The Renovation Wave in Northern Virginia
Northern Virginia is at the forefront of the Renovation Wave in the Commonwealth of Virginia actively pursuing weatherization, energy efficiency and solar projects in an effort to decarbonize its energy resources. The Commonwealth is committed through the Virginia Clean Economy Act to provide 100% clean energy to the region by 2045. Further, the provisions of the Inflation Reduction Act provide additional catalyst to support more efforts to decarbonize. As was recently reported in the New York Times, U.S. carbon emissions fell in 2023.
The region's local governments are leading by example following through in the adoption of resiliency and/or sustainability plans to help reduce their energy use. Several localities have built and opened net-zero school facilities, converted street lights to LED technology, have invested in electric public transit buses, purchased electric vehicles, supported the Solarize NoVA program, have become SolSmart certified and undertaken other measures to lead the way.
The business community through the commercial building sector has been proactive in supporting efforts to be more sustainable. Through the end of 2022 more than 117 million square feet of commercial buildings have achieved some level of LEED certification in Northern Virginia. A map of those buildings can be found here. Additionally, from 2016 to present more than 10,000 families have been provided assistance through weatherization and energy efficiency programs to reduce their energy use whether it is electricity or gas.
In addition to weatherization and energy efficiency, the growth of solar has been impressive. From 2021 to 2022 the amount of solar in the region has grown from 53.1 MW in 2021 to 82.0 MW in 2022 more than 50% growth year over year. Further, a 100 MW solar array is currently under construction at Washington Dulles International Airport which will be largest solar array on an airport in the United States of America.
Weatherization/Energy Efficiency Assistance
There are multiple weatherization and energy efficiency programs available to residents in Northern Virginia. Some of these programs are funded either by the federal government, state government or utility sponsored. In addition, several local governments in the region sponsor their own programs to assist residents in reducing their energy usage.
Energy Star
ENERGY STAR® is the government-backed symbol for energy efficiency, providing simple, credible, and unbiased information that consumers and businesses rely on to make well-informed decisions.
Energy Star Rebate Finder
Several utilities including those who serve Northern Virginia offer rebates on energy efficiency equipment. You can search for a rebate by zip code.
FEDERAL TAX CREDITS
Tax Credits for Homeowners
Under the Inflation Reduction Act of 2022, federal income tax credits for energy efficiency home improvements will be available through 2032. A broad selection of ENERGY STAR certified equipment is eligible for the tax credits. Independently certified to save energy, ENERGY STAR products are a smart investment for energy efficiency you can count on.
ANY MATTERS RELATED TO TAX CREDITS SHOULD BE DISCUSSED WITH YOUR FINANCIAL ADVISOR.
Annual Limits on Energy Efficient Home Improvement Tax Credits
In addition to limits on the amount of credit you can claim for any particular equipment installation or home improvement, there are annual aggregate limits. The overall total limit for an efficiency tax credit in one year is $3,200. This breaks down to a total limit of $1,200 for any combination of home envelope improvements (windows/doors/skylights, insulation, electrical) plus furnaces, boilers and central air conditioners. Any combination of heat pumps, heat pump water heaters and biomass stoves/boilers are subject to an annual total limit of $2,000.
SOLAR ENERGY TAX CREDITS
The Inflation Reduction Act of 2022 extended the federal income tax credit for solar energy systems. The following Residential Clean Energy Tax Credit amounts apply for the prescribed periods:
- 30% for property placed in service after December 31, 2016, and before January 1, 2020
- 26% for property placed in service after December 31, 2019, and before January 1, 2022
- 30% for property placed in service after December 31, 2021, and before January 1, 2033
- 26% for property placed in service after December 31, 2032, and before January 1, 2034
HEATING AND COOLING EQUIPMENT
- Air Source Heat Pump
- Central Air Conditioning
- Boilers
- Biomass Fuel Stoves
- Furnaces (Natural Gas, Oil, Propane)
WATER HEATER TAX CREDITS
Building Products
Residential Clean Energy
Other Tax Credits
TAX CREDIT CALCULATOR/RETROFIT DECISION TOOL
TAX CREDIT CALCULATOR
Rewiring America provides a calculator to help you determine if you are eligible for tax credits for various energy related improvements, e.g. solar, efficiency. Please be advised that the values presented are just estimates. Any matters related to tax credits should be discussed with your financial advisor.
RETROFIT DECISION TOOL
The U.S. Department of Energy offers a tool to help you make decisions as related to retrofits for your home or building. The primary goal of this tool is to help you identify a simplified pathway for buildings to become zero carbon aligned (ZCA).
About the Northern Virginia Regional Commission
NVRC is a consortium of thirteen local governments representing more than 2.5 million residents. While only 3% of Virginia's land mass, Northern Virginia has a GDP of $276 Billion which is 41.6% of the GDP of the Commonwealth of Virginia. Northern Virginia’s GDP is larger than 24 states and the District of Columbia and if a country would be the 48th largest economy in the world.
Additional Resources
For more information about these and other energy related projects please visit the Northern Virginia Regional Commission's energy web site.