Net metering Virginia 2026 remains protected, giving Suffolk homeowners full 1:1 retail-rate credits, 12-month banking, and free interconnection after the State Corporation Commission rejected the proposed NEM 2.0 overhaul.
This guide explains how net metering Virginia 2026 works, what NEM 2.0 changed, and what it means for your Suffolk electricity bill and long-term solar savings.
Convert Solar has completed more than 7,000 Virginia installations since 2012, including hundreds across Suffolk and Hampton Roads.
What Is Net Metering Virginia 2026 and How Does It Work?
Net metering Virginia 2026 credits Suffolk homeowners for excess solar energy sent to the grid at the same retail rate they pay for electricity, about $0.15 to $0.16 per kWh.
In simple terms, your solar panels produce power during the day, while your home uses electricity day and night. When your panels produce extra, that energy goes to the grid and earns bill credits. When you need power later, those credits help offset what you use.
Virginia’s 2026 net metering rules are governed by Virginia Code §56-594, with billing and metering rules under 20VAC5-315.
What makes a Suffolk home eligible for net metering Virginia 2026:
- A residential solar system up to 20 kW AC in capacity (the residential cap under current rules, raised from 15 kW AC to 20 kW AC effective July 1, 2026 under HB1255)
- The system must be located on the same property as the metered utility account
- The system must pass a utility interconnection review and receive Permission to Operate (PTO) before net metering credits begin
- The system must not be sized to exceed 150% of your previous 12 months of consumption, a generous allowance that accommodates future EV, heat pump, or other load additions
- Eligible generation types under Virginia law include solar, wind, and geothermal
How Does the 12-Month Net Metering Cycle Work in Virginia for Suffolk Homeowners?
The 12-month banking cycle is what makes net metering Virginia 2026 valuable for Suffolk homeowners. Credits from extra solar production do not expire each month. They roll forward for 12 months from your system’s interconnection anniversary date. In Suffolk, spring and summer solar credits can build up and help offset fall and winter electricity use.
For example, a 9 kW Suffolk system can produce about 13,800 kWh per year for a home using roughly 12,660 kWh annually.
Monthly production and consumption might look like this:
| Month | Est. Production (kWh) | Est. Consumption (kWh) | Monthly Net (kWh) |
| January | 550 | 1,250 | −700 (draws from bank) |
| February | 650 | 1,150 | −500 (draws from bank) |
| March | 900 | 1,000 | −100 (draws from bank) |
| April | 1,250 | 950 | +300 (banks credits) |
| May | 1,400 | 900 | +500 (banks credits) |
| June | 1,450 | 1,200 | +250 (banks credits) |
| July | 1,500 | 1,400 | +100 (banks credits) |
| August | 1,450 | 1,350 | +100 (banks credits) |
| September | 1,200 | 1,050 | +150 (banks credits) |
| October | 900 | 1,000 | −100 (draws from bank) |
| November | 650 | 1,150 | −500 (draws from bank) |
| December | 500 | 1,260 | −760 (draws from bank) |
| Total | ~13,800 | ~12,660 | +1,140 net annual surplus |
At year-end, this Suffolk system has a surplus of about 1,140 kWh, or 8% above annual use. Under net metering Virginia 2026, that surplus is cashed out at $0.05829 per kWh, or about $66.
The bigger value comes from the 12,660 kWh that offset household usage at the full retail rate, about $0.16 per kWh, or roughly $2,026 in annual savings.
The utility tried to replace this 12-month banking cycle with 30-minute real-time netting, which would have reduced the value of excess daytime solar production. The SCC rejected that change. Under net metering Virginia 2026, 12-month energy banking remains the billing standard.
What Is the 20% Rule for Solar, and Why Does It Matter for Net Metering Virginia 2026?
The 20% rule helps Suffolk homeowners right-size a solar system under net metering Virginia 2026.
In general, your system should produce about 20% more than your annual electricity use. For a home using 12,660 kWh per year, that means roughly 14,000–15,200 kWh annually, or about a 9–10 kW system in Suffolk.
This buffer helps cover your full annual load, even in lower-production years, while avoiding too much year-end surplus paid at the lower $0.05829 per kWh rate. Virginia rules allow systems up to 150% of your previous 12-month usage, giving room for future needs like an EV, heat pump, or pool. Convert Solar factors planned load growth into every Suffolk system design.
What Changed Under NEM 2.0: Net Metering Virginia 2026 Rules Fully Explained
This is the question at the center of every Suffolk homeowner’s 2026 solar research. Here is the complete picture of what the utility proposed, what the SCC ruled, and what net metering Virginia 2026 actually looks like for new customers.
