Arlington, VA Solar Panels
Solar Power in Arlington
Arlington, VA homeowners are discovering that solar energy offers a practical way to lower electricity bills and gain control over energy costs. With Virginia electricity prices jumping 21% from 2020 to 2024, home solar panels make practical financial sense for local residents.
This guide breaks down everything you need to know about solar installation in Arlington—from costs and incentives to how the process actually works.
How Much Do Solar Panels Cost in Arlington, VA?
Our calculator uses real installation data from Arlington neighborhoods like Clarendon, Ballston, and Cherrydale to show you accurate solar costs. See what homeowners across Arlington County actually paid for their systems, based on firsthand data from local installations.
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You can still access the solar tax credit through Palmetto. Talk to us today to find out how.
Key Takeaways
- Arlington homeowners can save approximately $71,000 over 25 years by switching to solar, with typical systems paying for themselves in around 11.5 years.
- Virginia electricity rates increased 21% from 2021 to 2024, making solar panels a smart way to lock in predictable energy costs for decades.
- Multiple incentives help reduce solar costs, including property tax exemptions, Solar Renewable Energy Certificates, and net metering that credits excess production.
Arlington Electricity Prices
Understanding electricity costs helps Arlington homeowners make informed decisions about their energy future and long-term household budgets.
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 that directly impacts monthly household expenses.
Solar panels generate electricity at a fixed cost, insulating homeowners from these rate increases. Once installed, your system produces power at the same predictable rate for decades, regardless of utility price changes.
Over a typical 25-year system lifespan, this protection from rising rates can translate to significant savings. Many Arlington homeowners find that solar provides both immediate bill reduction and long-term financial predictability.
Price of Energy: Virginia vs National Average
Arlington Area Utility Providers
Understanding your electricity costs is the first step in evaluating solar energy. Arlington residents are served by 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 regulatory structure. However, electricity rates historically trend upward over time, meaning today’s below-average rates may not reflect tomorrow’s costs for Arlington homeowners.
Even with competitive current rates, solar panels can help lock in predictable energy costs for decades. By generating your own electricity, you reduce exposure to future rate increases while maintaining control over your household energy expenses.
Arlington Utilities Electricity Rates
Virginia Solar Incentives
Arlington homeowners can access several solar incentives in Virginia that help reduce the upfront and ongoing costs of going solar.
Virginia offers three main incentive programs: a property tax exemption that prevents your home’s assessed value from increasing due to solar panels, Solar Renewable Energy Certificates that provide annual income, and net metering that credits you for excess electricity production.
These incentives can change as state policies evolve. Review the current programs carefully and consider acting sooner rather than later to maximize your savings.
| 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 homeowners to exclude the added value of their solar energy system from their property taxes. When you install solar panels, your home’s value typically increases, which would normally result in higher property taxes. This exemption ensures you won’t pay additional property taxes on that increased value, helping you keep more of your solar savings.
To qualify, your solar system must be certified by your local building department as designed primarily for collecting, generating, transferring, or storing solar energy. Systems up to 25 kilowatts are completely exempt from state and local property taxes. For larger systems, your local government must pass an ordinance to offer the exemption—so availability varies by county, city, or town. You’ll need to apply for certification with your local building department, ideally within one year of installation.
The exemption lasts for at least five years once approved, and some localities may make it effective from your installation date if you apply within the first year. If you’ve already paid property taxes on your system, your locality may reimburse you. This benefit works by reducing either your real property tax bill or your machinery and tools tax, depending on how your system is classified. Keep in mind that this is a local incentive, so you’ll want to confirm your specific county or city has adopted the necessary ordinance to offer this exemption.
Solar Renewable Energy Certificates (SRECs) are tradable credits that Virginia solar homeowners can earn for the clean electricity their system produces. For every 1,000 kilowatt-hours (1 megawatt-hour) of solar energy your system generates, you earn one SREC that can be sold on the market. These certificates are tracked through the PJM-Environmental Information Services (PJM-EIS) Generation Attribute Tracking System (GATS), which automatically registers and verifies your solar production.
The value of SRECs varies based on market demand, as utilities purchase them to meet Virginia’s Renewable Energy Portfolio Standard requirements. Residential solar owners can sell their SRECs through brokers or aggregators registered with PJM GATS, or they may be bundled with energy sold to the grid through a Power Purchase Agreement. Your solar system must be located in Virginia or within the PJM region to qualify, and it needs to be registered in GATS with a State Certification Number assigned by PJM-EIS.
