Virginia Solar Incentive Programs

Virginia has very limited resources for solar energy programs at this time.

Summary of Virginia Incentive Programs

•Available State Business Grants
•Possible Property Tax Exemption

Federal Incentives

Federal Investment Tax Credit (ITC)

Commercial solar energy systems can take advantage of the Federal Investment Tax Credit 48E, which provides a tax credit of 30% of the total cost of the system, provided prevailing wage and apprenticeship requirements are met. 

Residential systems can no longer claim any federal solar tax credit, as the One Big Beautiful Bill eliminated it for systems installed after January 1st, 2026. 

Commercial Depreciation

Commercial asset owners can write off 100% of a project’s value in depreciation in the first year. The One Big Beautiful Bill reinstated the 100% bonus depreciation, while simultaneously eliminating the Modified Accelerated Cost Recovery System (MACRS) that previously depreciated solar energy systems over 5 years. 

The depreciable basis of a project is reduced by half of the ITC value when combined with the 30% ITC. Here’s a quick example:

• Project cost = $800,000
• 30% credit = $240,000
• Reduced depreciation basis: $800,000 – ($240,000 / 2) = $680,000

A company’s tax rate is then taken into account to calculate the exact amount they’re able to write off. 


There is an available grant program available for manufacturers of solar photovoltaic panels in Virginia, and TVA (Tennessee Valley Authority) offers a production incentive of $1000 plus $.12 kWh.  Property tax exemption is a possibility, depending on the county or locality.  Arlington County offers a Green Building Incentive program for achieving LEED certification.

Many additional programs are available from the federal government.

For additional information visit the DSIRE:Database of State Incentives for Renewables & Efficiency.