Consumer Rebates Frequently Asked Questions
The IRA-funded home energy rebates are NOT AVAILABLE at this time. Final guidance on qualifying purchases and how residents will access these rebates has not yet been determined. Residents currently looking for incentives for energy improvement purchases or projects that are available now should visit Virginia Energy Sense. Please note that Home Energy Rebates (offered through the state and not yet available) are different from federal home energy tax credits, with are administered by the IRS and are available now. This website will be updated as more information is available.
What are the Home Energy Rebate Programs?
The Home Energy Rebate programs are two residential-focused energy efficiency and electrification programs.
The first program is the Home Efficiency Rebate program. Home Efficiency Rebates will provide up to $8,000 per household to support energy retrofit projects resulting in at least 15% energy savings. The rebate can support upgrades in single family and multi-family dwellings.
Home Electrification and Appliance Rebates will provide up to $14,000 per household in up-front rebates to support households in purchasing certain types of high efficiency electric appliances. The rebate can support upgrades in single family and multi-family dwellings. The Inflation Reduction Act establishes these rebate caps, with rebate levels available to a specific household varying based on household income and type of building:
- ENERGY STAR-Heat pump water heater: Up to $1,750
- ENERGY STAR-Heat pump for space heating and cooling: Up to $8,000
- ENERGY STAR-Electric stove, cooktop, range, or oven: Up to $840
- ENERGY STAR-Heat pump clothes dryer: Up to $840(note: Energy Star-certified ovens are pending at the time of this update)
- Electrical load service center upgrade: Up to $4,000
- Insulation, air sealing, and ventilation: Up to $1,600
- Electric wiring: Up to $2,500
Are the Home Energy Rebates available now?
No. The U.S. Department of Energy has released the application for Home Energy Rebate Programs funding. Virginia Energy must apply for the Commonwealth’s allocation of Home Energy Rebate Programs funding. Virginia’s ability to establish Home Energy Rebate Programs is contingent on the availability of federal funding for these programs.
When will the Home Energy Rebates be available in Virginia?
Virginia Energy anticipates that the rebates will be available in Virginia in early 2025. Any delays in federal review and/or transfer of funding will cause delays in program launch.
Can I get help paying for a new heat pump for space heating and cooling through the rebate programs?
Both the Home Efficiency Rebate and Home Electrification and Appliance Rebate may be used to help pay for a new heat pump for qualified households and for qualified projects. Note that one household may access both rebates to pay for different measures (e.g., insulation and heat pump), but the rebates may not be combined to pay for the same measure (e.g., a heat pump). A professional will assist households in navigating these program options and choosing the best option based on their situation.
According to federal law, Home Electrification and Appliance Rebates cannot be used to help pay for a replacement heat pump. The rebate is for the replacement of a nonelectric appliance or the first-time purchase of a heat pump. Households looking to replace an existing heat pump may be eligible to use the Home Efficiency Rebate and/or other incentive programs to help cover the cost.
At what stage is the state of Virginia in the application process?
Virginia Energy is in the process of soliciting input from a wide range of stakeholders to inform the preparation of its application for Virginia’s allocation of Home Energy Rebate Programs funding. Opportunities to provide input on the program design process will be posted on Virginia Energy’s Public Notice page.
How much is Virginia receiving for Home Energy Rebates?
The Commonwealth of Virginia has been allocated a total of $188,524,540 for the Home Energy Rebate Programs: $94,537,110 for Home Efficiency Rebates and $93,987,430 for Home Electrification and Appliance Rebates. State Energy Offices do not compete for these grants, but they will be responsible for sending an application to the US Department of Energy that includes a plan to implement the programs.
Are the rebates retroactive? In other words, can I get reimbursed for an energy efficiency purchase made before the rebate becomes available?
The Inflation Reduction Act does not authorize states to offer Home Electrification and Appliance Rebates retroactively
The Home Efficiency Rebate program requirements are not yet defined. Interested individuals should review the U.S. Department of Energy’s Home Efficiency Rebates (50121) Retroactivity Fact Sheet and Eligibility Checklists.
Will the rebates be available at point-of-sale?
The Home Electrification and Appliance Rebates will be available at the point-of-sale. The specifics of how this point-of-sale delivery will work have not yet been established.
I need to make a home energy upgrade now. What other resources are available?
Existing programs, including the Weatherization Assistance Program, federal tax credits and utility energy efficiency programs may be available. More information about available programs can be found via Virginia Energy Sense.
If you are not sure which energy upgrades may be a good fit for your home, consider getting a home energy assessment. Home energy assessments may be offered at low or no cost from existing programs or be eligible for up to a $150 tax credit. Learn more here.
How do I get a rebate?
The process by which eligible recipients will access the rebates has not yet been established.
Who is eligible for the Home Efficiency Rebates?
Certain owners and tenants of single family and affordable multifamily residential buildings are eligible for the Home Efficiency Rebates. Owners must show a minimum of 15% of measured savings after energy upgrades or 20% projected savings per household. Virginia Energy is in the process of establishing detailed eligibility criteria for this program.
Who is eligible for the Home Electrification and Appliance Rebates?
Certain owners and tenants of single family and affordable multifamily residential buildings are eligible for the Home Electrification and Appliance Rebates. The Inflation Reduction Act restricts eligibility for Home Electrification and Appliance Rebates to households earning up to 150% of area median income. Virginia Energy is in the process of establishing detailed eligibility criteria for this program.
I am a renter. Do I still qualify for the rebates?
Tenants of single family and multifamily residential buildings can apply for the rebates if they get written permission from their landlords. For the Home Energy Rebate programs, household income status is based on tenant income.
I live in a mobile home. Will I be eligible for rebates?
Manufactured and mobile homes are eligible housing types for Home Energy Rebates.
What technologies qualify for rebates?
The Home Efficiency Rebate is based on energy savings achieved. It does not specify any required technologies. The Home Electrification and Appliance Rebate is technology-specific. Qualifying technologies include: heat pump for space heating and cooling, heat pump water heater, electric stove, cooktop, range or oven, heat pump clothes dryer, electrical load service center upgrade, insulation, air sealing and ventilation and electric wiring.
Can I apply for both a Home Efficiency Rebate and a Home Electrification and Appliance Rebate?
Eligible households may access both rebates to pay for different purchases. Both rebates cannot be used to pay for the same purchase.
I am eligible for the Weatherization Assistance Program. Can I also apply for the Home Energy Rebate Programs?
Yes. Households may benefit from both Weatherization Assistance Program funding as well as Home Energy Rebate Program funding as long as the two funding sources are not combined to pay for the same purchase. For example, the Weatherization Assistance Program and Home Energy Rebate Program funding cannot both be used toward paying for a high-efficiency heat pump. One could be used toward a high-efficiency heat pump and another toward insulation.
Are new construction properties eligible for rebates?
New construction properties are not eligible for the Home Efficiency Rebate Program. It has not yet been decided whether new construction projects will be permitted to receive Home Electrification and Appliance Rebates through Virginia’s program.
You can review answers to additional Frequently Asked Questions about Home Energy Rebates from the US Department of Energy.