There are no application deadlines, as SRECs are generated continuously as long as your system produces solar energy. However, the program rules have evolved over time, with different eligibility criteria for 2021-2024 versus 2025 and beyond. To participate, you’ll need to either manage your RECs directly through the GATS system or work with a broker who can handle the registration and sales process for you. This provides an ongoing revenue stream that can help offset your solar investment over the life of your system.
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 power flows to the grid, and you receive credits on your electric bill at a 1:1 rate. This means every kilowatt-hour (kWh) you send to the grid offsets one kWh you might use later, effectively running your meter backwards and reducing your monthly electricity costs.
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 are either rolled over to the next year or paid out at Dominion’s avoided cost rate (typically 3-5 cents per kWh). If you’re served by Appalachian Power Company (APCo), your excess credits roll over indefinitely from month to month, though they won’t be paid out as a cash payment. All residential solar customers in Virginia are eligible for net metering, making it a valuable way to maximize the financial return on your solar investment by ensuring no solar energy you produce goes to waste.
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 QuoteArlington 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.
Arlington’s four distinct seasons create varying solar production throughout the year. While winters bring shorter days, the area’s ample sunshine makes solar highly effective year-round with proper system design.
Solar Production in Arlington 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 Arlington
We’ve mapped every solar installation across Arlington to help you explore the clean energy movement in your community. Click any hexagon to see how many neighbors in that area have made the switch to solar power.
Leasing Solar Panels
Arlington homeowners served by Dominion Energy and Appalachian Power Company can access solar through leasing options. With a solar lease, you pay a predictable monthly amount instead of purchasing the system outright, making solar accessible without a large upfront investment.
Leasing offers several advantages over paying cash. You avoid the initial system cost, and Palmetto handles all maintenance and repairs throughout the lease term. This means no unexpected expenses if equipment needs service. You start saving on electricity immediately while Palmetto manages the technical details.
Whether you’re served by Dominion Energy or Appalachian Power, leasing provides a straightforward path to solar savings. Learn more about buying versus leasing solar or explore Palmetto’s LightReach program to see if leasing fits 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 MoreFrequently Asked Questions
Yes, solar makes strong financial sense in Arlington. With Virginia electricity rates climbing 21% from 2021 to 2024 (from 12.0¢ to 14.5¢ per kWh), solar panels lock in predictable energy costs while reducing monthly bills.
A typical Arlington home can save approximately $71,000 over 25 years with a payback period around 11.5 years. Virginia’s property tax exemption, Solar Renewable Energy Certificates, and net metering further improve the financial benefits for local homeowners.
Yes, Arlington residents have access to net metering through their utility provider. Both Dominion Energy and Appalachian Power Company offer 1:1 net metering, meaning you receive full retail rate credit for excess solar electricity sent to the grid.
With Dominion Energy, excess credits roll over month-to-month and are either carried to the next year or paid out at their avoided cost rate (3-5 cents/kWh) annually. Appalachian Power customers see their excess credits roll over indefinitely without cash payouts.
Yes, solar panels typically increase home value in Arlington. Research from Zillow shows homes with solar panels sell for approximately 4.1% more than comparable homes without solar.
For an Arlington home valued at $700,000, this translates to roughly $28,700 in added value. Additionally, Virginia’s property tax exemption ensures you won’t pay higher property taxes on the increased value your solar system adds to your home.
Solar panel costs in Arlington 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 $2.76 per watt. Smaller homes require 7.20 kW systems ($20,485), while larger homes need 11.74 kW systems ($31,893).
These prices reflect actual installation data from Arlington neighborhoods. Virginia’s property tax exemption and net metering help offset costs, with typical systems saving homeowners around $163 monthly and paying for themselves in about 11.5 years.
Solar makes strong financial sense for Arlington homeowners. With electricity rates rising 21% since 2021, a typical system saves approximately $71,000 over 25 years with an 11.5-year payback period.
Virginia’s property tax exemption, net metering credits, and Solar Renewable Energy Certificates improve returns further. Monthly savings average $163 while protecting against future rate increases for decades.
At Palmetto, we’re proud to serve Arlington homeowners with a national reach and local focus. We combine competitive financing options with a proven installation network to make solar accessible and straightforward.
Our team handles everything from system design and permitting to installation and ongoing support. With transparent pricing, quality equipment, and a commitment to customer education, we help Arlington residents transition to clean energy with confidence.