✅ Federal Incentives
All federal benefits apply to entities in Virginia.
✅ State Incentives
⚡ 30% Federal Solar Tax Credit
Homeowners and businesses can claim a tax credit equal to 30% of their solar installation costs. This applies to both owned and leased systems, including Power Purchase Agreements (PPAs) lasting at least 10 years. Note that the Inflation Reduction Act (IRA) of 2022 increased the solar installation credit to 30% with no dollar limit.
⚡ Property Tax Exemption
Virginia offers a property tax exemption for solar energy systems. This means that installing a solar system will not increase your property's assessed value for tax purposes.
⚡ Solar Renewable Energy Credit (SREC) Program
Virginia's SREC program allows solar system owners to earn credits for the electricity their systems generate. These credits can be sold to utilities, providing an additional income stream. However, as of 2025, the SREC program has been discontinued in Virginia.
⚡ VirginiaSAVES Green Community Program
This program offers low-interest financing for energy efficiency, renewable energy, and electric vehicle (EV) charging projects. The exact incentives vary by project and can help reduce energy consumption and emissions.
✅ Utility Incentives
⚡ Net Metering
Virginia requires investor-owned utilities and electric cooperatives to offer net metering. Under net metering, excess electricity generated by your solar system is credited to your utility account. Credits can offset future electricity bills, and any remaining credits at the end of the year are paid out at a utility-specific avoided cost rate.
✅ Additional Considerations for Nonprofits
Under the Inflation Reduction Act (IRA) of 2022, tax-exempt organizations such as nonprofits are eligible to receive a direct payment equal to 30% of their solar installation cost, effectively mirroring the federal Investment Tax Credit (ITC).
Summary
Virginia offers a combination of federal incentives and state-level programs to make solar energy a viable and beneficial investment for individuals, businesses, and nonprofits. The federal 30% solar tax credit, property tax exemption, and VirginiaSAVES Green Community Program provide financial support and compensation for solar energy production. Additionally, nonprofits can benefit from direct payments equivalent to the federal ITC. These incentives make Virginia an attractive state for solar energy adoption.