Virginia regulators ruled on net metering for both of the state's big investor-owned utilities in the last two years. The results are different, so the first thing to find out is whose name is on your electric bill.

The short version

Utility

How credits work

Unused excess at year end

Dominion Energy (NEM 2.0)

Annual netting stays. A $1 per month administrative fee is allowed.

Credited at $0.05829 per kWh

Appalachian Power

Monthly banking at the full retail rate continues over 12 months.

Paid about 5.7 cents per kWh

Dominion Energy: what NEM 2.0 actually changed

The State Corporation Commission issued its final order on April 30, 2026 (case PUR-2025-00079). Dominion had asked for bigger changes. The Commission rejected Dominion's proposed net-billing cut and its proposed application fee.

What came out of the order:

  • Annual netting stays, measured over 12 months.
  • A $1 per month administrative fee is allowed.
  • Net excess left at year end is credited at $0.05829 per kWh.
  • Existing NEM 1.0 customers stay on their current terms.

In plain terms, power you send to the grid in a sunny month can offset power you pull from the grid in a darker month within the same 12-month period. Only what is left at the end of that period gets the lower year-end rate.

Appalachian Power: Roanoke, Lynchburg and southwest Virginia

Under the Commission's order in case PUR-2024-00161, monthly banking at the full retail rate continues over 12 months. Unused excess at year end is paid about 5.7 cents per kWh, and existing customers are grandfathered for 25 years.

If you are comparing solar quotes in Appalachian Power territory, make sure the proposal uses Appalachian Power's terms and not Dominion's.

Why oversizing matters under both utilities

Under both sets of rules, excess left at the end of the 12 months earns far less than power you use within them. A system that is sized well past your annual usage sends more production to that lower year-end rate. Ask any installer to show you the system's expected production next to 12 months of your actual usage.

Other Virginia rules to know

  • Property tax: solar facilities of 25 kW DC or less that fall under Va. Code 15.2-2288.7 (A) or (B) are wholly exempt from state and local taxation.
  • State tax credit: Virginia has no state solar tax credit.
  • Federal tax credit: the homeowner credit (25D) is not available for expenditures made after December 31, 2025.

We do not publish savings numbers in articles like this one because they depend on your usage, your roof and your rate. A LightSkye solar specialist reviews your bill and your home and shows you what applies at your address.

Common questions

What is Dominion NEM 2.0?

It is the set of net metering terms from the State Corporation Commission's final order of April 30, 2026 (case PUR-2025-00079). Annual netting stays, a $1 per month administrative fee is allowed, and net excess left at year end is credited at $0.05829 per kWh.

I already have solar with Dominion. Do I move to NEM 2.0?

Existing NEM 1.0 customers stay on their current terms.

How does Appalachian Power net metering work in Virginia?

Monthly banking at the full retail rate continues over 12 months. Unused excess at year end is paid about 5.7 cents per kWh, and existing customers are grandfathered for 25 years.

Are solar panels exempt from property tax in Virginia?

Solar facilities of 25 kW DC or less that fall under Va. Code 15.2-2288.7 (A) or (B) are wholly exempt from state and local taxation.

Does Virginia have a state solar tax credit?

No.

Sources

Facts checked November 7, 2026. Utility rules change, so confirm current terms with your utility before you sign anything.

LightSkye Energy is a licensed Virginia solar installer (license 2024082620691632). See how solar works in Virginia, or request a solar quote.