Richmond, VA Solar Panels
Solar Power in Richmond
If you own a home in Richmond, you’ve probably noticed your electricity bill creeping up. Virginia electricity prices have risen 21% from 2020 to 2024 — and with Virginia now ranking 15th in the nation for residential solar installations, more homeowners are looking to solar as a way to take back control of their energy costs.
This guide covers everything you need to know about solar installation in Richmond — how it works, what it costs, and what you can realistically expect to save. Our complete guide to home solar panels is a great place to start.
How Much Do Solar Panels Cost in Richmond, VA?
Based on real installations across Richmond and surrounding areas — from Chesterfield and Henrico to Midlothian and Glen Allen — this calculator uses Palmetto’s local data to give you an accurate estimate of what solar installation could cost for your home.
System
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Key Takeaways
- Richmond homeowners can save an average of $70,000 over 25 years by switching to solar — while protecting themselves from rising Dominion Energy electricity rates.
- Virginia offers valuable solar incentives including net metering and SRECs, which can earn you bill credits and additional income for the energy your panels produce.
- You can go solar in Richmond with no upfront cost through Palmetto’s LightReach lease — starting as low as $114/month with maintenance and a 90% production guarantee included.
Richmond Electricity Prices
Electricity in Richmond costs money — and that cost has been climbing steadily. Here’s what the numbers show.
Virginia’s residential electricity rate rose from 12.0 cents per kWh in 2021 to 14.5 cents per kWh in 2024 — an increase of over 20% in just three years, outpacing many household budget expectations.
Solar panels allow Richmond homeowners to generate their own electricity, reducing how much power they pull from the grid. That means rising utility rates have less impact on your monthly bill.
Over a 25-year system lifespan, that protection adds up. As grid electricity costs continue to rise, homeowners with solar are increasingly insulated from rate increases that renters and non-solar households absorb each year.
Price of Energy: Virginia vs National Average
Richmond Area Utility Providers
Most Richmond homeowners get their electricity from Dominion Energy. In 2023 — the most recent data available — Dominion’s average residential rate was 13.9¢ per kWh, below both Virginia’s state average of 14.30¢ and the national average of 16.0¢.
Dominion’s lower-than-average rate reflects its large customer base and diverse energy mix. Even so, utility rates have trended upward over time — a pattern seen across most U.S. utilities, regardless of where they start.
Even at today’s rates, many Richmond homeowners find that solar helps stabilize long-term energy costs. When utility prices rise, a solar system can offset a meaningful portion of what you’d otherwise pay each month.
Richmond Utilities Electricity Rates
Virginia Solar Incentives
Richmond homeowners have access to several solar incentives in Virginia — including net metering, SRECs, and community solar programs — that can meaningfully reduce the cost of going solar.
Virginia’s net metering program lets Dominion Energy customers earn bill credits for excess power sent to the grid. The state’s SREC program adds another income stream, paying solar owners per megawatt-hour produced. Income-eligible residents may also qualify for Virginia Solar for All.
Note: The federal residential solar tax credit no longer applies. However, state programs remain. Homeowners who lease through LightReach benefit indirectly — Palmetto claims the commercial ITC and passes savings through via lower monthly payments.
| Incentive | Type | Description | Source |
|---|---|---|---|
| Virginia Solar Renewable Energy Certificate (SREC) Program | SREC | Virginia solar owners earn one SREC for every 1 MWh of electricity their system produces, which can be sold to utilities for approximately $22.50–$75 per certificate. | Learn More |
| Virginia Net Metering Program | Net Metering | Virginia’s net metering program allows solar customers to earn full retail-rate bill credits for excess electricity sent to the grid, with important changes proposed for new customers in 2026. | Learn More |
| Virginia Community Solar Program (Shared Solar) | Rebate | Virginia’s Shared Solar Program allows customers to subscribe to a portion of a community solar facility and receive bill credits for their share of the energy produced, with a guaranteed 10% savings. | Learn More |
| Virginia Solar for All (EPA Grant Program) | Rebate | Virginia received over $156 million in EPA Solar for All funding to develop solar programs that enable low-income and disadvantaged communities to access and benefit from residential solar. | Learn More |
| VirginiaSAVES Green Community Program | Rebate | VirginiaSAVES offers low-interest financing for renewable energy and solar projects to commercial and industrial businesses, nonprofits, and local governments in Virginia. | Learn More |
| Virginia Commercial PACE (Property Assessed Clean Energy) Financing | Rebate | Virginia’s Commercial PACE program offers property-secured, long-term financing covering 100% of eligible solar and battery storage project costs for commercial properties in participating localities. | Learn More |
Created under the Virginia Clean Economy Act (VCEA) of 2020, Virginia’s SREC program allows residential solar owners to earn one Solar Renewable Energy Certificate for every 1,000 kWh (1 MWh) of electricity their solar panels produce. Utilities are required to purchase these certificates to meet their Renewable Portfolio Standard (RPS) obligations, creating a real market for your solar generation.
