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Solar Tax Credit Set to Expire After 2025

Page updated on July 28, 2025 at 4:49 PM

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If you are interested in adding solar energy to your home, now is the time to act. The 30% federal residential solar tax credit is scheduled to end after 2025 due to recently passed federal law, meaning that expenditures must be made by December 31, 2025 to be eligible for the tax credit. Note that this and other Federal websites may not be updated yet to reflect the new deadline of December 31, 2025.

Additionally, Dominion Energy currently offers net metering—that is, customers receive a 1:1 energy credit for any electricity they send back to the grid. However, proposed changes reduce that rate significantly for new solar installations. As of now, the 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 and other benefits of the current net metering agreement.

The City of Alexandria’s property tax exemption for the installation of solar will continue to be available.

Resources for Residents

The City of Alexandria has partnered with two nonprofits to help residents with the process of buying and installing solar for their homes by the end of the year: Solarize and Switch Together. 

Both are no-cost, no-obligation programs that reduce the cost and complexity of going solar. Participating in either program means that you are working with vetted installers with a track record of service and reliability, as well as receiving discounted pricing and support throughout the process from the program team.

  • Solarize is run by nonprofit Local Energy Alliance Program. They have extended the program sign-up deadline to August 15, 2025.
  • Switch Together is run by nonprofit Solar United Neighbors. The deadline to sign up is September 3, 2025.

Given the December 31 deadline for the federal tax credit and installation timelines of up to 3-4 months, people interested in solar are encouraged to sign up for either program before the end of August to ensure completion before the end of the year.

For more information, visit alexandriava.gov/Solar.

For reasonable disability accommodation, contact Samantha Heitsch at Samantha.Heitsch@alexandriava.gov or call 703.472.9504, Virginia Relay 711. 

If you prefer communication in another language, free interpretation and translation services are available to you. Please email LanguageAccess@alexandriava.gov or call 703.746.3960.

About Eco-City Alexandria

Eco-City Alexandria is a collaborative strategic effort to achieve sustainability throughout the City of Alexandria. Eco-cities work to harmonize their natural resources and environmental assets with existing policies, regional realities, and economic and business markets while engaging the community in a collaborative and transparent decision-making process. 

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Alexandria, VA 22314

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