Virginia Incentives

New solar thermal and photovoltaic installations in the United States may qualify for a 30% federal Investment Tax Credit (ITC). Please speak with your Senator or Congressman to request an extension of the ITC.

Virginia does not currently have incentives for photovoltaics or solar water heating. The state does have a local option property tax exemption for solar.

Local Option Property Tax Exemption for Solar

Summary
Virginia allows any county, city or town to exempt or partially exempt solar energy equipment or recycling equipment from local property taxes. Residential, commercial or industrial property is eligible. The statute broadly defines solar energy equipment as any "application which would otherwise require a conventional source of energy." Recycling equipment is defined as equipment which is "integral to the recycling process and for use primarily for the purpose of abating or preventing pollution of the atmosphere or waters." Cities and counties currently offering an exemption include:

• Albemarle
• Alexandria
• Charlottesville
• Chesterfield
• Dinwiddie
• Fairfax
• Falls Church
• Hampton
• Hanover
• Henrico
• Isle of Wight
• King and Queen
• Loudoun
• Lynchburg
• Prince William
• Pulaski
• Richlands
• Roanoke
• Spotsylvania
• Warren
• Wise

Virginia Solar News
Virginia on the Database of State Incentives for Renewables and Efficiency (DSIRE)
Virginia Department of Mines, Minerals and Energy (DMME)

Virginia Submits Recovery Act Energy Program Application (From DMME)
May 12, 2009
The Commonwealth of Virginia submitted its application to the U.S. Department of Energy for $70 million under the American Recovery and Reinvestment Act of 2009 for the State Energy Program.
Virginia proposes to spend the State Energy Program Recovery Act funds in three program areas to be administered by Department of Mines, Minerals and Energy (DMME):

• $32.14 million in grants or rebate incentives to stimulate purchases of renewable energy systems for residences, businesses and government facilities.
• $15 million will be made available to households and businesses to support installation of solar and small wind power systems.  Payments will be based on the size of the system installed as follows:
• $2,000 per kilowatt capacity of solar photovoltaic (electric) systems.
• $1,500 per kilowatt capacity of wind systems.
• $1,000 per kilowatt capacity equivalent for solar thermal (hot water and steam) systems.
• $4.14 million will be made available for installations on local government and public school facilities.  (This will be supplemented with $5.86 million funds from the Energy Efficiency and Conservation Block Grant to total to $10 million.)
• $13 million will be made available for installations on state government facilities.

• $20 million in three economic development incentives to support biomass, waste-to-energy, renewable energy and energy efficiency products, services and projects.
• $10 million will be made available to support biomass and waste to energy projects in Virginia.
• $5 million will be made available to support new clean energy business development in Virginia.
• $5 million will be made available to support commercialization of new energy technologies in Virginia.

• $15 million in grants or rebate incentives to stimulate implementation of energy efficiency improvements in homes and commercial properties.
• Residential consumers will be eligible for a rebate for 20 percent of the cost of eligible energy efficiency improvements, up to $2,000 per consumer.
• Commercial consumers will be eligible for a rebate for 20 percent of the cost of eligible energy efficiency improvements, up to $4,000 per consumer.

• $2.86 million will be used to administer the grants.

Virginia also will be applying in June for $16.1 million to support energy efficiency programs under the Energy Efficiency and Conservation Block Grant program.
Additional details how to apply for the incentives will be made available on the Stimulus.Virginia.Gov website after Virginia’s plan has been approved by the U.S. Department of Energy.
For more detailed information, click on the links below:
American Recovery and Reinvestment Act - Grant Package Cover Pages - (You will need the latest version of Adobe Reader)
American Recovery and Reinvestment Act - Application - (PDF)
American Recovery and Reinvestment Act - SF424A Budget Sheet  - (Excel)