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Virginia Electric Vehicle Tax Credits, Rebates and Incentives
As the electric vehicle (EV) revolution accelerates, Virginia is making its mark as the 13th state in EV adoption and access to charging infrastructure.
Although the state’s EV incentives may seem currently limited, many utilities within the state offer innovative time-of-use pricing models, enabling residents to charge their EVs at home more affordably.
This blend of forward-thinking policies and utility programs positions Virginia as a hub for electric vehicles.
As of 2024, no Virginia EV tax credits are available to individuals or businesses, however, a few existing state-level incentives are worth mentioning and prospective buyers can still take advantage of the 2024 EV tax credit at the federal level.
Virginia EV Rebate Program
In 2021, the Virginia General Assembly established an EV rebate program that would create a $2,500 electric vehicle rebate available to anyone purchasing a new EV. Used EV buyers could also qualify for a $2,500 rebate as long as the vehicle’s price didn’t exceed $25,000. Additionally, an extra $2,000 rebate would be available to eligible buyers based on income level.
Although as of 2024, the program is still awaiting funding, it will remain in place until 2027, and these state EV rebates could become retroactively available once the bill receives funding.
Utility Rebates for Electric Vehicles in Virginia
Unlike other states, no utilities in Virginia offer EV rebates on electric vehicle purchases or leases.
Instead, many utilities in the state are focusing on providing other incentives, such as time-of-use pricing models, which can significantly reduce the cost of charging your EV at home. Additionally, utilities are investing in expanding the EV charging infrastructure in the state, making it more convenient for drivers to find charging stations.
As EV adoption increases, we can anticipate more utility companies to introduce rebate programs and other benefits to support this eco-friendly transition.
High Occupancy Vehicle (HOV) Lane Exemption
As an EV owner in Virginia, you can also get a Clean Special Fuel license plate by paying an additional registration fee of $25. This license plate makes you eligible for an HOV exemption in some areas, including portions of I-64, I-264, I-564, the Dulles Toll Road, and even some parts of Alexandria.
Emissions Inspection Program Exemption
One of the other perks of driving an electric vehicle in Virginia is that, as zero-emission vehicles, EV owners are exempt state’s emissions inspection program. This means EV owners can save money on registration renewal costs, adding another financial benefit to going electric.
Federal Tax Credits For Electric Vehicles
In addition to the above incentives for EVs, car buyers may also qualify for federal tax credits like the clean vehicle tax credit of up to $7,500 for new vehicles, or the used clean vehicle tax credit for up to $4,000. Income restrictions as well as battery component and critical mineral restrictions may apply. Be sure to speak to a qualified CPA or tax professional to check your eligibility.
Virginia EV Charger Rebates
In certain geographies across America, state entities and local utilities offer drivers rebates for purchasing and installing Level 2 EV chargers.
Two utilities in Virginia offer rebates on EV chargers, helping to reduce EV charger installation costs by offsetting equipment and labor costs.
Virginia Utility Rebates for Level 2 EV Chargers & Installation
Dominion Energy offers a $125 incentive for residential customers who purchase a qualifying Level 2 EV charger and enroll in the utility’s managed charging program. This program not only reduces the upfront cost but also promotes efficient energy use.
Danville Utilities previously offered a $200 rebate for the purchase and installation of a Level 2 EV charger. As of August 2024, details are no longer available on the Danville Utilities EV Chargers website, and it appears the program has expired.
Electric Vehicle Charging Station Tax Credit for Businesses
Commercial entities can claim a state tax credit of up to $2,500 (as much as 10%) to cover a portion of the cost of EV charger installation. This credit applies to Level 2 and DC Fast charging stations.
Non-Residential Utility Rebate Programs for EV Charging Stations
Business owners can take advantage of two Virginia EV incentives to save on their EV charging project.
Dominion Energy offers commercial and industrial customers a rebate for up to 50% of the cost to install Level 2 EV chargers through the Commercial Level 2 Charging Program. Dominion Energy will provide maintenance support for stations installed through the program.
For fleet customers, Dominion Energy provides additional incentives.
EV Charging Rates in Virginia
Virginia’s utilities are increasingly offering time-of-use (TOU) programs to help EV owners save on charging costs, with twelve utilities either already offering time-of-use programs or currently working to develop one. While not all these programs are geared specifically to EV charging, EV owners can save by scheduling their charging sessions during lower-rate periods.
Under time-of-use programs, electricity rates fluctuate based on projected demand. Typically, off-peak hours, such as during the night when activity and electric demand are lower, offer significantly cheaper electricity rates and some utility programs also have seasonal schedules with lower rates during the winter.
