Solar Panel Cost in Virginia (2026): Price, Payback, Incentives

Q: How much do solar panels cost in Virginia?

At the state median installed price of $3.60 per watt (estimate), a 8.7 kW (estimate) system that covers a typical home's use costs about $31,300 (estimate) before incentives. Quotes vary with roof, equipment and installer.

Solar Panel Cost in Virginia

A typical Virginia home uses 1,032 kWh a month^[1] of electricity. Covering that with solar takes a system of about 8.7 kW est.^[1,2], which costs roughly $26,500 to $36,000 est.^[1,2,3] before incentives at the state's median installed price. With Virginia's average residential price of 16.95¢ per kWh^[4], our model puts payback at about 13 years est.^[1,2,3,4,5]. Your quote, roof and utility plan will move these numbers, so treat them as a starting point.

Virginia solar at a glance

Average electricity price16.95¢/kWh^[4]Jan–Aug 2026 average (preliminary)

Average home use1,032 kWh/mo^[1]2024 average

Solar output per kW1,427 kWh/yr^[2]PVWatts estimate for Virginia Beach

Median installed price$3.60/W^[3]Estimate, before incentives

Typical system8.7 kWSized to cover 100% of use

Typical price$31,300Estimate, before incentives

Year-1 savings$2,100Estimate

Payback13 yearsEstimate, cash purchase

Estimates use the inputs above and the assumptions in our methodology: Virginia net metering: exports credited at the retail rate (statewide rule; your utility's tariff may differ). Prices rise 2.5% a year; panels lose 0.5% a year.

Solar cost in Virginia by system size

Same assumptions as the typical home above; only the system size changes. Prices are the state median before incentives and include the incentives our calculator applies by default in Virginia.

Estimated cost, output and payback by system size in Virginia
System	Price before incentives^[3]	After incentives	kWh in year 1^[2]	Year-1 savings^[4]^[5]	Payback (years)
4 kW	$14,400	$14,400	5,710	$970	13
6 kW	$21,600	$21,600	8,560	$1,450	13
8 kW	$28,800	$28,800	11,420	$1,940	13
10 kW	$36,000	$36,000	14,270	$2,100	14
12 kW	$43,200	$43,200	17,120	$2,100	17

Incentives that lower the price in Virginia

Federal · tax creditEnding soon

Business credit for leased and PPA systems (48E)

Claimed by the system owner, not the homeowner; solar must begin construction by July 4, 2026 or be in service by December 31, 2027^[6]

If a company owns the panels on your roof (a lease or power purchase agreement), that company may claim the business clean electricity investment credit and can reflect it in your price. You cannot claim it yourself.

Who: Third-party-owned systems (leases and PPAs). Ask the provider whether the price assumes this credit.
Deadline: December 31, 2027
Checked: November 5, 2026

State · tax exemptionAvailable

Property tax exemption for solar facilities of 25 kW or less (Va. Code 58.1-3661(A))

Solar facilities up to 25 kW (DC) installed under Va. Code 15.2-2288.7(A) or (B) are wholly exempt from state and local taxation^[7]

Solar facilities of not more than 25 kW DC nameplate installed under subsections A or B of 15.2-2288.7 (accessory solar on residential/agricultural property); larger certified solar equipment may get a local-option exemption under 58.1-3661(B).

Who: Solar facilities of not more than 25 kW DC nameplate installed under subsections A or B of 15.2-2288.7 (accessory solar on residential/agricultural property); larger certified solar equipment may get a local-option exemption under 58.1-3661(B).
Deadline: None set in the source
Checked: November 5, 2026

All Virginia incentives, including utility and local programs →

How Virginia utilities credit your solar

Under Va. Code 56-594, investor-owned utilities (Dominion, Appalachian Power) offer net energy metering netted over a 12-month period from interconnection, with any annual excess compensated under a contract; electric cooperatives run programs under 56-594.01. The SCC must periodically set successor tariffs; in its Dominion proceeding (PUR-2025-00079, decided spring 2026) it reportedly rejected Dominion's proposed credit cut and kept annual energy-based netting.^[5]

We have not added every Virginia utility yet, so the estimates on this page use the state-level rule: Virginia net metering: exports credited at the retail rate (statewide rule; your utility's tariff may differ).

Full Virginia net metering and export-credit rules →

Next steps

Run the solar calculator with Virginia defaults and your own bill.
Virginia solar incentives
Virginia net metering and export credits
How to vet installers in Virginia
Spot solar sales red flags and compare financing before you sign.

Frequently asked questions

How much do solar panels cost in Virginia?

At the state median installed price of $3.60 per watt est.^[3], a 8.7 kW est.^[1,2] system that covers a typical home's use costs about $31,300 est.^[1,2,3] before incentives. Quotes vary with roof, equipment and installer.

How long does solar take to pay for itself in Virginia?

For a cash purchase at the state's average electricity price of 16.95¢ per kWh^[4], our model estimates about 13 years est.^[1,2,3,4,5]. Your utility's export credit and rate plan matter a lot; see the export-credit table above.

Is there still a federal solar tax credit?

Not for homeowners who buy. The Federal Residential Clean Energy Credit (25D)^[8] does not apply to systems whose installation is completed after December 31, 2025. Leased and PPA systems are different: the company that owns the system may still claim a business credit.