Virginia solar incentives for commercial buildings in 2026

Virginia has a solid stack of programs for commercial and multifamily owners who want solar or deeper efficiency work. Several of them changed in 2025 and 2026, and the federal side changed even more. Below is the status of each one as of October 2026, plus the building data each one asks you for.

1. The solar property tax exemption

Under § 58.1-3660, solar equipment and energy storage owned or operated by a business are exempt from local property tax. It's automatic, so your locality doesn't have to opt in. The land itself isn't covered.

For projects with an interconnection request filed on or after January 1, 2019:

• 5 MW AC or less: 100% exempt. That covers nearly every rooftop and carport system on a commercial or multifamily building.
• Over 5 MW and under 150 MW: 80% exempt for years 1 to 5, 70% for years 6 to 10, and 60% after that. These projects need a locality application before July 1, 2030, and the exemption rises to 100% where the locality has adopted a revenue-share ordinance.

If you've read that the full exemption runs up to 20 MW, that tier only applies to projects filed by the end of 2018 and to some college projects. A separate local option, § 58.1-3661, lets localities exempt certified solar equipment for at least 5 years.

2. Shared solar

Shared solar lets buildings buy into an off-site solar facility and take bill credits, which helps when the roof is small, shaded, or leased.

Dominion territory (§ 56-594.3):

• The first 200 MW is fully awarded. A second 525 MW tranche was set to open at 90% subscription or July 1, 2026, whichever came first.
• Facilities are capped at 5 MW AC, need at least 3 subscribers, and must keep at least 40% of capacity in subscriptions of 25 kW or less.
• Commercial customers can subscribe. Credit rates are set by customer class, and subscriber organizations need an SCC license.
• The SCC replaced the old flat minimum bill in November 2025, and 2026 legislation (HB 807 / SB 254) requires net crediting on a single bill.

Appalachian Power territory: the 50 MW program that launched in 2025 filled almost immediately. 2026 legislation adds 50 MW by July 1, 2026 and another 50 MW by January 1, 2028.

3. Multifamily shared solar

Multifamily owners have a separate program (§ 56-585.1:12) in both Dominion and Appalachian Power territory. The system sits on your property or an adjacent parcel and serves residents directly:

• Up to 3 MW AC per location, or 5 MW across contiguous locations
• At least 3 subscribers
• Credits at the effective retail rate for each subscriber's class, for 25 years or more
• Run through an SCC-licensed subscriber organization (Dominion's tariffs are Schedules MFSS and SO-MSS)

4. C-PACE financing

C-PACE (§ 15.2-958.3) finances the upgrade through an assessment on the property, repaid over time. It covers solar, efficiency, water, storage and microgrids, stormwater, remediation, and EV charging, and it can refinance recent work. Commercial buildings, multifamily with 5 or more units, commercial condos, and new construction (within 3 years of the certificate of occupancy) qualify.

The Virginia PACE Authority runs the statewide program, and its map lists 27 participating localities, including Alexandria, Fairfax County, Loudoun, Prince William, Richmond, and Virginia Beach. Arlington runs its own program.

5. Net metering

Nonresidential customers can net meter systems up to 3 MW, sized to as much as 100% of the previous 12 months of use (150% in some utility territories), and third-party ownership is allowed (§ 56-594).

Dominion moved new customers to NEM 2.0 in spring 2026. Annual netting stays, annual excess is credited near the utility's avoided cost, and new NEM 2.0 customers pay $1 a month. Existing net-metering customers keep their current terms.

6. Fannie Mae Green Rewards (multifamily)

Green Rewards is still offered. Owners commit to cutting combined energy and water use by at least 30%, with at least 15% from energy, within 12 months of closing. In return the loan gets a lower rate, up to 5% more proceeds, and a free High Performance Building Report and solar assessment. Underwriting counts 75% of projected owner savings and 25% of projected tenant savings, and the property reports to ENERGY STAR every year. (Source: lender program sheet; confirm current terms with your lender.)

7. Arlington's Green Building Incentive Policy

Arlington updated its Green Building Incentive Policy on December 13, 2025, and projects filed on or after March 31, 2026 use the new version. It offers bonus density of 0.25, 0.35, or 0.45 FAR for projects reaching LEED v5 Gold, EarthCraft Multifamily, or ILFI Zero Carbon, with ENERGY STAR certification required after occupancy. The bonus is voluntary and not guaranteed.

The federal picture changed

Two federal changes from the July 2025 budget law (P.L. 119-21) matter for any Virginia project:

• Solar investment tax credit (48E): solar that began construction after July 4, 2026 gets no credit unless it's placed in service by December 31, 2027. Projects that began construction by July 4, 2026 keep the longer schedule (IRS Notice 2025-42). Storage isn't subject to the same cutoff.
• 179D deduction: ends for buildings whose construction begins after June 30, 2026.

One correction to a common claim: the federal tax exclusion for utility energy-conservation subsidies (IRC § 136) applies only to measures for dwelling units. Commercial buildings don't qualify.

What every one of these asks for

Each program above runs on building data:

• Solar sizing and net metering: 12 months of interval or billing data, so the system isn't sized past what the rules allow.
• Green Rewards: a baseline for energy and water to measure the 30% against, then annual ENERGY STAR reporting.
• C-PACE: a project scope with savings estimates tied to the building's actual equipment.
• Arlington's density bonus: ENERGY STAR certification after occupancy, which means accurate floor area and meter data in Portfolio Manager.

Virginia has no private-building benchmarking mandate today, and Arlington's program is voluntary. So the data usually isn't sitting ready. That's the gap we close.

How we help

ThresholdStack keeps one record per building in BuiltLedger: floor area measured from the source, every piece of equipment with its age, and the meter data behind it. When a lender, a PACE administrator, or a solar installer asks for numbers, they come from that record.

See how we measure floor area and verify benchmarks

Updated October 2026. Program terms change; confirm with Virginia Energy, the SCC, your utility, or your lender before you commit.