2026 Home Energy Tax Credits
Got questions about home energy tax credits? We've got answers (at least more than most contractors). Since 2006, EDGE Energy has helped homeowners in the DMV claim over $24 million in tax credits.


A quick disclaimer
We're home energy contractors, not tax professionals.
Heat Pump Tax Credit 2026
Homeowners can claim a 30% tax credit (up to $2,000) for installing a heat pump. This applies to:
- High-efficiency heat pumps: Replace your gas furnace or outdated AC.
- Heat pump water heaters: Use 70% less energy than traditional water heaters.
- Ductless mini-splits: Improve home comfort with zoned heating and cooling.
Case study: A gas leak forced this family out - electrification brought them home
Dona B. and her children had to leave their home after a gas furnace leak caused dangerous carbon monoxide exposure.

Case study: How a Maryland homeowner saved big with her solar panel tax credit
Jennifer F. in waited until the incentives were right before installing solar panels and battery backup.

FAQ
Frequently Asked Questions
What's the first step to claim a home energy tax credit?
Start by giving us a call at (888) 532-0197, or send us a message to book an appointment with one of our consultants. We'll help you find the best energy-saving upgrades, and you'll get a complete breakdown of the pricing, rebates and tax credits.
How does a federal energy tax credit work?
A federal energy tax credit is an incentive that helps homeowners save money when investing in solar panels, heat pumps, insulation, and other energy-efficient upgrades. It provides a dollar-for-dollar reduction in the amount of federal income tax you owe—or increases your refund if applicable. Tax Credits vs. Tax Deductions Both lower your tax burden, but in different ways: Tax credits directly reduce your tax bill or increase your refund. Tax deductions lower your taxable income, which may reduce the amount you owe. Tax Credits vs. Rebates A tax credit is claimed when filing your federal income taxes for the previous year, while rebates or cash incentives provide savings upfront—usually within a few weeks after your project is completed. While there are no federal rebates for energy upgrades, homeowners in Maryland, D.C., and Virginia may qualify for state and utility-based rebates to further reduce costs. EDGE Energy can help you navigate both federal tax credits and local incentives to maximize your savings.
How do I claim a home energy tax credit?
To claim a home energy tax credit, use IRS Form 5695 when filing your federal taxes. This form helps you calculate and apply for: The Residential Clean Energy Credit – For solar panels, solar water heaters, and other renewable energy upgrades. The Energy Efficient Home Improvement Credit – For insulation, air sealing, energy-efficient windows, and more. Complete Form 5695, include the credit amount on your 1040 tax return, and keep records of your upgrades in case of an audit. Consult a tax professional if you're unsure about eligibility.
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