Everything You Need to Know About Solar Leases in Virginia: A 101 Guide
Curious about solar leases in Virginia? Dominion Energy Solutions can help you evaluate whether leasing is the best fit for your household.
Are Leases Available in Virginia?
Yes! Virginia began allowing residential solar leases on July 1, 2024, after the passage of House Bill 1062/Senate Bill 271, which legalized third-party solar financing options like leasing to make solar energy more accessible for Virginia residents. Senator Suhas Subramanyam, a co-sponsor of the bill, applauded the signing of the bill, stating “as our energy demand increases, we’ll need to think of novel ways to generate supply, and programs like solar leasing and net metering help incentivize deployment where it’s needed most. I’m grateful that after two sessions we could finally get this bill passed and lay the groundwork for better integrating rooftop solar and battery storage into our grid.”
Quick Lease Definitions
A solar lease is a financing agreement that allows you to have solar panels installed on your home without paying the full upfront costs of the system. Instead, you lease the panels from a company for a fixed monthly payment over a set term – usually 25 years. Many solar lease companies, including Dominion Energy Solutions, offers you the option of buying the system after five years.
The lessor, owns the panels and takes care of installation, maintenance, and repairs. You pay a predetermined monthly fee to use the energy the panels produce (similar to leasing a car). Energy Savings: You get to use the electricity the panels generate but will still get a bill from your utility for any extra power needed beyond what the solar system produces.
Leasing rates are predetermined. The contract you sign will lay out your payment amounts for the full term of the lease. End of Lease: At the end of the term, you can typically renew the lease, buy the system, or have the company remove the panels from your home. Dominion Energy Solutions also provides options for you to buy your system after five years, meaning the transfer of ownership can happen much sooner.
How Solar Leasing Works
Dominion Energy Solutions offers ownership and lease options. We provide you with transparent numbers so that you can make the best decision for your home. Here is how the process works:
Assessment Design
Dominion Energy Solutions evaluates your roof, shading, and usage to size the system. For production estimates, fill out our form for a custom solar proposal.
Offerings
Your Energy Advisor will provide you with a tailored offering that aligns with your solar goals.
Net Metering
Your system gets installed on your home, and you become a net metering participant.
Operations Maintenance
All installations by Dominion Energy Solutions are warrantied. In addition to these warranties, you can be assured that maintenance of the system will be the responsibility of the lessor for the entire lease term.
Path to Ownership
After the 5th anniversary of your lease contract, you have the option to purchase the system at fair market value, as determined by an independent appraiser.
End-of-Term Options
Common options include lease renewal, purchase, or panel removal.
How Does Net Metering Work with a Solar Lease?
Net metering in Virginia lets you send excess electricity produced by your solar panels back to the grid. Your utility then gives you a credit for that excess power, which offsets the electricity you buy when the panels are not producing enough, such as at night or on cloudy days.
In other words, this process “nets out” your electricity use over a billing period.
With a leased system, not much changes. Even though you do not own the panels, you still benefit from the electricity they produce. Your lessor owns the system, but the net metering credits reduce the utility bill in your name. You will receive a bill from the utility when your home needs more power than the panels can provide, as well as a bill from the leasing company.
Solar Leasing Pros and Cons:
Is Leasing Right for Your Home?
Solar leasing is becoming increasingly attractive to Virginia homeowners. Leasing panels offers several appealing advantages, including:
- No large upfront costs: You can enjoy the benefits of solar energy without paying a large amount upfront, as you would with a cash purchase. Plus, you can experience immediate savings.
- Lower utility bills: You may see immediate savings compared to your regular utility rates.
- Stable energy costs: Leasing locks in electricity rates for the duration of the lease, helping protect you from future market volatility.
- Low maintenance: The leasing company handles system monitoring, maintenance, and repairs, so there are no headaches for you.
- Production guarantees: Dominion Energy Solutions leases include power production guarantees for the life of the lease, reevaluated every three years. If the system underperforms, you would receive a payment for the difference between expected and actual production, reducing your financial risk.
Those benefits noted, solar leasing is not right for everyone. Some potential downsides include:
- Lower long-term savings: While you avoid upfront expenses, total savings over the lease term are often lower than if you purchased the panels outright.
- No home value boost: Leased panels typically do not increase your property value because they are not part of your home.
- Complicated if you move: Leases tend to be better suited for homeowners who plan to stay in their home long-term. If you decide to move, the lease will need to be transferred to the new homeowner, which can add complexity to the selling process. However, you have the option to purchase your system after five years. Plus, our Energy Advisors are always available to answer your questions, even after your system is installed.
Why Partner with Dominion Energy Solutions?
Dominion Energy Solutions offers homeowners a trusted, straightforward path to solar. As a local Virginia company with over a decade of experience installing residential and commercial solar, we understand how to navigate the process from start to finish.
We provide flexible options, including cash purchases, loans, and third-party leases, so you can choose what works best for your budget and goals. From design and installation to lifetime support, you’ll have one dedicated point of contact to ensure a seamless experience.
As the only residential solar provider owned by Dominion Energy, we bring the reliability and accountability of a name Virginians know and trust. Because our team does not work on commission, you can be confident that every recommendation is made with your best interests in mind.
