Solar Energy

On-site

How Does On-Site Solar Work: Net Metering

A correctly sized solar energy system can produce enough power to meet your annual electricity demands, but it won’t always match up with your daily demand. Solar panels produce more energy in the summer when the days are longer and sunnier and less in the winter when the sun is lower and the days are shorter.

With net metering, you earn credits when you send excess electricity from your solar panels to the grid. When the sun isn't shining and you need to pull electricity from the grid, your utility will apply the credits to your bill.

Net metering helps balance this by giving you credits when excess energy is produced (usually spring or summer), which you can use later (usually winter).

Here’s how it works:

  • When your solar panels produce more electricity than you're using at any point during the day, the electricity is sent back to the grid, which your meter logs as energy exported.
  • When your energy use is higher than your solar panel production (either at night or on cloudy days), you'll pull electricity back from the grid, which your meter logs as energy consumed.
  • At the end of the billing cycle, you'll be billed the net amount of what you send to the grid and what you pull from the grid: hence "net metering".

Source: EnergySage on Youtube (https://www.youtube.com/watch?v=9SQuES3M-B8)

Originally residents who installed solar in Virginia had to install expensive batteries to capture any excess generation from their solar system. However, many utilities and co-ops in the state are currently offering one-to-one net metering, which allows residents to send their excess generation to the grid for an equal credit - essentially use the electric grid as your battery.

Is Net Metering Available in Virginia?

If you connect your solar panel system to the grid, you can most likely benefit from net metering in Virginia.

In Virginia, the Code of Virginia establishes and guides net metering programs for Dominion Energy, Appalachian Power Company and the electric cooperatives that currently offer net metering. Additionally, many, but not all, of the municipal utilities allow for net metering. Visit the Net Metering Programs page to learn more about your electric utility’s net-metering program.

Here are a few nuances to keep in mind:

  • You can roll over bill credits from excess generation month to month.
  • To participate in net metering, your solar panel system’s capacity must be under your electric provider’s size cap, and it generally cannot exceed your expected annual energy consumption (based on your previous 12-month billing history). It usually doesn’t make sense to install a system that generates more than you currently use, unless you have plans for a home addition, hot tub, electric vehicle, or other large electric load. However, systems that cover less than your total usage can still save significantly off electric bills.
  • There’s a limit to how many people can participate in net metering in Virginia; it’s available on a first-come, first-served basis.

Quick Links & Resources


  • A good solar candidate in Virginia is typically a roof or parcel of land that gets plenty of direct sunlight throughout the day. While south-facing is ideal, east and west facing options can also provide plenty of solar production, especially if they are free from shading by trees or nearby buildings.

    Roofs in good condition with at least 15–20 years of life remaining are best, since solar panels can last over 25 years. While solar installers often offer “remove and replace” options for when owners replace their roof with solar installed, these options may be expensive and may complicate new roof warranties. Solar installers can install on most roof types. 

    Building owners should consider the cost and usage of their current electric bills. Higher monthly bills often mean greater savings potential. However, those with suitable roof space but low energy use may still benefit from smaller systems or community solar options.

    Free online tools, such as Project Sunroof or PVWatts, can help estimate solar potential and production before seeking quotes from installers.

Your Energy Bill

Depending on utility rates, system size, and usage, a customer will likely see savings on their electricity bill. The amount of savings is dependent on your utility, the solar potential of the property, and the cost of the solar system.

How Long Will You Benefit?

Consider how long you intend to be in or own your home, school, or business. Generally, the longer you are in the building, the more you will benefit. When calculating the potential savings of on-site solar, consider the savings compared to your electric utility bills, terms of your contract with the vendor, SREC contract, and loan commitment.

Rooftop or Ground Mount?

Whether your project is sited on a rooftop or ground mounted may be dictated by your preferences, roof and terrain considerations, permitting, aesthetics and costs.
Rooftop solar systems may actually protect your roof by absorbing the rays of the sun, save space, and can typically cost less to install as they utilize existing building infrastructure. However, rooftop panels can be challenging to install and repair, may affect your roof warranty, and may not be viable depending on your roof condition or materials, timeline for roof replacement, and the angle and direction your roof faces or the shading it experiences.
Ground mounted solar systems may be more effective at capturing sunlight based on sitting and angling, can be easier to expand and to maintain, and generally offer better performance due to better airflow. However, ground mounted panels can be more expensive to install, can take up more space, and create property care challenges.

Installing solar panels is a commitment that should be carefully considered. You should feel comfortable and confident with your decision, including the solar provider. Here are some helpful tips:

Speak with Multiple Vendors and Obtain Quotes

As with any large financial commitment, customers should speak with multiple vendors to understand all the options and approaches. It’s always wise to get multiple quotes for a project. See the list below for what to consider in a solar vendor.

Customer References

Ask for customer references from solar vendors that you are considering. You can ask these customers about their experience with the vendor, such as whether the customer was satisfied with the work, whether the vendor was responsive to questions, etc.
One option for homeowners looking to go solar is to join a local solar cooperative. Several non-profits across the state, including Switch Together by Solar United Neighbors and the Local Energy Alliance Program (LEAP), offer group buying opportunities for solar plus storage. These types of programs help homeowners get a personal recommendation for which solar company to select and to benefit from lower solar system costs enabled by group purchasing.
When you receive solar installation quotes, you should compare not just the price, but also the quality, qualifications, and warranties/protections provided by each quote as well as keep an eye out for red flags. Generally, you should look for:

System Design and Financials

  • System size and design: Clear graphic or description of the proposed system (kW capacity, number and model of panels, inverter type, placement on roof/ground).
  • Estimated production: Annual kWh output and assumptions (shading, tilt, azimuth).
  • Costs & financing: Total cost and detailed cost breakdown, including any financing dealer fees, incentives (federal ITC, state/local rebates), financing terms: loan terms or leases/PPAs.
  • Payback & savings: Simple payback period and lifetime cost savings (with assumptions disclosed).

