Adding solar panels and switching rate plans can lower your Dominion Virginia Power electric bill
Updated: October 22, 2020Installing solar panels can help reduce your Dominion bill, thanks to Florida’s sunshine and the company’s net metering program! Combined with the 30% solar tax credit, KUA customers can see great savings when they switch to solar!
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Solar panel cost calculator
Are solar panels worth it for Dominion Virginia Power customers?
Maybe. With the 26% Federal solar tax credit, and strong state net metering policy, home solar panels are an investment worthy of your careful consideration as a Dominion Virginia Power customer. Dominion’s net metering policy ensures you get credited on your power bill at full retail rates for the excess solar electricity your panels produce. Your credits are rolled over and applied to your next month’s bill.
Does Dominion Virginia Power offer net metering credits for exported solar power?
Yes, Dominion Virginia Power offers net metering credits.
Under the Dominion Virginia Power net metering program, solar panels will first send energy to your home. Any excess solar energy is sent to the grid and purchased in the form of a bill credit. The credit value is determined by the Tri-Party Net Metering Power Purchase Agreement. KUA customers are billed for all of the electric energy delivered to them by the company.
What incentives, tax credits, and rebates are available to Dominion customers for installing solar?
The biggest financial incentive for solar homeowners is the 30% federal solar tax credit. The tax credit equals 30% of the solar installation costs and directly reduces your federal income tax liability.
Some states and local governments offer additional solar incentives. These incentives include state tax credits, rebates, or performance-based incentives like Solar Renewable Energy Credits (SRECs). The best part is that these local incentives can be used in addition to the federal tax credit!
Here is every incentive you may be eligible for as a Dominion customer:
Table 1: Incentives
| Upfront Incentives | Value* |
|---|---|
| Residential Clean Energy Tax Credit (Federal) | -$7,121 |
|
Energy Generation Property Tax Exemption
(State)
Exempts any solar facility with nameplate capacity of not more than 25 kW DC from property taxes. Signed into law April 14, 2022. Takes effect January 1st, 2023. |
Varies |
|
Net Metering
(State)
State law requires excess generation to be credited at the retail rate. |
Varies |
| TOTAL | -$7,121 |
*Based on 10.18 kW system, average installation cost $23,735
How much does installing solar panels save the average Dominion Virginia Power residential customer?
If you input the details for a Dominion customer with a power bill of $200 per month into the best online solar panels calculator, it tells you that you need a 10.18 kW solar system that will produce 14,226 kWh per year and that this system will return the owner a $52,454 profit after repaying the cost of the system.
The solar savings possible for you as a Dominion customer will depend on the amount of electricity you use and the cost of the solar system you buy. Savings also vary based on the direction of your roof or any shading of your roof that affects output.
Here is a monthly and lifetime solar savings estimate for the same relatively typical Dominion customer with a $200 per month electric bill prior to solar and who installs a 10.18 kW solar system.
How much do residential solar panels cost for Dominion customers?
Solar prices near you
Net profit (savings less system cost)
$37,907-$46,331
Payback period
9.5-11.6 years
Recommended size for the selected utility bill
11.3kW
Solar panel cost calculator
Detailed information about your estimate
Table 2: Estimate details
|
System Size (for 100% usage offset) 10.18 kW |
|
Annual Power Generation 14,226 kWh |
|
Pay-back time (assuming Cash purchase) 6.3 Years |
|
Internal Rate of Return (IRR) on Investment 13.4% |
|
Gross cost $23,735 |
|
Total Upfront Incentives and Rebates -$11,668 |
|
Net Cost of System after rebates and incentives $12,069 |
|
Total Cost of Utility Power Avoided over 25 years $64,523 |
Please note that the investment return figures do not include the possible increase in property value.
What are the environmental impacts of Dominion Virginia Power customers installing solar panels?
While most homeowners decide to install solar panels because of financial savings over time, the environmental impacts of this choice are the primary motive for others. Here is a breakdown of the environmental benefits from a Dominion Virginia Power customer installing a 10.18 kW solar system on their property:
A solar system generating 14,226 kWh per year will save you money AND make the world a nicer place
Saves you
$2,098
on average per year
Reduces CO2 emissions
7.04
tons per year
Equivalent to planting
49 trees
per year
Equivalent to driving
15,578 mi
less per year
CO2 emissions calculation based on the electricity generation and emissions data for your state in 2015 as published by the US Government Energy Information Administration.
What factors affect the price of solar panels for Dominion Virginia Power customers?
The cost of installing solar panels will vary with brands of solar panels and inverters you choose and also the installation company you choose to install them.
It is common to see really good systems, using quality brands of equipment, being sold for around $2.33 per watt or $12,069 for a standard 10.18 kW solar system after the customer claims the 30% federal solar tax credit.