Virginia is the 9th-largest US solar market by installed capacity — about 7.6 GW — and in 2026 it's one of the better Eastern markets for a residential purchase. Typical payback is in the ~9–12 year range.
That's longer than it would have been with the federal credit still in place, but Virginia's underlying structure is unusually solid for a state in 2026: full 1:1 retail-rate net metering, just preserved by the State Corporation Commission on April 30, 2026; an active SREC market that homeowners actually own; and both property and sales tax exemptions where sources agree (unlike some neighboring states where the sales-tax question is disputed).
If you've been reading older coverage that predicted a net metering cut this year, the cut did not happen. Here's what actually changed.
What changed
The federal Residential Clean Energy Credit (§25D) — the 30% homeowner credit — was repealed for systems installed after December 31, 2025. For 2026 Virginia buyers, the federal credit on solar is $0. The same applies to home batteries purchased outright. The §48E commercial credit (30%) still exists, but only for leased or third-party-owned systems — the lessor claims it, not you. Full federal context here.
VERIFIED 2026-06 · irs.govNet metering: preserved at 1:1 (the actual news)
This is the most important Virginia story of 2026. Many April forecasts said Dominion's customers were about to lose retail-rate net metering — projections ran from −32% face value to −55% if you also factored in Dominion capturing customer SRECs. None of that happened.
On April 30, 2026, the Virginia State Corporation Commission issued its final order in Case No. PUR-2025-00079 (clarified May 20, 2026). The SCC rejected Dominion's NEM 2.0 proposal. Full retail 1:1 net metering remains in effect. Dominion's attempt to claim customer SRECs was also rejected — homeowners continue to own and sell their SRECs.
What that actually means on your bill:
- Both Dominion and APCo retain 1:1 retail-rate net metering.
- Credits bank for 12 months. Year-end excess is paid out at avoided-cost plus 1¢ (the SCC order raised this) — still well below retail, so don't oversize your system.
- System cap: 25 kW, and at 100% of your annual consumption. Plan a system sized to what you actually use.
- A new ~$1/month administrative fee applies.
- The SCC reserved the right to revisit if statewide net-metered capacity approaches the 6%-of-peak cap. Not imminent, but not off the table either.
This is the second net metering preservation in two years in Virginia — APCo's terms were defended in 2025, Dominion's in 2026. That kind of stability is rare in 2026, when several other states have moved customers to avoided-cost or partial-credit models.
VERIFIED 2026-06 · Virginia SCC Case No. PUR-2025-00079Current Virginia retail electricity is about ~15¢/kWh on Dominion and rising at roughly 2.5%/year. APCo retail is lower, but the same 1:1 net metering structure applies.
VERIFIED 2026-06 · eia.govSRECs: an extra income stream we don't model
Virginia has an active Solar Renewable Energy Credit (SREC) market, and homeowners — not utilities — own the SRECs their systems generate (the SCC explicitly rejected Dominion's bid to capture them). One SREC is issued per MWh produced, and SRECs can be sold for additional income.
We do not model SREC revenue in this calculator because prices are volatile, so we can't give a stable forecast. Your real payback may be somewhat better than the calculator shows. Virginia's RPS solar carve-out rises from 1% to 3% (2026) to 5% (2028), which supports continued SREC demand. Check the current SREC price with an aggregator before making system-size decisions on this basis.
What Virginia has — and doesn't
Property tax exemption (statewide). Virginia exempts the added home value from residential solar.
Sales tax exemption (full). Solar equipment is exempt from Virginia sales tax. Sources agree on this — by contrast, North and South Carolina's residential sales-tax exemption status is disputed. In VA we apply the exemption with confidence.
No state income tax credit. Virginia does not offer a residential solar income tax credit. This is one of the reasons VA payback runs ~9–12 years rather than the shorter ranges of states with state credits — like neighboring South Carolina, where a 25% credit fills part of the federal gap.
Battery in Virginia
A home battery makes sense economically when the retail-export gap is large — you store solar that would have exported cheaply and use it instead of buying retail later. Under VA's 1:1 net metering, that gap is effectively zero (like Florida). On pure energy arbitrage, a battery in Virginia doesn't pay off.
The reason to install a battery in VA is backup / resilience, not export economics. There's no federal credit on the battery purchase in 2026 (§25D repealed), and Virginia's VPP / battery program under the Community Energy Act is expected to launch late 2026 — specific incentives have not yet been published, so we don't model them. If those incentives turn out to be meaningful, the math will change; until then, don't assume a battery improves payback in VA.
The honest picture
Virginia solar in 2026:
- Federal credit: $0 — not 30%.
- State income tax credit: none.
- Net metering: 1:1 retail, preserved by SCC final order April 30, 2026. Dominion and APCo both. 12-month banking; year-end excess at avoided-cost + 1¢; 25 kW + 100%-of-annual-consumption caps; ~$1/month admin fee.
- Forecasts of a −32% to −55% cut did not happen. NEM 2.0 was rejected.
- SREC market: active, homeowners own their SRECs, not modeled in this calculator — your real payback may be a bit better.
- Property tax: exempt (statewide).
- Sales tax: exempt (full, sources agree).
- Battery: weak on arbitrage (1:1 gap is ~0); economic case is backup, not exports.
- Typical payback: ~9–12 years.
The case for Virginia solar is real and unusually durable for 2026. The 1:1 net metering rules just survived a serious challenge — twice in two years across two utilities — which is a different kind of confidence than states where the export rate could change next month. The trade-off is that without a state credit and without the federal credit, payback has stretched. If you can wait for the Community Energy Act battery incentives later in 2026, the battery side may improve. The solar side already works.
Before you commit:
- Don't budget for a state income tax credit. VA doesn't have one.
- Don't oversize — year-end excess pays at avoided-cost + 1¢, far below retail. Stay within ~100% of your annual consumption.
- If you're on APCo rather than Dominion, your retail rate is lower — your savings per kWh are smaller, but the same 1:1 net metering rules apply.
- Treat SREC sale revenue as a bonus, not a base assumption — check the current price with an aggregator.
- Run the calculator with your actual ZIP and system size.
Estimates only — net metering terms preserved as of the April 2026 SCC order; verify with your utility (Dominion / APCo) and a licensed installer. This is not financial advice.