Current SREC prices in Virginia range from approximately $22.50 to $35 per certificate, with a state-mandated price cap of $75 per SREC. Each SREC is valid for 5 years from the year it is generated, giving you flexibility in when to sell. You do not need to be a Dominion Energy or Appalachian Power customer to participate — any Virginia solar owner is eligible.
To start earning SRECs, you must complete the utility interconnection process and then register your system with an SREC aggregator or broker (such as SRECTrade) within the same calendar year as your interconnection date. Once registered, your system will typically begin generating SRECs within two months, and your broker will sell them on the market on your behalf automatically.
Virginia’s net metering program, governed by Virginia Code §56-594, allows residential solar customers to earn credits on their electricity bills for excess power their solar panels send to the grid. Both Dominion Energy and Appalachian Power Company (APCo) currently offer net metering at the full retail rate — a one-to-one credit — for residential systems up to 20 kW. Credits roll over month to month, and any remaining credits at the end of a 12-month billing cycle can be carried forward or paid out at the avoided-cost rate.
Important 2026 Update: Both Dominion Energy and APCo have proposed changes to net metering compensation for new customers. Dominion’s NEM 2.0 proposal would shift to real-time (half-hourly) netting and base credit rates on distributed solar PPA rates rather than the full retail rate. APCo has already received SCC approval to compensate net excess generation fed back to the grid at the avoided-cost rate. An SCC evidentiary hearing was scheduled for January 20, 2026, and a final order is expected mid-2026.
Grandfathering Protection: Customers who install solar and connect to the grid before the SCC issues its final order on net metering changes will be grandfathered under the existing full retail-rate rules. The aggregate capacity limit for net metering is 6% of each utility’s prior-year peak-load forecast (1% reserved for low-income customers, 5% for all others), and enrollment is first-come, first-served.
Virginia’s Shared Solar (Community Solar) Program allows utility customers to benefit from solar energy without installing panels on their own property. Participants subscribe to a portion of a larger, shared solar facility and receive credits on their electricity bills based on their share of the energy produced by that facility.
There are two subscription options: the Block Option, where customers purchase fixed blocks of solar energy (each block = 100 kWh, costing $2.013/month, with residential customers able to buy up to 5 blocks); and the 100% Match Option, which allows participants to match all of their electricity use with solar energy at an additional $0.02013 per kWh. Participants receive a guaranteed 10% savings on the subscribed portion of their utility bill.
This program is ideal for renters in Richmond, homeowners with shaded or unsuitable roofs, or anyone who wants to support solar energy without the upfront cost of installation. No equipment purchase or installation is required — simply sign up through your utility. Contact the Virginia Department of Energy or your utility provider for current availability and enrollment details.
The Virginia Solar for All program was established after the Virginia Department of Energy was selected to receive more than $156 million through the U.S. EPA’s Solar for All grant competition. The program is specifically designed to expand access to solar energy for low-income and disadvantaged communities across the Commonwealth.
The funding is being used to develop long-lasting solar programs that enable qualifying households to deploy and directly benefit from distributed residential solar. This may include financial assistance, subsidized installations, community solar subscriptions, and other mechanisms to reduce or eliminate the upfront cost barrier for eligible residents.
Eligibility is targeted toward low-income households and residents of disadvantaged communities. Interested residents of Richmond should contact the Virginia Department of Energy for the latest information on program availability, eligibility requirements, and how to apply as funds are deployed.
The VirginiaSAVES Green Community Program provides low-cost, low-interest financing to private commercial and industrial businesses, nonprofits, and local governments to fund a wide range of renewable energy and energy projects in Virginia. Solar panel installations are among the eligible project types under this program.
The program is designed to remove the financial barrier of upfront capital costs for organizations looking to invest in solar and clean energy. Financing terms and interest rates are structured to make projects economically viable, with the goal of shortening payback periods and improving the return on investment for participating organizations.
This program is not available to individual residential homeowners but is an excellent resource for business owners, nonprofits, and local government entities in Richmond seeking affordable financing for solar installations. Contact the Virginia Department of Energy for current program terms, interest rates, and application details.
Virginia’s Commercial Property Assessed Clean Energy (C-PACE) program provides an innovative financing mechanism for commercial, industrial, and nonprofit property owners to fund solar energy and battery storage installations with no upfront costs. Project costs are repaid through a special assessment on the property’s tax bill, with repayment terms extending up to 30 years.
C-PACE financing can cover 100% of eligible project costs, including solar panels, battery energy storage systems, and related equipment. Because the financing is tied to the property rather than the borrower, it can offer more favorable terms than traditional loans and transfers to the new owner if the property is sold.
Availability is limited to localities in Virginia that have adopted the PACE enabling legislation. Commercial property owners in Richmond should verify whether their locality participates before pursuing this option. C-PACE is particularly valuable for battery storage projects, which currently have no dedicated state or utility incentive programs in Virginia.
