What Actually Determines the Cost of Solar in Virginia

A Lease-Focused Look at Price, Efficiency, and What Matters Most

When homeowners ask, “How much does solar cost?” they’re often given answers that don’t really address the heart of the question.

Panels. System size. Gross numbers.

But for homeowners considering a solar lease, the true cost of solar in Virginia isn’t about how much equipment is on the roof—it’s about what you pay per kilowatt-hour and how efficiently the system produces energy over time.

Here’s how to think about solar cost the right way.

Solar Leases Shift the Question From “How Much?” to “At What Rate?”

With a solar lease, you’re not buying equipment. You’re purchasing electricity produced on your roof under defined terms.

That means the most important cost metric isn’t system price—it’s price per kilowatt-hour (kWh).

Instead of being exposed to utility rate increases, a lease typically:

• Sets a defined energy rate

• Caps what you’ll pay for solar-produced electricity

• Creates predictability over time
  
  

In other words, the “cost of solar” becomes the rate you agree to pay for energy, not the retail value of hardware.

Why Price Per kWh Matters More Than System Size

Two solar systems can look very different on paper and still deliver similar value—or very different value.

What matters is:

• How much usable energy the system actually produces

• The rate you’re paying for that energy
  
  

A larger system doesn’t automatically mean lower costs if it:

• Produces inefficiently

• Is poorly oriented or shaded

• Isn’t aligned with household usage
  
  

For lease customers, the question isn’t “How many panels?”

It’s “What am I paying per unit of energy, and how stable is that price?”

Efficiency Is What Should Be Driving Cost

System efficiency is one of the most overlooked cost drivers in solar conversations.

Efficiency includes:

• Panel performance

• Inverter behavior

• Roof orientation and tilt

• Shading assumptions

• System design quality
  
  

A more efficient system:

• Produces more energy with less equipment

• Reduces reliance on the grid

• Makes the capped kWh rate more meaningful
  
  

In a lease structure, higher efficiency directly improves value—because you’re getting more energy at the same agreed-upon rate.

Why “Cheaper” Quotes Can Cost More Long-Term

Some solar quotes look attractive because they emphasize:

• Lower monthly payments

• Larger system sizes

• Aggressive production assumptions
  
  

But if the underlying efficiency is weak, homeowners may still:

• Pull more power from the grid

• Use fewer solar kWh than expected

• Feel disappointed despite “going solar”
  
  

In Virginia, utilities like Dominion Energy and Appalachian Power Company will still bill for grid electricity when solar isn’t producing.

That’s why efficiency—not headline pricing—plays such a big role in real-world outcomes.

How Solar Leases Help Cap Energy Costs

One of the core benefits of a lease is rate predictability.

While utility electricity prices can and do change over time, many solar leases:

• Lock in a defined energy rate

• Limit how much that rate can increase

• Provide long-term visibility into energy costs
  
  

This doesn’t eliminate the utility bill—but it reduces exposure to volatility by anchoring part of your energy use to a known cost.

That predictability is what many homeowners value most.

System Design Still Matters—Even With a Lease

A lease doesn’t remove the importance of good design.

A well-designed leased system:

• Aligns production with usage

• Maximizes on-site consumption

• Uses efficiency to reduce grid dependence
  
  

A poorly designed one may technically “work,” but fail to deliver the experience homeowners expect.

The lease protects against certain risks—but design quality determines satisfaction.

The Takeaway for Virginia Homeowners

The cost of solar—especially with a lease—isn’t about equipment totals or panel counts.

It’s about:

• The price per kWh you agree to pay

• How efficiently the system produces energy

• How well that production aligns with your household
  
  

When those factors are prioritized, solar becomes a tool for controlling energy costs, not guessing at them.

That’s the version of “solar cost” that actually matters.

VirginiaSolar.org was created to give Virginia homeowners clear, unbiased information about solar—so decisions are made with confidence, not pressure.

Our Help Desk and resource library are here whenever you want to go deeper or ask questions.