Save Money And Energy With These Energy Efficiency Financial Incentives
Energy efficiency measures help residents and businesses save money on energy bills, but upgrades and installations can sometimes be expensive.
Virginia offers several financial incentives that help consumers offset the cost of implementing energy efficiency measures.
Virginia’s incentives range from cost-free weatherization to income tax deductions on energy-efficient appliance purchases.
Last week, we highlighted five simple ways everyone can maximize energy efficiency within their homes and businesses. Whereas making an effort to be more energy efficient may be as simple as switching on a ceiling fan, some of the most effective ways to prioritize energy efficiency involve upgrading certain appliances and installing devices such as programmable thermostats. This often requires an investment. Fortunately, both the state of Virginia and the federal government offer a variety of financial incentives that aid individuals in affording and implementing energy efficiency upgrades.
Here’s a look at some of the financial incentives available to Virginians looking to save money by being more energy-efficient:
Weatherization Assistance Program
Some of the most common methods of improving energy efficiency include sealing air leaks, improving insulation, and repairing HVAC systems within homes. Referred to as weatherization, these are exactly the methods the Weatherization Assistance Program most often employs.
With the goal of maximizing energy efficiency within households, WAP helps households cut back on energy usage via weatherization. Experts conduct an energy audit, which helps to determine which measures will be most effective in each household. Then technicians get to work, weatherizing the home at no cost to the occupants. Single-family homes, apartments, and mobile homes are all eligible to take advantage of WAP, and qualification is based on income and household size. The program is administered through Virginia’s Department of Housing and Community Development, with funds from the U.S. Department of Energy.
Energy Star Tax Holiday
Household appliances marked with the Energy Star logo have been recognized by the Environmental Protection Agency as meeting or exceeding federal energy efficiency standards; in 2019, Energy Star products saved Americans $39 billion in energy costs.
Energy Star products are generally more costly than less energy-efficient products, however. In an attempt to incentivize Virginians to purchase energy efficiency appliances — which save customers money in the long run — the state offers a sales tax holiday on Energy Star products. Each year, between the first Friday of August and the following Sunday, Energy Star products including dishwashers, air conditioners, and programmable thermostats are exempt from retail sales and use tax. The tax exemption applies to used products as well. Applicable products must cost $2,500 or less and must be for personal or noncommercial use. Mark your calendars!
Local Tax Exemptions for Energy Efficient Buildings
Since 2008, Virginia has allowed localities to exempt or partially exempt energy-efficient buildings from local property taxes. Buildings home to residents and businesses alike are eligible. Not all localities offer this tax exemption, but some large localities like Charlottesville and Virginia Beach do.
To qualify for the tax exemption, buildings must exceed energy efficiency standards laid out in the Virginia Uniform Statewide Building Code by at least 30%. Whether a building meets this standard or not must be determined by a qualified architect, engineer, or licensed contractor.
Income Tax Deductions
Virginians are able to deduct from their income taxes up to 20% of the amount spent on sales taxes for certain energy-efficient appliances. The deduction is capped at $500. The appliances purchased must meet Energy Star standards.
Utility Incentives
A number of utilities operating in Virginia offer certain energy efficiency financial incentives for their customers to take advantage of. Charlottesville Gas offers a $100 rebate on the purchase or installation of programmable thermostats. Dominion Energy offers several rebates to customers for energy efficiency equipment installations. Danville Utilities offers similar rebate programs.
Visit your utility’s website for more information on energy efficiency incentives.