What the utility proposed under NEM 2.0
The utility filed its NEM 2.0 proposal in May 2025, requesting the following changes to net metering Virginia rules:
- Replace annual 12-month netting with 30-minute real-time netting, eliminating seasonal credit banking
- Replace full retail-rate credits (~$0.14/kWh at the time) with an Export Credit Rate of ~$0.0955/kWh, a 32% reduction in the value of exported energy
- Claim ownership of customers’ SRECs, taking the renewable energy credits your system generates without paying for them, reducing effective compensation to approximately $0.063/kWh, a 55% cut from the existing rate
- Charge an application fee of $100 for systems under 250 kW
- Reduce the 6% aggregate cap on net metering participation
Together, these changes would have weakened net metering Virginia 2026 for most Suffolk homeowners, pushing typical solar payback from about 10–13 years to 20 years or more. More than 1,300 public comments opposed the proposal, and over 50 people testified at the January 2026 SCC hearing.
What the SCC ruled on April 30, 2026 (Case No. PUR-2025-00079)
The SCC rejected the utility’s major proposal. For Suffolk homeowners under net metering Virginia 2026, the ruling preserved:
✅ 12-month annual energy banking
✅ Full retail-rate 1:1 credits
✅ No new $100 application fee
✅ Existing 6% aggregate cap
In short, Suffolk homeowners still receive full-value solar credits across the 12-month cycle, while SRECs remain their property to register and sell.
What did change under NEM 2.0 for new customers
Three modest changes were approved under net metering Virginia 2026:
✅ $1 monthly administrative fee for new NEM 2.0 customers
✅ Year-end surplus cashout at $0.05829 per kWh
✅ 30-minute interval data collection for planning only
For a properly sized Suffolk solar system, these changes have minimal financial impact. The core value remains intact: full 1:1 bill credits over a 12-month cycle.
What Are the Downsides of Net Metering Virginia 2026: Hidden Costs Suffolk Homeowners Should Know
While net metering Virginia 2026 remains favorable for Suffolk homeowners, there are a few limitations to understand:
- Year-end surplus earns less: Electricity produced above your annual usage is paid at $0.05829 per kWh. A properly sized system minimizes this impact.
- Standby charges for large systems: Residential systems over 20 kW AC may incur monthly standby charges, making proper system sizing essential.
- The 6% participation cap: Virginia’s net metering program has a 6% statewide participation cap. Current participation remains well below that level, so it is not expected to affect most 2026 Suffolk installations.
- SREC registration deadlines: SRECs are separate from net metering. Delaying registration after Permission to Operate can mean losing eligible SRECs. Convert Solar handles registration as part of the installation process.
- Future policy changes: Although the SCC preserved net metering Virginia 2026, future rule changes are possible. Homeowners who install under current rules have historically received grandfathering protections.
Net Metering Virginia 2026 on a Suffolk Electricity Bill
Here is how net metering Virginia 2026 translates into real bill savings for a typical Suffolk homeowner.
Scenario: A Suffolk home uses about 1,055 kWh per month, or 12,660 kWh per year. With electricity at roughly $0.16 per kWh, a 9 kW solar system producing about 13,800 kWh annually can offset most of that usage through net metering credits.
Annual savings from net metering Virginia 2026:
- Annual consumption fully offset at retail rate: 12,660 kWh × $0.16 = $2,026 in avoided electricity costs
- Year-end net surplus: 1,140 kWh × $0.05829 = $66 in year-end cashout
- Gross annual benefit: $2,092
- NEM 2.0 administrative fee: $1/month × 12 = ($12)
- Net annual benefit from net metering Virginia 2026: approximately $2,080
In January, Suffolk solar production is lower while home energy use is higher. A system may produce about 550 kWh while the home uses 1,250 kWh, leaving a 700 kWh net draw from the grid. With net metering Virginia 2026, summer credits can cover that draw, reducing a typical $200 January bill to about $10–$20 in fixed charges.
In July, a correctly sized Suffolk solar system is close to balanced. Panels may produce about 1,500 kWh while the home uses about 1,400 kWh. Under net metering Virginia 2026, the extra 100 kWh rolls into the credit bank, leaving only $10–$20 in fixed charges.
Impact of net metering Virginia 2026 on payback period:
At $2,080 per year in net annual benefit from a 9 kW system costing approximately $25,000 after Virginia’s sales tax and property tax exemptions:
- Simple cash purchase payback: approximately 12 years
- With 3% annual electricity rate escalation compounding each year: approximately 10 to 11 years
- With SREC income ($27 to $40 per SREC × 11 to 13 SRECs per year): effective payback on a financed system closer to 9 to 10 years
For a Suffolk home using 15,000 kWh per year, the 20% rule points to a system producing about 16,500–18,000 kWh annually. Under net metering Virginia 2026, that usually means a 10.5–11.5 kW system, costing roughly $27,400–$40,600 before incentives at current local pricing. A system this size stays below the 20 kW AC standby charge threshold.
