Fredericksburg, VA Solar Panels
In This Guide
Solar Power in Fredericksburg
Fredericksburg homeowners are discovering that solar energy offers a smart path to long-term savings and energy independence. With Virginia electricity prices jumping 21% from 2020 to 2024, many residents are learning how solar panels for home use can help stabilize their energy costs.
This guide breaks down everything Fredericksburg homeowners need to know about solar installation—from understanding local incentives to choosing the right system for your home.
How Much Do Solar Panels Cost in Fredericksburg, VA?
Our calculator uses real installation data from Fredericksburg homes—including Spotsylvania, Stafford, and surrounding areas—to show you accurate solar costs. Get personalized estimates based on what your neighbors actually paid, not generic numbers.
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You can still access the solar tax credit through Palmetto. Talk to us today to find out how.
Key Takeaways
- Fredericksburg receives 4.9 peak sun hours daily, providing excellent solar production potential throughout the year for local homeowners.
- Virginia electricity rates increased 21% since 2020, making solar panels a smart way to lock in predictable energy costs.
- Property tax exemptions and net metering credits help Fredericksburg homeowners reduce solar costs and maximize their long-term savings.
Fredericksburg Electricity Prices
Understanding electricity costs in Fredericksburg helps 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 in 2024—a 21% increase in just three years. For the average Fredericksburg household, this translates to hundreds of dollars in additional annual energy costs.
Solar panels generate electricity at a fixed cost, helping homeowners avoid these annual rate increases. Once your system is installed, you’re producing power at a predictable rate, insulating your household budget from utility price fluctuations.
Over a typical 25-year system lifespan, this protection from rising rates can represent tens of thousands in savings. Solar essentially locks in your electricity costs today, providing financial predictability for decades to come.
Price of Energy: Virginia vs National Average
Fredericksburg Area Utility Providers
Fredericksburg residents are served primarily by two utility providers: Rappahannock Electric Cooperative at 14.8¢ per kWh and Dominion Energy at 13.9¢ per kWh (2023 data). Both rates sit below the national average of 16.0¢ per kWh.
Virginia’s relatively moderate electricity costs reflect the state’s diverse energy mix and regulated utility structure. However, rates have been rising steadily, and Fredericksburg homeowners should expect continued increases as infrastructure costs and demand grow over time.
Even with below-average rates today, solar panels can lock in predictable energy costs for decades. As utility rates climb, solar provides stability—your panels generate the same power regardless of grid price changes.
Fredericksburg Utilities Electricity Rates
Virginia Solar Incentives
Virginia residents can access several state and local programs to reduce solar installation costs. These solar incentives in Virginia include property tax exemptions, renewable energy certificates, and net metering credits.
Fredericksburg homeowners benefit from three main incentive categories: a property tax exemption that shields solar equipment value from taxation, Solar Renewable Energy Certificates (SRECs) that generate ongoing income, and net metering that credits excess energy production at full retail rates.
These programs can significantly impact your solar investment timeline. Review each incentive carefully, as program terms and availability may change. Acting promptly ensures you maximize current benefits.
| 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 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 property taxes. For larger systems, your local government must pass an ordinance to offer the exemption, which can be full or partial. The exemption lasts for at least five years, and if you apply within one year of installation, some localities may make it retroactive to your installation date and reimburse any taxes already paid.
You’ll need to apply to your local building department for certification after installation. Once approved, the exemption typically begins in the next tax year. The value of your solar equipment is presumed to be at least the cost of purchasing and installing it. This incentive works alongside your energy savings to improve your return on investment, making solar more affordable from day one.
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 current market prices, which fluctuate depending on supply and demand. Virginia homeowners typically sell their SRECs through brokers or aggregators who handle the registration and sale process. Your solar system must be registered through PJM’s Generation Attribute Tracking System (GATS) to create and track your certificates. Systems of all sizes are eligible, though residential solar owners often work with third-party aggregators to simplify the selling process.
