ECONOMIC CENTS: Residential Solar Update
Solar systems for homes installed by a vetted dealer at discounted prices are available ... but the clock is ticking.
By Bruce Saller
COLUMNIST
The deadline to sign up for the Solarize Virginia campaign has been extended to August 15th. This is your last opportunity to purchase a solar system installed by a vetted dealer at discounted prices, taking advantage of federal tax credits and the existing Dominion Energy Net Metering rules. Here are some of the Frequently Asked Questions from the Solarize Virginia webpage.
How do I take advantage of the Federal Tax Credit?
The recent reconciliation bill that passed in Congress repealed the federal solar tax credit, also known as the Residential Clean Energy Credit or the Investment Tax Credit (ITC), which allows homeowners to claim a credit on their federal income taxes for 30% of the cost of installing a solar panel system. For most projects, this amounts to $9,000 or more of tax credits, significantly offsetting the cost of a solar system. Solar projects must be installed in 2025 to be eligible for the credit.
Can I make sure that my system will be eligible for the credit?
With installation timelines stretching to 3-4 months and increasing demand across Virginia, we recommend signing a contract by the end of August to ensure completion by year’s end.
Is net metering at risk?
In Virginia, you are typically credited for the excess energy at the full retail rate, meaning you receive the same price for the energy you send to the grid as you pay for the energy you consume. Electric providers are lobbying to reduce that ratio, which is scheduled to occur in 2026. Any systems put into operation while the current net metering agreement is in effect will be grandfathered in at the current rate.
I’m not sure that I can afford solar - should I still sign up?
There is no fee to sign up for Solarize, and no obligation to move forward until you sign a contract with an installer. Getting a proposal is an important tool to help you make the best decision about solar. In light of the federal tax credit, net metering, discounted pricing and skyrocketing electric rates, 2025 is the best time to go solar. Sign up and get started at solarizeva.org/sign-up.
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