Richmond, VA
Solar in Richmond
Looking to harness Richmond, VA’s abundant sunshine with home solar panels? You’re making a smart choice in a state that ranks 15th nationally for residential solar installations. Virginia’s electricity prices have surged 21% since 2020, making solar an increasingly valuable investment for local homeowners.
As Richmond residents embrace renewable energy, understanding your solar installation options becomes essential for maximizing both energy savings and environmental impact.
Key Takeaways
- Richmond averages 4.8 hours of usable sunlight daily, making it an excellent location for solar energy with potential savings of $70,000+ over 25 years.
- Virginia offers valuable solar incentives including a 100% property tax exemption and net metering that provides full credit for excess electricity production.
- Rising electricity costs in Richmond have increased 21% since 2020, making solar an increasingly valuable investment that protects against future rate hikes.
Solar Cost Calculator
Discover the true cost of solar installation in Richmond with Palmetto’s calculator, powered by real data from our installations across Henrico, Chesterfield, Midlothian, and throughout the Richmond area. Make informed decisions about clean energy for your home with accurate, local pricing information.
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Estimated Investment and Savings
Richmond Electricity Prices
Richmond residents face rising electricity costs, though still below the national average. Understanding these trends can help homeowners make informed energy decisions.
Since 2021, Richmond electricity rates have increased from 12.0 to 14.5 cents per kWh—a 20.8% jump in just three years, putting financial pressure on local households.
Solar installation offers Richmond homeowners a practical solution to these rising costs, providing predictable energy expenses while harnessing Virginia’s abundant sunshine for clean electricity generation.
By investing in solar panels today, Richmond residents can protect themselves from future utility rate increases while potentially adding value to their homes and reducing their environmental impact.
Price of Energy: Virginia vs National Average
Richmond Area Utility Providers
Richmond residents primarily rely on Dominion Energy for electricity, which charged 13.9¢ per kWh in 2023, below both Virginia’s average (14.3¢) and the national average (16.0¢).
Despite Dominion Energy’s relatively competitive rates in 2023, Richmond residents have still experienced rising electricity costs over recent years, though less dramatically than many other regions across the country.
Installing solar panels can help Richmond homeowners lock in energy costs for decades, providing protection against future utility rate increases while contributing to a cleaner environment for the community.
Richmond Utilities Electricity Rates
Virginia Solar Incentives
Richmond homeowners can significantly reduce solar installation costs through various solar incentives in Virginia, including property tax exemptions, renewable energy certificates, and net metering benefits.
These incentives make solar more affordable for Richmond residents. Property tax exemptions save approximately $288 annually on a $30,000 system, while SRECs provide around $100 yearly for typical home installations.
Research these incentives thoroughly as they can change. Richmond’s net metering program offers full retail credits for solar production, potentially eliminating your entire electric bill.
Save an average of
$8,043
in solar rebates in Virginia
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 homeowners to reduce or eliminate property taxes on their solar energy systems. Under this state program, solar equipment is classified as a separate property category, and local governments can choose to exempt this equipment from property taxation through local ordinances.
For residential systems up to 25 kilowatts, the equipment is completely exempt from state and local taxation. For larger systems, the tax benefit is determined by your local government, but must be granted for at least five years. The exemption applies to the value of your solar equipment, which is typically calculated based on the purchase and installation costs. To qualify, you’ll need to apply through your local building department, who will certify that your system meets the requirements. If you install and obtain certification within one year, some localities may make the exemption retroactive to your installation date.
Solar Renewable Energy Certificates (SRECs) in Virginia represent the environmental attributes of solar energy production. When your solar system generates electricity, you earn one SREC for each megawatt-hour (1,000 kilowatt-hours) produced. These certificates can be sold separately from the electricity itself, creating an additional revenue stream for solar system owners.
Virginia’s SRECs are managed through the PJM-Environmental Information Services (PJM-EIS) Generation Attribute Tracking System (GATS). As a homeowner, you can register your system through this platform and either manage your SRECs yourself, work with a broker/aggregator, or include them in a Power Purchase Agreement. While Virginia doesn’t currently have a separate SREC-specific market like some other states, certificates can still be sold in the broader renewable energy certificate marketplace.
To be eligible, your solar system must be located in Virginia or within the PJM region (which covers much of the mid-Atlantic). The system must also meet Virginia’s definition of “renewable energy” as outlined in state code. Note that the eligibility requirements for Virginia-qualifying RECs are divided into two distinct periods: 2021-2024 and 2025 onwards, with different rules applying to each timeframe.