Why net metering Virginia 2026 rate protection changes everything:
| Net Metering Rate | Annual Value (9 kW, 13,800 kWh/yr) | Simple Payback on $25,000 Net Cost |
| Full retail (~$0.16/kWh) — current | ~$2,080/year | ~12 years |
| the utility’s proposed export rate (~$0.0955/kWh) | ~$1,235/year | ~20 years |
| Wholesale avoided cost (~$0.04/kWh) | ~$515/year | ~49 years |
The April 30, 2026 SCC ruling preserved net metering Virginia 2026 at the full retail rate, keeping solar financially attractive for Suffolk homeowners. Without it, typical payback periods could have stretched from about 12 years to 20 years or more.
What Else Is New for Net Metering Virginia 2026?
Several 2026 Virginia laws expanded solar access beyond traditional rooftop systems:
- Balcony solar (SB 250 / HB 395): Small plug-in solar systems (400W–1,600W) can now be installed with fewer interconnection requirements. These systems reduce your home’s real-time electricity use but do not participate in net metering Virginia 2026 or earn bill credits.
- Expanded community solar (SB 254 / HB 807): Virginia expanded its community solar program, allowing renters and homeowners without suitable roofs to subscribe to an off-site solar project. While subscribers receive bill credits, they are not the same as net metering Virginia 2026 credits, and subscribers do not own the SRECs.
- Higher standby charge threshold (HB 1255): Effective July 1, 2026, the residential standby charge threshold increased from 15 kW AC to 20 kW AC, improving the economics for larger home solar systems.
How Net Metering Virginia 2026 Affects Solar Payback
Net metering Virginia 2026 is the biggest factor behind solar savings for Suffolk homeowners. By crediting excess solar production at the full retail rate, it significantly shortens the time it takes for a system to pay for itself.
Without retail-rate net metering, excess solar energy would earn only wholesale rates of about $0.03–$0.05 per kWh, making solar far less economical. With today’s rules, those same kilowatt-hours are worth about $0.15–$0.16 per kWh, helping many Suffolk systems reach payback in roughly 12 years.
As electricity rates rise, every solar credit becomes more valuable, increasing long-term savings. The SCC’s April 2026 ruling also provides greater confidence for homeowners by preserving the current net metering framework.
Virginia has now protected full retail-rate net metering in two consecutive major cases, reinforcing the long-term stability of the program for new solar customers.
Find Out What Net Metering Virginia 2026 Means for Your Specific Suffolk Home
The policy is protected, but your actual savings depend on your usage, roof, system size, and 25-year production potential.
Convert Solar has completed 7,000+ Virginia installations since 2012. Your free proposal includes 12-month utility data review, drone roof assessment, monthly credit profile, SREC timeline, financing options, and projected savings, built from your home.
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Frequently Asked Questions
Does Virginia allow net metering in 2026?
Yes. Net metering Virginia 2026 remains in place, preserving full retail-rate credits and 12-month energy banking for eligible residential customers.
How does net metering work in Virginia in 2026?
Excess solar energy is credited at the full retail electricity rate and banked for up to 12 months, helping offset future electricity use.
What changed under NEM 2.0?
Three changes apply to new customers: a $1 monthly administrative fee, year-end surplus paid at $0.05829 per kWh, and 30-minute interval data collection for planning purposes. The 12-month banking cycle remains unchanged.
What is the net metering cap in Virginia?
The program is capped at 6% of each investor-owned utility’s adjusted peak load. Current participation remains well below that limit.
What are the downsides of net metering Virginia 2026?
The main limitations are lower compensation for year-end surplus, standby charges for systems over 20 kW AC, a $1 monthly fee, and timely SREC registration requirements.
What is the 20% rule for solar?
It recommends sizing a system to produce about 20% more than your annual electricity use to maximize retail-rate credits while limiting low-value year-end surplus.
Will Virginia pay for solar panels through net metering?
No. Net metering is a billing credit program that lowers your electricity bill rather than paying you directly for installing solar.
Can renters benefit from solar?
Traditional net metering requires rooftop ownership, but renters may qualify for Virginia’s expanded community solar program or use eligible plug-in balcony solar systems.
How does net metering Virginia 2026 affect solar payback?
Retail-rate credits are the biggest driver of savings, helping many Suffolk homeowners recover their investment in about 12 years, depending on system size and energy use.
