Commercial Solar Incentives in Virginia

This material has been prepared for informational purposes only. Greentech Renewables does not provide tax, legal, or accounting advice. Information displayed is not project-specific and will require an official written proposal by a certified installer. 

Property Tax Exclusion 

Virginia offers a 100% commercial property tax exemption for business owners with solar systems, meaning the value of your system will not be factored in to your property taxes. 

Solar Renewable Energy Credit Program

Virginia's Solar Renewable Energy Credit (SREC) Program allows commercial solar system owners to receive an SREC for every excess 1,000 kWh of energy generated that their solar system produces. SRECs can then be sold to utility companies for $45 to 70 they can sell to utility companies. 

VirginiaSAVES Green Community Program

The VirginiaSAVES Green Community Program offers subsidized financing to commercial and non-profit businesses interested in installing solar energy systems to further the 2014 Virginia Energy Plan objectives. 

Virginia's Net Metering Program

Commercial and agricultural customers are eligible for net metering with their utility provider. Customers with solar systems can receive credits on their future electric bills for any excess energy their solar system produces, as long as the system size does not exceed customer's annual load. Net metering is available to commercial customers with systems up to 3,000 kW in capacity and to agricultural customers with systems up to 500 kW in aggregated capacity. 

Business owners in Virginia may also take advantage of several federal solar incentives that could be combined with the state's current incentives. When applied, these solar incentives have the potential to significantly reduce the cost of installing a solar system. 

Business Energy Investment Tax Credit (ITC)

The business Energy Investment Tax Credit program allows businesses to claim 30% of their solar system costs as a federal tax credit. Additional tax credits are available depending on the district. 

Connect with a local installer to find out if you qualify for additional tax credits. 

Renewable Electricity Production Tax Credit (PTC)

Business owners in Virginia may take advantage of the federal renewable electricity production tax credit (PTC). This provides an inflation-adjusted per-kilowatt-hour (kWh) tax credit for electricity generated by qualifying energy sources. Projects under 1 megawatt (MW) can receive 1.5 to 2.75 cents/kWh depending on the type of facility. Projects over 1 MW will receive a base tax credit of 0.5 cents/kWh.

Keep in mind that solar project owners cannot claim both the ITC and PTC for the same property. Discuss with a solar installer to understand which tax credit incentive you should claim for your solar system.

Modified Accelerated Cost-Recovery System (MACRS)

Virginia business owners can take advantage of the Modified Accelerated Cost Recovery System (MACRS). This program allows business owners to recover some of the costs of solar panel installation through a five-year MACRS schedule.

Virginia Commercial Property-Assessed Clean Energy (C-PACE)

C-PACE is a financing program that allows approved commercial property owners to borrow money to pay for energy improvements without a large upfront cost coming out of the business' pocket.

Rural Energy for America Program (REAP Grant) 

The USDA's "Rural Energy for America Program," or “REAP,” offers a grant to cover 50% of commercial solar system costs to encourage agricultural and rural businesses to maximize their energy efficiency with solar.

Learn More!

Connect with a local Virginia installer to see which incentives can contribute to your solar system. 

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