Countywide

Programs that support solar panel installations warn residents of expiring tax credit

Rooftop solar panels on a house in Vienna (staff photo by Angela Woolsey)

Time is running out for Fairfax County homeowners to get a federal tax credit for adopting solar energy.

The reconciliation bill passed by Congress and signed by President Donald Trump on July 4 will eliminate a residential clean energy credit that lets residential property owners deduct 30% of the cost of installing rooftop solar panels, solar water heaters, geothermal heat pumps and other clean energy systems from their federal income taxes.

The credit is set to expire on Dec. 31, 2025, meaning the systems must be installed on or before that date to be eligible. Without the new legislation, the credit would’ve remained in place through 2032.

In light of the tax credit disappearing, Solarize Virginia — one of two programs that partner with Fairfax County to help homeowners reduce the costs of going solar — has extended its signup deadline for its annual campaign to Aug. 15.

Originally set to close to signups on July 15, the initiative managed by Local Energy Alliance Program (LEAP) offers free assessments and connects homeowners with an installer who will work at a discounted rate.

“I am disappointed in the reconciliation bill, which will put residential solar out of financial reach for many homeowners,” LEAP Solar Program Manager Deborah Arenstein said in a press release. “I encourage anyone considering solar to sign up for Solarize Virginia by August 15 and get a free solar assessment and a proposal from one of our trusted installers. If you wait, you risk losing that valuable incentive.”

According to Solarize Virginia, the installation process typically takes three to four months, so a contract will likely need to be signed by the end of August to ensure a project is finished by the end of the year, in time to take advantage of the federal tax credit.

The program notes that proposed changes by Dominion Energy could also affect Virginia residents’ decision to adopt solar energy.

In April, the utility proposed increasing its base rate in 2026 for the first time since 1992, raising the average monthly bill for residents by more than $20. Dominion Energy is also planning to overhaul its net metering rates, reducing the compensation it gives to homeowners who send excess electricity generated by solar panels back into the grid.

Both proposals will need to be approved by the Virginia State Corporation Commission (SCC), which regulates public utilities as well as financial and insurance companies. Public hearings on the rate increase and net metering changes are scheduled for Sept. 2 and Jan. 20, 2026, respectively.

“We’ve seen firsthand the positive impact that going solar has on households and the environment,” LEAP Co-Executive Director Katie VanLangen said in the release. “By switching now, Virginians can lock in significant savings and protect themselves from rising utility rates, all while contributing to climate goals.”

According to the Fairfax County Office of Environmental and Energy Coordination (OEEC), the second program available to local residents, Switch Together, has also launched a new campaign and is accepting signups through Sept. 3.

A partnership between the nonprofit Solar United Neighbors and the local government, Fairfax County’s Switch Together program organizes “reverse auctions” where solar providers compete to offer the best installation rates, enabling participating homeowners to get discounted rates. The average discount from the most recent auction was $6,958, OEEC says.

Fairfax County also offers its own incentives to encourage residents and businesses to go solar, including waived permit fees and a 5-year exemption from local property taxes for the solar equipment.

OEEC’s Climate Action Dashboard estimates that Virginia is approximately 11% of the way toward the Virginia Clean Economy Act’s goal of generating all electricity using clean energy by 2045. In Fairfax County, solar panel installations have exponentially increased over the past decade, already surpassing the community-wide target of 46 megawatts of capacity by 2030.

In addition to encouraging residents and businesses to adopt solar energy, the county government has started to make some progress on introducing solar power on its own properties. The county has completed installations on 12 buildings, including the Reston fire station, Spring Hill Rec Center and Newington Collections Facility, and construction on a solar array on the closed I-95 landfill in Lorton is scheduled to finish next spring.

About the Author

  • Angela Woolsey is the site editor for FFXnow. A graduate of George Mason University, she worked as a general assignment reporter for the Fairfax County Times before joining Local News Now as the Tysons Reporter editor in 2020.