Virginia Solar Panels: Pricing & Incentives for 2024

Virginia Solar Panels
Pricing & Installation Data

Find out if solar panels are right for your home in Virginia.

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Solar Panels in Virginia

Solar panels are becoming a common sight across The Old Dominion State, adorning the roofs of homes and businesses. The state's commitment to solar energy is further evidenced by large-scale solar power facilities, such as the 80 MW facility in Accomack County. 

As solar power and other renewable energy options surge in popularity in Virginia, there are many factors to consider. Whether you're aiming to reduce your carbon footprint or your utility bills, it’s important to understand the state's solar landscape, incentives, and opportunities. We will guide you in making the best energy decision for your needs.

Cost of Solar in Virginia

The average price for a home solar panel system in Virginia is $17,340 for a 6kW system or about $2.89 per watt. Systems will vary depending on the solar installation company the types of solar panels you choose and the size of your system. When shopping for solar panels you should consider getting multiple quotes from various installers.

Average Cost
6 kW System
Average Cost
10 kW System
Estimated
Tax Credit
(10 kW System)
Average
Cost/Watt
U.S.Average$18,771$31,285$9,385.50$3.13
Virginia$17,340$28,900$8,670$2.89
U.S.Average$18,771$31,285$9,385.50$3.13
Most Costly State(Michigan)$22,680$37,800$11,340$3.78
Least Costly State(Arizona)$14,640$24,400$7,320$2.44

Costs by Solar System Size in Virginia

For most, the ideal solar system size is the sweet spot between price and capacity. The goal is to generate enough electricity to cover your home's demand while keeping overall costs low as possible.

I.E. Get the best bang for your buck.

System SizeSystem CostCost After Federal Tax Credit
5 kW$14,450$8,785
6 kW$17,340$10,542
7 kW$20,230$12,299
8 kW$23,120$14,056
10 kW$28,900$17,570

Pros and Cons of Solar in Virginia

Even in Virginia, solar comes with its set of challenges alongside its benefits. Before making a commitment in the Old Dominion, it's crucial for residents to contemplate both the advantages and potential downsides of equipping their homes with solar panels. By comparing these aspects, Virginians can determine if solar aligns with their specific needs and preferences. Understandably, opinions may vary on how best to assess these pros and cons.

Our goal is to outline the prevalent considerations specific to Virginia, to help you make an informed decision for your individual circumstances.

Virginia Solar Pros

  • Reduce or eliminate electric bills
  • Energy independence from the grid
  • Reduce your carbon footprint
  • Increase home value (4.1% on average)
  • Virginia ranks 10th in solar in the U.S.
  • Net metering is available is available for any resident
  • Virginia Residential Property Tax Exemption for Solar
  • Virginia Renewable Energy Credits (SREC) Program

Virginia Solar Cons

  • Not viable for all roofs or homes
  • Installation costs
  • Financial liability

EnergyBot's Take

While Virginia doesn’t have an ideal climate for solar panels compared to places like Arizona or California, there are still a lot of benefits. 

Virginia has shown a strong commitment to solar energy, with substantial growth in installations, a clear policy framework, and significant investments. The state's initiatives, such as the Virginia Clean Economy Act and net metering policies, have fostered a favorable environment for solar development. 

Due to the policy support structure and state investments, homeowners can expect a payback period of about 10 years. After incentives, the average solar cost is around . With a life expectancy of over 20 years, that is a valid option for most home owners.

If you are on the fence you can use this tool to get an accurate cost breakdown for your home based on your historical energy usage.

Leasing vs Buying Solar Panels in Virginia

There are several ways you can purchase and/or finance your solar panel installation in Virginia. Your goals and financial situation will dictate which option is best for you.

Cash Purchase

The most straightforward option. You pay upfront for the entire cost of the rooftop solar system. No interest, and fewer headaches, but many people are hesitant about spending several tens of thousands of dollars out of pocket.

Solar Loan

The most common method for buying solar systems. Like many other types of large purchases, you can finance your solar system through a bank or solar loan provider.

This sounds great, and many other solar loan salespeople will leverage the low payment to justify the costs. You will likely hear something like "You pay $250 a month on your electric bill, with a solar loan you will pay $200 and have free electricity."

Do your due diligence before you sign on the dotted line. There are many horror stories of variable loan terms, ballooning interest rates, and harsh missed payment penalties.

Solar Lease

Leasing solar panels generally involves less money out of pocket upfront. But, it's important to note - you do not own your solar energy system. You essentially renting the solar system. A solar provider will install the equipment and charge you a fixed monthly fee.

Most solar lease contracts last for a couple of decades, during which time the provider will keep an eye on the system's hardware and performance. At the end of your lease, you can choose to:

  • Renew your lease agreement
  • Purchase the system
  • End your lease agreement

Solar leases can be complicated. Not all are bad, but in many cases the lease terms in not in favor of the buyer. Before you decide on a solar lease make sure to read your contract thoroughly. If you don't understand something, ask an expert.

