North Carolina Heat Pump Rebates
Energy Saver North Carolina backs North Carolina heat pump rebates: as much as $8,000 toward a new unit, or $16,000 for upgrading a whole home. Regardless of household income, utility customers can also claim as much as $2,500 from Duke Energy.
Find the North Carolina rebates for your ZIP code
Without JavaScript, the programs table lets you find your state.
Who sends your electric bill?
What are you putting in?
- Largest standard rebate available
- $1,500 From the Duke Energy Smart $aver set of Home Improvement Rebates, available to customers of Duke Energy Carolinas, LLC, Duke Energy Progress
- If your household income qualifies
- $16,000 Energy Saver North Carolina (HOMES and HEAR)
- HEAR appliance rebates
- Open Pays as much as $8,000 toward a heat pump when income qualifies. Run by NC Department of Environmental Quality. Official page
- HOMES whole-home rebates
- Open Paid on the energy saved by a whole-home upgrade. Official page
- The 25C federal tax credit
- Ended No credit for heat pumps installed after 31 December 2025
Rebates for heat pumps across North Carolina
Check each program row against your household income tier or your electric utility to see which savings fit you.
| Program | Who can get it | Central heat pump | Ductless mini-split | Heat pump water heater | Geothermal | Status | Apply |
|---|---|---|---|---|---|---|---|
| Duke Energy Smart $aver program, Home Improvement Rebates (heat pump water heater and HVAC) | For customers of Duke Energy Carolinas, LLC, Duke Energy Progress | $1,500 | $700 replace on failure / $900 early replacement | $500 | $700 replace on failure / $900 early replacement | Open | Official page |
| Energy Saver North Carolina (HOMES and HEAR) | Everyone in the state | Up to $16,000 (income-qualified) | Up to $16,000 (income-qualified) | Up to $1,750 (income-qualified) | None | Open | Official page |
| Dominion Energy North Carolina Save Energy rebates | Served by Virginia Electric & Power Co | None | None | Up to $400 | None | Open | Official page |
| TVA EnergyRight Residential Rebates (heat pumps) | Served by Tennessee Valley Authority | $800 | None | None | None | Open | Official page |
Claiming North Carolina Heat Pump Rebates Step by Step
When you apply comes down to a choice: go through the state, or go through the utility that supplies your power. Before signing any installer contract, you are able to check both programs and avoid losing money.
- Apply for eligibility at energysavernc.org for Energy Saver North Carolina before work starts.
- The state registered contractor directory is where your installer must come from; a self-installation will not qualify.
- Once installation is done, the state pays the contractor directly, so approve the quote with your upfront discount already applied.
- For Duke Energy Smart $aver, a participating contractor found via the Find it Duke tool must be hired before your unit is replaced.
- Request that your Duke Energy contractor file within 60 days after the service; a prepaid Mastercard then comes within four to six weeks.
What the State Pays by Household Income
The $208 million state efficiency program opened to all 100 counties in North Carolina on February 10, 2026. Area median income, the typical household income for your county, determines eligibility.
- Under 80% of that local mark, a household has 100% of its costs covered, and an ENERGY STAR heat pump is capped at $8,000.
- Families that qualify can also claim up to $1,750 toward a heat pump water heater, or up to $16,000 for savings upgrades across the whole home.
- If a moderate-income home sits within 80% to 150% of the local mark, it can have up to 50% of costs paid, to the same caps.
- A household above 150% is not eligible for state appliance rebates, but utility offers still apply to it.
State and utility discounts can be combined, as long as the total stays within the purchase price.
North Carolina Weatherization for Lower-Income Homes
If a new heating system is beyond your budget right now, free home upgrades are available. Families earning less than 200% of the federal poverty guidelines are served by the state weatherization program, which works through local community agencies. If cash assistance from Work First or Supplemental Security Income goes to anyone in your household, you also qualify automatically.
A separate weatherization program from the utility, paying for free equipment replacements, takes applications from Duke Energy customers with lower incomes. In January 2025, Duke Energy lifted its allowance for free heating and cooling replacements in qualifying homes, going from $6,000 to $8,000. Free energy-saving products are also available through the Neighborhood Energy $aver initiative for customers in qualifying neighborhoods.
Rules for Electric Heating and Tax Credits That Ended
Electricity heats nearly seven in 10 North Carolina homes, and heating plus cooling account for over 40% of a monthly bill. Gas or oil systems are excluded from state appliance rebates since September 1, 2026; these now only pay to replace older electric units.
Duke Energy gives $1,500 to anyone replacing electric baseboard or furnace heat with a heat pump. Electric strip heat, backup coil heating that draws heavy power on freezing nights, is common in older heat pumps. Install a geothermal unit or dual fuel to replace a working heat pump with strip heat, and you can be paid up to $2,500. In a dual fuel setup, a gas furnace works with an electric heat pump during winter cold snaps.
Under Public Law 119-21, the federal 25C tax credit is gone for any equipment put into service after December 31, 2025.
Common Questions About North Carolina Heat Pump Rebates
If Duke Energy is not my provider, can I still get a heat pump rebate in North Carolina?
Yes. Across 105 western North Carolina ZIP code areas served by local power companies for the Tennessee Valley Authority, homes get $500 to $800. A unit rated 15 SEER2 at minimum, the cooling efficiency score shown on the label, must be installed by a Quality Contractor Network member. Through Dominion Energy North Carolina, you can get a heat pump tune-up plus as much as $400 toward a heat pump water heater.
Does the federal heat pump tax credit still exist in 2026, or could I claim earlier installations?
The 25C federal tax credit no longer covers 2026 installs, per Internal Revenue Service rules. On the state side, Energy Saver North Carolina does not pay appliance rebates after the fact. Its whole-home pathway, however, allows retroactive rebates for qualifying projects that started on or after August 16, 2022. Qualifying depends on your project meeting the modeled-savings rules set by the Department of Energy.
For a house of 1,000 square feet or larger, how much will Duke Energy pay to swap out a standard heat pump?
Duke Energy pays $350 to $700 for a standard heat pump replacement on failure, or $900 for early replacement. If strip heat serves a home of 1,000 square feet or more, $2,100 to $2,400 is available for a cold-climate heat pump. A smart thermostat adds $125, and a heat pump water heater adds $500.
For North Carolina rebates, does a heat pump or a furnace work out better?
New gas furnaces on their own are not eligible for Duke Energy rebates or state incentives. Propane, fuel oil, or kerosene is burned in about one in 14 North Carolina homes, and state appliance rebates no longer cover those fuels. Want gas backup heat? Duke Energy will pay $2,000 to $2,500 to move a strip-heat system over to dual fuel.
Get North Carolina installer quotes with the rebates taken off
Most rebates on this page are paid through the installer or need the installer's paperwork, so the quote is where the money is settled. Tell us the ZIP code and what you want installed, and installers who work with these programs send a written price with the rebates taken off.