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Solar incentives and financing in Virginia

• Factsheet

April 29, 2024

What type of solar incentives are available?

Several types of incentives can help you go solar. Learn more about the national context of solar incentives on our national solar incentives page.

Virginia Solar Renewable Energy Credits

Virginia passed the Virginia Clean Economy Act in 2020. As a result of this act, Solar Renewable Energy Credits” (SRECs) will soon come to Virginia.

• Solar owners benefit because the solar they generate is now valuable to utilities. Utilities can avoid paying fines by purchasing SRECs. Solar owners generate these credits based on how much energy their system produces. Virginia Clean Economy Act (VCEA) sets aside specific targets for rooftop solar that utilities must meet. This will help more Virginians take control of where their energy comes from.
• SRECs provide an additional way for solar owners to make money. Selling SRECs can help solar owners shorten the time it takes to pay off the cost of going solar. Shortening this time period makes solar a more attractive option for more people.
• VCEA helps low-income families benefit from solar as well. The law sets aside credits utilities must purchase from low-income households.

Virginia Property Assessed Clean Energy

Virginia legislators enabled Property Assessed Clean Energy (PACE) programming in 2009. While the law allowed cities and counties to begin designing and implementing PACE for commercial properties, it was not until the law was clarified in 2015 that municipalities began pursuing PACE programs for their constituents. As of 2024, 17 municipalities across Virginia have implemented commercial PACE programs.

These programs are administered by the Virginia PACE Authority (VPA). Visit Virginia PACE Authority to see if your city or county is a participant. Traditional commercial properties, such as office buildings, retail, hotels, multi-family buildings of five or more units, as well as non-profit properties, are eligible for commercial PACE financing.