Solar Guide
Solar in Norfolk
Norfolk residents are discovering how solar panels can reduce their energy costs while supporting Virginia’s growing clean energy movement. With electricity prices rising 21% since 2020, many homeowners are exploring solar panels for their homes as a smart financial decision.
This guide covers everything Norfolk homeowners need to know about solar installation, from local incentives to choosing the right system for your home.
Key Takeaways
- Norfolk receives excellent solar irradiance with 4.8 peak sun hours daily, making solar panels highly effective year-round.
- Virginia’s 30% federal tax credit reduces your solar investment by thousands, with additional property tax exemptions available.
- Net metering provides full retail credit for excess solar power, maximizing your savings with Dominion Energy.
Solar Cost Calculator
Our Norfolk solar cost calculator uses real installation data from neighborhoods like Ghent, Colonial Place, and Larchmont. Get accurate pricing based on actual projects we’ve completed across Norfolk, helping you make informed decisions about solar for your home.
System
Cost
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Norfolk Electricity Prices
Understanding Norfolk’s electricity costs helps homeowners make informed decisions about their energy future and potential savings.
Virginia electricity rates have steadily climbed from 12.0 cents per kWh in 2021 to 14.5 cents in 2024, representing a 21% increase over three years.
Solar panels generate electricity at a fixed cost, helping Norfolk homeowners avoid future rate increases while reducing their monthly utility bills through clean energy production.
Over 25 years, solar systems can provide predictable energy costs while traditional electricity rates continue rising, offering long-term financial protection for Norfolk families.
Price of Energy: Virginia vs National Average
Norfolk Area Utility Providers
Norfolk residents served by Dominion Energy pay approximately 13.9¢ per kilowatt-hour for electricity, based on 2023 data from the most recent utility reports available.
This rate sits below both Virginia’s state average of 14.3¢ and the national average of 16.0¢ per kWh, making Norfolk’s electricity relatively affordable compared to other regions.
Even with competitive rates, Norfolk homeowners can still benefit from solar’s long-term savings potential, especially as utility rates typically increase over time while solar provides predictable energy costs.
Norfolk Utilities Electricity Rates
Virginia Solar Incentives
Norfolk homeowners can significantly reduce solar installation costs through Virginia’s generous solar incentives in Virginia and federal programs.
These programs include property tax exemptions, renewable energy certificates that generate annual income, and net metering that provides full retail credit for excess solar production.
Understanding these incentives helps Norfolk residents make informed decisions about solar investment and maximize long-term savings.
$8,043
Average savings in Virginia solar rebates
| Incentive | Type | Description | Source |
|---|---|---|---|
| Residential Clean Energy Credit | Federal tax credit | A federal tax credit worth 30% the cost of a solar panel system in the year it’s installed | Learn More |
| 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 |
The Residential Clean Energy Credit lets people claim a tax credit worth 30% the cost of a solar panel system in the year it’s installed. The credit can only be used against taxes you owe or have already paid that year, but any excess credit can be rolled over to future years.
The credit is broadly available, though there are a few restrictions — you must own the panels and they must be on a house you live in — so be sure to consult a tax professional about your situation.
Virginia’s Solar Property Tax Exemption allows local governments (counties, cities, and towns) to exempt solar energy equipment from property taxes. This means homeowners can potentially avoid paying property taxes on the added value that solar panels bring to their home. The exemption applies to certified solar energy equipment, facilities, or devices that are designed and used primarily for collecting, generating, transferring, or storing thermal or electric energy.
The financial benefit varies by location since each local government decides whether to offer the exemption and how much to exempt (partial or full). When available, the exemption reduces your property tax bill by the amount you would have paid on the assessed value of your solar equipment. The exemption lasts for at least five years once approved. To qualify, you must apply to your local building department for certification within one year of installation, and your solar equipment must meet state requirements. If you obtain certification within one year and have already paid taxes on the equipment, your locality may reimburse those payments.
Virginia’s Solar Renewable Energy Certificates (SRECs) program allows homeowners with solar panels to earn additional income by selling certificates that represent the environmental benefits of their clean energy production. Each time your solar system generates 1,000 kilowatt-hours (1 megawatt-hour) of electricity, you earn one REC that can be sold in the PJM regional market. These certificates help utilities meet Virginia’s renewable energy requirements while providing you with an ongoing revenue stream from your solar investment.
The financial value of RECs varies based on market demand and can be sold through brokers, aggregators, or bundled with energy sales back to the grid through power purchase agreements. Virginia doesn’t operate a separate SREC market with set prices, so earnings depend on current PJM market rates. To participate, your solar system must be registered through the PJM Generation Attribute Tracking System (GATS), and you’ll need to obtain a State Certification Number. Systems one megawatt or smaller receive special identifiers, and low-income qualifying projects get additional recognition in the tracking system.
