With a rising demand for various solar incentives, exemptions, and rebates, the property owner in Virginia is in a favorable condition to earn the benefits from a solar energy system. Being the 24th sunniest state in the country, receiving an adequate amount of sunshine in a year, averaging 75%, the Old Dominion state is an excellent place to invest in solar panels!
Virginia Clean Economy Act is a sweeping mandate that requires 100% of the state's electricity to come from clean energy sources like solar and wind by 2050. The rule makes solar energy systems with a goal of 2,000 megawatts of solar by 2030, a massive total of the innovative energy system.
Excellent news for property owners who consume only some of their solar panels' electricity, especially during daylight hours. Virginia provides net metering to those with solar PV systems up to 20kW in capacity. Net metering is a program that credits solar panel owners for the electricity they produce and feed into the grid, allowing them to offset the cost of the power they consume from the utility company.
Virginia has strong interconnection standards, which makes it more accessible for utility companies to offer net metering. Interconnection standards are the rules that dictate how renewable energy sources can be connected to the electricity grid, a method of "plugging into" the grid. Clear, transparent guidelines help panel owners connect easily, enabling them to earn credits for unused electricity immediately!
Even though Virginia does not offer state solar rebates, the Tennessee Valley Authority, one of the biggest utility companies, provides solar incentives for property owners that utilize renewable energy systems. Eligible property owners may qualify for a payment of up to $1,000 after their system has been installed.
Virginia offers Performance-Based Incentives (PBIs) based on the power your system generates. The state calls them Solar Power Performance Payments. These solar incentives are in the form of Solar Renewable Energy Credits (SRECs), determined by the kilowatt-hours your solar system generates. Virginia ranks 15th in the nation when it comes to these production incentives, helping make it cost-effective to make the switch to a renewable source of energy.
Fortunately, beginning this year, January 1, 2023, solar panel systems in the Old Dominion state are exempted from local and state taxes. This kind of solar incentive allows homeowners to exclude the added value that a solar panel system provides from the valuation of their property for taxation purposes. Since a solar system can drastically increase your home's value, this exemption is a big win for consumers!
Virginia State enjoys solar incentives of both renewables portfolio standard (RPS) and a solar carve-out to which property owners can generate money yearly by selling SRECs to utility companies to produce their solar energy system.
Thanks to the Solar Investment Tax Credit, owners of a solar panel system can deduct 26% of its cost from their Federal taxes. Remember that this Federal tax credit is only for those who own, not lease, their system, so make sure to factor that into your panel decision-making process. This percentage is set to decrease to 22% in 2023 and ends in 2024. So don't delay when it comes to comparing solar panel quotes!
The Old Dominion state provides tons of causes to install solar panels wisely. Investing in a solar energy system will benefit you from the numerous Virginia solar incentives,, exemptions, and rebates. Still, you will also be able to reduce your dependence on coal and decrease carbon dioxide emissions.
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