Charlottesville, VA Solar Panels
In This Guide
- 01 Solar Energy in Charlottesville
- 02 Solar Cost Calculator
- 03 Charlottesville Reviews
- 04 Key Takeaways
- 05 Charlottesville Electricity Prices
- 06 Virginia Solar Incentives
- 07 Charlottesville Solar Production
- 08 Solar Installations in Charlottesville
- 09 Leasing Solar Panels
- 10 Frequently Asked Questions
Solar Power in Charlottesville
Charlottesville homeowners are discovering that solar energy offers a smart path to lower electricity bills and energy independence. With Virginia electricity prices rising 21% from 2020 to 2024, many residents are exploring how solar panels for home use can protect against future rate increases.
This guide breaks down what you need to know about solar installation in Charlottesville. We’ll cover local incentives, system costs, and the installation process.
How Much Do Solar Panels Cost in Charlottesville, VA?
Our calculator uses real installation data from Charlottesville homes—including neighborhoods like Belmont, Fry’s Spring, and Locust Grove—to show you accurate solar costs. Get personalized estimates based on what your neighbors actually paid, not national averages.
System
Cost
Savings
You can still access the solar tax credit through Palmetto. Talk to us today to find out how.
Key Takeaways
- Charlottesville receives 4.9 peak sun hours daily, providing excellent conditions for solar energy production throughout the year.
- Virginia electricity rates increased 21% since 2020, making solar panels a smart hedge against future utility price increases.
- A typical 10 kW system generates 13,517 kWh annually, potentially saving Charlottesville homeowners around $70,000 over 25 years.
Charlottesville Electricity Prices
Understanding your electricity costs is the first step in evaluating whether solar makes sense for your Charlottesville home.
Virginia electricity rates have climbed from 12.0 cents per kWh in 2021 to 14.5 cents in 2024—a 20.8% increase in just three years. For Charlottesville households using 900 kWh monthly, that translates to roughly $22 more each month.
Solar panels generate electricity at a fixed cost, helping homeowners reduce their reliance on grid power as utility rates continue to rise. Once your system is installed, the sun’s energy comes at no additional cost.
Over a typical 25-year system lifespan, Charlottesville homeowners can significantly reduce their exposure to future rate increases. Solar offers predictable energy costs in a market where traditional electricity prices have consistently trended upward.
Price of Energy: Virginia vs National Average
Charlottesville Area Utility Providers
Charlottesville residents are served primarily by two utility providers: Dominion Energy at 13.9¢ per kWh and Rappahannock Electric Cooperative at 14.8¢ per kWh (2023 data). Both rates sit below the national average of 16.0¢ per kWh.
Virginia’s electricity costs remain competitive due to its diverse energy mix, including natural gas and nuclear power. However, rates have been steadily climbing as utilities invest in infrastructure upgrades and grid modernization throughout the state.
While current rates appear reasonable, locking in predictable energy costs becomes valuable as utility prices continue their upward trend. Solar panels generate electricity at a fixed cost, providing protection against future rate increases over their 25-year lifespan.
Charlottesville Utilities Electricity Rates
Virginia Solar Incentives
Virginia offers several solar incentives in Virginia that help Charlottesville homeowners reduce installation costs and ongoing energy expenses.
These programs include property tax exemptions, renewable energy certificates, and net metering credits. Together, they can save thousands over your system’s lifetime while supporting Virginia’s clean energy goals.
Incentive programs evolve as state policies change. Research current offerings thoroughly and consider acting while these benefits remain available 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 local governments to exempt solar energy systems from property taxes, helping homeowners avoid increased tax bills after installing solar panels. When you add solar equipment to your home, it typically increases your property’s assessed value. This exemption prevents that increase from raising your annual property taxes, though the specific benefit depends on whether your local county, city, or town has adopted this exemption and at what level (full or partial).
To qualify, your solar equipment 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 taxation. For certification, you’ll need to apply to your local building department after installation (or within one year to potentially receive retroactive benefits). 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 one year.
Keep in mind that this is a local program—your county, city, or town must have passed an ordinance to offer this exemption. Contact your local tax assessor’s office to confirm whether your area participates and what percentage of exemption they offer. The value of your solar equipment is typically based on the normal cost of purchasing and installing the system.
Solar Renewable Energy Certificates (SRECs) are tradable credits that Virginia solar homeowners 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 open market. These certificates help utilities meet Virginia’s Renewable Energy Portfolio Standard requirements, creating demand and value for your solar production.
The financial benefit varies based on market conditions, as SRECs are bought and sold through brokers, aggregators, or power purchase agreements. Virginia homeowners typically work with REC brokers or aggregators who handle the sale of these certificates on their behalf. All Virginia solar systems must be registered through the PJM-Environmental Information Services (PJM-EIS) Generation Attribute Tracking System (GATS) to create and track your SRECs. Your solar installer or a broker can help you navigate this registration process and connect you with buyers in the marketplace.
