Cost of Going Solar in Virginia

Cost of Going Solar in Virginia 2025

In Virginia, a typical home requires about a 7.5 kW solar system to meet most household electricity needs. As of 2025, the average solar panel cost in the state is around $2.95 per watt, which puts a full installation at approximately $22,125 before incentives. With the 30% federal Investment Tax Credit (ITC) applied, the net cost drops to roughly $15,488.

This price typically includes solar panels, inverters, racking, wiring, labor, permitting, and inspections, but excludes state or utility incentives, which can further reduce out-of-pocket costs. Virginia residents benefit from net metering policies and limited state tax credits that make solar adoption more affordable.

If the ITC expires after December 31, 2025, homeowners will lose that 30% federal tax reduction, causing the effective solar cost to increase by about 43%. A system that costs $15,400 after incentives in 2025 could cost around $22,000 from 2026 onward if no new federal incentive replaces the ITC.

Solar Cost Basics

The cost of going solar in Virginia is composed of hardware costs and solar soft costs, each contributing to the total installed price of a residential system. Major costs to expect while installing solar panels in Virginia include the following:

Hardware Costs

Hardware represents the tangible parts of a solar installation and typically makes up 50 to 60% of the total system cost. This includes solar panels, inverters, solar batteries, racking systems, electrical wiring, and monitoring devices.

• Solar panels account for about 25 to 35% of hardware costs
• Inverters (string, hybrid, or microinverters) make up 10 to 15%
• Racking and mounting systems add 5 to 10%
• Wiring, conduit, breakers, and connectors contribute another 5%
• Solar batteries increase total hardware costs by 20 to 40% if added for storage

Hardware pricing varies based on technology type, brand reputation, and efficiency rating. For example, high-efficiency monocrystalline modules and hybrid inverter systems are more expensive but yield better long-term performance.

Soft Costs

Solar soft costs include all non-hardware expenses necessary for a solar installation, typically 40 – 50% of the total project cost.

They encompass installation labor, permitting and inspection fees, engineering design, interconnection approvals, project management, and customer acquisition. Labor alone can account for 10 to 15% of total costs, while permitting and administrative overhead add another 5 to 10%.

Soft costs in Virginia vary by jurisdiction because local building departments have different permit fees and inspection timelines. Rural counties often have simpler processes, while metro areas like Fairfax and Arlington may require detailed reviews that add time and cost.

How Much Do Solar Panels Cost in Virginia in 2025?

In 2025, the average cost of solar panels in Virginia is about $2.95 per watt. For a standard 7.5 kW installation, this equals roughly $22,125 before incentives and around $15,500 after applying the 30% ITC.

The final solar panel cost depends on the type of panel and system configuration:

• Monocrystalline panels are the most efficient and durable but cost more per watt
• Polycrystalline panels are slightly cheaper but less efficient
• Thin-film panels have a lower upfront cost but are best suited for small or flat roof installations

Other factors affecting solar power cost in Virginia include:

• System Size: Larger systems reduce per-watt costs due to economies of scale
• Installation Complexity: Roof angle, shading, and structure can increase labor time
• Equipment Selection: Premium inverters, racking, or aesthetic mounting options add cost
• Installer Experience: Certified installers often charge slightly more but provide higher-quality work and longer warranties

Panels typically make up about one-third of the total installation cost, while the remainder covers inverters, racking, wiring, and solar soft costs.

Average Cost of Solar Batteries in Virginia

Adding a solar battery or home battery storage system to a solar array in Virginia provides backup power during outages and improves energy independence. However, it adds significantly to the project cost.

In 2025, the cost of solar batteries in Virginia averages $1,000 to $1,700 per kWh of usable capacity, including installation. A typical 10 kWh battery system costs between $10,000 and $17,000, while larger 13.5 kWh systems, like the Tesla Powerwall, can reach $14,000 to $19,000.

Factors affecting solar battery cost include:

• Battery Capacity (kWh): Higher capacity means greater cost but more energy independence
• Chemistry: Lithium iron phosphate (LFP) batteries last longer than older lithium-ion models
• Integration Type: DC-coupled batteries are efficient but complex; AC-coupled units are easier to install
• Labor and permitting: Wiring upgrades or electrical panel modifications can increase installation expense

Virginia currently lacks a direct state rebate for battery storage, but homeowners can still apply the 30% federal ITC if the battery is installed alongside solar panels. When included, a solar battery bank typically raises total project cost by about 25 – 40%.

