Virginia currently operates under one of the strongest net metering frameworks in the mid-Atlantic. Dominion Energy provides full 1:1 retail-rate credit for every kilowatt-hour exported to the grid, credits roll forward month-to-month, and year-end surplus can be carried into the next annual cycle or paid out at Dominion’s avoided-cost rate of approximately 3–5¢/kWh. For an Alexandria homeowner on the standard Dominion residential rate of approximately 16¢/kWh, the math is straightforward: every kilowatt-hour your solar system produces and self-consumes saves you 16¢; every kilowatt-hour exported banks as a 16¢ credit.
That framework is under pressure. Virginia’s State Corporation Commission directed Dominion to propose changes to net metering compensation by May 2025, and those changes could materially reduce what new solar customers receive for grid exports — mirroring the trajectory that North Carolina took with the Duke Energy Net Metering Bridge. Alexandria’s city government, on its own solar information page, explicitly notes that proposed changes “would not apply to homes that install solar before the changes take effect (which may be as soon as mid-2026), meaning that systems installed until then would be able to keep the 1:1 rate.” That grandfathering protection is the same mechanism that made the July 2023 deadline so consequential for North Carolina solar customers — homeowners who interconnected before the cutoff locked in full retail net metering for 15 years.
Virginia’s net metering program also carries an aggregate capacity cap: participation is first-come, first-served, and Dominion can close the program once aggregate installed capacity reaches the statutory limit. While Alexandria is not close to exhausting that cap in isolation, it contributes to the overall urgency for Virginia solar customers who want to secure the current terms before either the compensation structure or the capacity limit changes.
Alexandria contains two locally regulated historic districts — Old and Historic Alexandria (centered on Old Town) and the Parker-Gray District — overseen by the Board of Architectural Review (BAR). Properties within these districts that are visible from a public way require a Certificate of Appropriateness from the BAR before exterior alterations, including solar panel installation. This layer of review applies in addition to standard city building permits and Dominion’s interconnection process, and it distinguishes Alexandria from Arlington, where HOA governance is the primary complexity rather than municipal historic oversight.
The BAR’s approach to solar in the historic districts follows the principle of minimal street visibility. Panels should be mounted low and flush to the roofline rather than elevated on racks, placed on rear-facing or non-street-visible roof surfaces wherever solar access permits, and designed to avoid obscuring historic architectural features such as dormers, chimneys, and ornamental roof elements. Most Northern Virginia solar installers with experience in historic districts design these constraints into their proposals from the start. A competent installer familiar with Alexandria’s BAR process will assess street-visibility risk during the initial site evaluation and propose panel placement that either falls under administrative approval or is well-positioned for BAR review. The City of Alexandria notes on its solar page that there are “simple design guidelines to follow” — the complexity is real but navigable with an experienced local installer.
Properties designated as One Hundred-Year-Old Buildings — Alexandria has many — fall under separate BAR jurisdiction regardless of historic district location. An installer unfamiliar with Alexandria’s specific permitting environment may underestimate the timeline and approval steps for these properties. Homeowners in Old Town or Parker-Gray should budget additional time for the BAR process and select installers who explicitly cite experience with Alexandria’s historic district solar approvals. The West End neighborhoods — Del Ray, Rosemont, Arlandria, and areas west of the Beltway — are generally outside the locally regulated historic districts, though some individual buildings may carry One Hundred-Year-Old Building designation.
Alexandria solar costs approximately $2.78/W as of January 2026 per EnergySage — higher than the statewide Virginia average of $2.73/W and notably higher than neighboring Arlington’s $2.29/W. The premium likely reflects several factors: Alexandria’s older and more varied housing stock requires more complex mounting assessments; historic district permitting adds overhead for some installations; and a smaller addressable rooftop market relative to sprawling suburban jurisdictions keeps competition slightly lower. The average Alexandria system size is approximately 10.77kW, reflecting a more mixed housing stock than Arlington’s constrained 5kW average — Alexandria has substantial single-family neighborhoods in the West End with larger roof surfaces than Old Town rowhouses. At $2.78/W, a 10.77kW system costs approximately $29,980 before incentives. EnergySage projects 25-year savings of approximately $27,932 after accounting for upfront costs.
Alexandria’s property tax exemption for solar is locally administered and specifically structured: 100% of the solar equipment and installation cost is deducted from the property’s assessed value every year for five years. On a $30,000 system in a jurisdiction with Alexandria’s property tax rate of approximately 1.11% per $100 of assessed value, this represents approximately $333 per year in avoided property tax, or roughly $1,665 over the five-year term. After five years, the statewide exemption (which fully excludes solar value from taxable assessed value) continues for the life of the system. The city’s five-year structured exemption is more generous in the early years than a flat statewide exclusion; homeowners should apply through Alexandria’s Office of Real Estate Assessments with the standard solar equipment tax exemption application.
The City of Alexandria has also partnered with two nonprofit programs to reduce the cost and complexity of going solar: Solarize Virginia (run by nonprofit LEAP) and Switch Together (run by Solar United Neighbors). Both programs offer free virtual solar assessments, vetted installer access, and group-buy discounted pricing — you are not obligating yourself to anything by requesting an assessment. For Alexandria homeowners who want a structured, low-friction path to getting quotes from qualified local installers with knowledge of the city’s permitting environment, these programs represent a meaningful advantage not available in most comparable cities.
Est. 2013
Est. 2018
Est. 2009
Est. 1978
Est. 2006