To qualify, your solar system must be located in Virginia or within the PJM region and meet the state’s definition of renewable energy. Residential solar systems one megawatt or smaller are eligible and receive a special identifier in the tracking system. There are no application deadlines, as you can register your system and begin earning SRECs as soon as your solar installation is complete and producing electricity. Keep in mind that SREC values fluctuate with market demand, so the income you receive will vary over time.
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 your utility company credits your account on a 1:1 basis—meaning you receive the same retail rate for the energy you export as you pay for the energy you import. This effectively turns your electric meter backward, reducing your monthly bill.
The specific benefits depend on your utility provider. If you’re a Dominion Energy customer, any excess credits you accumulate roll over month to month throughout the year. At the end of your annual billing cycle, you can either carry those remaining credits into the next year or receive a payout 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. This program is available to residential solar customers in Virginia, and there are no application deadlines—net metering remains an ongoing benefit as long as you have an interconnected solar system with your utility company.
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 QuoteCharlottesville 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.
Charlottesville’s four distinct seasons create varying solar production throughout the year. Despite humid summers and occasional cloudy periods, the area receives excellent sunlight for efficient solar energy generation year-round.
Solar Production in Charlottesville 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 Charlottesville
We’ve mapped every solar installation across Charlottesville to help you discover which neighborhoods are leading the clean energy transition. Click any hexagon to see how many homes in that area have already made the switch to solar.
Leasing Solar Panels
For Charlottesville homeowners served by Dominion Energy or Appalachian Power Company, Palmetto offers solar leasing options that make going solar more accessible. With a solar lease, you pay a fixed monthly amount based on your system’s expected production—no large upfront investment required.
Leasing removes common solar ownership concerns. Palmetto handles system maintenance, monitoring, and repairs throughout your lease term. You simply enjoy the electricity your panels generate while paying a predictable monthly lease payment that’s typically lower than your previous utility bills.
This approach works well for homeowners who want immediate solar savings without managing equipment or financing. Learn more about how LightReach can help you start saving with solar today, with lease options available throughout the Charlottesville area.
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 excellent sense in Charlottesville. The area receives 4.9 peak sun hours daily, providing strong solar production year-round. With Virginia electricity rates increasing 21% since 2020, a typical 10 kW system can save homeowners around $70,000 over 25 years.
Charlottesville residents also benefit from net metering, property tax exemptions, and Solar Renewable Energy Certificates (SRECs). These incentives help reduce upfront costs and accelerate payback periods, typically around 11-12 years for most homes.
Yes, Charlottesville has net metering through both major utility providers. Dominion Energy and Appalachian Power Company (APCo) both offer 1:1 net metering, crediting you at the full retail rate for excess solar energy sent to the grid.
With Dominion Energy, excess credits roll over monthly and can either carry into the next year or be paid out at 3-5 cents/kWh at year-end. APCo customers enjoy indefinite monthly rollover, though credits won’t be paid as cash. This makes solar highly valuable for Charlottesville homeowners.
Yes, solar panels typically increase home value in Charlottesville. According to a Zillow study, homes with solar panels sell for approximately 4.1% more than comparable homes without solar. For a median-priced Charlottesville home, this could mean thousands of dollars in added value.
Beyond the direct value increase, solar panels make your home more attractive to buyers by offering lower energy costs and predictable electricity expenses. Virginia’s property tax exemption also means your solar system won’t increase your annual property taxes, making it a purely beneficial addition to your home’s value.
Solar installation costs in Charlottesville vary by home size. A typical medium-sized home (2,000-3,000 sq ft) needs a 9.72 kW system costing around $26,810, or $2.76 per watt. Smaller homes may need 7.20 kW systems ($20,485), while larger homes require 11.74 kW systems ($31,893).
These prices reflect actual Palmetto installations in the Charlottesville area. Your final cost depends on your roof characteristics, energy usage, and system design. Most homeowners see payback periods of 11-12 years with monthly savings averaging $118-$192.
Yes, solar is financially worth it for most Charlottesville homeowners. A typical 10 kW system costs around $27,000 and saves approximately $70,000 over 25 years. With an 11-12 year payback period and monthly savings of $159, you’ll enjoy over a decade of free electricity.
Rising utility rates make solar even more valuable. Virginia electricity prices increased 21% since 2020, while solar provides fixed energy costs. Combined with net metering and property tax exemptions, solar offers strong long-term financial returns for Charlottesville residents.
At Palmetto, we’re a national solar company with deep local roots in Charlottesville. We offer comprehensive solar solutions with some of the industry’s best financing options, making clean energy accessible to more homeowners.
Our experienced install network handles everything from permitting to activation, while our team provides personalized support throughout your solar journey. We focus on quality installations, transparent pricing, and long-term customer relationships that extend well beyond your system’s activation date.