Did you know that there are a variety of tax incentives available from the Federal government for home energy improvements? You can claim up to $3,200 per year, based on the specific type of improvements you take. Many of the actions on this page are eligible, including home energy audits, insulation and air sealing, heat pumps, heat pump water heaters, and renewable energy. 

Visit energy.gov/save for more information. You can also find a short and simple breakdown of what is eligible for the federal tax incentives, how much you can claim, and other FAQs here: https://www.energy.gov/policy/articles/making-our-homes-more-efficient-clean-energy-tax-credits-consumers.

The Database of State Incentives for Renewables & Efficiency (DSIRE) compiles state and federal incentives and policies that support renewables and energy efficiency. 

Dominion Energy has a variety of programs and incentives for residential customers, including renewable energy programs, and income and age-qualifying programs such as the residential bundle program and EnergyShare program.

Before diving into action, it’s helpful to understand how much energy you’re using and what that energy is being used for. Then, use that information to identify ways you can be more energy efficient.

Reviewing your monthly energy bills is an easy starting point. This can show you what your baseline energy use is and if there are big changes from month to month.

• Resource: Dominion’s “Understand My Bill” page can help you understand how your bill is calculated. 

Next, a home energy assessment (also known as a home energy audit) gives you a more complete picture of the energy efficiency of your home. There are both do-it-yourself and professional options for home energy audits. With either route, a home energy audit helps determine where your home is losing energy and where you can save energy—including air leaks, ventilation, insulation, heating and cooling, lighting, and appliances and electronics. A professional home energy audit will give you a more thorough list of the most significant and cost-effective energy improvements to make to your home, with estimates on how much energy and costs you could save per improvement. There’s also a federal tax credit for conducting a professional home energy audit.

There are a variety of programs that provide free home energy audits based on household income. To check if you qualify and to learn more, visit Community Housing Partner’s (CHP) website here. CHP is the nonprofit that administers both government and utility programs. You can also directly fill out their intake form here, which will let you know what programs are the best fit for you and your home: CHP Energy Solutions No-Cost Efficiency Programs Screening (microsoft.com).

If you hire a contractor yourself, you may be eligible to claim 30% of the cost for a professional home energy audit, up to $150 per year, as part of the Energy Efficient Home Improvement tax credit. Before hiring a contractor, make sure to select one that meets the requirements for the tax credit. Visit this page from the US Department of Energy for more information: How to Ensure Your Home Energy Audit Qualifies for a $150 Tax Credit | Department of Energy.

DIY home energy audit resources:

• The US Department of Energy has a short guide to help walk you through the process and know what to look for: Do-It-Yourself Home Energy Assessments | Department of Energy.
• Check out a thermal camera from the Alexandria Library to help identify air leaks and areas that may need more insulation.
• Check out a Kill-a-Watt device from the Alexandria Library to better understand and control energy-wasting “always-on” appliances in your home.

Professional home energy audit resources:

• The US Department of Energy has a short guide to help you find a qualified professional and know what to expect: Professional Home Energy Assessments | Department of Energy.
• Dominion Energy has virtual and in-person home energy audits. Make sure to review the program eligibility and requirements—in many cases, Dominion does not allow participation across multiple of their programs, so it is important to choose the program that best meets your needs. Learn more here: Home Energy Assessment | Virginia | Dominion Energy.

Home energy savings starts with the building envelope: the exterior walls, foundation, and roof of your home. If you’ve completed an energy audit, it’s likely that the first recommendations have to do with these types of improvements. You could be wasting a lot of money just from small leaks in your home. Do you notice drafts in the winter, or does the temperature different in certain rooms or floors? Air sealing and insulation can solve a lot of these problems, improving comfort and saving a lot of money! This can also seal your home against bugs, outdoor pollution, and other things you don’t want to let inside. For more guidance on what weatherization entails, visit the ENERGY STAR home upgrade site. 

There are incentives and programs to help make weatherizing your home easy and affordable.

• Check out the City’s website on homeowner resources for energy efficiency, weatherization, and utility assistance to learn more about income-based programs: Homeowner Resources | City of Alexandria, VA (alexandriava.gov).
• Community Housing Partners (CHP) also administers government and utility programs to help make weatherizing your home affordable: Energy Solutions Weatherization | Community Housing Partners.

You may be eligible to claim 30% of the cost for installing insulation, air sealing, exterior windows or skylights, or exterior doors as part of the Energy Efficient Home Improvement tax credit. Check out this simple guide for more information on what types of upgrades are eligible and limitations on how much you can claim: Making Our Homes More Efficient: Clean Energy Tax Credits for Consumers | Department of Energy. And for more specific guidance for each measure, visit ENERGY STAR’s guide here: Federal Tax Credits for Energy Efficiency | ENERGY STAR.

Energy efficiency means using less energy to get the same—or even better—level of performance. As discussed in the section above, weatherizing your home can be a major part of overall home energy efficiency. But efficiency extends to everything that uses energy in your home. And the less energy you use, the lower your energy bills!

Heating, ventilation, and air conditioning (HVAC) account for about half of a typical home’s energy use, so making sure these systems are energy efficient goes a long way towards reducing costs as well as impact on the environment. 

• Set thermostat temperatures to minimize over-heating in the winter and over-cooling in the summer. Use fans, clothing, and blinds or curtains to reduce energy use and maintain comfort. 
  • In the summer, the ideal range is 71.6°-75.2°F.
  • In the winter, the ideal range is 68°-70°F.
• Use a smart or programmable thermostat to automatically set temperatures at more efficient levels when you’re away from home.
  • Both Dominion and Washington Gas offer rebates and incentives for eligible smart thermostats.
• Consider switching to a highly efficient heat pump, which provide both heating and cooling. Plus, ENERGY STAR certified heat pumps qualify for a tax credit of 30%, up to $2,000, as part of the Energy Efficiency Home Improvement tax credit. Check out the Electrify Your Home section below for more details about heat pumps.

