This ongoing (and recently strengthened) federal program is the strongest incentive to install solar panels anywhere. With this program, sometimes called the Investment Tax Credit or Residential Clean Energy Credit, homeowners can now receive a tax credit equal to 30% of the total cost of their active solar installation. These savings will accumulate in the fiscal year following the installation of your solar panel.
For example, if you pay $10,000 for solar panels (materials and labor) in 2023, your tax bill could be reduced by $3,000 in 2024. This tax credit is valid through 2033 and was recently increased by 26%. There is no cash limit on the amount that can be claimed. However, the owner must own the solar system and cannot rent it.
Virginia Net Bill
Under state law, Virginia utilities are required to offer net metering to their customers. Customers participating in the grid can transfer excess unused solar energy in their homes to the energy provider in exchange for credit. Then, when a private home's solar panels don't produce enough to power the home, as is often the case overnight or during the winter months, the customer can use the credits to lower their energy bill.
Interested customers must register for net metering with their energy provider. Unlike investor-owned utilities, utilities are not required to support net metering. (Although some do.)
Solar Renewable Energy Credit (SREC) Program
Instead of a one-time incentive to install solar panels, this Virginia program allows homeowners to earn Solar Renewable Energy Credits (SRECs) on an ongoing basis. Unlike net metering, SRECs are converted directly to dollars. Solar power users can earn a SREC for each megawatt of solar power generated by their facility.
They can then sell the SREC on the SREC marketplace: the average price is about $35 , and the average price is $75 . Since it is an open market, prices fluctuate based on supply and demand.
This may sound weak. But think of it this way: a 10 kilowatt system should be able to generate 12 SRECs per year. An average of $35, which is equivalent to an annual salary of $420 .
