Richmond, VA Solar Panels
Solar Power in Richmond
Richmond’s sunny climate and rising energy costs make it an ideal location for solar energy. With Virginia electricity prices jumping 21% from 2020 to 2024, local homeowners are turning to solar panels for home use to lock in predictable energy costs and reduce their monthly bills.
This guide walks you through everything Richmond-specific—from understanding Virginia’s solar incentives and net metering policies to selecting the right system size for your home’s unique energy needs.
How Much Do Solar Panels Cost in Richmond, VA?
Our calculator uses real installation data from Richmond homeowners—including those in Short Pump, Glen Allen, and Midlothian—to show you accurate solar costs. Get personalized estimates based on actual local projects, not generic 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
- Richmond receives 4.9 peak sun hours daily, providing excellent conditions for solar panels to generate consistent, reliable electricity year-round.
- Virginia electricity rates increased 21% since 2020, making solar’s fixed energy costs increasingly valuable for long-term budget stability.
- A typical 10 kW system saves Richmond homeowners approximately $70,000 over 25 years while reducing carbon emissions.
Richmond Electricity Prices
Understanding Richmond’s electricity costs helps you make informed decisions about your home’s energy future and long-term budget planning.
Virginia electricity rates have climbed from 12.0 cents per kWh in 2021 to 14.5 cents per kWh in 2024—a 21% increase in just three years that directly impacts your monthly utility bills.
Solar panels generate electricity at a fixed cost, protecting you from these ongoing rate increases. Once installed, your system produces power at the same rate for decades, independent of utility price changes.
Over a typical 25-year system lifespan, this price stability adds up. While utility rates continue climbing, your solar investment maintains consistent energy costs, helping you better predict and manage household expenses.
Price of Energy: Virginia vs National Average
Richmond Area Utility Providers
Understanding your electricity costs is essential when considering solar. Richmond residents are primarily served by Dominion Energy, which charged 13.9¢ per kWh in 2023—below both the state average of 14.3¢ and the national average of 16.0¢.
Dominion Energy’s rates remain competitive due to Virginia’s diverse energy mix, which includes natural gas, nuclear, and coal generation. However, utility rates have historically increased over time, and Richmond homeowners face the same upward pressure on electricity costs.
Even with below-average rates, solar can offer Richmond residents protection against future rate increases. By generating your own electricity, you stabilize long-term energy costs while reducing dependence on the grid—benefits that become more valuable as utility rates continue their historical climb.
Richmond Utilities Electricity Rates
Virginia Solar Incentives
Virginia offers several financial programs to help Richmond homeowners reduce solar installation costs. These solar incentives in Virginia can significantly lower your investment.
Richmond residents benefit from three key programs: property tax exemptions that protect your home value from increased taxes, Solar Renewable Energy Certificates (SRECs) that generate ongoing income, and Dominion Energy’s net metering that credits you full retail rates for excess power.
Review the details below carefully, as program terms and availability can shift. Understanding these incentives now helps you make informed decisions for your home.
| 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 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. Small solar systems (up to 25 kilowatts) are automatically exempt from both state and local property taxes, while larger systems may qualify for exemption if your local government has adopted an ordinance to offer this benefit.
The financial benefit varies by location since each locality decides whether to offer a full or partial exemption. If your local government participates, the exemption is calculated by determining the value of your solar equipment and subtracting that amount from your property tax bill. The exemption lasts for at least five years, and some localities may make it effective from your installation date if you obtain certification within one year of installing your system.
To qualify, your solar equipment must be certified by your local building department as designed and used primarily for collecting, generating, transferring, or storing solar energy. You’ll need to apply for certification through your local building department after installation. It’s important to check with your county, city, or town to confirm they’ve adopted an ordinance offering this exemption, as participation is optional for local governments. If you’ve already paid property taxes on your solar equipment and later receive certification, some localities may reimburse those taxes.
Solar Renewable Energy Certificates (SRECs) are tradable credits that Virginia solar homeowners can 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 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 value of SRECs varies based on market demand, as they’re purchased by utilities that need them to meet Virginia’s Renewable Energy Portfolio Standard requirements. Residential solar owners can sell their SRECs through brokers or aggregators registered with PJM GATS, or they may be bundled with the energy sold to the grid through a Power Purchase Agreement. Your solar system must be located in Virginia or within the PJM region to qualify, and it needs to be registered in GATS with a State Certification Number assigned by PJM-EIS.