Power Purchase Agreements

A power purchase agreement (PPA) is a financial agreement where a solar company will design and install a solar system on your home or business with little or no cost upfront. Instead of paying a monthly fee like a lease, the agreement includes a fixed price per kilowatt-hour (kWh) of electricity generated.

For example, you agree to pay $0.12 per kWh of electricity generated for the next 20 years. The solar company will install and maintain your system and sell the power back to you that you use. They may also collect payment for any additional energy they put back into the grid.

Just like a lease, you do not own the panels. When the contract is up, they will either be removed or your contract may have other terms for you to buy or renew your power purchase agreement.

Power purchase agreements can be complicated. Before you sign make sure you review the contract and if possible have an expert in power purchase agreements review the details.

Virginia Solar Incentives

In addition to the 30% Federal Solar Tax Credit, you may be eligible for solar incentives that could significantly reduce the cost of solar panel installation. Some incentives are statewide and others are more local. Your city, utility, or other local company could offer hundreds or thousands of dollars in incentives to install solar systems.

This table shows the available incentives in Virginia. But, just because you don't see it here doesn't mean it doesn't exist. Check with your local utility for other potential incentives.

  • Residential Property Tax Exemption: Virginia law allows localities to exempt or partially exempt solar from property taxes. Not all localities allow this exemption, but it can be a significant benefit where available.
  • Solar Renewable Energy Certificates (SRECs): With the Virginia Clean Economy Act, you can earn one SREC for each megawatt-hour (MWh) of clean electricity your panels produce. You can sell these SRECs to utilities and earn extra income.

Virginia Solar Companies

There are hundreds of solar companies in Virginia. From solar installers to solar loan providers, and manufacturers. Each is a piece of the puzzle to help you get outfitted with solar panels.

To make things simple, EnergyBot works directly with 3 of the largest solar companies to give you a comprehensive view of the market.

The solar companies we partner with:

  • Project Solar - A nationwide provider of solar panel systems that has a non-sales-oriented approach to building your system. They build your system from their central office and send a local company to complete the solar panel installation.
  • EnergySage - The largest online solar installation network. They work with thousands of installers to help you find the perfect solar system for your home. With thousands of successful solar installations, they can give you a range of bids and pricing options.
  • Tesla - Brains behind some of the most cutting-edge technology in the automotive industry, Tesla also offers sleek and powerful solar systems and battery systems.

We believe comparing these three names in the solar industry will give you the info you need to decide if solar panels are right for you.

Virginia is Researching Solar Panel Rain Runoff

The rapid expansion of the solar industry in the Chesapeake Bay watershed, particularly in Virginia, is raising concerns about the unique type of runoff produced by rain dripping off solar panels. The U.S. Department of Energy predicts that the nation's solar market will triple over the next five years. This will require about 5 million acres of land for solar panels to meet renewable energy goals. Virginia's Department of Environmental Quality (DEQ) estimates that 317,000–687,000 acres of land will be converted to solar energy in the state by 2045.

The challenge is determining how the solar panels affect the land cover in relation to stormwater regulation. Many states consider solar fields pervious, but the rapid growth has urged a better understanding of the relationship between solar panels and stormwater more precisely. Due to the urgency and new regulations required by the end of 2024, Virginia’s DEQ formed an advisory panel to study the stormwater impacts and appropriate mitigation options.

In addition to government entities, the research community is also studying the broader impact of solar installations on land use. The Chesapeake Conservancy is utilizing artificial intelligence technology to predict future solar facility locations. Most land being converted to solar use was at one point cropland and pasture. AI assists in a period of rapid development. It is helping to determine where in the future solar panels may be installed due to many factors to consider that also overlap farmers criteria when looking at land. 

One of the biggest problems is not all solar panel acres are managed equally. Inconsistent practices and soil compaction issues are contributing to significant problems in compliance with stormwater regulations. To avoid compaction, some solutions have been proposed including native meadows, deep-rooted grasses, or sheep to manage grass growth instead of machinery. 

Overall, Virginia is looking to put their best solutions at the forefront instead of mitigating problems afterward in this rapidly growing industry. 

Why Trust EnergyBot

We have helped thousands of customers find electricity plans for their home or business. And we are pretty darn good at it, with over 1,000 5-Star reviews we know how to help you stay powered up.

Now using the same one-of-kind technology and platform we are helping consumers in Virginia decide if solar is right for them. You will notice that sometimes our numbers make solar look less attractive. That's not by accident. We believe you should have full transparency during the solar purchasing process.

We aren't here to sell you something. We are here to help you make the best energy decision for your home or business.

Virginia Solar FAQs

The cost of solar panel installation in Virginia can vary significantly based on a number of factors, including the size and type of the system, the complexity of the installation, your solar installer, and the specific location. However, the average cost of solar panels in the U.S. was about $3.13 per watt, before any incentives or tax credits.

