Virginia

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 removing the assessed value of your solar equipment from your taxable property value. The exemption lasts for at least five years once approved. To qualify, homeowners must apply to their local building department for certification within one year of installation. If you get certified within this timeframe, some localities may make the exemption effective from your installation date and reimburse any property taxes you already paid on the solar equipment.

Keep in mind that this incentive is optional for local governments – not all Virginia localities have adopted ordinances to offer this exemption. You’ll need to check with your local government to see if they participate in this program and what level of exemption they provide.

Virginia’s Solar Renewable Energy Certificates (SRECs) program allows homeowners with solar panels to earn credits for the clean energy they produce. When your solar system generates electricity, it creates Renewable Energy Certificates (RECs) that can be sold in the PJM regional market. These certificates represent the environmental benefits of your solar energy production and provide an additional income stream beyond your electricity savings.

The program operates through the PJM Generation Attribute Tracking System (GATS), where your solar production is registered and verified. While Virginia doesn’t have a separate SREC market with set prices, homeowners can sell their RECs through brokers or aggregators who help connect them with buyers. The financial value varies based on market demand, but this creates ongoing revenue from your solar investment. Your solar system must be located in Virginia or within the PJM region to qualify, and residential systems are eligible regardless of size. The program has different rules for 2021-2024 versus 2025 and beyond, so it’s important to understand which period applies to your installation timeline.

Net metering in Virginia allows homeowners with solar panels to receive credit for excess electricity they generate and send back to the grid. When your solar system produces more power than your home uses, the extra electricity flows to your neighbors through the utility grid, and you receive a 1:1 credit on your electric bill. This means you get the full retail rate for every kilowatt-hour (kWh) of solar energy you share with the grid.

The financial benefit varies by utility company. If you’re a Dominion Energy customer, any unused credits carry over month to month, and at the end of the year, leftover credits are either rolled to the next year or paid out at Dominion’s avoided cost rate (typically 3-5 cents per kWh). Appalachian Power Company (APCo) customers enjoy even better terms – their excess credits roll over indefinitely without expiring, though they won’t receive cash payments for unused credits. This program is available to all residential solar customers in Virginia, with no specific deadlines or time limitations. The key consideration is understanding your utility company’s specific policies, as the long-term value of your excess credits depends on whether you’re served by Dominion Energy or APCo.