There are no application deadlines, as SRECs are generated continuously as long as your solar system is producing electricity and properly registered. The program operates under Virginia’s mandatory Renewable Energy Portfolio Standard, which sets different eligibility rules for different time periods. You can manage your SRECs yourself through the GATS platform, work with a broker or aggregator to sell them, or include them as part of your solar financing agreement. Contact PJM-EIS at [email protected] to begin the registration process and start earning credits from your solar production.
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 you receive credits on your electric bill at a 1:1 rate. This means every kilowatt-hour (kWh) you send to the grid offsets one kWh you might use later, effectively running your meter backwards and reducing your monthly electricity costs.
The specific benefits depend on your utility provider. If you’re a Dominion Energy customer, your excess credits carry over from month to month throughout the year. At the end of the year, any remaining credits are either rolled over or paid out 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. Net metering is available to residential solar customers in Virginia, and there are no application deadlines—this program is an ongoing benefit of installing solar in the state.
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’s humid subtropical climate brings hot summers with peak solar production and mild winters with shorter days. Despite occasional cloud cover, Richmond receives ample sunlight year-round for excellent solar performance.
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 every solar installation across Richmond to help you explore the clean energy movement in your community. Click any hexagon to discover how many neighbors in that area have made the switch to solar power.
Leasing Solar Panels
Richmond homeowners served by Dominion Energy and Appalachian Power Company can access solar through leasing options. With a solar lease, you pay a fixed monthly amount based on your system’s expected production—offering predictable costs without the upfront investment of purchasing panels outright.
Leasing eliminates maintenance responsibilities and system monitoring, as these remain with the leasing company. You benefit from solar savings immediately without managing repairs, inverter replacements, or performance issues. This approach works well for homeowners who want clean energy without the complexity of ownership.
While purchasing panels maximizes long-term savings, leasing provides immediate bill reduction with zero down payment. Palmetto’s LightReach program makes solar accessible to more Richmond residents by removing financial barriers while still delivering monthly energy 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 strong financial sense in Richmond. With 4.9 peak sun hours daily and Virginia electricity rates that have increased 21% since 2020, solar panels provide excellent energy production and protection from rising utility costs.
A typical 10 kW system saves Richmond homeowners approximately $70,000 over 25 years. Virginia’s property tax exemption and net metering policies further enhance solar’s value, making it a smart investment for your home.
Yes, Richmond has net metering through both major utility providers. Dominion Energy offers 1:1 net metering, crediting excess solar production at full retail rates. Credits carry over month-to-month and either roll to the next year or are paid out at 3-5 cents/kWh.
Appalachian Power Company (APCo) also provides 1:1 net metering with indefinite monthly credit rollovers, though they don’t offer cash payouts. Both programs help maximize your solar investment by ensuring you receive full value for the clean energy your system produces.
Yes, solar panels increase home value in Richmond. Research shows that solar panels can increase home value by 4.1% on average. For a typical Richmond home valued at $350,000, that translates to approximately $14,350 in added value.
Virginia’s property tax exemption protects you from paying higher taxes on this increased value, making solar an even smarter investment for Richmond homeowners looking to build long-term equity while reducing energy costs.
Solar installation costs in Richmond vary by home size. A typical medium home (2,000-3,000 sq ft) needs a 9.72 kW system costing approximately $26,810 at $2.76 per watt.
Smaller homes (up to 2,000 sq ft) average $20,485 for a 7.20 kW system, while larger homes (over 3,000 sq ft) cost around $31,893 for an 11.74 kW system. These prices reflect complete installations based on actual Richmond projects.
Yes, solar is financially worth it in Richmond. A typical 10 kW system costs around $26,810 and saves approximately $70,000 over 25 years—delivering a payback period of about 11.7 years with 13+ years of profit afterward.
With Virginia electricity rates rising 21% since 2020, solar locks in predictable energy costs while protecting you from future rate increases. Virginia’s property tax exemption and net metering policies further enhance returns, making solar a solid long-term investment for Richmond homeowners.
We’re Palmetto Solar, a national solar company with deep local expertise in Richmond. We combine competitive financing options with a trusted installation network to make solar accessible and straightforward for homeowners throughout the Richmond area.
Our approach focuses on transparency and long-term relationships. We handle everything from system design and permitting to installation and ongoing support, ensuring your solar experience is smooth from start to finish.