Virginia solar 101: must read before you buy solar panels

The Solar Investment Tax Credit (ITC) allows homeowners to claim 26% of the cost of their solar power system installed until 2022 as an income tax deduction. For example, if your solar system costs $20,000, you are eligible for $5,200 (26% of the total gross cost) in tax credit. Solar system cost comprises not only the money spent on solar panels, but also freight shipping costs, professional installer fees, tools bought or rented and so on. To claim the ITC, complete all the necessary forms and submit them when filing your taxes.

Solar laws in Virginia allow customers of investor-owned utilities and electric cooperatives to join Net Metering programs. This gives residential solar owners an opportunity to put the excess electricity into the utility grid instead of storing it with batteries. When you sell your solar power to the grid, you receive credits that can be used to offset your next bills. In Virginia their value is equal to full retail electricity price. If you have unused credits at the end of the calendar year, you may choose to roll them over indefinitely or receive a payment at an avoided cost rate determined by the utility.

Renewable Energy Credits are certificates granted to any person or entity upon generation of each MWh of clean electricity. Unlike with Net Metering, you don’t need to sell any electricity to get credits. There is one platform in Virginia that allows you to store and sell them: GATS. The value of RECs is always changing, which makes them similar to stock market assets. Based on the available data, selling PECs could mean anywhere from $300 to $1,000 annually for a 10 kW solar system. Take a look at these detailed FAQs for further information.

A solar PV system installed in a home increases its value by about 4%, says 2019 Zillow report. In Virginia it doesn’t always mean higher taxes. According to the state laws, any county, city or town can exempt from property taxes up to 100% of the value added as a result of a solar PV system installation. The number of local governments that have implemented this feature is constantly growing. Local building inspections are the right place to get any answers related to this incentive.

A solar easement contract is a written agreement between you and another party, for example, your neighbor. This type of contract helps to ensure that your PV system will always have adequate sun exposure, protecting you from potential obstacles. It is voluntary, but can not be cancelled unless a specific clause is included in the document. Once signed, it is tied to the land, not the owner. Any such agreement must be created in written form and must meet the general requirements for legal contracts.

It is legal to install solar panels on your house in Virginia. Solar rights law makes it unlawful to prohibit or unreasonably restrict installation of solar PV systems. However, homeowners associations (HOAs) are allowed to make some requirements concerning size and placement of the equipment. These should be deemed unreasonable if they increase installation costs by more than 5% or decrease the efficiency by more than 10%. Covenants that were in effect before July 1, 2008 are not subject to this law.

According to the National Oceanic and Atmospheric Administration, Virginia is one of the 10 states where hurricanes hit most often. Solar panels are robust enough to withstand most hurricanes, and that’s exactly what you need in case of a blackout. In 2011, Hurricane Irene caused close to two million blackouts across Virginia. 94% of Dominion Virginia Power's clients were left without electricity. The Environmental Protection Agency warns about extreme weather events becoming more frequent and powerful – yet one more reason to consider going solar.