Understanding Virginia’s Solar Incentives and Tax Credits

With the demand for renewable energy on the rise, Virginia is quickly becoming a top choice for homeowners interested in solar power. Thanks to a range of incentives and tax credits, going solar has never been more financially appealing. Now is the perfect time to consider installing a solar rooftop that can save you money. Understanding these incentives and credits can make the shift to an eco-friendly home even more compelling.

Homeowners in Fauquier County, VA, can rely on Solarsimple for a wide range of solar services, including custom solar system designs tailored to your needs, battery and generator backups, and full solar roof replacements. We use the latest technology and industry-leading solar panels, improving efficiency and providing a higher return on investment. Call us today at (540) 486-0053 or visit our website for a free installation estimate!

Below, we’ll discuss the solar incentives and tax credits available to Virginia homeowners:

1. Virginia Solar Renewable Energy Credit (SREC) Program#

One of the most significant incentives for Virginia homeowners is the Solar Renewable Energy Credit (SREC) program. Under this initiative, homeowners can earn credits for each megawatt-hour of solar energy their systems produce, which can then be sold to utilities that need to meet their renewable energy requirements.

The SREC program not only provides a financial return on your solar investment but also encourages the growth of solar energy in Virginia. Though market conditions can vary, homeowners can generally expect to generate one SREC for every 1,000 kilowatt-hours (kWh) produced.

2. Federal Solar Investment Tax Credit (ITC)#

In addition to state incentives, homeowners can take advantage of the federal Solar Investment Tax Credit (ITC). This program allows homeowners to deduct 30% of the cost of solar installation from their federal taxes, including equipment, labor, and any additional installation costs.

It’s important to note that the ITC is set to decrease in the coming years. Homeowners who install solar systems before the deadline can maximize their savings, making it a crucial time to consider making the switch to solar energy.

3. Net Metering Policies#

Virginia’s net metering policies allow homeowners to receive credits for any excess energy generated by their solar systems. When your solar panels produce more energy than your home consumes, that surplus energy is sent back to the grid, and you receive credits on your utility bill.

During times when your solar panels aren’t generating power—such as at night—you can draw from the grid using the credits you’ve accumulated. This system effectively allows homeowners to use solar energy without the need for extensive battery storage, making solar a more accessible option.

Currently, homeowners are credited at the retail rate for their kilowatt hours. Other states have decreased their credit rate, and Virginia may follow suit. When you sign an interconnection agreement with your power company, the rate is locked for 25 years, and you remain grandfathered into that retail rate despite any potential policy changes.

4. Property Tax Exemption for Solar Systems#

Another advantage for Virginia homeowners is the property tax exemption on solar energy systems. Under Virginia law, the value added to your property from a solar installation is not subject to property taxes. This means that you can enjoy the increased value of your home without the burden of higher taxes, making solar energy even more financially attractive.

5. Local Grants and Rebates#

Various local governments and organizations in Virginia also offer grants and rebates to encourage solar energy adoption. While these programs can vary by location, many counties provide financial incentives for residential solar installations.

For example, some areas have established rebate programs that provide a fixed dollar amount for each installed kilowatt of solar capacity. These local incentives can significantly enhance the financial feasibility of solar energy projects.

Fauquier County, VA’s Solar Rooftop Professionals#

Virginia is making significant strides in promoting solar energy adoption, and the available incentives and tax credits play a crucial role in this movement. Residents in Fauquier County, VA, can take advantage of these incentives by considering a solar rooftop from Solarsimple. Contact Solarsimple at (540) 486-0053 or visit our website to make the switch to solar energy!