Currently, solar systems in Virginia or within the PJM region are eligible through 2024, with updated eligibility rules taking effect in 2025. There are no specific deadlines for participation, but the program operates under Virginia’s mandatory Renewable Energy Portfolio Standard that utilities must meet. Homeowners should know that RECs can be self-managed through the GATS system or handled by third-party brokers and aggregators, giving you flexibility in how you monetize this benefit from your solar installation.
Net metering in Virginia allows homeowners with solar panels to receive credit for excess electricity they generate and send back to the power grid. When your solar system produces more energy than your home uses, the extra power flows to the grid and you receive credits on your electric bill at a 1:1 rate – meaning you get full retail value for every kilowatt-hour (kWh) you contribute.
The financial benefit varies by utility company. With Dominion Energy Virginia, any unused credits can roll over month to month, and at the end of the year, excess credits are either carried forward or paid out at Dominion’s avoided cost rate (approximately 3-5 cents per kWh). Appalachian Power Company (APCo) customers can roll over credits indefinitely without any cash payout option. This means your solar system can effectively turn your electric meter backwards during sunny periods, reducing or potentially eliminating your monthly electric bill depending on your energy usage and solar production.
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 QuoteNorfolk 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.
Norfolk’s coastal humidity and occasional storms might seem challenging, but consistent sunshine and proper system design make solar highly effective here year-round.
Solar Production in Norfolk 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 Installations in Norfolk
We’ve mapped every solar installation across America to show you something exciting: your Norfolk neighbors are embracing clean energy! Explore this interactive map to discover which communities have made the switch to solar.
Leasing Solar Panels
For Norfolk homeowners, Palmetto offers solar leasing through our LightReach program, which is available in your area through both Dominion Energy and Appalachian Power Company service territories. With a solar lease, you pay a fixed monthly amount (typically around $150) based on your system’s estimated annual production, providing predictable energy costs without the upfront investment.
Solar leasing offers significant advantages over purchasing with cash, including no maintenance responsibilities since Palmetto handles all system monitoring, repairs, and warranty coverage throughout your lease term. You also avoid the initial investment of $18,000-$25,000 while still reducing your electricity bills from day one, and there’s no need to worry about equipment failures or performance issues.
This financing option makes clean energy accessible to more Norfolk families who want solar savings without large upfront costs or long-term maintenance commitments. Compare leasing versus buying to see which option works best for your situation, or explore our LightReach program for complete details on how solar leasing can benefit 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 excellent sense in Norfolk due to strong sunlight conditions, favorable state policies, and rising electricity costs. Norfolk receives 4.8 peak sun hours daily, making solar panels highly productive year-round.
With Virginia’s 30% federal tax credit, net metering providing full retail credit for excess power, and Norfolk’s average 25-year savings of $74,000, solar offers both immediate and long-term financial benefits for homeowners.
Yes, Norfolk has net metering through both major utility providers. Dominion Energy and Appalachian Power Company (APCo) both offer 1:1 net metering, meaning you receive full retail credit for excess solar power sent to the grid.
With Dominion Energy, excess credits roll over monthly and are either carried forward annually or paid out at their avoided cost rate (3-5 cents/kWh). APCo customers can roll over credits indefinitely without cash payouts, maximizing your solar investment value.
Yes, solar panels increase home value in Norfolk, VA. According to a Zillow study, solar panels increase home value by 4.1% on average nationwide, which translates to approximately $12,000-$15,000 for typical Norfolk homes.
Solar panels are considered a permanent improvement that reduces ongoing energy costs, making your home more attractive to buyers. Virginia’s property tax exemption for solar equipment means you gain home value without paying additional property taxes on the solar investment.
Solar installation costs in Norfolk typically range from $14,339 to $22,325 after the 30% federal tax credit, depending on your home size and energy needs. A typical medium-sized home (2,000-3,000 sq ft) requires a 9.72 kW system costing approximately $18,767 after incentives.
Norfolk homeowners benefit from Virginia’s solar incentives including property tax exemptions and net metering, which provide full retail credit for excess power sent to the grid, maximizing your solar investment value.
Yes, solar is financially worth it in Norfolk. With Norfolk’s excellent 4.8 peak sun hours daily and Virginia’s 30% federal tax credit, homeowners typically see 8.2-year payback periods and $74,000 in 25-year savings.
Solar provides predictable energy costs while Norfolk electricity rates continue rising 21% since 2020. Net metering with full retail credit and property tax exemptions make solar a smart long-term investment for Norfolk families.
We’re Palmetto Solar, a national company with local focus serving Norfolk homeowners. We offer comprehensive solar solutions with competitive financing options and a trusted network of certified installers throughout Virginia.
Our team handles everything from initial design and permitting to installation and ongoing support, ensuring Norfolk residents receive quality solar systems backed by strong warranties and responsive customer service.