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 QuoteRichmond 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.
Richmond enjoys four distinct seasons and roughly 213 sunny days per year, making it a strong candidate for solar. Even cloudy months still produce meaningful energy with the right system.
Solar Production in Richmond 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 Richmond
We’ve mapped thousands of solar installations across Richmond to show just how many of your neighbors have already made the switch. Explore the map below to see which communities are leading the way — and find out how active your own neighborhood has been!
Leasing Solar Panels
Not everyone wants to pay for solar panels upfront — and in Richmond, you don’t have to. Through Palmetto’s LightReach program, Virginia homeowners served by Dominion Energy or Appalachian Power Company (APCo) can go solar with a lease. That means no large upfront investment, no loan to manage, and no maintenance responsibilities on your end.
With a solar lease, you pay a simple fixed monthly amount — for example, around $114/month for a medium-sized home in Richmond — rather than purchasing the system outright. Palmetto owns the panels, handles all maintenance, and backs your system with a 90% production guarantee. Compare that to a cash purchase, where you’re responsible for any repairs or upkeep over the system’s 25-year lifespan. Want to understand how leasing compares to buying? Here’s a clear breakdown of both options.
For many Richmond homeowners, leasing is a straightforward way to start reducing electricity bills without the financial complexity of ownership. As Dominion Energy rates continue to rise, locking in a predictable monthly solar payment can offer real peace of mind — and real savings from day one.
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 sense for many Richmond homeowners. With roughly 213 sunny days per year, 4.9 average peak sun hours daily, and Dominion Energy rates that have risen over 20% since 2021, solar can help stabilize your energy costs. A medium-sized system could save approximately $70,000 over 25 years.
If upfront cost is a concern, Palmetto’s LightReach solar lease removes that barrier entirely — Richmond homeowners can go solar with no money down and start saving from day one, with payments starting as low as $114/month.
Yes, Richmond homeowners have access to net metering through their utility provider. Most Richmond residents are served by Dominion Energy, which offers 1:1 net metering — meaning you earn a full retail-rate bill credit for every kWh of excess solar energy you send back to the grid. Credits roll over month to month, and any remaining balance at year-end can carry forward or be paid out at Dominion’s avoided-cost rate (roughly 3–5¢/kWh).
Appalachian Power Company (APCo) also offers 1:1 net metering for eligible customers, with excess credits rolling over indefinitely — though credits are not paid out as a check. Note: Both utilities have proposed changes to net metering for new customers in 2026. Connecting to the grid before a final SCC order is issued may lock in current full retail-rate rules.
Yes, solar panels can increase your home value in Richmond. Research from Zillow found that homes with solar panels sell for approximately 4.1% more than comparable homes without them. For a $400,000 home in Richmond, that could mean roughly $16,400 in added value.
Keep in mind that owned systems typically provide the greatest home value benefit. Leased systems may complicate a sale, as the lease agreement would need to be transferred to the new buyer.
The most affordable way to go solar in Richmond is through Palmetto’s LightReach lease — with no upfront cost and a low fixed monthly payment starting around $84–$137/month depending on your home size. Palmetto owns and maintains the system, and passes along savings from the commercial solar tax credit via lower payments.
For homeowners who prefer to own their system outright, a cash purchase typically runs $20,485–$31,893 for most Richmond homes. Note that the federal 30% residential solar tax credit is no longer available following the Big Beautiful Bill. Use the calculator above for a personalized estimate.
For many Richmond homeowners, solar can be worth it financially — especially with a lease. Through Palmetto’s LightReach program, you can go solar with no upfront cost, and your monthly lease payment is typically lower than your current Dominion Energy bill. That means day-one savings with no investment to recoup.
For those who purchase outright, a medium-sized system in Richmond can save an estimated $70,000 over 25 years. Either way, as Dominion rates continue to rise, solar helps stabilize what you pay for electricity each month.
Palmetto is a top choice for Richmond homeowners looking to go solar. As a national company with a strong local install network, we’ve served 20,000+ customers across 31 states and have real reviews from Richmond residents who’ve experienced our work firsthand.
We offer some of the most flexible financing options available, including our LightReach lease — no upfront cost, starting at just $114/month — as well as straightforward cash purchase options. Our team handles permitting, installation, and ongoing maintenance, so the process is simple from start to finish.
With Palmetto’s LightReach lease, Richmond homeowners pay one simple monthly payment — covering the system, installation, monitoring, maintenance, and a 90% Production Guarantee. There is no upfront cost. For a typical 9.72 kW system, the estimated monthly payment is approximately $114/month.
Because Palmetto owns the system, it claims the commercial Investment Tax Credit (ITC) and passes those savings to you through lower monthly payments. Since your lease payment is typically less than your current electricity bill, most Richmond homeowners start saving from day one.