Even so, more Virginia homeowners are adding batteries to manage time-of-use electricity rates and ensure power resilience during storms.

How to Lower Solar Cost in Virginia

Despite limited state-level rebates, several programs and policies can help homeowners reduce their solar costs in Virginia. Some of the programs and policies include the following:

Federal Investment Tax Credit

The 30% federal ITC remains the most significant incentive for Virginians. It covers the full cost of solar installations, including panels, inverters, wiring, and energy storage systems. Homeowners must have sufficient tax liability to claim the full credit, and systems must be installed by December 31, 2025.

Virginia Solar Renewable Energy Certificates (SRECs)

Virginia participates in an SREC market where homeowners earn credits for every megawatt-hour (MWh) of electricity generated by their system. These credits can be sold to utilities or brokers to offset costs. Depending on market demand, SRECs can provide several hundred dollars per year in additional savings.

State and Utility Incentives

Some local utilities, such as Dominion Energy, offer periodic rebate programs for solar adoption. Others may provide low-interest loans or performance-based credits to encourage renewable energy use. Homeowners should check current utility programs, as availability changes annually.

Net Metering

Virginia’s net metering policy allows homeowners to send excess power back to the grid for bill credits. Most residential systems under 25 kW qualify, with monthly netting against utility bills. This significantly improves the lifetime savings and payback of a solar installation, effectively lowering the solar power cost per kilowatt-hour.

Property Tax Exemption

Many Virginia localities provide partial or full property tax exemptions for solar systems, ensuring that adding solar panels does not raise property tax assessments.

By combining the federal ITC, SRECs, and net metering, most homeowners can reduce overall system cost by 35 to 45% and achieve faster payback.

Paying for Solar Installation in Virginia

Virginia residents can finance solar adoption through three main pathways: cash purchase, solar loan, or solar lease/PPA, depending on budget and long-term goals.

• Cash Purchase: Paying in full upfront provides maximum long-term savings. You own the system, claim the 30% ITC, and eliminate interest costs. This option suits homeowners who plan to remain in their property for many years
• Solar Loan: Solar loans allow homeowners to spread payments over time while retaining ownership and incentive eligibility. With interest rates averaging 3 to 7%, monthly electricity savings often offset loan payments. It’s the most popular choice among Virginia homeowners
• Solar Lease or Power Purchase Agreement (PPA): Under a lease or PPA, a third party owns the system, and the homeowner pays a fixed monthly fee or rate for the electricity produced. Upfront costs are minimal, but you forfeit ownership and tax credits. This option benefits those who prefer predictable payments with no maintenance responsibilities

Some Virginia credit unions and local energy co-ops also offer low-interest green energy loans, making solar more affordable without upfront cash.

How Much Money Can I Save by Going Solar in Virginia?

The average residential electricity rate in Virginia is around 14¢ per kWh in 2025, slightly below the national average. However, because the state receives a moderate amount of sunlight, solar systems produce enough energy to offset most of a home’s electricity usage.

A 7.5 kW system in Virginia can typically cover 80 to 90% of a household’s energy needs. If a homeowner’s monthly electric bill is about $140, solar could reduce it to around $20 to $30, saving $1,300 to $1,500 per year. With a post-incentive system cost of roughly $15,500, this results in a payback period of 10 to 12 years.

Over 25 years, total lifetime savings often exceed $35,000 to $40,000, depending on electricity rate increases and system performance. Adding home battery storage can increase savings further by reducing reliance on grid electricity during peak-rate hours.

Solar also tends to enhance property value. Homes with solar systems in Virginia generally sell for 3 to 4% more than comparable homes without solar. Since localities often exempt solar from property tax reassessment, homeowners enjoy increased value without higher annual taxes.

In short, with net metering, federal credits, and rising utility rates, installing solar panels in Virginia can yield substantial long-term savings and strong energy independence, especially when paired with a solar battery bank.