Unlocking Solar Energy Potential: Virginia’s Financial Incentives for Commercial and Multifamily Buildings
For building owners and property managers in Virginia, investing in solar energy is more than just an environmental decision—it’s a smart financial move. With a range of tax exemptions, financing programs, and incentives, solar energy can significantly reduce operating costs while increasing property value and sustainability. Here’s how you can take advantage of Virginia’s solar incentives to improve your building’s efficiency and bottom line.
1. Property Tax Exemptions for Solar Facilities
One of the biggest barriers to solar adoption is the upfront investment. Virginia’s property tax exemption helps offset costs by reducing the tax burden associated with installing solar technology.
✅ Who Benefits?
- Commercial buildings, office complexes, and multifamily properties
- Solar photovoltaic (PV) and solar thermal systems
- Public institutions, including universities and private colleges, with a 100% tax exemption for projects up to 20 MW
💰 Impact:
By eliminating additional property tax costs, building owners can redirect savings into upgrades, maintenance, or further energy efficiency improvements.
🔗 More info: Virginia Department of Energy
2. Multi-Family Shared Solar Program
For multifamily property managers, solar can be a game-changer—especially when individual installations aren’t feasible due to space limitations. Virginia’s Shared Solar Program allows multiple tenants to benefit from a single solar installation.
🏢 Why It Matters for Property Owners & Managers:
- Attract eco-conscious tenants looking for lower energy costs
- Increase property appeal without installing panels on every unit
- Support renewable energy adoption while staying compliant with emerging green building standards
🔹 How It Works:
A Subscriber Organization manages the process, acting as the go-between for property managers, residents, and the solar provider.
🔗 More info: Virginia Shared Solar
3. Clean Energy Financing (PACE) for Commercial Buildings
The Property Assessed Clean Energy (PACE) program helps building owners finance solar and energy efficiency improvements with no upfront capital. Instead, repayment is structured as a property tax assessment, making it a low-risk investment.
💼 Why Building Owners Should Consider PACE:
- Preserve Cash Flow: No large upfront payments—fund projects over time through tax assessments
- Increase Asset Value: Energy-efficient properties are more attractive to tenants and buyers
- Expand Scope: Covers more than just solar—eligible upgrades include HVAC, lighting, insulation, and water efficiency improvements
🔗 More info: Contact your local municipality to check if PACE financing is available in your area.
4. Fannie Mae Green Financing for Multifamily Buildings
Multifamily property owners can access Fannie Mae’s Green Rewards Program, which offers lower interest rates and higher loan amounts for properties that commit to energy efficiency upgrades.
🏢 How Property Owners Benefit:
- Reduce energy bills for tenants, improving lease retention
- Qualify for better loan terms by implementing solar and energy efficiency measures
- Meet sustainability goals while securing financial incentives
🔗 More info: Fannie Mae Green Financing
5. Arlington County’s Green Building Incentive Program
For developers and property owners in Arlington County, the Green Building Incentive Program provides bonus density allowances for projects that meet LEED Gold certification or higher.
🌍 Why This Matters:
- Increase building square footage while reducing environmental impact
- Improve tenant demand by offering energy-efficient spaces
- Gain competitive advantages in a growing green-building market
🔗 More info: Arlington Green Building Program
6. Federal Tax Incentives for Energy Efficiency
The Residential Energy Conservation Subsidy Exclusion allows property owners to exclude certain energy conservation subsidies from taxable income, further reducing the cost of solar installations.
💡 Key Takeaways:
- Tax-Free Subsidies: Rebates from utility companies don’t count as taxable income
- Stackable with Other Incentives: Combine with other federal and state solar programs for maximum savings
🔗 More info: IRS Publication 525
Why Solar Makes Sense for Property Owners & Managers
Virginia’s solar incentives make it easier than ever for commercial and multifamily property owners to integrate renewable energy into their operations. By leveraging these programs, you can:
✅ Cut Operating Costs: Reduce energy expenses and free up capital for other investments
✅ Increase Property Value: Green-certified buildings attract premium tenants and buyers
✅ Ensure Compliance: Stay ahead of evolving energy regulations and green mandates
By taking advantage of these financial incentives, you’re not just reducing costs—you’re future-proofing your property.
Want to explore how solar can work for your property? Let’s connect to discuss which programs best fit your needs.
