Virginia Energy Rebates 2026

Virginia homeowners in 2026 can access: (1) HEAR rebates for heat pumps (up to $8,000), heat pump water heaters (up to $1,750), insulation (up to $1,600), and electrical panels (up to $4,000) — administered by VDOE; (2) HOMES whole-home performance rebates up to $8,000; (3) Dominion Energy rebates of $250–$400 for heat pump water heaters, $50 for smart thermostats; (4) Appalachian Power rebates up to $400 on HPWH, up to $700 on central AC, up to $2,000 on insulation (western VA). The 25C and 25D federal tax credits expired December 31, 2025.

No. The One Big Beautiful Bill Act (OBBBA, P.L. 119-21, signed July 4, 2025) terminated the Section 25C and 25D federal energy tax credits for installations after December 31, 2025. If you installed qualifying equipment before that date, you can still claim the credit on your 2025 tax return. For 2026 installations, HEAR and HOMES rebates are the primary federal incentive paths.

Yes. Dominion Energy residential rebates can generally be stacked with federal HEAR rebates. A heat pump water heater project could earn $250–$400 from Dominion plus up to $1,750 from HEAR (for income-qualifying households at or below 150% AMI). A full heat pump upgrade could add up to $8,000 in HEAR rebates. Northern Virginia’s very high AMI means many middle-income households qualify.

HEAR eligibility uses Area Median Income (AMI) which varies significantly by location. In Northern Virginia (Washington-Arlington-Alexandria MSA), the 4-person 80% AMI is approximately $123,120 — meaning many middle-income households qualify. In Hampton Roads, the 80% AMI is approximately $76,880. Use our calculator with your specific location for accurate eligibility estimates.

Virginia does not currently have a standalone state income tax credit for residential energy efficiency improvements. The primary incentive paths are federal HEAR and HOMES rebates (administered by VDOE) and utility rebate programs. Virginia’s Clean Economy Act mandates continued investment in efficiency programs, so Dominion’s utility rebate offerings are expected to remain active.

In Virginia, heat pump rebates vary by utility. Dominion Energy customers can get $250–$400 on a heat pump water heater plus audit-based rebates on central heat pump systems (HSPF 8.2 / SEER 15 minimum). Appalachian Power customers in western Virginia receive up to $300–$400 on mini-split heat pumps. Both can be stacked with federal HEAR rebates of up to $8,000 for income-qualifying households.

Dominion Energy Virginia offers $250 for a 40–59 gallon heat pump water heater and $400 for a 60+ gallon model via domsavings.com. Central air-source heat pump rebates are available through the Residential Home Retrofit Program but require a home energy audit with an approved contractor — the amount is based on modeled savings. A $90 tune-up rebate is available for existing heat pumps.

Appalachian Power (AEP Virginia) offers rebates through its TakeCharge VA portal: up to $400 on ENERGY STAR heat pump water heaters, up to $300–$400 on ductless mini-split heat pumps, up to $700 on central AC (SEER 19+), and up to $2,000 on attic insulation through the Home Performance Program. A $50 smart thermostat enrollment bonus is also available. Visit takechargeva.com to apply.