2026 incentives · Sterling, VA
Solar incentives in Sterling, VA
Two things changed for Sterling in 2026: the 30% federal credit ended on December 31, 2025, and Dominion Energy Virginia moved new solar customers onto net energy metering under §56-594. Here is what is actually left, and what it is worth on a real roof.
The short answer · as of August 2026
Sterling homeowners cannot claim a Virginia state tax credit, because Virginia does not offer one. What applies instead is the property-tax exemption for residential systems of 25 kW or less, any further exemption your locality has adopted, and retail net metering. Dominion Energy Virginia credits exported power at credited one-for-one at retail against your own annual usage under net energy metering under §56-594. The 30% federal credit is no longer available.
Local incentive reality
The incentive picture in Sterling
The retail net metering preserved in April 2026 is the substance of it, and Loudoun County’s adopted solar equipment tax exemption sits on top, scaled to nameplate capacity in DC watts and processed only once the system is operating and fully permitted.
For Sterling the exemption interacts with roof age in a way it does not elsewhere in Loudoun. If a roof replacement is sequenced with the array, the county will not process the exemption application until the finished system is operating and fully permitted, so the paperwork follows the later of the two jobs.
Written for Sterling specifically. Your own roof, bill and meter still decide the answer, which is what the free assessment settles.
Start here, it matters most
What Dominion Energy Virginia pays you for solar in Sterling
People search for incentives and mean tax credits. In Sterling the bigger lever is what your utility credits you for the power you send back, because that applies every month for 25 years rather than once at tax time.
| Item | Current position (August 2026) |
|---|---|
| Programme | net energy metering under §56-594, which replaced one-for-one net metering for new residential systems from January 1, 2026 |
| Retail rate you avoid | the applicable residential retail rate, confirmed against your own bill for power you use as you generate it |
| Export credit | credited one-for-one at retail against your own annual usage for power you send back, on a time-of-use basis |
| Monthly rider | about $1 a month for customers connecting under NEM 2.0 |
| Annual true-up | Leftover credits settle each November at an avoided-cost rate |
| Upfront utility rebate | None. There is no residential cash-back programme in this territory. |
| Who confirms your territory | We do, at the assessment. In and around Sterling, NOVEC serves some Loudoun County addresses, and terms differ. |
The practical consequence: a kilowatt-hour you use yourself is worth roughly three to five times a kilowatt-hour you export. That is why we size to your consumption rather than to your roof area, and why load shifting or storage now matters more in Sterling than it did two years ago.
Rebates
Why Sterling has no utility rebate, and who does
There is no upfront residential solar rebate in Dominion Energy Virginia territory. We say that plainly because it is one of the most common false expectations we meet, usually set by a national page that lists every programme in the state without saying which utility each one belongs to.
For context, and so you can check anything you have been told: Santee Cooper, which serves much of the Grand Strand, runs a per-kW rebate of $950 up to $5,700, requiring a NABCEP-certified crew and Trade Ally participation, with a 6 kW-AC lifetime cap per meter and an annual funding waitlist. Duke Energy has run PowerPair for solar plus battery, but its Progress territory closed to new applications in late 2025 and Carolinas has been at or near capacity, so it should not be counted on without checking your address.
None of those apply in Sterling. If a salesperson has quoted you a utility rebate here, ask which programme and which utility, and check it against the utility's own page before you sign anything.
Statewide rules
The parts that are the same everywhere in Virginia
Two things apply statewide and neither is a tax credit, because Virginia does not have one. Residential solar of 25 kW or less is exempt from state and local property tax under §58.1-3661 as amended by SB 686, and many localities have adopted further exemptions by ordinance. Separately, an association may impose only reasonable restrictions on rooftop solar: under SB 504 a restriction is unreasonable if it raises project cost by more than 5% or cuts generation by more than 10%. The 30% federal credit expired for systems placed in service on or after 1 January 2026.
The cap is the part that catches people out. Because you can only claim $3,500 a year, a system whose 25% credit is $6,000 arrives across two tax returns rather than as one payment, and low state tax liability stretches it further still.
Full mechanics, worked examples and the utility-by-utility comparison →
Eligibility depends on your circumstances and none of this is tax advice, so confirm with a tax professional. Property-tax treatment is administered locally, see Loudoun County below.
