Virtue Solar: Is Solar Still Worth It Without the Federal Tax Credit?

Virtue Solar, a solar installation company in Virginia, publishes new analysis showing solar remains a strong investment despite the elimination of the 30% residential tax credit — and explains why demand is actually accelerating.

VIRGINIA — With the 30% federal residential solar tax credit eliminated by the One Big Beautiful Bill Act as of December 31, 2025, homeowners across the country are asking the same question: Is Solar Still Worth It Without the Tax Credit?

Virtue Solar, a Virginia-based residential solar installer operating since 2015, has published a detailed new article examining the economics of solar in a post-tax-credit landscape. The conclusion: solar still pays for itself — and the market fundamentals driving its value are only getting stronger.

"The tax credit was a great incentive, but it was never the whole story," the Virtue Solar team writes. "The real engine behind solar's value has always been two things: the falling cost of equipment and the rising cost of electricity. Both of those trends have only accelerated."

The full article breaks down several key factors shaping the solar market in 2026:

- Solar system costs have dropped from over $50,000 fifteen years ago to approximately $27,000–$30,000 today before incentives.
- National average residential electricity rates hit 17.78¢/kWh in late 2025, up roughly 28% since 2021, with projections suggesting another 15–40% increase by 2030.
- The national average payback period for solar has shifted from 7–9 years to approximately 10–12 years without the credit — still well within a system's 25–30 year lifespan.
- Third-Party Ownership (TPO) financing, which allows homeowners to go solar with $0 down and typically lower monthly payments than their current utility bill, now accounts for over 50% of residential installations nationwide.

The article also examines Virginia's unique energy landscape. The state now imports more electricity than any other in the country, driven largely by explosive data center growth in Northern Virginia. Virginia residential electricity rates have climbed approximately 30% since 2021, with additional rate increases already approved for 2026 and 2027.

Virtue Solar highlights Virginia's strong solar policy foundation, including 1:1 net metering, property tax exemptions for residential solar, and the recent legalization of residential TPO as of July 2024. The company also notes a recent regulatory win: the State Corporation Commission rejected APCo's attempt to limit net metering, preserving full retail credit for solar homeowners.

"Solar in 2026 isn't the same product it was in 2010," the article states. "The cost of solar is at one of its lowest points ever. Electricity rates are surging. Financing options like TPO make it accessible without a big upfront investment. And the systems themselves last 25–30 years."