Our discussion on how to save energy at home briefly hits on more than 30 changes you can can make in and around your home, from cheap-yet-effective steps to upgrades that require upfront spending, but quickly pay for themselves from lower utility bills to systems and renovations that minimize what you pull off the grid, but come at steep prices.

Often, the extra costs of energy-saving improvements can be reduced by tax credits and utility company rebates.

Below are the energy-saving rebate programs available at the time of this writing. Check EnergyStar.gov for up-to-date info. Also check with your utility company and the Database of State Incentives for Renewables & Efficiency (DSIRE).

We didn’t include low-interest loan programs or incentives available for new home construction. We also didn’t look for community grants for multi-home projects or programs for owners of commercial buildings. There are also many programs available to landlords of apartment buildings.

Federal Tax Credits and Rebates

There are two federal programs that provide incentives for home-energy-saving improvements: One provides tax credits; the other will create rebates, but the rebates aren’t yet available in this area.

Tax Credits

The “Energy Efficient Home Improvement Credit” provides tax breaks to homeowners who make green improvements to their primary residences. The credit is equal to 30 percent of the cost of eligible improvements made between 2023 and 2032. Here’s a list of eligible projects; for some there are individual annual maximum allowable credits:

• Air-sealing and insulation improvements—no cap
• Central ACs—$300 cap for most systems
• Energy audits—$150 cap
• Exterior doors—$250 per door, $500 limit for multiple doors
• Gas and oil furnaces—$600 cap for units with 97+ AFUE
• Windows and skylights—$600 cap

If you do more than one of the projects listed above there’s a maximum tax credit of $1,200 each year.

A separate tax credit of up to $2,000 is available if you buy a qualifying heat pump, biomass stove (for example, one that burns wood pellets), or boiler.

If you install a ground-source heat pump or solar panels you may qualify for a 30 percent federal tax credit with no cap. In 2033, these credits drop to 26 percent and then to 22 percent in 2034; after that, they’ll disappear unless new legislation gets passed.

Many local governments also provide incentives for residential solar-energy projects. The programs available in the District are particularly generous.

Rebates Coming Soon

New rebates will soon be available, funded by the federal government’s “High-Efficiency Electric Home Rebate” program. These aren’t tax credits; they’re point-of-sale rebates that homeowners will receive as discounts as they make approved improvements.

At the time of this writing, this program hadn’t been finalized for the District, Maryland, or Virginia. The law requires the Department of Energy to provide guidance to states and then each submits program proposals for review and approval; so far, only New York and Wisconsin have rebate programs up and running. Rebates for local residents probably won’t be available until sometime in 2025.

Once in place, the rebates most consumers will tap into will be tied to household income. To get the full rebate amount, your household income must be less than 80 percent of the Area Median Income (AMI); if your household income is 80 percent to 150 percent of the AMI you can get 50 percent of each rebate amount; households with AMIs higher than 150 percent do not qualify for the program.

According to Fannie Mae, the AMI for the Washington area is $152,900. That means those with household incomes of less than $122,320 will qualify for the full rebate amounts, listed below; those with incomes between $122,320 and $229,350 can qualify for 50 percent of these amounts:

• $8,000—heat pumps when installed to replace existing gas-, oil-, or propane-burning furnaces or baseboard heat as the home’s sole heating source
• $1,750—heat pump water heaters
• $840—heat pump clothes dryers
• $840—replace gas stove with electric one
• $4,000—electrical panel upgrade if needed to power any of the above improvements
• $2,500—electrical wiring upgrades if needed to power any of the above improvements
• $1,600—insulation, air sealing, and ventilation improvements

For households that make more than one of the above improvements, there is a maximum $14,000 rebate.

There will also be a separate program that provides rebates of up to $8,000 for homeowners who take steps to reduce their residence’s overall energy usage by more than 20 percent. We’re still awaiting details from D.C., Maryland, and Virginia on how they will calculate rebate amounts or impose income limits.

Confused by all this math? We are, too! Rewiring America built a brilliant calculator that can estimate which rebates you might qualify for. We’ll also update you on program details as they become available.

Local Incentive Programs

Listed below are incentives from local utility companies in effect in fall 2024. Programs come and go; check with your utility and the Database of State Incentives for Renewables & Efficiency (DSIRE) for up-to-date info.

Before starting a project, confirm that you qualify. Rebate programs usually require homeowners to work with the utility’s “approved” contractors or to file paperwork before installations.

