Alexandria residents interested in installing solar panels have less than five months remaining to take advantage of a 30% federal tax credit before it expires at the end of 2025.
The federal residential solar tax credit is set to end after Dec. 31, 2025, due to recently passed federal legislation, according to a Monday press release from the City of Alexandria. To qualify for the credit, expenditures must be completed by the deadline.
The timing is particularly significant as Dominion Energy is proposing changes that would significantly reduce the net metering rate for new solar installations. Under the current system, customers receive a 1:1 energy credit for electricity they send back to the grid. The proposed changes, which could take effect as soon as mid-2026, would not apply to homes that install solar before the new rules are implemented.
Systems installed before the changes would retain the 1:1 rate and other benefits of the current net metering agreement, the city said.
Alexandria’s property tax exemption for solar installations will continue to be available regardless of the federal changes.
To help residents navigate the installation process, the city has partnered with two nonprofit programs: Solarize and Switch Together. Both offer no-cost, no-obligation services with vetted installers and discounted pricing.
Solarize, operated by the nonprofit Local Energy Alliance Program, has extended its sign-up deadline to Aug. 15. Switch Together, run by Solar United Neighbors, has a Sept. 3 deadline.
Given installation timelines of three to four months, the city is encouraging interested residents to sign up for either program before the end of August to ensure completion before the year-end deadline.
More information is available at alexandriava.gov/Solar.
