Solar power in West Virginia on rooftops can provide 23% of all electricity used in West Virginia from 6,300 MW of solar panels,[1] but West Virginia will be the last state in the United States to reach grid parity - the point where solar panels are cheaper than grid electricity - without incentives, due to the low cost of electricity - about $0.062/kWh. The point where grid parity is reached is a product of the average insolation and the average cost of electricity. At $0.062/kWh and 4.3 sun-hours/day, solar panels would need to come down to ~$1,850/kW installed to achieve grid parity. The first state in the US to achieve grid parity was Hawaii.[2] Solar power's favorable carbon footprint compared to fossil fuels is a major motivation for expanding renewable energy in the state,[3] especially when compared to coal to generate electrical power.[4]
Net metering is available continuously to residential consumers generating up to 25 kW and up to 2 MW for industrial users but is limited to 3% of peak demand the previous year.[5] In addition to the 30% federal tax credit, West Virginia has a 30% tax credit, but unlike the federal credit, is limited to $2,000. A $7,000 system can therefore be installed for $2,900.[6]