A typical residential solar system is usually around 8 kilowatts (8,000 watts), but varies based on energy use and the size of the house. The US average cost for a 6 kW system is $18,771 and the US average cost for a 10 kW system is $31,285, before incentives. The average price for a home solar panel system in Virginia is $18,240 for a 6kW system or about or about $3.04 per watt. Though the cost is right around the US average, it can be thousands lower when considering additional financial incentives.

The number of solar panels you would need depends on a variety of factors such as:

  1. Your home's energy consumption: The first step is to calculate your household's energy use. You can do this by looking at your electricity bills to see how much electricity you use in a year, usually measured in kilowatt-hours (kWh). The average U.S. home uses around 10,400 kWh per year, but this can vary widely based on the size of your home, the efficiency of your appliances, and your personal habits.
  2. The amount of sunlight your location receives: This can vary depending on where you live. For example, if you live in a place that has many sunny days like Arizona, you might require fewer solar panels compared to someone living in a place with less sunlight like Seattle.
  3. The efficiency of the solar panels: Not all solar panels are created equal. Some panels can convert sunlight into electricity more efficiently than others. On average, residential solar panels have an efficiency rating between 15-20%. The higher the efficiency, the fewer panels you would likely need to meet your energy needs.
  4. The size of the solar panels: Solar panels also come in different sizes. A common size for residential use is roughly 65 inches by 39 inches. Each panel typically produces around 250 to 400 watts of power, but this can vary.

To give you a rough estimate, let's say you live in a location that receives about 5 hours of peak sunlight per day, your solar panels have an efficiency of 20%, and each panel has a power rating of 300 watts. If your home uses about 10,400 kWh per year, you would divide this by 365 to get your daily energy use (about 28.5 kWh). You would then divide this by the hours of peak sunlight (5 hours), to get your required power output per hour (about 5.7 kW). If each solar panel produces 300 watts (or 0.3 kW), you would divide 5.7 kW by 0.3 to get the number of solar panels you need, which would be about 19 panels.

  • Lower Electricity Bills:
    Once your solar panels are installed, you can generate your own electricity and reduce your reliance on the grid, which can lower your monthly bills.
  • Environmental Benefits:
    Solar energy is clean and renewable, so using it helps reduce greenhouse gas emissions and other harmful pollutants.
  • Increased Home Value:
    Installing solar panels can increase the value of your home and make it more attractive to potential buyers.
  • Long-Term Savings:
    While the upfront cost of installing solar energy systems can be high, they can pay for themselves over time through lower energy bills and other savings.
  • Location:
    Homes in areas with lots of sunlight are generally better candidates for solar panels. If your home is shaded or doesn't receive much sunlight, it may not be the best choice.
  • Roof Orientation:
    Ideally, your roof should be facing south to get the most sunlight throughout the day.
  • Roof Condition:
    Your roof should be in good condition and able to support the weight of the solar panels. If your roof needs repairs or replacement, it's best to take care of that before your solar installation.

The installation process for solar panels can take anywhere from a few days to a few weeks, depending on the size of the system and the complexity of the installation.

Your installer should be able to give you an estimated timeline based on your specific project.

Solar panels generally require very little maintenance. However, it's a good idea to have them inspected every few years to ensure they are working properly and to clean off any debris or dirt that may have accumulated on the panels. Most solar panel installers offer maintenance services for an additional fee.

Some skilled DIYers may be able to save some solar installation costs by installing solar equipment themselves. But, any solar installation will require a foundational knowledge of wiring and electricity. There's is a lot that can go wrong, posing a potentially deadly hazard.

Before you try to DIY your system we would recommend getting a quote from a solar installer. You may find that the labor costs of your install is relatively small compared to the cost of the solar equipment itself.

There are two main types of solar panels: Monocrystalline and Polycrystalline. There are pros and cons to both. Either type can produce enough solar power for your home. We recommend getting a recommendation from a solar installer for your home. Depending on your budget, location, and other factors they can recommend the most efficient solar panels for your home. 

Yes. The process might differ slightly depending on the local jurisdiction, but generally, homeowners must submit a permit application that includes detailed site plans and specifications for the solar system to the local building department. 

Virginia has made efforts to standardize and simplify the permitting process across various municipalities, making it more accessible to residents. For precise guidelines, homeowners should reach out to their specific city or county building department. Many solar installation companies operating in Virginia also offer assistance in navigating the local permitting requirements, aiding homeowners in a smooth transition towards clean, renewable energy.

Check out the links below for resources for some of the major cities:

Virginia Beach

City of Virginia Beach Permits & Inspections

Norfolk

City of Norfolk Permits & Inspections

Chesapeake

Chesapeake Solar Energy Policy

Richmond

City of Richmond Permits & Inspection