Virginia headline: The big state rebate (up to $8,000 for a heat pump) is not open yet, waiting on federal approval. What is live in 2026: Dominion Energy and Appalachian Power utility rebates, plus Dominion’s Income and Age Qualifying program that gives customers 60 and older a free assessment and no-cost upgrades. The federal 25C heat pump credit expired for installs after December 31, 2025.
The state rebate: coming, not open
Virginia has $188 million in federal Inflation Reduction Act money set aside for home energy rebates: about $94 million for Home Efficiency Rebates (HOMES) and $94 million for High Efficiency Appliance Rebates (HEAR).1 Both can help pay for a heat pump, up to $8,000 for income-eligible households once the program launches.
Here is the catch. As of mid-2026, the program is not open. Virginia Energy is updating its documents to match the federal guidance the Department of Energy released May 29, 2026, and must get DOE approval before it can start taking applications.1
What this means for you: do not wait on the $8,000 state rebate if your heat pump is failing now. Use the live utility rebates below, and watch energy.virginia.gov for the launch date. If your system can safely wait, the state rebate will be worth far more.
This is the Virginia companion to our 2026 heat pump rebate guide.
What is live now: utility rebates
Your options depend on which utility bills you.
Dominion Energy Virginia
Dominion Energy serves about 2.7 million Virginia customers, most of the state including Richmond, Hampton Roads, and Northern Virginia.3
| Equipment | Dominion rebate |
|---|---|
| Heat pump water heater (ENERGY STAR) | $250 to $400 |
| Variable-speed HVAC (Residential Home Retrofit) | Varies by measure |
| Home energy assessment | Low or no cost |
Dominion’s residential rebates run through its Home Retrofit and ENERGY STAR product programs. Confirm current amounts on your Dominion account before you buy.
Appalachian Power (southwest Virginia)
Appalachian Power serves the Roanoke, Blacksburg, and far-southwest region through its TakeCharge Virginia program.4
| Equipment | Appalachian Power rebate |
|---|---|
| Ductless mini-split heat pump | $300 |
| Heat pump water heater | $400 |
No income test for the standard TakeCharge rebates. Apply through the TakeCharge Virginia portal after installation.
The senior path: Dominion’s Income and Age Qualifying program
This is the part most Virginia seniors miss. Dominion Energy runs a no-cost program with an eligibility rule written for older homeowners.2
- Your household income is at or below 200% of the federal poverty guideline, or
- You are 60 or older with household income at or below 250% of the federal poverty guideline.
The higher 250% ceiling for seniors makes many retired couples eligible.
The program provides a free in-home energy assessment and select energy-saving measures at no cost.2 The list of measures changes over time and centers on weatherization and efficiency, so call Dominion at 888-366-8280 to confirm what is offered before you assume a heat pump is included. Even when it is not, the free assessment tells you where your home leaks heat, which lowers the size and cost of any heat pump you later install.
Income limits for the state rebate (when it opens)
When the HEAR program launches, eligibility caps at 150% of Area Median Income (AMI), measured at the county level using HUD data.7 The highest rebate tier is reserved for households below 80% AMI.
Approximate 80% AMI thresholds for a family of 4:
| County / region | 80% AMI (family of 4) |
|---|---|
| Fairfax County (Northern Virginia) | ~$110,000 |
| Richmond City | ~$71,000 |
| Virginia Beach | ~$72,000 |
| Roanoke County | ~$60,000 |
| Rural southwest counties | ~$48,000 to $54,000 |
Northern Virginia AMI runs high because the whole Washington metro is counted together, so many Fairfax and Loudoun seniors will qualify for a meaningful rebate. For a senior household on Social Security only, eligibility is usually clean in any county.
Federal layer (2026)
The federal 25C Energy Efficient Home Improvement Credit, which paid up to $2,000 for a heat pump in prior years, expired for installs after December 31, 2025.5
What remains in 2026:
- 25D Residential Clean Energy Credit: 30% of solar cost through 2034. Applies if you pair the heat pump with solar.6
- 25C on insulation, panel upgrades, and audits: still active at smaller caps. Heat pumps are excluded.
See IRA 25C expired 2026 for the full federal picture.
Senior stack scenarios
Scenario A: Richmond retired couple, Dominion customer, 70% AMI
- State HEAR rebate: not open yet
- Dominion Income and Age Qualifying assessment: free
- Dominion heat pump water heater rebate: $400
- Live today: free assessment + $400. When HEAR opens, add up to $8,000.
Scenario B: Blacksburg homeowner, Appalachian Power customer
- Appalachian Power ductless mini-split rebate: $300
- Appalachian Power heat pump water heater rebate: $400
- Live today: up to $700. When HEAR opens, add up to $8,000 if income-eligible.
Scenario C: Fairfax household, income above 150% AMI
- State HEAR: not eligible (over 150% AMI)
- Dominion standard rebates: heat pump water heater $250 to $400
- Plan for mostly out-of-pocket. The 25D solar credit is worth pursuing if pairing with solar.
Verify your contractor first
A rebate is only as good as the contractor who installs the equipment. Virginia licenses contractors through the Department of Professional and Occupational Regulation (DPOR), in three classes (A, B, and C) by project size.
Red flags to reject:
- Door-to-door pitches. Legitimate contractors do not cold-call.
- A “guaranteed” state rebate. The state program is not open, so nobody can guarantee it.
- No DPOR license number on the quote.
- R-410A equipment for a 2026 install. That refrigerant no longer qualifies under the EPA rule.8
Verify a license in about a minute with our Virginia contractor license lookup guide.
- Check your bill: Dominion (most of VA) or Appalachian Power (southwest)
- If 60+ with income at or below 250% of poverty, call Dominion at 888-366-8280 for a free assessment
- Claim the live utility rebate for your equipment
- Verify the contractor’s DPOR license before signing
- Watch energy.virginia.gov for the $8,000 state rebate launch
What’s next
- Federal 2026 landscape: Heat pump rebates 2026
- Post-25C federal picture: IRA 25C expired 2026
- Cold-climate equipment: Cold-climate heat pumps
- Total cost math including stacks: Heat pump cost calculator
- Virginia contractor check: Virginia contractor license lookup
- Family in other states: North Carolina, Maryland
Citations
- Home Energy Rebates: Program Status and FAQ. Virginia Department of Energy (Virginia Energy), retrieved July 16, 2026. energy.virginia.gov home energy rebates.
- Income and Age Qualifying Home Improvements (Virginia). Dominion Energy, retrieved July 16, 2026. dominionenergy.com income and age qualifying.
- Save Energy: Virginia Residential Rebates. Dominion Energy, retrieved July 16, 2026. dominionenergy.com save energy.
- TakeCharge Virginia Residential Rebates. Appalachian Power, retrieved July 16, 2026. takecharge.appalachianpower.com.
- Energy Efficient Home Improvement Credit (25C). U.S. Internal Revenue Service. irs.gov 25C.
- Residential Clean Energy Credit (25D). U.S. Internal Revenue Service. irs.gov 25D.
- Income Limits Documentation System. U.S. Department of Housing and Urban Development, April 2026. huduser.gov income limits.
- Technology Transitions: Restrictions on Use of Certain HFCs. U.S. Environmental Protection Agency. epa.gov technology transitions.