Nathan Healy
Certified by Nathan Healy
Updated: July 2025
Quality Solar Solutions Since 2011
Palmetto has served 20,000+ customers across 31 states with an approval rating over 85%.
01

Solar in Alexandria

Alexandria homeowners are turning to solar as electricity prices have increased 21% from 2020 to 2024. With Virginia ranking 15th for residential solar installations nationwide, the clean energy shift is gaining momentum.

Understanding your options for home solar panels can help you make an informed decision about solar energy.

VIRGINIA by the Numbers

6th Most residential solar in the United States
159k Households have installed solar panels
~$8k Virginia average solar rebate savings
~$69k Alexandria average savings over 25 years
02

Key Takeaways

  • Alexandria electricity rates increased 21% since 2020, making solar panels a smart way to lock in predictable energy costs.
  • Virginia homeowners can save ~$8,000 in solar rebates through federal tax credits and state incentives like property tax exemptions.
  • A typical Alexandria solar system pays for itself in 8.7 years and provides over $69,000 in savings over 25 years.
03

Palmetto Reviews

04

Solar Cost Calculator

Our Alexandria solar cost calculator uses real installation data from neighborhoods like Del Ray, Old Town, and Rosemont. Get accurate pricing estimates based on actual projects we’ve completed in your area, not generic estimates.

Small Home Up to 2,000 sq ft
Medium Home 2,000-3,000 sq ft
Large Home Over 3,000 sq ft
System Size
This system size is designed to offset approximately 100% of the average electricity usage for a home of this size in Virginia.
Recommended
System
9.72 kW
Cost Breakdown
Your estimated investment
System Cost
$26810
Federal Tax Credit (30%)
$-8043
Final
Cost
$18767
Savings
Your total financial benefit
Monthly Savings
Average utility bill reduction
$158
Payback Period
Break-even point
8.7 years
25-Year
Savings
$69299
05

Alexandria Electricity Prices

Alexandria residents face rising electricity costs, but understanding local energy trends can help you make smarter decisions about your home’s power.

Virginia electricity rates have climbed from 12.0 cents per kWh in 2021 to 14.5 cents in 2024, representing a 21% increase over three years.

Solar panel installation in Alexandria offers homeowners a way to generate their own electricity and reduce dependence on rising utility rates over time.

With solar systems typically lasting 25+ years, Alexandria homeowners can lock in predictable energy costs while Virginia’s net metering policies provide additional value.

Price of Energy: Virginia vs National Average

10¢
20¢
30¢
13.7¢
12.0¢
15.0¢
13.3¢
16.0¢
14.3¢
16.5¢
14.5¢
2021
2022
2023
2024
US Average
Virginia

Alexandria Area Utility Providers

Alexandria residents receive electricity from two main utility companies: NOVEC and Dominion Energy. Both charged 13.9¢ per kWh in 2023, the most recent data available.

These rates sit below Virginia’s state average of 14.3¢ per kWh and significantly under the national average of 16.0¢ per kWh, making Alexandria electricity relatively affordable.

Even with competitive utility rates, solar panels can provide long-term energy cost stability and protection against future rate increases while reducing environmental impact.

Alexandria Utilities Electricity Rates

NOVEC
13.90¢
-13%
Dominion Energy
13.90¢
-13%
VA Average
14.30¢
-11%
US Average
16.0¢
06

Virginia Solar Incentives

Alexandria residents can reduce solar costs through federal and state solar incentives in Virginia designed to make clean energy more affordable.

Virginia offers property tax exemptions, renewable energy certificates, and net metering programs. These incentives work together to lower your upfront investment and ongoing costs.

Each program has specific requirements and benefits. Research current rates and eligibility rules before making solar decisions.

$8,043

Average savings in Virginia solar rebates

Incentive Type Description Source
Residential Clean Energy Credit Federal tax credit A federal tax credit worth 30% the cost of a solar panel system in the year it’s installed Learn More
Solar Property Tax Exemption State tax exemption 100% exemption of solar value from property tax for systems =25kW. Savings based on local tax rates. Example: $288/year savings on $30k system. Learn More
Solar Renewable Energy Certificates (SRECs) State program $10 per REC (1,000 kWh) through Virginia’s state program. A typical home system of 8kWh will produce ~$100/year in credits Learn More

The Residential Clean Energy Credit lets people claim a tax credit worth 30% the cost of a solar panel system in the year it’s installed. The credit can only be used against taxes you owe or have already paid that year, but any excess credit can be rolled over to future years.

The credit is broadly available, though there are a few restrictions — you must own the panels and they must be on a house you live in — so be sure to consult a tax professional about your situation.

Virginia’s Solar Property Tax Exemption allows local governments (counties, cities, and towns) to exempt solar energy equipment from property taxes. This means homeowners can potentially avoid paying property taxes on the added value that solar panels bring to their home. The exemption applies to certified solar energy equipment, facilities, or devices that are designed and used primarily for collecting, generating, transferring, or storing thermal or electric energy.

The financial benefit varies by location since each local government decides whether to offer the exemption and how much to exempt (partial or full). When available, the exemption reduces your property tax bill by the amount you would have paid on the assessed value of your solar equipment. The exemption lasts for at least five years once approved. To qualify, you must apply to your local building department for certification within one year of installation, and your solar equipment must meet state requirements. If you obtain certification within one year and have already paid taxes on the equipment, your locality may reimburse those taxes. This incentive requires your local government to have adopted an ordinance offering the exemption, so availability depends on where you live in Virginia.