For example, Appalachian Power Company customers can save around 15% on EV charging by plugging in their electric car between 8 PM and 6 AM. During these hours, your rate will be $0.138 cents per kWh during these hours instead of $0.165 cents. The only requirement is installing a separate EV meter provided by the utility at no cost.
Dominion Energy offers both residential time-of-use program and an EV charger rewards incentive. Although you can’t combine the two programs, each offers unique savings so reviewing the benefits of the programs can help you determine which will better fit your needs.
The Dominion Energy demand response program allows customers to earn $40 per year for opting in and granting the utility to remotely control EV charging via a connected charger and potentially interrupt the flow of electricity during peak demand events. These events last no more than four hours at a time, and the utility can’t call more than 15 events per month or 45 in a year. For reference, there were 27 events in 2023.
Alternatively, Dominion’s time-of-use program offers rates as low as $0.09 per kWh in the summer and $0.12 in the winter, encouraging off-peak electricity use.
Kentucky Utilities, operating as Old Dominion Power in Virginia, offers charging rewards for EV owners. By joining this program, customers receive an initial $25 rebate and $5 per month for adhering to a chosen charging schedule. Conditions include using a Level 2 ChargePoint or Tesla charger and participating in up to 10 demand response events per year.
Danville Utilities offers a time-of-use program that allows residential customers to cut EV charging costs by 30%. The program features a flat $15.80 monthly service fee per meter, with off-peak rates of $0.10 per kWh and on-peak rates of $0.15 per kW.
The A&N Electric Cooperative’s time-of-use residential program offers significant savings, with on-peak rates of $0.31 per kWh in the summer and $0.16 in the winter. Off-peak rates are as low as $0.04 per kWh, providing savings of 75% to 88%.
A&N Electric Cooperative’s commercial customers can benefit from off-peak rates of $0.04 per kWh compared to on-peak rates of $0.32 per kWh in the summer and $0.15 in the winter.
Mecklenburg Electric Cooperative offers residential customers a time-of-use program that can cut the cost of EV charging by around 59%. Between delivery and supply charges, participants can expect to pay $0.13 per kWh during on-peak hours and only $0.06 per kWh when the off-peak price goes into effect.
Northern Virginia Electric Cooperative’s EV-1 program provides off-peak rates of $0.05 per kWh on-peak rates of $0.11 per kWh. This program, exclusive to EV owners, offers savings on any off-peak electricity use.
Prince George Electric Cooperative’s time-of-use program has an on-peak rate of $0.23 per kWh, including the supply service and delivery charge, with an off-peak rate of around 70% lower at $0.07 per kWh. Note that this program is offered on a first-come, first-served basis.
Rappahannock Electric Cooperative’s time-of-use program features on-peak rates up to $0.37 per kWh in the summer and $0.21 per kWh in the winter, with an impressive off-peak rate of $0.06 per kWh for the first 300 kWh used. Additionally, their separate EV program offers a $7 monthly bill credit for prioritizing off-peak charging, though the program is currently full, with a waitlist for future enrollment opportunities.
Southside Electric Cooperative’s time-of-use program includes on-peak residential rates that range from $0.44 per kWh in the summer to $0.30 per kWh in the winter. The off-peak rate is $0.18 per kWh, inclusive of energy, demand, and supply delivery charges
Town of Culper’s Light and Power Department offers a time-of-use program with on-peak rates of $0.06 per kWh and off-peak prices of $0.01 per kWh (demand charges are extra).
Finally, Northern Neck Electric Cooperative is currently developing a program with a special rate of EV charging, with updates available via utility’s online form.
Public EV Charging Stations in Virginia
In August 2023, Virginia received over $22 million in federal NEVI funding to go toward building public EV charging infrastructure and enhancing charging accessibility.
The current goal is to address gaps in charging availability, improve reliability by upgrading older public stations, and build a modern highway network with a charging station every 50 miles.
How Many Public EV Charging Stations Are in Virginia?
Virginia has over 1,600 public charging stations available to EV drivers and more than 4,700 public charging ports. This includes over 1,300 Level 2 and 295 DC Fast stations.
There are 70 Tesla Supercharger stations and 707 Tesla Supercharger ports in Virginia.
Virginia is currently using NEVI funding to develop its EV charging network, with the goal of creating 1,825 miles of EV charging corridors. Funding allocated in 2024 will help build 18 charging stations with a total of 66 ports along I-64, I-77, I-81, I-85, I-95, and I-295.