Major appliances also contribute to much of a home’s energy use. This can include clothes washers and dryers, dishwashers, refrigerators, stoves, water heaters, lighting, televisions, computers, and more.

• To help find efficient appliances, look for the ENERGY STAR label, which means that a product meets strict energy efficiency criteria set by the US government. Visit the ENERGY STAR products page for more information and to search for products.

Efficiency also means making sure the appliances and electronics in your home aren't eating up energy when you’re not using them. Here are some easy steps you can take to save energy (and money!) every day:

• Turn off electronics and lights when not in use.
• Use an advanced power strip, which can help control energy use by shutting off power to devices that are not in use.
• Check out a Kill-a-Watt device from the Alexandria library system to figure out which electronics and appliances are using the most energy, even when you’re not using them.

An important part of climate action is getting rid of fossil fuels in your home. Not only is it better for the environment, but it's much better for your indoor air quality, too. Electrifying your home can improve the health, comfort, and safety of the spaces where you and your family spend most of your time.

Home electrification means replacing appliances in your home that run on natural gas, propane, or other fossil fuels—such as furnaces, water heaters, and stoves—with efficient, all-electric versions such as heat pumps and induction cooktops. Full home electrification can seem costly, but you don’t need to do everything all at once. In fact, spreading out upgrades over several years can help you get the most out of federal tax credits, which have annual limits. You can claim up to $2,000 annually on a combination of heat pumps, heat pump water heaters and biomass stoves/boilers as part of the Energy Efficient Home Improvement tax credit.

Heat pumps for heating and cooling – Highly efficient ENERGY STAR-certified heat pumps are a great alternative to gas furnaces and generally use about half the energy of other electric home-heating sources. Heat pumps can efficiently provide both heating and cooling for your home while lowering your monthly energy use and costs. Visit Clean Heating and Cooling | ENERGY STAR for more information and helpful hints on maximizing your tax incentive.

Heat pump water heaters – Water heating accounts for nearly 20% of an average home’s energy use. Upgrading to an efficient electric heat pump water heater can also help lower your monthly energy costs and improve the health and comfort of your home. Visit Super-Efficient Water Heater | ENERGY STAR for more information and helpful hints on maximizing your tax incentive.

Electric Stove, Oven, or Induction Cooktop – Electric cooking appliances are highly efficient and free of the indoor air pollutants that come from gas stoves. As they become available, you may be eligible for a rebate for an electric stove, oven, range or cooktop.

Visit the U.S. Department of Energy’s Energy Savings Hub for the latest information on available tax credits and forthcoming rebates.

Using renewable energy is another important step in reducing your home energy costs and environmental impact. Going solar can also increase your home’s resilience to power outages, if paired with an energy storage system such as a battery. There are a number of resources and incentives to help you get started and reduce the cost of installing a residential solar energy system.

• Solar Permitting Checklist - provides the general steps for the permitting, installation, and inspection processes for the City of Alexandria. This resource also provides answers to some frequently asked questions.
• The applicable permits for a solar installation can be submitted online through the Department of Code Administration’s Online Permit Center.
• The City of Alexandria offers the “Solar Energy Equipment Tax Exemption” for homeowners who install a qualified solar energy system. The property tax exemption can be up to 100% of cost and installation, and is deducted from the value of the property every year for 5 (five) years. To qualify for the tax exemption, property owners must follow instructions provided: https://media.alexandriava.gov/docs-archives/code/info/solar-energy-equipment-tax-exemption-forms-04.11.pdf.
• The Federal government offers a tax credit valued at up to 30% of the cost paid. A credit also exists for battery storage systems. Visit the U.S. Department of Energy’s Energy Savings Hub for more information.
• Sign up for the free statewide Solarize program, which runs every summer and provides a one-stop shop for education and installation.

For more information, view the City’s Renewable Energy page.

Saving water is good for your wallet as well as the environment. To estimate how much water your household uses and get ideas for home water conservation, check out the Water Usage Calculator, Water Conservation and Efficiency | Home Water Works (home-water-works.org)

Adding an aerator to your faucet or using WaterSense certified faucets, showerheads, or toilets can dramatically increase your water efficiency. Products with EPA’s WaterSense label are certified to use at least 20 percent less water, save energy, and perform as well as or better than regular models. You can use the WaterSense Product Search (epa.gov) to see if your model is certified.

The City of Alexandria’s Resource Recovery website has lots of information and resources to help reduce waste. Here are just a few:

• Use the What Goes Where tool to figure out how to recycle or dispose of a huge variety of products and materials.
• Reduce food waste by composting through the City’s curbside composting pilot, by bringing food waste to a drop-off station at one of the farmer’s markets throughout the city, or composting in your own backyard.
• Recycle glass at a Purple Bin, available throughout Alexandria and broader Northern Virginia region. Visit the Glass Recycling in Alexandria page for more information and a map of Purple Bin locations.

The way we interact with and manage outdoor space can have a large impact on the local environment, for better or for worse. Here are some tips and resources for eco-friendly practices:

• Use electric or manual outdoor equipment, such as lawnmowers and rakes, rather than gas-powered versions. 
• Check out the City’s Stormwater Utility Fee Credit Manual (PDF) for stormwater management, landscaping, and dry floodproofing practices that can help protect your property against flooding—and that can qualify you for up to a 50% stormwater utility fee reduction. Visit the City’s Stormwater Utility website for more information.
• Plant native plants and remove invasive species from your property. Organizations with more information on native plants include Plant NOVA Natives and Master Gardeners of Northern Virginia.