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What Solar Panels Really Cost in Virginia (2026)

Virginia systems run big because Virginia bills run big. The per-watt price sits under the national average, and the April ruling kept net metering whole.

The Cost of Solar Panels in Virginia

Solar in Virginia costs about $2.79 per watt, 3.5% below the national average, but the typical 9.42 kW system still runs about $26,282 before incentives. The total is high because Virginia homeowners install big systems (9.42 kW is the 2025 median, per Berkeley Lab), not because installers charge a lot, so the smart move is to size to your own usage.

On this page
  1. Why totals run big
  2. NEM 2.0 order
  3. Which utility
  4. 12.5-year payback
  5. When it doesn’t pay
  6. Three checks
  7. Questions

See what a right-sized Virginia system costs

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Big Virginia bills, big Virginia systems: prices from 6 kW to 12 kW

The average Virginia home uses about 1,032 kWh a month, roughly 20% more than the typical American home. Power carries summer cooling and, in much of the state, winter heating too. Virginia homeowners install big systems to match, 9.42 kW at the 2025 median (Berkeley Lab, 3,258 systems), so the total looks big even at a below-average $2.79 per watt. For every other state, see our national solar cost guide.

  • 6 kWAbout $16,740
    About 8,260 kWh a year
  • 9.42 kW (typical Virginia size)$26,282
    EcoGen Index: about 12,967 kWh a year at $2.79 per watt
  • 12 kWAbout $33,480
    About 16,520 kWh a year

Gross cost at $2.79 per watt, before incentives. Output uses Virginia’s 1,377 kWh per kW a year. Real quotes vary by roof, equipment and installer.

The per-watt price is the fair-bid testDivide any quote by its wattage. Per watt, Virginia prices 3.5% below the national average. A big total is a usage story, not a markup.

The 12 kW row is not a bonusMaking more power than you use does not pay in Virginia. Surplus left at year-end is cashed out at a fraction of retail, as the next section shows.

Virginia against its neighbors, cost per watt

North Carolina$2.76
Virginia$2.79
Maryland$2.80
US average$2.89
West Virginia$2.93
Tennessee$3.18

EcoGen Solar Cost Index (September 2026 Edition). Cost per watt, cash, before incentives.

16.48¢ inside the year, about 6¢ after it: what Virginia’s April 2026 order kept and what changes in 2027

In its final order of April 30, 2026 (Case PUR-2025-00079), the State Corporation Commission set Dominion’s next rules, NEM 2.0, for applications approved on or after May 1, 2027: credits are counted in kWh but netted every 30 minutes, with a $1 monthly fee and 5.829¢ per kWh for surplus left at year end. Applications approved before May 1, 2027 stay on today’s net metering: credits carry forward each billing period, and year-end surplus is not paid unless you sign a purchase agreement with Dominion, which pays the PJM Dominion-zone annual average: 6.003¢ per kWh for 2025. The SCC approved the 30-minute interval while keeping annual kWh netting. It rejected new fees of $100 to $750 and utility ownership of renewable energy certificates. Homeowners keep their SRECs.

Power you use or net within the year

Full retail

Each kWh offsets your full retail rate, modeled here at the 16.48¢ statewide average.

Surplus left after 12 months

About 6¢ per kWh

Today, year-end net excess is paid only under a purchase agreement, at 6.003¢ for 2025. For applications approved from May 1, 2027 it is cashed out at 5.829¢, about a third of retail, and the only other new cost is a $1 a month administrative fee.

Size to your usage, not your roofThat year-end rate is why oversizing fails. Anyone selling a system on export income is selling against the tariff.

Already have solar?Systems interconnected under the old rules stay on NEM 1.0 indefinitely, so nothing changes for you.

Dominion, Appalachian Power or a co-op: which netting rules cover your address

Dominion Energy
About 66% of homes

For applications approved from May 1, 2027, NEM 2.0 applies: 30-minute netting, kWh credits, $0.05829 per kWh for year-end surplus.

Appalachian Power
About 13% of homes

In southwest Virginia. Its own 2025 order kept annual netting at retail compensation, with net excess beyond 12 months paid at about 5.6¢ per kWh.

Electric co-ops
About 10% of homes

Rappahannock and Northern Virginia electric co-ops are the largest. Net metering terms are set per co-op and deserve a line-item check before you sign.

The first question for any Virginia installer is simply: which utility serves this address, and which netting rules apply to it?

Slow but solid: the 9.42 kW Virginia payback with no federal credit

There is no federal residential credit for host-owned systems whose installation is completed after December 31, 2025. The Virginia math has to work on its own, and for a right-sized system it does.