There are no application deadlines, as SRECs are generated continuously as long as your system produces electricity. Your solar installer or a REC aggregator can help you register your system with GATS and connect you with buyers. Keep in mind that SREC prices are not guaranteed and change over time based on market conditions, so the income you receive may vary from year to year.
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 helps offset your electricity costs during times when your panels aren’t producing enough power, 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). For Appalachian Power Company (APCo) customers, 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 helps maximize the value of your solar investment by ensuring you benefit from every kilowatt-hour 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 QuoteFredericksburg 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.
Fredericksburg experiences four distinct seasons with moderate sun exposure year-round. Despite occasional cloud cover and winter snow, your area receives ample sunlight for effective solar energy production throughout the year.
Solar Production in Fredericksburg 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 Fredericksburg
We’ve mapped every solar installation across the United States to help you explore the clean energy movement in your area. Discover which Fredericksburg neighborhoods are leading the way—click any hexagon to see how many homes have made the switch to solar near you.
Leasing Solar Panels
Fredericksburg homeowners served by Dominion Energy or Appalachian Power Company can access solar through a lease option. With a solar lease, you pay a fixed monthly amount instead of purchasing your system outright—making solar accessible without a large upfront investment.
Unlike buying a system with cash, leasing means Palmetto handles all maintenance and monitoring. You simply pay your predictable monthly lease payment while enjoying lower electricity bills. This approach removes the burden of system upkeep and eliminates concerns about equipment failures or performance issues.
Through LightReach, our solar lease program, you can start saving on energy costs immediately without worrying about system ownership, repairs, or long-term maintenance responsibilities. Your panels work for you while we handle everything else.
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 Fredericksburg. With 4.9 peak sun hours daily and Virginia electricity rates that increased 21% since 2020, solar panels provide excellent production potential while protecting against future rate increases.
A typical 10 kW system costs around $26,810 and can save approximately $70,000 over 25 years. Combined with Virginia’s property tax exemption and net metering credits, Fredericksburg homeowners see payback periods around 11-12 years while reducing their carbon footprint.
Yes, Fredericksburg has net metering through both major utility providers. Dominion Energy and Appalachian Power Company (APCo) offer 1:1 net metering, crediting you at full retail rate for excess solar energy sent to the grid.
With Dominion Energy, excess credits carry over month-to-month and either roll to the next year or get paid out at 3-5 cents/kWh annually. APCo customers see credits roll over indefinitely without cash payouts. Both programs help maximize your solar savings.
Yes, solar panels increase home value in Fredericksburg. Research shows that homes with solar systems sell for approximately 4.1% more than comparable homes without solar installations.
For a median-priced Fredericksburg home, this translates to thousands of dollars in added value. Plus, Virginia’s property tax exemption ensures you won’t pay additional taxes on your system’s value, making solar a smart investment that pays dividends when you sell.
Solar panel costs in Fredericksburg vary by home size. A small home system (7.2 kW) costs around $20,485, medium homes (9.72 kW) average $26,810, and large homes (11.74 kW) run about $31,893. These prices reflect the total system cost at approximately $2.72-$2.85 per watt.
Your actual cost depends on your roof size, energy usage, and system specifications. Virginia’s property tax exemption and net metering credits help reduce your effective investment, with typical payback periods of 11-12 years and 25-year savings around $70,000 for medium-sized systems.
Yes, solar is financially worth it in Fredericksburg. A typical 10 kW system costs around $26,810 and saves approximately $70,000 over 25 years, with payback periods of 11-12 years.
Virginia’s rising electricity rates (up 21% since 2020) make solar increasingly valuable. Combined with property tax exemptions and net metering credits, solar panels provide predictable energy costs and protection from future utility rate increases.
At Palmetto Solar, we bring a national presence with local expertise to Fredericksburg. We offer some of the industry’s best financing options and work with a trusted network of professional installers who understand Virginia’s specific requirements and climate conditions.
Our approach combines quality equipment, transparent pricing, and comprehensive support throughout your solar journey. From initial consultation through installation and beyond, we handle permitting, paperwork, and ongoing system monitoring—making the switch to solar straightforward for Fredericksburg homeowners.