What are Virginia Solar Incentives?
Virginia solar incentives encompass a comprehensive suite of programs, tax benefits, and regulatory policies designed to accelerate solar adoption across the Commonwealth. These incentives work by reducing the overall cost of solar installations, improving return on investment timelines, and removing traditional barriers that have historically prevented widespread solar adoption. For community solar projects specifically, these incentives create viable economic models that allow developers to build solar farms while offering subscribers significant savings on their electricity bills.
Types of Virginia Solar Incentives
Virginia Shared Solar Program
The Virginia Shared Solar Program enables participants to subscribe to portions of larger solar facilities without installing panels on their own properties. Subscribers receive credits on their electricity bills based on their share of the solar energy produced, resulting in immediate savings without any upfront investment. The program particularly benefits renters, businesses without suitable roofs, and communities looking to collectively invest in renewable energy. It ensures accessibility for households of all income levels while supporting the development of utility-scale solar projects that benefit entire communities.
Virginia Community Solar Pilot Program
The Community Solar Pilot Program allows customers to receive credits on their electricity bills for energy produced by a shared solar facility. Participants can choose between two subscription options. The Block Option lets customers purchase fixed “blocks” of solar energy, each representing 100 kilowatt-hours and costing $2.013 per month. Residential customers can buy up to five blocks, while commercial customers can purchase up to ten. The 100% Match Option allows participants to match all their electricity use with solar energy at an additional $0.02013 per kilowatt-hour, with costs varying based on monthly consumption. Both options include Renewable Energy Certificates, helping customers directly support solar generation in Virginia.
Solar Renewable Energy Credits (SREC) Program
Virginia’s SREC program creates an additional revenue stream for solar producers by allowing them to sell certificates representing the environmental benefits of their solar generation. Each SREC represents one megawatt-hour of solar electricity produced, and utilities purchase these credits to meet renewable energy standards. The market-based nature of SRECs means their value fluctuates with supply and demand, but Virginia’s strong renewable energy goals help maintain stable pricing that benefits all solar stakeholders.
Federal Solar Tax Credit (ITC)
The federal solar tax credit enables homeowners and businesses to deduct 30% of solar installation costs from federal taxes, representing one of the most valuable incentives available. Following the One Big Beautiful Bill Act (OBBBA) signed July 4, 2025, residential systems must be installed and commissioned by December 31, 2025, to qualify for the credit. Commercial solar projects, including community solar developments, maintain more flexible timelines with the full 30% credit available for projects beginning construction by July 4, 2026, followed by a four-year completion window.
Net Metering
Net metering in Virginia allows solar system owners to receive full retail credit for excess electricity they send back to the grid, essentially using the grid as a battery for their solar production. Community solar projects leverage similar crediting mechanisms, allowing subscribers to benefit from solar production even when they’re not directly consuming the electricity. This arrangement ensures solar investments deliver value throughout the day, not just during peak production hours.
Virginia Solar Incentives FAQs
Does Virginia have a free solar program?
While Virginia doesn’t offer free solar installations, the combination of available incentives and community solar subscriptions can reduce or eliminate upfront costs for many participants. Community solar subscribers don’t have to pay for installation or maintenance. Participants simply sign up and save a guaranteed 10% on their utility bills!
Is it worth getting solar in Virginia?
Absolutely! Whether you own property or not, community solar allows subscribers to access clean, renewable energy without adding solar equipment. There are no long-term contracts, credit checks, or subscription fees when subscribing with U.S. Light Energy.
How do I claim my solar tax credit in Virginia?
Federal solar tax credits are claimed using IRS Form 5695 when filing annual taxes. Virginia property tax exemptions apply automatically to qualifying solar installations. Community solar subscribers don’t claim tax credits directly, as developers incorporate these savings into subscription pricing.
Is Virginia a good state for solar power?
Yes! $8.5 billion has been invested in Virginia for solar energy development. Nearly 805,500 homes have already been accessing solar energy. It’s never been a better time to subscribe to community solar.
How much does it cost to install solar in Virginia?
Residential solar installations in Virginia typically cost $10,000 to $20,000, varying based on system size and complexity. Community solar subscriptions eliminate installation costs while still providing solar benefits.
Find Virginia Solar Options with US Light Energy
U.S. Light Energy (USLE) stands at the forefront of Virginia’s solar revolution, offering comprehensive development services that transform community solar visions into reality. Our expertise spans the entire development lifecycle, from initial site assessment and permitting through construction and long-term operation. We specialize in creating customized solar solutions that maximize available incentives while delivering sustainable benefits to communities across Virginia. Whether you’re a landowner with suitable acreage or a community organization seeking clean energy alternatives, our team provides the technical expertise and financial structuring necessary for successful project deployment.
Contact us today to learn more about how we can help develop a community solar project for your local community. U.S. Light Energy is leading the charge for a new generation.
References:
https://seia.org/state-solar-policy/virginia-2/
https://uslightenergy.com/development/development-services/
https://uslightenergy.com/community-solar/community-solar-farm/
https://www.energy.virginia.gov/renewable-energy/SS_CS.shtml
https://www.dominionenergy.com/virginia/renewable-energy-programs/community-solar
https://www.energy.gov/eere/solar/articles/federal-solar-tax-credit-resources
https://www.solar.com/learn/senate-releases-updated-one-big-beautiful-bill-text-what-it-means-for-solar/
https://law.lis.virginia.gov/vacode/56-594/
https://www.irs.gov/credits-deductions/how-to-claim-a-residential-clean-energy-tax-credit
https://www.solarreviews.com/solar-panel-cost/virginia