Alexandria, VA Solar Panels
Solar Power in Alexandria
Thinking about solar for your Alexandria home? You’re in the right place. With Virginia electricity prices jumping 21% from 2020 to 2024, more homeowners are exploring how solar panels for home use can help offset rising energy costs.
This guide breaks down everything you need to know about solar installation in Alexandria—from local incentives and permitting to what the process actually looks like in our community.
How Much Do Solar Panels Cost in Alexandria, VA?
Our calculator uses real installation data from Alexandria homeowners—from Old Town to Del Ray, Rosemont to Seminary Hill. See what solar actually costs in your neighborhood based on systems we’ve installed nearby.
System
Cost
Savings
You can still access the solar tax credit through Palmetto. Talk to us today to find out how.
Key Takeaways
- Alexandria receives 4.7 peak sun hours daily, providing strong solar production potential despite Virginia’s humid climate and seasonal weather variations.
- Virginia electricity rates increased 21% from 2021 to 2024, making solar’s fixed energy costs increasingly valuable for protecting against future utility price hikes.
- A typical 10 kW system generates 13,449 kWh annually, potentially saving Alexandria homeowners around $69,000 over 25 years with available state incentives.
Alexandria Electricity Prices
Understanding your electricity costs is the first step in evaluating solar. Let’s look at how rates have changed in Virginia recently.
Virginia electricity rates have climbed from 12.0 cents per kWh in 2021 to 14.5 cents per kWh in 2024—a 21% increase in just three years. For Alexandria homeowners, this translates to significantly higher monthly bills.
Solar panels generate electricity at a fixed cost, helping insulate your household from these price fluctuations. Once installed, your system produces power at the same rate for decades, regardless of utility rate increases.
Over a 25-year period, this price stability becomes increasingly valuable. While utility rates continue rising, solar-equipped homes maintain predictable energy costs, protecting household budgets from future electricity price volatility in the Alexandria area.
Price of Energy: Virginia vs National Average
Alexandria Area Utility Providers
Understanding your electricity costs is the first step in evaluating solar. Alexandria residents receive power from Dominion Energy, which charged 13.9¢ per kWh in 2023—below both the state average of 14.3¢ and the national average of 16.0¢.
Dominion Energy’s rates remain competitive due to Virginia’s diverse energy mix and regional infrastructure investments. However, electricity prices historically trend upward over time, and Alexandria homeowners saw significant rate increases between 2020 and 2024.
While current rates are reasonable, locking in predictable energy costs becomes more valuable as utility prices rise. Solar allows Alexandria homeowners to generate their own electricity, creating stability against future rate fluctuations while supporting cleaner energy for our community.
Alexandria Utilities Electricity Rates
Virginia Solar Incentives
Alexandria homeowners have access to several solar incentives in Virginia that help reduce installation costs and ongoing energy expenses.
Virginia offers three key programs: a property tax exemption that protects you from increased taxes on your solar system’s value, Solar Renewable Energy Certificates that provide annual credits, and net metering that credits excess energy production at full retail rates.
These incentives can evolve as state policies change. Review current program details carefully and consider acting while these benefits remain available to Alexandria residents.
| Incentive | Type | Description | Source |
|---|---|---|---|
| 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 |
Virginia’s Solar Property Tax Exemption allows local governments to exempt solar energy equipment from property taxes. This means that when you install solar panels on your home, your local county, city, or town can choose not to increase your property taxes based on the added value of your solar system. The exemption applies to solar equipment certified as designed primarily for collecting, generating, transferring, or storing solar energy.
To qualify, you must apply to your local building department to have your solar equipment certified. Once approved, the exemption lasts for at least five years, and some localities may make it effective from your installation date if you apply within one year. The amount you save depends on your local property tax rate and the value of your solar equipment. Keep in mind that this exemption is optional for localities—your county, city, or town must pass an ordinance to offer it, so availability varies across Virginia. Small solar facilities with a capacity of 25 kilowatts or less are automatically exempt from state and local property taxes without requiring local ordinance approval.
Solar Renewable Energy Certificates (SRECs) are tradeable credits that Virginia solar homeowners earn for the clean electricity their solar panels produce. For every 1,000 kilowatt-hours (1 megawatt-hour) of solar energy your system generates, you receive one SREC that can be sold on the open market. These certificates are tracked through the PJM-Environmental Information Services Generation Attribute Tracking System (GATS), which automatically registers and verifies your solar production.
The financial value of SRECs varies based on market demand, as there is no fixed price set by the state. You can sell your SRECs through brokers or aggregators who specialize in the Virginia market, or they may be bundled with your energy through a Power Purchase Agreement. To be eligible, your solar system must be located in Virginia or within the PJM region and meet the state’s definition of renewable energy. Residential solar homeowners typically work with REC brokers or aggregators to manage and sell their certificates, as these professionals handle the technical aspects of trading in the GATS system.
