By Sudeep S – Electrical Engineer & Energy Specialist
As someone who has designed and overseen countless energy installations, I’ve seen solar technology evolve from a niche concept to a mainstream energy solution. In 2025, homeowners across Virginia are increasingly turning to solar—and for good reason. Let me break down what it really costs to go solar in Virginia right now.
Current Cost Landscape (2025)
Average Cost per Watt
Virginia’s solar costs are competitive but slightly above the national average:
- EnergySage (Aug 2025) reports an average cost of $2.81/W installed.
- NerdWallet echoes this, citing an average of $2.85/W installed.
Cost by System Size
According to EnergySage, here’s how pricing stacks up for different system sizes, before and after applying the 30% federal tax credit (available through Dec 31, 2025):
| System Size | Before Incentives | After 30% Federal Credit |
|---|---|---|
| 3 kW | $8,423 | $5,896 |
| 5 kW | $14,039 | $9,827 |
| 10 kW | $28,078 | $19,655 |
Higher-End Example
EcoWatch gives a snapshot for a larger 11 kW system:
- $3.35/W, which totals $36,850 before credit, reduced to $25,795 after credit.
Local Variation
PowerOutage.us offers an alternate estimate:
- 5 kW system: ~$18,200 before credit → $12,740 after.
- 9 kW system: ~$22,932 after credit, with a 7-year payback and ~$24,492 saved over 20 years.
Why These Prices Matter
- State Incentives & Net Metering
While the federal tax credit is a significant incentive, Virginia also offers net metering. For example, in Virginia Beach, homeowners save via full-retail rate credits for surplus energy, and additional property tax exemptions add more value. - Payback Period
With current solar economics, a 5–10 kW installation often pays for itself in about 7–9 years, depending on system size, financing, and utility rates. - Cost Trends & Incentive Expiry
Swanson’s Law continues to drive down solar costs over time (Wikipedia). That said, the 30% federal tax credit is set to expire at the end of 2025, so acting now offers substantial savings.
What Factors Influence Solar Costs in VA?
- System Size – Larger systems cost more upfront but yield better per-watt value.
- Equipment Quality – Higher-efficiency panels or integrated storage systems raise costs.
- Installation Complexity – Rooftop variations, permits, and interconnection needs add to labor.
- Installer Choices – Quotes can vary — always compare multiple to ensure fair pricing.
Real-World Insight: A 5 kW System Example
Let’s break this down into practical terms:
- Installed Cost: ~$14,000 (avg) → $9,800 after the 30% credit.
- Energy Savings: Virginia’s average electricity rate (~15¢/kWh) means substantial annual savings.
- Payback Timeline: Expect full installation recovery in ~8 years, with around $25,000+ net savings over 25 years.
Final Thoughts from a Practicing Engineer
For Virginia homeowners looking to invest in solar in 2025:
- Average installed cost: ~$2.80–$3.35/W.
- 5 kW systems: ~$14k before, ~$9.8k after tax credit.
- 11 kW systems: ~$36.8k before, ~$25.8k after.
- Payback in ~7–9 years, substantial ROI after that.
Now is the opportune moment—take advantage of the expiring federal tax credit and turn your roof into a long-term energy asset.