How Much Do Public EV Charging Stations Cost in Virginia?
The cost of public EV charging in Virginia varies based on the charging speed and the network used.
For instance, the city of Falls Church, VA, operates several Level 2 EV charging stations where the first hour of charging is free. After the initial hour, EV drivers are charged $0.20 per kWh, making it an affordable option for those needing a quick top-up.
On the other hand, DC Fast charging, which provides much quicker charging times, tends to cost more. For example, using the Level 3 chargers located at the Water Street Parking Garage in Charlottesville, requires a flat fee of $4.95 and another $0.20 per minute of charging. This pricing structure reflects the convenience and speed of fast charging, making it a suitable choice for drivers who need to quickly recharge their vehicles while on the go.
Are There Free Electric Car Charging Stations in Virginia?
Yes, in an effort to foster EV adoption, several municipalities operate free charging stations. You’ll find three free Level 2 stations in Harrisonburg, VA, eight options throughout York County, and additional free locations in Fredericksburg.
Where Are Public Charging Stations Located for Electric Cars in Virginia?
EV charging stations are often located near public buildings, including city halls, libraries, and courthouses. Additionally, some parking garages offer complimentary charging options, making it convenient for EV owners to charge their vehicles while doing day to day activities in surrounding areas.
Tesla has built a Supercharger network of fast charging stations throughout the state, with locations approximately 150 miles apart along I-64 and I-81.
Visit the U.S. Department of Energy’s Alternative Fuels Data Center Map of EV Charging Station Locations in Virginia, which can be sorted and filtered based on public access, charger type (Level 1, Level 2, DC Fast), and connector type (NACS, J1772, CCS, CHAdeMO).
Home Electrification Incentives in Virginia
In 2024, Virginia is expected to offer home energy rebates funded through the Inflation Reduction Act, making $94.5 million for home efficiency rebates and $93.9 million for home electrification available for things like appliance rebates, insulation and air sealing, heat pumps for space and water heating, and upgrades to smart electrical panels necessary to enable those retrofits.
Combining EV ownership with other electrification projects, such as upgrading your home with solar panels & battery storage, or investing in a heat pump, will help you save even more while reducing your environmental impact.
In Virginia, you may qualify for home electrification incentives through your electricity provider in addition to the U.S. federal government. Scroll down to read rebate and incentive details for specific home electrification technologies.
Battery Storage
Currently there are no state or utility incentives for battery storage in Virginia. However, the 25D Residential Clean Energy Tax Credit provides a 30% federal tax credit on the cost of new battery storage systems size 3kWh and larger.
Electrical Panels
The 25C Energy Efficient Home Improvement Tax Credit provides a federal tax credit for electrical panel upgrades needed to complete electrification projects like heat pumps and heat pump water heaters (up to 30% of project costs, capped at $600). The 25C tax credit can be used by renters, and homeowners making upgrades to their primary or secondary home.
Qualifying electrical panels must meet the standards of the National Electric Code (NEC) and have a capacity of 200 Amps or more. This means that your new/upgraded panel must be able to serve a load of at least 200 Amps, but you don’t need 200 Amps of incoming utility service. Smart panels may qualify if they allow you to serve a load of 200 Amps.
If you’re claiming 25D for a residential solar or battery storage project and the installation required you to upgrade your main panel, you may be able to apply 25D to electrical panel costs as well.
Heat Pumps & Heat Pump Water Heaters
Utilities in Virginia may have special programs for upgrading to heat pumps and heat pump water heaters. TVA offers rebates up to $800/system to install an air source heat pump with a rating of 17 SEER2 or higher. Heat pump water heaters also have an $800 rebate.
Appalachian Power’s Efficient Products Program offers rebates up to $400 to install a heat pump water heater, and up to $300 for ductless mini-split heat pumps (replacements).
The 25C Energy Efficient Home Improvement Tax Credit also applies to heat pumps and heat pump water heaters. A 30% federal tax credit is available (capped at $2,000 dollars). Eligible technologies must meet certain energy efficiency requirements.
Solar Panels
There are no state tax credits or utility rebates available for going solar in Virginia, but the Virginia Clean Economy Act compensates PV solar owners 1 solar renewable energy credit (SREC) for every megawatt-hour of clean electricity produced. For residential systems, you’ll earn up to $75 per SREC.
The 25D Residential Clean Energy Tax Credit provides a 30% federal tax credit on the cost of photovoltaic (PV) solar panel systems.