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Virginia Solar in 2026: Incentives, Programs, Deadlines

The federal residential credit ended, the state's Solar for All money is still frozen, and two 2026 Virginia laws quietly changed what a home or small business can actually do. Here is where each one stands.

By the Go Solar DMV news desk · Nov 7, 2026 · 5 min read

Virginia Solar in 2026: Incentives, Programs, Deadlines

Key facts

Virginia solar in 2026: what actually changed

If you are pricing Virginia solar this year, start with the one change that reorders every quote: the 30% Residential Clean Energy Credit under Section 25D expired for systems placed in service after December 31, 2025, so a homeowner buying with cash or a loan in 2026 has no federal residential credit2. There is no phase-down and no partial 2026 credit3. Home battery storage sat under the same section and expired on the same date2.

What survived is the business-side credit. A third party who owns the panels on your roof claims the commercial Section 48E investment credit, and Section 48E was not terminated3. That single distinction is why lease and power purchase agreement pricing may now beat a cash purchase for some households, since third-party owners can still use Section 48E and may offer lower monthly rates than buying outright in 20264.

At the state level, two things moved in the 2026 General Assembly session: shared solar capacity expanded with firm dates attached15, and the 50-kW minimum that kept most homes out of power purchase agreements was removed18. Those matter more to your project right now than the federal litigation does.

Is there still a Virginia solar tax credit?

Not a residential federal one. The Section 25D credit expired December 31, 2025 under the One Big Beautiful Bill Act, which was signed July 4, 202512. Any quote that shows a 30% federal credit applied against a 2026 cash purchase is working from outdated math.

This is worth saying plainly because the claim is still circulating. At least one installer page in the region states that as of 2026 the main tax incentive is the federal 30% Investment Tax Credit applying to all residents5, which conflicts with the tax-focused sources on homeowner-owned systems23. If a salesperson puts that number on a cash purchase this year, ask them to show you the code section it comes from.

For small business owners, the timeline is different and it has a wall. A commercial system must be placed in service by December 31, 2027, unless construction began by July 4, 2026, in which case the window runs up to four years after the year construction began, as late as December 31, 20301. July 4, 2026 has passed. If you did not begin construction by then, December 31, 2027 is your date1. Foreign-entity-of-concern sourcing rules also apply to commercial projects that began construction after December 31, 2025, so ask for equipment compliance documentation in writing1.

The Virginia Solar for All program: $156 million, still frozen

Virginia's share of the federal Solar for All program was $156 million, but only $730,000 went toward planning before the remaining funding was cut off7. The state's plan set aside $49 million for installations serving 6,400 single-family residences, with the remainder supporting grid connections, workforce development and shared-solar projects7. The termination came months before installations were scheduled to begin in December 20257.

The courts have ruled twice. On September 18, 2026, U.S. District Judge Mary S. McElroy vacated the termination of Solar for All8, finding the agency's action contrary to law and in excess of its statutory authority9. District Court Judge Tanya Chutkan for the District of Columbia reached a similar verdict in a separate lawsuit filed on behalf of grant awardees6.

Despite those orders, the money has remained frozen7. The court's order removed the termination decision, but the practical path for grant recipients remained unsettled as of September 28, 202610, and lawmakers have sent a formal letter asking the EPA to follow the court orders and release the funds11.

The practical answer for a Virginia household: there is nothing to apply for today, and be skeptical of anyone who says otherwise. As of October 5, 2026, one review found the grants had ended before Virginia's program paid any household, found no notice that Virginia Energy had reopened it, and noted that no installer can enroll you in it13.

Shared solar is expanding, with dates on the calendar

Virginia's shared solar programs had been capped at pilot scale and fully subscribed, leaving customers and projects waiting14. HB807 authorizes Dominion Energy Virginia to release an additional 525 megawatts of shared solar capacity under certain subscription and construction milestones or by July 1, 2026, requires the utility to seek approval for a third phase of 268 megawatts once phase two is nearly complete, and sets updates to Commission regulations by December 31, 2026 with implementation filings by utilities by March 1, 202715.

Within that capacity, 275 MW shall serve projects with 100 percent low-income customers and the remainder projects with more than 51 percent low-income customers, and the State Corporation Commission is directed to establish a minimum bill by December 31, 202616. In Appalachian Power territory, the law authorizes an additional 50 MW of capacity by July 1, 2026 and another 50 MW by January 1, 202817; the earlier APCo program launched in 2025 and was oversubscribed almost immediately14.

If your roof is shaded, rented or faces north, this is the route worth watching. Getting onto a subscriber-organization waitlist ahead of the December 31, 2026 minimum-bill decision and the March 1, 2027 tariff filings puts you in line before the economics are set1516.