Virginia’s Renewable Energy Portfolio Standard program, which drives SREC demand, has specific requirements that change over time. The program was updated in 2023 and 2024, with different rules applying for 2021-2024 versus 2025 and beyond. While there’s no separate application process beyond registering your solar system in GATS, you’ll need a State Certification Number assigned by the GATS administrator. Keep in mind that SREC income is an ongoing benefit that continues as long as your system produces electricity, providing an additional revenue stream beyond your energy bill savings.
Net metering in Virginia allows you to receive credit for the excess solar energy your system sends back to the electric grid. When your solar panels produce more electricity than your home uses, that surplus energy flows to the grid, and you receive a credit on your utility bill at a 1:1 rate. This means you get the full retail value for every kilowatt-hour (kWh) you export, which then offsets the cost of electricity you draw from the grid when your panels aren’t producing enough (like at night or on cloudy days).
The specific benefits depend on your utility provider. If you’re a Dominion Energy customer, your excess credits carry over month to month throughout the year. At the end of your annual billing cycle, any remaining credits either roll over to the next year or are paid out at Dominion’s avoided cost rate (approximately 3-5 cents per kWh). If you’re an Appalachian Power Company (APCo) customer, your excess credits roll over indefinitely from month to month, though they won’t be paid out as a cash payment. Net metering is available to all residential solar customers in Virginia, and there are no application deadlines. This program helps maximize the financial value of your solar investment by ensuring you benefit from every bit of clean energy your system produces.
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’s mix of sunny summers and cloudy winters creates seasonal solar variation. Despite humid, overcast days, the region receives ample annual sunlight for strong solar performance with proper system design.
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 across Alexandria to help you see which neighborhoods are going solar. Explore this interactive map to discover how many of your neighbors have already made the switch to clean energy!
Leasing Solar Panels
For Alexandria homeowners, Palmetto offers solar leasing through our LightReach program. When you work with Dominion Energy or Appalachian Power Company, you can access solar lease options that eliminate upfront costs while providing immediate energy savings.
A solar lease means you pay a predictable monthly amount for your system—typically less than your current electricity bill. Unlike purchasing solar panels outright, leasing removes equipment ownership responsibilities. Palmetto handles all maintenance, monitoring, and repairs throughout your agreement, so you enjoy clean energy without the investment burden or ongoing upkeep concerns.
This approach makes solar accessible to more Alexandria residents. You benefit from lower energy costs from day one, support Virginia’s clean energy goals, and avoid the complexity of system ownership. Learn more about how LightReach can work for your home.
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 strong financial sense in Alexandria. With 4.7 peak sun hours daily and Virginia electricity rates increasing 21% since 2021, solar panels provide predictable energy costs while utility prices continue rising.
A typical 10 kW system generates around 13,449 kWh annually, potentially saving homeowners approximately $69,000 over 25 years. Virginia’s net metering and property tax exemption programs further improve the financial return on your solar investment.
Yes, Alexandria has net metering through both Dominion Energy and Appalachian Power Company. Both utilities offer 1:1 net metering, meaning you receive full retail credit for excess solar energy sent to the grid.
With Dominion Energy, excess credits carry over monthly and either roll to the next year or are paid at their avoided cost rate (3-5 cents/kWh). With Appalachian Power, credits roll over indefinitely but won’t be paid as cash.
Yes, solar panels increase home value in Alexandria. Research from Zillow shows homes with solar panels sell for 4.1% more than comparable homes without solar systems.
For Alexandria’s median home price, this translates to thousands of dollars in added value. Additionally, Virginia’s solar property tax exemption means you won’t pay higher property taxes on your system’s added value, making solar an even smarter investment for local homeowners.
Solar panel costs in Alexandria vary by home size. A typical medium home (2,000-3,000 sq ft) needs a 9.72 kW system costing approximately $26,810, or about $2.76 per watt. Small homes need 7.20 kW systems ($20,485), while larger homes require 11.74 kW systems ($31,893).
These prices reflect complete installations with equipment, labor, and permitting. Virginia’s property tax exemption and net metering programs help offset costs, with homeowners typically seeing payback periods of 11-12 years through monthly savings averaging $117-$191.
Yes, solar is financially worth it for most Alexandria homeowners. With Virginia electricity rates rising 21% since 2021 and continuing upward trends, solar panels lock in predictable energy costs for 25+ years.
A typical 10 kW system costs around $26,810 and saves approximately $69,000 over 25 years through reduced utility bills. The payback period averages 11-12 years, after which your electricity is essentially free. Virginia’s net metering and property tax exemption further strengthen the financial case.
At Palmetto Solar, we combine national resources with local expertise to serve Alexandria homeowners. We offer competitive financing options and work with a trusted network of professional installers who understand Virginia’s permitting requirements and climate conditions.
Our approach focuses on transparent pricing, quality equipment, and comprehensive support throughout your solar journey. From initial consultation through installation and ongoing monitoring, we’re here to help Alexandria residents transition to clean energy with confidence.