Equipment Quality & Installer Qualifications

  • Panel & inverter brands: Warranty length (panels typically 20-25 years; inverters typically 10–20 years).
  • Efficiency ratings: Panel efficiency, degradation rate.
  • Licensing: Virginia Alternative Energy System (AES) Specialty Contractors License.
    • Additional Credentials: The North American Board of Certified Energy Practitioners® (NABCEP) certification signifies that installers have met high standards for expertise, safety, and quality, ensuring installations are reliable, code-compliant, and professionally done.
  • Experience: Number of years in business, number of installations completed.
  • References: Customer reviews, case studies.

Protections & Warranties

  • Workmanship warranty: Industry standard is typically 5–10 years, covering installation errors and roof penetrations.
  • Performance guarantee: Sometimes offered, ensuring a certain % of projected output.
  • Service/monitoring: Clarity on who monitors and fixes issues.

Red Flags to Look Out for:

  • No clear production estimate
  • Unclear contract terms
  • Pressure tactics (e.g., “sign today for this price”)
  • Overly optimistic claims
With so much to consider, it’s important to ask solar vendors a variety of questions. Click a category to see question(s) to consider asking.
About Your Vendor
  • What similar projects has your company installed for customers like me? Are there any neighbors/customers I can talk to as a reference?
About Your System
  • What solar panels and inverters does your company use?
  • Is the system sized correctly for my energy use?
  • What percentage of my electric bill should I expect to be covered by the solar? What would they estimate the remaining electric bill cost, if applicable?
  • What warranties are included with the proposed system? How long are the warranties?
  • Who will secure the necessary permits and submit the interconnection agreement for net metering?
  • Who performs the installation? How long will it take? What parts of my home will installers need access to? 
  • Will the system use a battery storage component? If so, are there added costs? 
Post-Installation
  • What support, maintenance, and repair services are offered by the provider? Is removal or reinstallation provided if the roof needs replacement? Is your system under warranty? 
  • What happens to the system if you move? 
  • For leases/PPAs: Can the company sell your contract? What if the solar provider goes out of business?  

There are three primary ways a consumer can gain access to onsite solar. The different models affect the system’s financing, maintenance, and more. Not all options are available in all Virginia utilities or for all users (more information below).

Characteristics of Solar Access Options
System Purchase - Direct Ownership
Customer buys the system outright, either via upfront payment or through a loan. Ownership includes all financial benefits that accompany a system, including net metering credits and SRECs, as well as all responsibilities, such as on-going maintenance. Loans to finance a solar installation may be traditional home equity loans or can be specific solar loans issued by banks or other institutions.
Availability
  • Residential: available
  • Commercial: available
System Purchaser & Owner
  • Homeowner/ Business owner
Operation and Naintenance Responsibility
  • Homeowners/ Business owner, unless otherwise noted in agreement or warranties
Risk & Liability Responsibilities
  • Homeowner/Business owner, including responsibility for securing insurance
Who owns the system if the property is sold?
  • Homeowner/Business owner, including any outstanding loan responsibility
Contract Lengths (average)
  • 15-20 years
Lease
Much like leasing a car, the customer makes monthly payments for the use of the solar system, while the ownership lies with the installer. There may be no upfront cost, allowing customers to save immediately if the value of electricity is more than the cost of the lease. Lease payments may change overtime, so the customer should review the lease agreement closely.
Availability
  • Residential: available for Dominion and Appalachian Power customers, Co-ops’ discretion
  • Commercial: available Co-ops’ discretion
System Purchaser & Owner
  • Third party
Operation and Naintenance Responsibility
  • Third party
Risk & Liability Responsibilities
  • Third party
Who owns the system if the property is sold?
  • Contract dependent
Contract Lengths (average)
  • 15-20 years
Power Purchase Agreement (PPA)
Customer pays monthly for the electricity generated by the system using an agreed upon price-per-kilowatt hour. A PPA may not have large upfront costs and may yield immediate savings if the price the customer pays for electricity is less than they would have paid to buy electricity from the utility. The amount paid per kilowatt hour may change overtime, so the customer should review the agreement closely.
Availability
  • Residential: only available to low-income Dominion and Appalachian Power customers, Co-ops’ discretion
  • Commercial: over 50kW for Dominion and Appalachian Power customers, Co-ops’ discretion
System Purchaser & Owner
  • Third party
Operation and Naintenance Responsibility
  • Third party
Risk & Liability Responsibilities
  • Third party
Who owns the system if the property is sold?
  • Contract dependent
Contract Lengths (average)
  • 15-20 years
Solar Renewable Energy Certificates (SRECs) are tradable credits that represent the environmental attribute of generating one megawatt-hour (1,000 kWh) of solar electricity. Solar system owners can register their systems, generate SRECs based on output, and then sell them to third-party buyers to receive additional revenue. While the amount of revenue from SRECs varies significantly, solar system owners generally receive anywhere from $10 to $75 per certificate. For an average sized 9kW system with the average SREC prices in 2025, a homeowner may receive up to $350 annually from their solar production. In Virginia, if you are a homeowner earning less than 80% of your local Area Median Income (AMI), your SRECs may be worth more than an average SREC.

Visit the VEConnect Solar Net Metering page for utility-specific net metering programs available in Virginia.


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