Residential PPAs are now legal at small scale

Until this year, a Virginia power purchase agreement generally had to cover a system of at least 50 kW unless the customer was low-income or tax-exempt, which shut out most homes1318. That 50-kW minimum no longer applies, allowing residents and small commercial customers to use solar or wind PPAs18.

Paired with Section 48E surviving on the third-party side3, this is the most consequential change of the year for a Virginia homeowner who cannot use a tax credit anyway. Under a PPA the company typically owns the system13, so the comparison is no longer purchase versus nothing; it is monthly PPA rate versus loan payment versus your current bill. Run all three on the same utility rate and the same production estimate before you decide. You can start with a roof's sun and shade measurement and compare the options side by side at Virginia solar incentives.

What to do in the next few months

For homeowners: treat 2026 pricing as a straight economic question, since the residential federal credit is gone23. Get quotes that show cash, loan and third-party ownership on the same page, and press any installer who still cites a 30% residential credit5. If your roof will not carry panels well, join a shared solar waitlist now rather than after the December 31, 2026 and March 1, 2027 deadlines15.

For small businesses: your calendar is December 31, 2027 for placing a system in service unless construction began by July 4, 20261. Allow time for design, permitting and interconnection inside that window, and get the sourcing compliance documentation in writing before you sign1. If you want a starting point on your own building, begin with a qualification review.

Questions people ask

Are there Virginia solar incentives in 2026?

There is no federal residential tax credit for a 2026 cash or loan purchase, because Section 25D expired December 31, 2025 with no phase-down and no partial credit23. The openings this year are state-level: expanded shared solar capacity with regulatory deadlines of December 31, 2026 and March 1, 202715, and power purchase agreements now available to residents after the 50-kW minimum was removed18.

Can I sign up for the Virginia solar panel program through Solar for All?

Not at this time. Virginia's $156 million award was cut off after only $730,000 went to planning, and the money has remained frozen despite court orders to restore it7. As of October 5, 2026, one review found no notice that Virginia Energy had reopened the program and no installer able to enroll you in it13.

Is the 30% solar tax credit still available in Virginia?

Not for homeowners who buy with cash or a loan; that credit ended December 31, 20252. A third party who owns the panels on your roof can still claim the commercial Section 48E credit, which was not terminated3, which is why lease and PPA rates may come in below a cash purchase this year4.

Does battery storage still qualify for a federal credit?

Home battery storage was covered under the same Section 25D credit and expired December 31, 20252. Storage attached to a third-party-owned or commercial system falls under the business-side rules instead, where Section 48E remains in place3.

What is the deadline for a small business solar system in Virginia?

A commercial system must be placed in service by December 31, 2027, unless construction began by July 4, 2026, in which case the window extends up to four years after the year construction began, as late as December 31, 20301. Projects that began construction after December 31, 2025 are also subject to foreign-entity-of-concern sourcing rules, so request equipment compliance documentation in writing1.

Sources

  1. Big Beautiful Bill Solar Tax Credit Changes - paradisesolarenergy.com
  2. Key Home Energy Tax Credits Ended in 2025: What's Left in 2026 - goodleap.com
  3. Home Energy Tax Credits 2026 — What Ended and What Survives - realcostiq.com
  4. Federal Solar Tax Credit 2026: New Rules for Homeowners & Businesses - solaxpower.com
  5. Maryland Solar Incentives in 2026: Every Program, Real Numbers - cityrenewables.com
  6. Trump cuts slashed $156 million in Virginia solar funding. What’s next? - whro.org
  7. Solar aid for thousands of Virginia households remains frozen despite court orders to restore it - thecooldown.com
  8. Clean Energy Programs Return After Court Rulings - EarthTimes - earthtimes.org
  9. A recent legal victory could free $7B in frozen Solar for All funds - now.solar
  10. Solar for All Ruling Leaves Funding Questions - EarthTimes - earthtimes.org
  11. US lawmakers demand $7 billion in solar aid after court deems Trump admin's termination attempt illegal - yahoo.com
  12. Federal Judges Order Restoration of Solar for All Funds - wisevoter.com
  13. How To Get Free Solar Panels in Virginia (The Truth in 2025) - ecogenamerica.com
  14. Community solar expansion legislation sent to Virginia governor - solarpowerworldonline.com
  15. GreeneHurlocker - greenehurlocker.com
  16. Commission on Electric Utility Regulation Shared Solar - Dominion - apps.dlas.virginia.gov
  17. General Assembly “Hot Topic” Bills as of the End of the 2026 Virginia Legislative Session - williamsmullen.com
  18. Commentary: The governor’s amendments to energy and data center legislation will save money for customers • Virginia Mercury - virginiamercury.com
  19. Solar aid for thousands of Virginia households remains frozen despite court orders to restore it - yahoo.com
  20. Freeze on “Solar for All" State Grants Leave Virginia in the Dark - nrdc.org

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