Have you ever thought about soaking up some of that abundant Virginia sunshine and converting it into energy for your home? Well, now is the perfect time to do just that!
This beautiful state is making it easier than ever to save on solar with a host of solar incentives – think tax credits, rebates, and even net metering programs that can make your solar installation the best upgrade to your home you’ve ever made. Installing solar panels in Virginia is an excellent investment that can provide a substantial return on investment (ROI) over time.
Not only can you significantly reduce your monthly electricity bills, but you’ll also gain energy independence, freeing yourself from the unpredictable costs of traditional energy sources.
Let’s dive into this bright opportunity to adopt solar power in Virginia together.
Home Solar Panel Costs in Virginia
By equipping your home with solar panels, you’re not just generating your own energy – you’re also safeguarding yourself against future hikes in utility prices. Consider it as locking in a fixed, manageable rate for your monthly power needs.
The average cost of solar panels in North Carolina, as of early 2024, is around $3.01 per watt, making a typical 5 kW (5000 watts) solar system approximately $15,0351 – and that’s before claiming the 30% Federal Solar Tax Credit! With that factored in, the average price would fall to $10,524.
What Goes into the Final Cost of a Solar PV System?
Keep in mind that estimating the cost of your solar PV system is based heavily on details like its size, variable installation expenses, and the incentives you’re able to tap into—factors we’ll delve into shortly. What goes into the total cost?
Solar panels, which are the central cost factor, vary in type, quality, and quantity, directly influencing the overall price.
You’ll also need to factor in professional installation, like that provided by Freedom Solar PowerⓇ to over 24,000 customers, ensuring optimal system efficiency. Partnering with an excellent, transparent, locally knowledgeable, and skilled installer will save you money in the long run.
Your system will also require an inverter to convert the DC electricity produced by the panels to AC for home use and mounting hardware to secure the panels on your roof or ground.
Permitting and inspection fees, dictated by local government regulations, and sales tax (dependent on state) on equipment and installation can add to the cost. Maintenance costs, although minimal, may include cleaning and occasional part replacements.
Utilizing Incentives & Rebates
Virginia State Incentives and Rebates
Solar Renewable Energy Certificates (SRECs)
Solar Renewable Energy Credits (SRECs) are a significant incentive for homeowners in Virginia who choose to go solar. Under the Virginia Clean Economy Act2, these credits are generated for every megawatt-hour (MWh) of solar electricity produced by their system.
In the state’s effort to meet sustainability requirements, utilities purchase SRECs from homeowners, effectively turning solar energy production into a source of income. The current value of an SREC in Virginia is currently sitting around $60 in 2024, although this is subject to change as the market evolves.
Given these benefits, the SREC program can significantly offset the initial investment in a solar system and contribute to long-term savings for homeowners.
Residential Property Tax Exemption
In an effort to encourage the adoption of renewable energy, the state of Virginia provides a lucrative incentive for homeowners interested in going solar in the form of a property tax exemption for residential solar systems up to 25 kW. Currently, the incentive only applies to 30 localities in the state.3
Qualifying homeowners can enjoy significant savings while also increasing their property value over time – a win win for taxes and the earth.
Dominion Energy Solutions’ Solar Loan Programs
Dominion Energy Solutions offers a variety of solar financing solutions, including the option for a zero down payment solar loan. This enables you to start your transition to solar without any upfront costs.
Net Metering in Virginia
Solar incentives in Virginia can extend beyond installation. Enrolling in a net metering program allows you to earn credits on your power bill for each surplus kilowatt-hour of solar energy that you feed back into the grid.
When your solar panels aren’t generating enough electricity to meet your needs, you can utilize these net metering credits to offset the shortfall, enabling you to effectively manage your power production and consumption. Dominion Energy provides one of the premier net metering programs in Virginia.4,5
Local Utilities Incentives
Local Property Tax Exemptions in Virginia
Some Virginia localities have laws allowing them to exempt or partially exempt solar from property taxes.
Manufacturer Rebates
While Virginia does not have a dedicated state rebate for solar panel installation, some manufacturers offer their own solar rebates.
Federal Rebates
To help reduce the cost of solar panels in Virginia, as well as across the nation, the Federal Solar Tax Rebate was introduced in 2006. Also known as the Residential Clean Energy Credit or the investment tax credit (ITC), this rebate can lower the expense of your photovoltaic (PV) solar energy system by 30 percent.
It’s important to note that this credit is only available to those who own their PV system outright through either a cash transaction or a solar loan. Additionally, you need to have sufficient income for this tax credit to provide substantial benefits. If you’re a tax-exempt entity, you might qualify for a direct payment instead.
Best Solar Companies in Virginia to Help You Save
If you’re considering installing solar panels in Virginia, you’re in luck. As one of the best solar companies in Virginia, Freedom Solarâ„¢ has a hard earned reputation for providing excellent customer service, high-quality solar panel installation, and comprehensive solar solutions that cater to each homeowner’s specific needs.
The idea of going solar may initially seem like a big expense, but when you consider the rising costs of utility bills amidst skyrocketing inflation, it becomes clear that remaining on the grid is the pricier path.
Our solar panels come with a 25-year warranty, making your investment secure and promising a high return. On average, our customers are pocketing savings of around $20,000 in electricity expenses over the quarter-century lifespan of their solar system.
So, while the upfront cost might seem daunting, the long-term benefits of going solar – both for your wallet and the planet – are undeniable. Contact us today for a free consultation.
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