Virginia Beach, VA Solar Panels

Virginia’s Solar Property Tax Exemption allows local governments to exempt solar energy equipment from property taxes. This means that when you install a solar system on your home, your local county, city, or town can choose not to increase your property taxes based on the added value of that solar equipment. Small solar systems with a capacity of 25 kilowatts or less are automatically and completely exempt from both state and local property taxes.

The financial benefit depends on your local government’s decision to adopt this exemption. If your locality has passed an ordinance to offer this exemption, the value of your solar equipment won’t be added to your property tax bill, or it may be only partially added. For example, if your solar system adds $20,000 in value to your home and your local property tax rate is 1%, you could save $200 per year in property taxes. The exemption lasts for at least five years once approved, and some localities may make it effective from your installation date if you apply within one year of installation.

To qualify, you’ll need to apply to your local building department to have your solar equipment certified. The equipment must be designed and used primarily for collecting, generating, transferring, or storing solar energy. Your local government must have adopted an ordinance offering this exemption—not all Virginia localities participate, so you’ll need to check with your local tax assessor or building department. If you install your system and obtain certification within one year, some localities may even reimburse any property taxes you’ve already paid on the equipment.

Solar Renewable Energy Certificates (SRECs) are tradeable credits that Virginia solar homeowners earn for the clean electricity their solar panels produce. 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 open market. These certificates are tracked through the PJM Generation Attribute Tracking System (GATS), which verifies and registers your solar production.

The financial value of SRECs varies based on market demand, and there’s no fixed dollar amount—prices fluctuate depending on how utilities need to meet Virginia’s renewable energy requirements. You can sell your SRECs through brokers or aggregators who specialize in the PJM market, or they may be bundled with your energy through a Power Purchase Agreement. To participate, your solar system must be registered in GATS (which your installer or a broker can help you with), and your system must meet Virginia’s renewable energy standards. Virginia’s program operates under the state’s Renewable Energy Portfolio Standard, which creates ongoing demand for these certificates as utilities work to meet their clean energy goals.

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 your utility company credits your account on a 1:1 basis—meaning you receive the same retail rate for the energy you export as you pay for the energy you import. This effectively turns your electric meter backward, reducing your monthly bill.

The specific benefits depend on your utility provider. If you’re a Dominion Energy customer, any excess credits you accumulate carry over from month to month throughout the year. At the end of your annual billing cycle, you can either roll those remaining credits into the next year or receive payment at Dominion’s avoided cost rate, which typically ranges from 3 to 5 cents per kilowatt-hour. If you’re served by Appalachian Power Company (APCo), your excess credits roll over indefinitely from month to month with no annual true-up, though they won’t be paid out as a cash payment. This program is available to residential solar customers in Virginia, and there are no application deadlines—net metering remains an ongoing benefit as long as you have an interconnected solar system with your utility.