Virginia’s Solar Renewable Energy Certificates (SRECs) program allows homeowners with solar panels to earn additional income by selling certificates that represent the environmental benefits of their clean energy production. Each time your solar system generates 1,000 kilowatt-hours (1 megawatt-hour) of electricity, you earn one REC that can be sold in the PJM regional market. These certificates help utilities meet Virginia’s renewable energy requirements while providing you with an ongoing revenue stream from your solar investment.

The financial value of RECs varies based on market demand and can be sold through brokers, aggregators, or as part of power purchase agreements. Virginia homeowners can register their solar systems through the PJM Generation Attribute Tracking System (GATS) to start earning RECs. Your solar system must be located in Virginia or within the PJM region to qualify, and the program operates under Virginia’s mandatory Renewable Energy Portfolio Standard. While there’s no separate SREC market specifically in Virginia, your RECs can be sold in the broader PJM market, and you can choose to self-manage your certificates or work with registered brokers and aggregators to handle the sales process.

Net metering in Virginia allows homeowners with solar panels to receive credit for excess electricity they generate and send back to the power grid. When your solar system produces more energy than your home uses, the extra power flows to the grid and you receive credits on your electric bill at a 1:1 rate – meaning you get full retail value for every kilowatt-hour (kWh) you contribute.

The financial benefit varies by utility company. With Dominion Energy Virginia, any unused credits can roll over month to month, and at the end of the year, excess credits are either carried forward or paid out at Dominion’s avoided cost rate (approximately 3-5 cents per kWh). Appalachian Power Company (APCo) customers can roll over credits indefinitely without any cash payout option. This system essentially allows your electric meter to run backward when you’re producing more energy than you’re using, reducing your overall electricity costs.

While specific eligibility requirements aren’t detailed in the available information, net metering is typically available to residential customers who install qualifying solar energy systems. There are no mentioned deadlines for participation, as this is an ongoing utility program. Homeowners should note that the value of excess credits differs between utility companies, and it’s important to understand your specific utility’s policies before installing solar panels.

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 Quote
07

Alexandria 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’s humid subtropical climate brings seasonal variations in solar production. Despite occasional cloudy days, proper system design maximizes year-round energy generation potential.

Solar Production in Alexandria by Month

Daylight Hours
Energy Production (kWh/day)

What Can Your Solar System Power?

Summer Production (July)

[SummerProduction] kWh/day

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)

[WinterProduction] kWh/day

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

[AnnualProduction] kWh/year

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 Estimate
08

Solar Installations in Alexandria

We’ve mapped every solar installation across America to show you something exciting: your Alexandria neighbors are embracing clean energy! Explore this interactive map to discover which communities have made the switch to solar power.

09

Leasing Solar Panels

For Alexandria homeowners, Palmetto offers solar leasing through our LightReach program. This option is available for customers served by Dominion Energy and Appalachian Power Company, the two main utilities in Virginia.

With a solar lease, you pay a fixed monthly amount (typically $100-200) instead of the full system cost upfront. Palmetto handles all maintenance, monitoring, and repairs throughout the lease term. This eliminates the need for large cash investments while still providing immediate electricity savings.

The key advantage over cash purchases is simplicity – no maintenance responsibilities, predictable monthly costs, and immediate savings without waiting for payback periods. Learn more about leasing versus buying solar panels to determine which option works best for your situation.

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 More
10

Frequently Asked Questions

Yes, solar makes strong financial sense in Alexandria. With electricity rates rising 21% since 2020 and Virginia offering federal tax credits plus state incentives, solar provides excellent value.

A typical Alexandria home can save approximately $69,000 over 25 years with solar panels. The system pays for itself in about 8.7 years through reduced electricity bills and available rebates.

Yes, Alexandria has net metering through both major utility companies. Dominion Energy and Appalachian Power Company (APCo) both offer 1:1 net metering, meaning you receive full retail credit for excess solar energy sent to the grid.

With Dominion Energy, excess credits roll over monthly and are either carried forward annually or paid at avoided cost rates (3-5 cents/kWh). APCo customers can roll over credits indefinitely without cash payouts.

Yes, solar panels typically increase home value in Alexandria, VA. A Zillow study shows solar panels increase home value by 4.1% on average nationwide.

For a typical Alexandria home valued at $650,000, this could mean an increase of approximately $26,650. Virginia’s property tax exemption for solar equipment also protects homeowners from paying additional taxes on the increased value from their solar installation.

Solar installation costs in Alexandria range from $14,339 to $22,325 after federal tax credits, depending on your home size and energy needs. A typical medium-sized home (2,000-3,000 sq ft) pays around $18,767 for a complete solar system.

These prices include the 30% federal tax credit and reflect actual Palmetto installation data from Alexandria neighborhoods like Del Ray, Old Town, and Rosemont. Virginia homeowners also benefit from property tax exemptions and net metering programs that provide additional long-term value.

Yes, solar is financially worth it in Alexandria. With electricity rates rising 21% since 2020 and reaching 14.5¢/kWh, solar panels provide predictable energy costs and significant long-term savings.

A typical Alexandria solar system pays for itself in 8.7 years and generates approximately $69,000 in savings over 25 years. Federal tax credits reduce upfront costs by 30%, while Virginia’s net metering and property tax exemptions add additional value.

We are Palmetto Solar, a national company with local expertise serving Alexandria residents. As one of the nation’s leading solar installation companies, we combine proven experience with competitive financing options and a trusted installer network.

We handle everything from system design to permitting and installation, making solar simple for Alexandria homeowners. Our local focus means we understand Virginia’s incentives, utility requirements, and weather patterns to maximize your solar investment.