Norfolk, VA Solar Panels

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 with a capacity of up to 25 kilowatts for residential systems, which covers most home installations.

The financial benefit depends on whether your local government has adopted this exemption ordinance. If they have, you won’t pay additional property taxes on the value of your solar equipment for at least five years. For example, if your solar installation adds $20,000 in value to your home and your local property tax rate is 1%, you could save $200 per year in property taxes. To qualify, you must apply to your local building department within one year of installation to have your solar equipment certified. Some localities may even reimburse taxes paid if you obtain certification within that first year. Keep in mind that this is a local option—not all Virginia localities have adopted this exemption, so you’ll need to check with your county, city, or town to confirm availability.

Solar Renewable Energy Certificates (SRECs) are tradable credits that Virginia solar homeowners can 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 earn one SREC that can be sold on the open 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 financial value of SRECs varies based on market demand, as there is no fixed price—utilities and other buyers purchase these certificates to meet Virginia’s Renewable Energy Portfolio Standard requirements. Homeowners can choose to sell their SRECs through brokers or aggregators who specialize in managing these transactions, or they may be bundled with a Power Purchase Agreement if applicable. Your solar system must be located in Virginia or within the PJM region to qualify, and it needs to be registered with GATS to begin earning certificates.

There are no application deadlines, as SRECs are generated automatically once your system is registered and producing energy. However, you’ll need to obtain a State Certification Number from PJM-EIS and complete the GATS registration process. Keep in mind that SREC market prices fluctuate, so the income you receive will depend on current market conditions. This program provides an ongoing revenue stream throughout the life of your solar system, turning your clean energy production into additional financial value.

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 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 carry over from month to month throughout the year. At the end of your annual billing cycle, you can either roll those remaining credits into the next year or receive a payout at Dominion’s avoided cost rate, which typically ranges from 3 to 5 cents per kilowatt-hour. 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—they remain as bill credits on your account.

Net metering is available to solar customers in Virginia, though specific system size limits and eligibility requirements may vary by utility. There are no application deadlines, as this is an ongoing program for solar homeowners. The key consideration is understanding how your particular utility handles year-end credit balances, as this affects the long-term value of any excess energy your system produces beyond your household needs.