Solar Tax Credits Expiring December 31, 2025
If you are interested in adding solar energy to your home, now is the time to act. The 30% federal residential solar tax credit is scheduled to end after 2025 due to recently passed federal law, meaning that expenditures must be made by December 31, 2025 to be eligible for the tax credit. With installation timelines of up to 4 months, people interested in solar are encouraged to sign up before the end of August to ensure completion by the end of the year.
For more information, visit the IRS page here. Note that this and other Federal websites may not be updated yet to reflect the new deadline of December 31, 2025.
How and Why to Go Solar
Installing a solar array on your home or business helps reduce your energy bill, lowers your impact on the environment, can increase your property value, and on average pays for itself within 10-13 years.
The Solarize and Switch Together Programs Can Help
The City of Alexandria has partnered with two nonprofits to help residents with the process of buying and installing solar for their homes by the end of the year: Solarize and Switch Together. Both are no-cost, no-obligation programs that reduce the cost and complexity of going solar. Participating in either program means that you are working with vetted installers with a track record of service and reliability, as well as receiving discounted pricing and support throughout the process from the program team.
Both programs offer free virtual solar assessments to determine if your home is a good fit for solar. If it is, you will be connected to a vetted installer who will further evaluate your property, identify the best system for your needs, and send a proposal tailored to your home.
Check if Your Home is a Good Fit for Solar
As mentioned above, both the Solarize and Switch Together programs provide free home solar assessments to help determine whether your home would be a good fit for solar.
You can also do a quick assessment yourself with the Northern Virginia Solar Map, created by the Northern Virginia Regional Commission. This interactive online map can show how much solar energy could be generated by the rooftop of your home and/or business. Check it out here.
Ways to Save
The Solarize and Switch Together programs have secured bulk discounts for those who install solar as part of the program.
Additional savings are available through the 30% federal tax incentive and Alexandria’s property tax exemption. Additionally, residential solar power systems should have a net metering agreement with Dominion (most contractors should help set this up as part of the installation process).
Federal Residential Clean Energy Tax Credit
A tax credit of up to 30% is available for new solar energy systems purchased and installed by the end of the year (December 31, 2025). Solar water heaters, geothermal heat pumps, and battery storage technology are also eligible. Visit the IRS website for more information on eligibility and how to apply. Note that this and other Federal websites may not be updated yet to reflect the new deadline of December 31, 2025.
City of Alexandria Property Tax Exemption
Property owners (both residential and commercial) in Alexandria can qualify for a tax exemption for the installation of solar equipment. The value of the exemption is 100% of cost and installation for solar panels, and is deducted from the assessed value of the property every year for 5 years. Click here for more information on the tax exemption and how to apply.
Net Metering
Dominion Energy currently offers net metering — that is, customers receive a 1:1 energy credit for any electricity they send back to the grid. Proposed changes reduce that rate significantly for new solar installations. As of now, the proposed changes would not apply to homes that install solar before the changes take effect (which may be as soon as mid-2026), meaning that systems installed until then would be able to keep the 1:1 rate and other benefits of the current net metering agreement. To learn more, visit the Dominion Energy Net Metering Program Page.
Installation Process
The City requires certain permits in order to install solar panels on your property. Most contractors handle this paperwork for you. To learn more about the process, visit the City’s Permit Center website.
Note: When installing solar in Alexandria's historic districts, there are some simple design guidelines to follow to maximize solar access and historic preservation. Contractors should be aware of these guidelines and processes.
- Old and Historic District (PDF)
- Parker-Gray (PDF)