Solar Guide
Solar in Roanoke
Roanoke homeowners are exploring solar energy as Virginia electricity prices have increased 21% from 2020 to 2024. With the Blue Ridge region receiving abundant sunshine, your home could be ideally positioned for solar installation.
Understanding your options starts with reliable information. Our comprehensive guide to home solar panels provides the insights you need about this growing energy solution.
Key Takeaways
- Roanoke electricity costs jumped 21% from 2020-2024, making solar an increasingly smart investment for local homeowners.
- Virginia offers strong solar incentives including 30% federal tax credits, property tax exemptions, and net metering programs.
- A typical 10 kW system saves Roanoke homeowners $67,000 over 25 years while protecting against rising utility rates.
Solar Cost Calculator
Our solar cost calculator uses real installation data from Roanoke neighborhoods like Cave Spring, Hollins, and Salem. Get accurate pricing estimates based on actual local projects, not generic numbers from other states.
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Cost
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Roanoke Electricity Prices
Roanoke, VA electricity costs have climbed steadily, making solar an increasingly attractive option for local homeowners.
Virginia electricity rates increased from 12.0 cents per kWh in 2021 to 14.5 cents in 2024, representing a 21% jump in just three years.
Solar panels can help Roanoke homeowners reduce their dependence on the grid and protect against these rising utility costs with clean energy.
Over 25 years, solar systems can provide predictable energy costs while traditional electricity rates continue climbing, offering long-term financial stability for families.
Price of Energy: Virginia vs National Average
Roanoke Area Utility Providers
Roanoke residents receive electricity primarily from Appalachian Power, which charged 15.9¢ per kilowatt-hour in 2023. This rate sits slightly below the national average of 16.0¢ but above Virginia’s state average of 14.30¢.
Appalachian Power’s rates reflect the region’s mountainous terrain, which increases transmission costs, and ongoing infrastructure investments to modernize the electrical grid across southwestern Virginia’s challenging geography.
While Roanoke’s electricity costs remain competitive nationally, solar panels can provide long-term rate stability as utility prices continue rising, potentially reducing your dependence on traditional grid electricity over time.
Roanoke Utilities Electricity Rates
Virginia Solar Incentives
Solar installation in Roanoke becomes more affordable through federal tax credits and Virginia’s solar incentives in Virginia.
Virginia offers property tax exemptions, Solar Renewable Energy Certificates (SRECs), and net metering programs. These incentives can significantly reduce your solar system’s cost and ongoing expenses.
Research current incentive details thoroughly, as programs change frequently. Acting promptly ensures you maximize available benefits for your solar investment.
$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 taxes. This incentive requires your local government to have adopted an ordinance offering the exemption, so availability depends on where you live in Virginia.
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 as part of power purchase agreements. Virginia doesn’t operate a separate SREC market with set prices, so the value fluctuates with regional market conditions. To participate, your solar system must be registered through the PJM Generation Attribute Tracking System (GATS), which tracks and verifies your renewable energy production. For systems installed between 2021-2024, your solar panels must be located in Virginia or within the PJM region, while systems installed in 2025 and beyond have additional location requirements. There are no specific deadlines to join the program, but you’ll need to register your system with GATS and may want to work with a registered broker or aggregator to help manage and sell your RECs effectively.
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 during sunny periods, that extra power flows to the grid and you receive a 1:1 credit on your electric bill – meaning you get full retail rate credit for every kilowatt-hour (kWh) you contribute.
The financial benefit varies by utility company. With Dominion Energy Virginia, you can carry excess credits from month to month throughout the year. At the end of each year, any remaining credits either roll over to the next year or are paid out at Dominion’s avoided cost rate of approximately 3-5 cents per kWh. Appalachian Power Company (APCo) customers can carry credits forward indefinitely without annual true-ups, though credits are not paid out as cash. This system essentially allows your electric meter to ‘spin backwards’ when you’re producing more than you’re using, reducing your overall electricity costs and potentially eliminating your electric bill during high-production months.
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 QuoteRoanoke 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.
Roanoke’s Blue Ridge location brings variable weather and seasonal sun angles that impact solar production. However, modern systems efficiently capture available sunlight year-round.
Solar Production in Roanoke 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 Roanoke
We’ve mapped every solar installation across America to help you discover which Roanoke neighborhoods have embraced clean energy. Click any hexagon to see how many of your neighbors have made the switch to solar power!
Leasing Solar Panels
For Roanoke homeowners, Palmetto offers solar leasing options that make clean energy accessible without the upfront investment. In Virginia, we provide lease agreements for customers served by both Dominion Energy and Appalachian Power Company.
With a solar lease, you pay a fixed monthly amount instead of purchasing the system outright. This eliminates the need for large upfront costs, system maintenance responsibilities, or performance monitoring. Your lease payment remains predictable while you benefit from clean energy production and reduced utility bills.
Compared to cash purchases, leasing removes financial barriers and maintenance concerns while still providing solar savings. Learn more about buying versus leasing solar or explore our LightReach program for additional financing options.
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 Roanoke due to rising electricity costs and excellent Virginia incentives. Roanoke electricity rates increased 21% from 2020-2024, making solar savings more valuable each year.
A typical 10 kW system costs around $18,767 after federal tax credits and saves approximately $67,000 over 25 years. With Virginia’s net metering, property tax exemptions, and abundant Blue Ridge sunshine, Roanoke homeowners can achieve payback periods under 9 years while protecting against future utility rate increases.
Yes, Roanoke has net metering through both major utility providers. Dominion Energy Virginia and Appalachian Power Company (APCo) both offer 1:1 net metering, meaning you receive full retail rate credit for excess solar energy sent to the grid.
With Dominion Energy, excess credits carry over month-to-month and either roll to the next year or get paid out at 3-5 cents/kWh. APCo customers can roll credits forward indefinitely without annual payouts, maximizing your solar investment value.
Yes, solar panels typically increase home value in Roanoke, VA. Zillow research shows solar panels increase home value by 4.1% on average nationwide, which translates to roughly $10,000-15,000 for typical Roanoke homes.
In Virginia’s competitive real estate market, solar panels offer buyers immediate electricity savings and long-term rate protection. Virginia’s property tax exemption means you won’t pay additional taxes on your solar system’s added value, making it a smart investment for Roanoke homeowners.
Solar costs in Roanoke range from $14,339-$22,325 after federal tax credits, 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 the 30% federal tax credit.
Virginia offers additional savings through property tax exemptions and Solar Renewable Energy Certificates (SRECs). With rising Roanoke electricity rates and strong local sunshine, most homeowners see payback periods under 9 years while saving $67,000+ over 25 years.
Yes, solar is financially worth it in Roanoke. With electricity rates rising 21% since 2020, a typical 10 kW system saves homeowners around $67,000 over 25 years while paying for itself in under 9 years.
Virginia’s 30% federal tax credit, property tax exemptions, and net metering programs make solar an increasingly smart investment. Rising utility costs mean your savings grow larger each year, providing long-term financial protection for Roanoke families.
We believe Palmetto Solar is the best choice for Roanoke homeowners. As a national company with local focus, we combine extensive experience with personalized service for each Virginia installation.
We offer some of the industry’s best financing options and work with a trusted network of certified installers throughout the Roanoke area. Our comprehensive approach handles everything from permits to interconnection, ensuring a smooth solar experience from start to finish.