Virginia · Tax exemption · Deep-stack program

VA Solar Property Tax Exemption

Removes a tax burden residential solar owners in Virginia would otherwise carry -- see what it covers, eligibility, and payback impact below.

Property tax exemption (by locality)
stated benefit
Residential
eligible customers
15 yr
Virginia baseline payback
3
other Virginia programs
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Deep-stack program · late directory

Virginia runs a 4-program DSIRE stack; this tax exemption is one layer on a 15-year modeled baseline, not the whole story.

  • Stack4 programs
  • In-state #3/3
  • Type #40/45
  • Baseline15 yr

In-state directory place #3 of 3 (late alphabet). National tax exemption directory #40 of 45. Amounts and eligibility change; verify with the official program page before relying on a dollar figure. Informational only - not financial advice. See our disclaimer.

Program description

Virginia localities may exempt solar energy equipment from property taxes.

Program at a glance

Program type
Tax exemption
Eligible customers
Residential
Stated benefit
Property tax exemption (by locality)
State electricity rate
13.8¢/kWh
Virginia solar score
27/100

Solar's trajectory in Virginia

The market this incentive operates in: total installed solar capacity in Virginia reported to the EIA.

0 MW1.0 GW2.0 GW3.0 GW4.0 GW5.0 GW 1990199319961999201820212024 4.7 GW
Virginia now has about 4.7 GW of installed solar, the backdrop programs like this one are built on.

Source: U.S. Energy Information Administration, installed solar nameplate capacity As of 2024

Virginia's solar incentive stack

How this tax exemption sits among Virginia's 3 tracked programs, by type

programs

What this shows Virginia tracks 3 incentive types; 1 are tax exemptions like this one, removing a cost solar owners would otherwise carry, on top of the state's other program types.

Source DSIRE incentives registry As of 2024

How this tax exemption layers inside Virginia's deep stack

The VA Solar Property Tax Exemption removes a tax burden solar owners would otherwise carry, one of Virginia's DSIRE-tracked solar incentive programs. Eligibility is scoped to residential customers, with a stated benefit of Property tax exemption (by locality). DSIRE lists no scheduled sunset, though enabling legislation and appropriations can still be revised year to year.

That baseline is slower than most states, which raises the stakes for every incentive on the table. Virginia averages 4.8 kWh/m²/day of usable sunlight and residential rates of 13.8¢/kWh, producing an estimated 8,410 kWh/year and $1,161 of annual utility offset on a typical 6 kW system costing $17,400. That baseline already implies a 15-year simple payback and a 25-year modeled net of roughly $11,625 before this incentive - every dollar this tax exemption delivers compresses that payback further.

Virginia bundles a deep incentive stack, so this program rarely stands alone. Virginia has 4 solar incentive programs indexed in DSIRE, including adjacent options like VA Net Metering, Dominion Energy VA Community Solar. The state's net-metering policy is classified as full, which governs how excess generation is credited and often decides whether a given program is worth claiming for a specific household.

Frequently asked questions

Where does the VA Solar Property Tax Exemption sit in Virginia's deep program stack?
The VA Solar Property Tax Exemption is a tax exemption available to residential solar customers in Virginia. The stated benefit is Property tax exemption (by locality).
How does this tax exemption work beside Virginia's other programs?
Virginia localities may exempt solar energy equipment from property taxes.
Who qualifies, and what does a late in-state directory place mean?
The program is available to residential customers in Virginia. Check the official program page for current eligibility requirements and deadlines. In-state directory place #3 of 3 (late alphabet).
How does this incentive affect solar ROI in Virginia?
Virginia has an estimated 15-year payback for a 6 kW system before incentives, with about $1,161/year in modeled savings. A tax exemption like this lowers upfront cost or raises annual return, shortening that payback. Run the calculator for a figure based on your own bill.
Which other Virginia programs stack with this one?
Virginia has 4 solar incentive programs tracked in DSIRE, including VA Net Metering, Dominion Energy VA Community Solar. State programs are designed to stack on top of any available federal solar tax credit rather than replace it.

Incentive data from the DSIRE (Database of State Incentives for Renewables & Efficiency); state solar economics from NREL and the U.S. EIA. See our methodology · Virginia solar data · ROI calculator · All incentives.