Program Local Option - Residential Property Tax Exemption for Solar
Category Financial Incentive
Implementing sector State
Last Update
State Virginia
Administrator Virginia Department of Mines, Minerals, and Energy
Website http://www.dmme.virginia.gov/DE/Energy_Incentives.shtml
Technologies Solar - Passive, Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Photovoltaics
Sectors Residential

The State of Virginia provides the option for any county, city, or town to exempt or partially exempt solar energy equipment and recycling equipment from local property taxes.  This status is targeted toward non-commercial participants; commercial entities are fully exempt from state and local taxes under Commercial Property Tax Exemption for Solar.

The solar equipment and installation has to be inspected and certified by the local building department or the Department of Environmental Quality to provide the value of the system for the purpose of determining tax credit. The statute broadly defines solar energy equipment as any that is "designed and used primarily for the purpose of collecting, generating, transferring, or storing thermal or electric energy." This includes solar photovoltaic (PV), solar thermal heating, and passive solar systems.

Recycling equipment is defined as equipment which is "certified by the Department of Environmental Quality as integral to the recycling process and for use primarily for the purpose of abating or preventing pollution of the atmosphere or waters.

Cities currently offering a solar energy equipment and facilities exemption include: Alexandria, Charlottesville, Fredericksburg, Hampton, Harrisonburg, Lexington, Lynchburg, Petersburg, Roanoke, Suffolk, and Winchester. 

Counties currently offering a solar energy equipment and facilities exemption include: Albemarle, Augusta, Botetourt, Chesterfield, Dinwiddie, Fairfax, Frederick, Giles, Hanover, Isle of Wight, King George, Loudoun, Prince William, Pulaski, Scott, Spotsylvania, Warren, and Wise.

 Please contact your local building inspection officials to check if the exemption is offered in your locality. 

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