Loudoun County
What the exemption is worth in Loudoun County
An eligible rooftop system of 20 kW or less should not increase your assessed value in Loudoun County, so you are not paying annually for an improvement that is reducing your power bill.
The exemption's cash value scales with local millage, so it is worth more in higher-millage jurisdictions. We do not publish a millage figure for Loudoun County without an auditor-current schedule on file, because a wrong number here is worse than no number. Your assessment walks through how the exemption works for your parcel instead.
The 20 kW threshold matters if you are considering a large system in Sterling. Sizing past it can cost you the exemption entirely, which is another reason right-sizing beats maximising, and another reason Dominion Energy Virginia's export rate of credited one-for-one at retail against your own annual usage should shape the design.
Adding it up
What a Sterling homeowner actually nets in 2026
An illustrative stack on a 9.5 kW system at the local benchmark. An example to show the shape of it, not a quote and not a promise.
| Line | Amount |
|---|---|
| 9.5 kW system at $2.90 per watt | $27,550 |
| State sales tax | Confirm with your state revenue department |
| Federal credit | $0, expired for 2026 installs |
| Dominion Energy Virginia rebate | $0, no programme in this territory |
| Virginia state credit | $0, Virginia has no solar income tax credit |
| Net cost | about $27,550 |
| Annual property tax added | $0 on residential systems ≤25 kW |
For what that net figure means as a payback period, and why the answer depends far more on when you use power than on which panels you buy, see solar panel cost in Sterling.
Businesses
Incentives for Sterling businesses
Commercial solar is treated differently from residential. Federal commercial provisions and depreciation treatment may still apply where the residential credit does not, and the structuring genuinely matters.
We are installers, not tax advisers, so we will not model your commercial position for you. What we will do is scope and build the system, document it properly for your accountant, and route the tax questions to your CPA rather than guess at them.
Commercial solar in Sterling · how we approach commercial projects
Sterling incentives FAQ
Common questions about solar incentives in Sterling
What solar incentives can I get in Sterling, VA in 2026?
Virginia has no state income tax credit for residential solar, and the federal residential credit expired for systems placed in service on or after 1 January 2026. Residential solar of 25 kW or less is exempt from state and local property tax under §58.1-3661 as amended by SB 686, and many localities have adopted further exemptions by ordinance. Virginia has no general solar sales-tax exemption for residential systems; confirm your own position with a tax professional. The 30% federal credit expired for systems placed in service on or after January 1, 2026.
Does Sterling still have net metering?
Not in the original form. One-for-one net metering closed to new applicants in Virginia before the current programme took over, and new customers are enrolled in net energy metering under §56-594 instead. Under that programme exported power is credited at credited one-for-one at retail against your own annual usage rather than at the the applicable residential retail rate, confirmed against your own bill retail rate, with a rider of about $1 a month for customers connecting under NEM 2.0 and an annual true-up in November.
How do I claim no Virginia state tax credit?
There is nothing to claim. Virginia has no state income tax credit for residential solar, and the federal residential credit expired for systems placed in service on or after 1 January 2026. What carries a Virginia system instead is the export credit, and one-for-one retail net metering survived a contested proceeding at the State Corporation Commission in April 2026. Confirm your own tax position with a professional.
Is there a Dominion Energy Virginia rebate for solar in Sterling?
No. Dominion Energy Virginia does not offer an upfront residential solar rebate, so there is no cash-back programme to stack here. Rebates in Virginia are set by individual providers rather than statewide, so the answer genuinely depends on which utility serves your meter.
Will solar panels increase my property taxes in Sterling?
Residential solar of 25 kW or less is exempt from state and local property tax under §58.1-3661 as amended by SB 686, and many localities have adopted further exemptions by ordinance. Confirm your own position with Loudoun County and a tax professional, since eligibility depends on your circumstances.
Are there solar incentives for Sterling businesses?
Commercial solar is treated differently from residential and federal commercial provisions such as 48E and depreciation may still apply. We do not give tax advice on commercial structuring, and we will route those questions to your CPA rather than guess. See our commercial solar page for how we scope the work itself.
Nearby
Solar incentives near Sterling
Free, no-pressure assessment
See which incentives you actually qualify for in Sterling
We will confirm your utility and territory, size a system to your real usage, and show you what the state credit is worth in your tax position, with no guaranteed-savings math.
Mon–Sat, 10am–6:30pm ET · We typically follow up within the hour.