D.C. Sustainable Energy Utility

• Air-source heat pumps that use ducts—$375 rebate for units with HSPF2 7.8+ and SEER2 15.2+; $700 rebate for units with HSPF2 8.0+ and SEER2 17.0+
• Air-source mini-split (ductless) heat pumps—$375 rebate for units with HSPF2 7.8+ and SEER2 15.2+; $700 rebate for units with HSPF2 9.0+ and SEER2 16.0+
• Central air conditioners—$250 rebate for units with SEER2 15.2+; $375 rebate for units with SEER2 16.0+
• Clothes dryers—$75 to $200 rebate for Energy Star-certified electric models
• Clothes washers—$75 to $100 rebate for Energy Star-certified models
• Combination washer/dryer units—$150 to $300 rebate for Energy Star-certified models
• Heat pump water heaters—$300 to $600 rebate
• Lawn mowers—$75 rebate for electric push models; $100 rebate for electric riding models
• Programmable thermostats—up to $50 rebate
• Refrigerators—$75 to $100 rebate for Energy Star-certified models

Pepco Customers in Maryland

• Clothes washers—$100 discount for Energy Star-certified models
• Dehumidifiers—$30 to $50 rebate or discount for Energy Star-certified models
• Heat pump water heaters—$1,600 rebate
• Programmable thermostats—$100 rebate for Energy Star-certified models
• Refrigerator recycling—$50 credit plus free pickup

Pepco’s “Home Performance with Energy Star Program” also offers its Maryland customers generous incentives for making significant energy-saving improvements.

Start by contacting Pepco to schedule an assessment, which costs $100. During the inspection, the contractor will provide free LED bulbs and smart power strips, insulate water heater pipes, and install efficient shower heads and faucet aerators. The assessment will also provide a list of recommended improvements, many of which are eligible for rebates. If recommended, rebates are available for upgrades for attic air sealing and insulation improvements and replacing HVAC units, windows, doors, and water heaters with more energy-efficient models

For each type of project, rebate amounts vary depending on estimated energy savings from doing it. Pepco says the average rebate amount is $2,500; for most projects, the maximum rebate is equal to 75 percent of project costs, up to an overall $7,500 cap.

Washington Gas Customers in Maryland

• Gas furnaces—$450 rebate for Energy Star-certified units with 95 to 96 AFUE; $600 for units with 97+ AFUE
• Boiler furnaces—$475 to $775 rebate, depending on model
• Gas clothes dryers—$90 rebate for Energy Star-certified models
• Gas fireplaces—$75 rebate for installation of direct-vent units
• Storage water heaters—$175 rebate for efficient models
• Tankless water heaters—$450 rebate for efficient models

Virginia Dominion Energy Customers

• Heat pump water heaters—$400 rebate
• Programmable thermostats—$30 rebate

Dominion’s “Home Energy Evaluation Program” offers the following rebates for improvements recommended during a comprehensive energy audit performed by one of its participating contractors:

• Air sealing—$25 to $200 rebate, depending on HVAC equipment and overall leakage reduction
• Duct insulation—$70 rebate
• Duct sealing—$109 to $300 rebate, depending on HVAC equipment and overall leakage reduction
• Faucets and showerheads—for electric water heaters, $6.50 to $42.87 rebate per approved fixture, depending on type
• Heat pump new installs—$1,000 to $1,500 rebate, depending on efficiency of new unit, when replacing home-wide electric baseboard heating system with air-source heat pump; $195 rebate per unit when replacing home-wide electric baseboard heating system with ductless mini-split heat pumps
• Heat pump replacements—$156 to $312 rebate, depending on efficiency of new unit
• Insulation, attic—$.05 to $1.20 per square foot rebate depending on HVAC equipment and type of insulation added
• Insulation, crawlspace—$.05 to $.30 per square foot rebate
• Insulation, hot water pipes—$4.03 to $6.07 rebate per foot
• Insulation, walls—$.05 to $.30 per square foot rebate depending on HVAC equipment and type of insulation added
• LED lightbulbs—$4.24 to $15.09 rebate per bulb, depending on type; max limit of 45 per home
• Programmable thermostats—$40 to $90 rebate, depending on HVAC equipment

Washington Gas Customers in Virginia

• Gas fireplaces—$75 rebate for approved projects
• Gas furnaces—$300 rebate for Energy Star-certified units with 92 to 95 AFUE; $400 for units with 95.1+ AFUE
• Boiler furnaces—$400 to $700 rebate, depending on model
• Smart thermostats—$50 rebate for approved models
• Storage water heaters—$100 to $150 rebate for Energy Star-certified models
• Tankless water heaters—$350 to $400 rebate for Energy Star-certified models

Additional Resources to Help You Go Green at Home

Consumer Reports
Ratings of appliances, lightbulbs, window AC units, etc.

Database of State Incentives for Renewables & Efficiency
Rebates and tax incentives available from utilities and governments

Earth911.com
Green tips, plus database of recycling centers and where to dispose of hazardous household waste

Efficient Windows Collaborative
Help with window selection and estimating cost savings

Energy Star
Certifies energy-efficient appliances and HVAC equipment

National Renewable Energy Laboratory
Research and publications on renewables; offers a calculator that estimates energy production and cost of solar installations

Passive House Institute U.S.
Certification and training for net-zero energy-use builders, contractors, and manufacturers

Residential Energy Services Network
Certification for energy auditors

Rewiring America
Educational resources; tracks public policy for electrification projects; offers a nifty calculator that helps consumers figure out eligibility for rebates and other incentives

Snugg Pro
User-friendly web-based energy-auditing software

YouTube.com
Thousands of DIY videos from experts (but also non-experts)

Zero Energy Project
Advice and lists of products and suppliers for home buyers, builders, and designers interested in net-zero energy-use homes