By Cathy Ding, Civa Haverson, and Rana Haverson
Federal clean energy tax credits are hard to navigate, and although the federal government has tried to lower the cost of upgrades, the vast number of tax forms and programs can be confusing. We’re here to help.
The Energy Efficient Home Improvement Credit
Helps you save on new appliances and is good till the end of 2026.
You can receive up to $1,200 for improvements such as more efficient AC units, water heaters, and insulation. You can also get 2,000 for heat pumps, heat pump water heaters, and biomass stoves/boilers. You can receive both, and luckily, they’re both filed on IRS Form 5695.
Residential Clean Energy Credit
Also being phased out at the end of 2025, it covers 30% of the cost for clean home energy systems.
Cincinnati Specific
Ohio’s Department of Development is planning to launch its own energy-efficiency and electrification rebate program.
OBBB Act’s Influence on Clean Energy Tax Credit
Effective mostly in late 2025, most credit for clean energy improvements to buildings, factory production methods, etc., is being eliminated. However, certain credits for nuclear power and CO2 emissions remain untouched.
North Carolina Specific
Annual energy bills will swell to $1.3 billion by 2030, harming job opportunities for the local workforce. Deployment of energy-generating capacity in NC would also slow (by 13 GW by 2030). Fossil fuels will also cost billions more as consumers become more reliant on them.
Virginia Specific
In light of recent events, Virginia Energy has submitted applications for home energy rebate funding and is awaiting DOE review. Rebates cannot be issued retroactively, and it is uncertain when they will be granted again.
Big Beautiful Bill’s Changes to Renewable Energy Tax Credits
The bill accelerates the phase-out of tax credits for wind and solar projects beginning construction after July 5, 2026, subjects construction starting in 2026 to the Material Assistance restrictions for costs attributable to Prohibited Foreign Entities, ends the credit for wind energy components, ends the credit for metallurgical coal and other applicable materials, and eliminates the five-year MACRS designation for energy property.
Virginia (Solar) Specific
Virginia residents can currently apply for a 30% federal tax credit for their residential solar system. However, the Federal Solar Tax Credit will end at the end of 2025. It does not affect Virginia state, city, or county solar system tax incentives.
Home Programs
Active energy-saving incentive programs include thermostat rebates, EV charging rewards, peak-time rebates, and water-energy rewards.