Typical 9.42 kW system at $2.79 per watt

Gross system cost (9.42 kW x $2.79)$26,282
Federal credit for a system you own$0
Yearly production at 1,372 kWh per kWAbout 12,924 kWh
Power offset in year one, at Dominion’s 16.27¢ (17.01¢ average less its $7.58 monthly customer charge)About $2,103
Simple payback before incentivesAbout 12.5 years

Sized to your use, every kWh cancels a kWh you would buy from Dominion. No upkeep or price rises are counted. The other utilities: Appalachian Power 12.9 years, Old Dominion Power 13.6 and Rappahannock Electric Cooperative 14.0. Year-end surplus, your rate plan, shading and roof orientation move it.

Use your own rate16.27¢ is Dominion’s average price with the customer charge taken out, not your billed rate. Rerun the year-one figure with the per-kWh charges on your own bill.

Four Virginia homes where a 9 kW quote does not pay

The payback above only holds when production matches consumption. Think twice if one of these fits:

  • Your usage is low. If your bill runs well under the state’s $167 monthly average, a 9 kW quote is oversized for you.
  • You hoped to lease. Power purchase agreements are restricted in Virginia and limited to certain utilities and customer types, so the lease-style route that carries the remaining federal 48E credit is not broadly available to homeowners here.
  • Your roof has under 10 to 12 years of life. A 12.5-year payback on a roof that needs replacement in 8 forces a mid-life removal and reinstall cost the proposal will not show.
  • The pitch counts on surplus income. At about 6¢ per kWh for year-end excess, Virginia pays near-wholesale rates for overproduction.

The per-watt, sizing and license tests for a Virginia bid

Run all three before you pay a deposit:

  • The per-watt test. Divide the gross price by the system’s wattage. Against the $2.79 benchmark, a bid at $3.30/W deserves an explanation. Premium equipment and complex roofs can justify it; a brand name cannot.
  • The sizing test. Ask the installer to show your last 12 months of kWh usage next to modeled production. Anything above roughly 100% of annual usage needs a reason.
  • The license test. Virginia solar work runs under DPOR contractor licensing, with electrical work requiring the ELE classification. Ask for license numbers and check them with the Department of Professional and Occupational Regulation.

Get bids that price your actual usage

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More on Virginia solar pricing

Frequently asked questions

How much do solar panels cost in Virginia in 2026?

Virginia’s installed price is $2.79 per watt before incentives, 17th lowest of 51 in the EcoGen Solar Cost Index (September 2026 Edition). The typical 9.42 kW system, the median size Virginia homeowners installed in 2025, runs about $26,282 gross.

Does Virginia still have net metering in 2026?

Yes. Dominion keeps today’s net metering for applications approved before May 1, 2027. From that date, NEM 2.0 nets every 30 minutes, adds a $1 monthly fee and pays 5.829¢ per kWh for year-end surplus. Appalachian Power kept annual netting at retail rates under its own order.

Is there a federal tax credit for solar in Virginia?

Not for systems you own. The 25D residential credit is $0 for host-owned systems whose installation is completed after December 31, 2025. The remaining 48E credit reaches only third-party-owned systems, and PPAs are restricted in Virginia, so plan the purchase on the electricity math alone.

What is the payback period for solar in Virginia?

About 12.5 years at Dominion, simple payback before incentives: about $2,103 a year of power offset at Dominion’s 16.27¢ price (its 17.01¢ average less the monthly customer charge) against a $26,282 typical cost. Across the utilities in our state figure it is 12.5 to 13.6 years. A system bigger than your use takes longer, because year-end surplus earns far less.

Should I oversize my solar system in Virginia?

No. Power netted within the year offsets your full retail rate, but surplus left at year end is paid only under a purchase agreement, at the regional wholesale price: 6.003¢ per kWh at Dominion for 2025. Size to your last 12 months of usage, not to your roof’s maximum.

How we calculate these costs

Cost figures use Virginia’s entry in the EcoGen Solar Cost Index (September 2026 Edition), $2.79 per watt, 17th lowest of 51. The 9.42 kW typical size is Berkeley Lab’s 2025 median for Virginia single-family installs (3,258 systems). Payback comes from our per-utility figures of October 19, 2026: the typical system’s cost divided by a year of its output (12,924 kWh, at 1,372 kWh per kW) valued at each utility’s EIA 12-month residential price, August 2025 to July 2026, with its fixed monthly charge taken out. No upkeep, price rises or federal residential credit for host-owned systems.

Sources (7)
  • Virginia State Corporation Commission, Final Order in Case PUR-2025-00079 (issued April 30, 2026): scc.virginia.gov
  • U.S. EIA, Electric Power Monthly, residential price by state, 12-month average August 2025 to July 2026: eia.gov
  • U.S. EIA, Form EIA-861 Annual Electric Power Industry Report, 2024: eia.gov
  • U.S. Census Bureau, American Community Survey, 2024: census.gov
  • IRS, One, Big, Beautiful Bill Provisions (Public Law 119-21, Section 25D): irs.gov
  • DSIRE, Third-Party Solar PV Power Purchase Agreement Policies (May 2026): ncsolarcen-prod.s3.amazonaws.com
  • Virginia DPOR, Contractor Licensing Classifications: dpor.virginia.gov

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