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A Quick Guide to Virginia Solar Incentives in 2021

By | Parsons Sharp

Did you know that switching your home in Virginia to solar could potentially save you $2,000 a year on your electricity bills?

Over the last five years, the price of solar systems has decreased by 45%. With both federal and Virginia solar credits available, homeowners can save thousands of dollars and decrease their carbon footprint. There’s never been a better time to switch to solar! 

Check out this quick guide to Virginia solar incentives to decide if going solar is right for you.

Federal Solar Tax Credit

The federal solar tax credit is one of the most reliable and impactful incentives for solar across the United States. Homeowners can claim it on federal income taxes for a percentage of the cost of a solar system.

A 26% credit can be claimed for systems installed in 2021. That means if your solar energy system cost a total of $15,000, your solar tax credit would be $15,000 x .26 = $3,900.

This lucrative incentive is only available until the end of 2022. The tax credit will be reduced to 22% in 2023 and then will be phased out completely. 

The federal solar tax credit will have the biggest impact on the cost you’ll face when switching to solar energy in Virginia. Taking advantage of this tax credit is a great reason to consider going solar in 2021.

Net Metering in Virginia

Net metering is a utility billing tool that offers credits on your electricity bill. You get a net metering credit for any unused solar electricity that you send back to the grid. You can then use these net metering credits at times when your solar panels aren’t producing as much energy as you’re consuming. 

A great example of when net metering is beneficial is looking at the different seasons. Many homes in Virginia will produce excess energy in the summer months and will use more electricity from the grid in the winter. You can use the credits from the summer months during the winter and at night when you need them.

With the right design, your solar system should be able to generate the amount of energy you need over the course of an entire year. There are many solar companies that can help you create the right solar system for your house. 

Residential Property Tax Exemptions

Adding solar panels to your home has the potential to increase your home value by up to 4.1%. This is great if you’re looking to sell your house, but you may be concerned about the tax implications of a higher home value.

Virginia’s residential property tax exemption law allows localities to exempt or partially exempt solar energy equipment from property taxes. Currently, this exemption is only allowed by 30 localities in Virginia, so it’s important to look up your locality’s rules. 

Take Advantage of Virginia Solar Incentives 

There has never been a better time to switch to solar. Taking advantage of Virginia solar incentives can help you save money and decrease your carbon footprint.

If you’re interested in learning more about going solar, check out the rest of our blog.

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