purchase outright, a typical Alexandria system runs $20,000–$32,000. Note that the federal 30% residential tax credit is no longer available following the Big Beautiful Bill. Use the calculator above for a personalized estimate.
For many Alexandria homeowners, solar is worth it financially — especially with a lease. Through Palmetto’s LightReach program, you can go solar with no upfront cost. Your fixed monthly lease payment is typically less than your current electricity bill, so savings start on day one.
For those who purchase outright, a typical system can save ~$69,000 over 25 years, with a payback period of around 12 years. Either way, with Virginia’s rising electricity rates, solar offers real long-term financial value for Alexandria residents.
Palmetto Solar is a top choice for Alexandria, VA homeowners. We’re a national company with a strong local install network, and we’ve served 20,000+ customers across 31 states with an approval rating over 85%. We handle everything — design, permitting, installation, and ongoing support.
We also offer some of the most flexible financing options available, including our LightReach lease with no upfront cost and fixed monthly payments starting around $84/month. For those who prefer to purchase, our pricing is competitive and transparent.
With Palmetto’s LightReach lease, Alexandria homeowners can go solar with no upfront cost. Palmetto owns the system and handles installation, monitoring, maintenance, and includes a 90% Production Guarantee. For a typical 9.72 kW system in Alexandria, the estimated monthly payment is approximately $114/month — often less than your current electricity bill, so savings start immediately.
Because Palmetto owns the system, it claims the commercial Investment Tax Credit (ITC) and passes those savings to you through lower monthly payments — an advantage not available with a cash purchase. Virginia’s production ratio of 1,219 kWh/kW/year makes leasing a smart, straightforward option for most Alexandria homeowners.