Virginia’s Net Metering program allows homeowners with solar panels to receive full credit for the excess electricity they generate and send back to the grid. Under this 1:1 net metering policy, for every kilowatt-hour (kWh) of solar energy you export to the grid, you receive a credit for one kWh on your utility bill. This essentially means your utility meter runs backward when your solar system produces more electricity than you’re using, helping to offset the cost of electricity you draw from the grid when your system isn’t producing enough.
The financial benefit varies by utility company, but all major Virginia utilities offer the same 1:1 credit rate. For example, if your electricity rate is 12 cents per kWh, you’ll save 12 cents for every kWh your solar panels produce that offsets your usage. Excess credits carry over from month to month, allowing you to build up credits during sunny months to use during periods of lower solar production.
Each utility in Virginia handles year-end excess credits differently. Dominion Energy customers can either roll credits to the next year or receive payment at about 3-5 cents per kWh. Appalachian Power Company rolls credits over indefinitely but doesn’t offer cash payments. Northern Virginia Electric Co. allows credits to carry forward for two years before they expire. Rappahannock Electric Co-op pays out excess credits annually at their avoided cost rate (approximately 2.6 cents/kWh as of 2019).
To be eligible for net metering in Virginia, you must have a properly installed solar PV system that meets your utility’s interconnection requirements. There are no specific deadlines to enroll in net metering, but it’s important to apply for interconnection with your utility before or during your solar installation process. The system size is typically limited to meeting your annual electricity needs, so oversizing your system may not provide additional financial benefits under these programs.
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 climate, with its mix of sunny days and seasonal variations, offers excellent potential for solar production, especially with a properly designed system tailored to local conditions.
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 Installations in Richmond
Discover the growing solar movement in Richmond! We’ve mapped every solar installation in the area, allowing you to explore which neighborhoods are leading the clean energy transition. See how many of your neighbors have already made the switch to sustainable power.
Leasing Solar Panels
Richmond homeowners looking for flexible solar options now have access to Palmetto’s leasing options through Dominion Energy. This leasing program offers significant advantages over traditional purchasing.
With a solar lease, you can enjoy immediate energy savings without the upfront investment costs of buying panels outright. Leases offer fixed monthly payments regardless of production. This helps shield customers from future price hikes and makes your monthly utility bill predictable.
Leasing eliminates maintenance worries since Palmetto handles all repairs and monitoring through our LightReach program. This hands-off approach provides predictable energy costs while contributing to a cleaner Richmond community.
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 Richmond, which receives 4.8 hours of usable sunlight daily and offers strong financial incentives including Virginia’s 100% property tax exemption and net metering benefits.
With electricity rates rising 21% since 2020, Richmond homeowners can save approximately $70,000 over 25 years with solar panels while protecting against future rate increases and reducing environmental impact.
Yes, Richmond has 1:1 net metering across all utility providers. Dominion Energy, the main provider in Richmond, offers full retail credit for excess solar production sent to the grid.
Excess credits can carry over month-to-month, with year-end options to either roll over to the next year or receive payment at Dominion’s avoided cost rate (approximately 3-5 cents/kWh).
Yes, solar panels increase home value in Richmond. According to Zillow research, homes with solar systems sell for approximately 4.1% more than comparable homes without solar.
Richmond homeowners benefit from Virginia’s 100% property tax exemption on the added value from solar installations, meaning you get the increased home value without paying higher property taxes.
In Richmond, the average cost of solar installation ranges from $14,000 to $22,000 after federal tax credits, depending on system size. A typical 10kW system costs around $18,700 after incentives.
Virginia’s property tax exemption saves homeowners approximately $288 annually on a $30,000 system. Most Richmond residents see a return on investment within 8-9 years and save around $70,000 over the system’s 25-year lifespan.
Yes, solar is financially worth it in Richmond. With rising electricity rates (21% increase since 2020) and strong incentives including the 30% federal tax credit and Virginia’s property tax exemption, most homeowners see payback in 8-9 years.
A typical Richmond solar system saves approximately $70,000 over 25 years while protecting against future utility rate increases and adding around 4% to your home’s value.
As a national company with a strong local presence in Richmond, we at Palmetto offer a complete solar solution with industry-leading financing options and a reliable installation network.
Our approach combines cutting-edge technology with exceptional customer service, helping Richmond homeowners maximize their solar savings while contributing to Virginia’s clean energy future.