Incentives

Whether you’re planning a DIY project to cut your energy use, exploring converting to residential solar, looking to upgrade your appliances, considering an EV, or all of the above, there are a host of local, state, federal, and private incentives to make your project more doable by offsetting some of your upfront costs.

Virginia Income Tax Deduction for Energy-Efficient Products
20% of sales tax paid ($500 max) on qualifying clothes washers, dishwashers, refrigerators/freezers, water heaters, furnaces, boilers, heat pumps, air conditioners, programmable thermostats, and/or certain other energy efficient technology
law.lis.virginia.gov/vacode/58.1-3661/

Charlottesville Energy Efficiency Rebate Program
Offers rebates to city residents who install: programmable thermostat, tankless hot water heater, attic insulation, and/or WaterSense toilet
charlottesville.gov/472/Rebates

Dominion Power Residential Energy Efficiency Rebate Program
Offers rebates to Dominion customers who install qualifying: smart thermostat, refrigerator/freezer, clothes washer, electric clothes dryer, dehumidifier, room air purifier, and/or dishwasher. Additional rebate for appliance recycling
dominionenergy.com/virginia/save-energy

Incentives for Electric Vehicles

Plug-In Electric Drive Vehicle Tax Credit
Tax credit of up to $7,500 for vehicles purchased after 12/31/2022 with some conditions
fueleconomy.gov/feg/taxcenter.shtml

Previously-Owned Clean Vehicle Tax Credit
30% Tax Credit up to $4000 for vehicles with a max MSRP of $25,000, purchased from dealership, and first vehicle ownership transfer
irs.gov/credits-deductions/used-clean-vehicle-credit

Dominion Power Electric Vehicle Charger Rewards
$40 annual rebate for Dominion Customers who install qualifying smart level 2 EV chargers.
programs.dsireusa.org

Incentives for Solar Power

Federal Investment Tax Credit (ITC)
Allows filers to deduct 30% of the cost of a solar system from their federal taxes
energy.gov/eere/solar/

Charlottesville Solar Energy Tax Exemption
0.96% tax credit deducted from property tax for 5 years following the installation of a residential solar energy system.
charlottesville.gov/729/Solar-Tax-Credit

Charlottesville Green/Solar Roof Reduced Permit Fee
50% off the cost of a construction permit fee in the city for Green/Solar Roof construction
charlottesville.gov/DocumentCenter

Other Incentives

Federal Residential Energy Efficiency Tax Credit
Rebate for purchases of biomass stoves and certain energy efficient water heaters, furnaces, boilers, heat pumps, air conditioners, duct/air sealing, insulation, windows, doors, and/or roofs. Annual maximum of $1,200, with some exceptions
energystar.gov/about/federal_tax_credits

Charlottesville Special Tax Rate for Energy Efficient Buildings
One-time reduced tax rate for buildings that meet certain energy efficiency standards (e.g. LEED, Green Globes)
charlottesville.gov/DocumentCenter