Alexandria, VA

Virginia’s Solar Property Tax Exemption allows homeowners to reduce or eliminate property taxes on their solar energy systems. Under this state program, solar equipment is classified as a separate property category, giving local governments the authority to exempt it from property taxation. For residential systems up to 25 kilowatts DC, the exemption is mandatory statewide – these systems are completely exempt from all state and local property taxes.

To qualify, homeowners must apply through their local building department, which will certify that the equipment meets state requirements. Once approved, the exemption applies to the next tax year and continues for at least five years. If you install solar and obtain certification within one year of installation, some localities may make the exemption retroactive to the installation date and reimburse any taxes already paid. The exemption value is typically based on the purchase and installation cost of your solar system.

Solar Renewable Energy Certificates (SRECs) in Virginia represent the environmental benefits of solar energy production. When your solar system generates electricity, you earn one SREC for every megawatt-hour (1,000 kWh) produced. These certificates can be sold through the PJM Generation Attribute Tracking System (GATS) marketplace, providing solar homeowners with additional income beyond electricity savings.

Virginia’s SRECs are part of the state’s mandatory Renewable Energy Portfolio Standard (RPS) program. While Virginia doesn’t currently have a separate SREC-specific market like some other states, solar system owners can still register their RECs through PJM-EIS GATS and sell them through brokers or aggregators. The value of SRECs varies based on market conditions, but they provide an opportunity to earn additional revenue from your solar investment.

To be eligible, your solar system must be located in Virginia or within the PJM region (which covers much of the mid-Atlantic). The system must be registered through the GATS process, which requires obtaining a State Certification Number. Homeowners with small residential installations can work with REC brokers or aggregators to sell their SRECs in the PJM market.

It’s important to note that Virginia’s RPS program distinguishes between two time periods: 2021-2024 and 2025 onwards, with different eligibility requirements for each period. For the most current information on SREC values and registration procedures, homeowners should consult with their solar installer or a registered REC broker in Virginia.

Virginia’s Net Metering program allows homeowners with solar panels to receive full credit for the excess electricity they generate. When your solar system produces more electricity than you’re using, that excess power flows back to the grid, and your utility company credits your account at a 1:1 rate. This means for every kilowatt-hour (kWh) you send to the grid, you receive a credit for one kWh on your electric bill – essentially using the grid as a virtual battery.

The program is available through all major Virginia utilities including Dominion Energy, Appalachian Power Company, Northern Virginia Electric Co, Rappahannock Electric Co, Shenandoah Valley Electric Cooperative, and Danville Utilities. All residential solar customers are eligible for net metering, though system size limitations may apply depending on your utility provider.

Each utility handles excess credits differently at the end of the annual billing cycle. Dominion Energy customers can either roll over credits to the next year or receive payment at the avoided cost rate (approximately 3-5 cents/kWh). Appalachian Power customers’ credits roll over indefinitely but are never paid out as cash. NOVEC customers can carry over credits for two years, after which they expire without compensation. Rappahannock Electric Co trues up excess credits annually at their avoided cost rate (roughly 2.6 cents/kWh as of 2019). Understanding your specific utility’s policy is important for maximizing your solar investment.

There are no specific deadlines to enroll in net metering, but it’s worth noting that net metering policies can change over time as utilities reach certain capacity thresholds. When planning your solar installation, be sure to confirm current net metering availability with your utility company and have your solar provider handle the necessary interconnection applications to ensure you receive full credit for your solar production.