North Carolina Heat Pump Rebates & Incentives (2026)
North Carolina still has some of the strongest heat pump incentives in the country. Energy Saver NC is now live statewide and offers up to $8,000 for a qualifying heat pump through HEAR or up to $16,000 in whole-home rebates through HOMES for income-eligible households. Duke Energy and some local utilities add smaller rebates on top, bringing total savings even higher. This guide covers all major North Carolina heat pump incentives available in 2026, including Energy Saver NC HEAR and HOMES, Duke Energy, Dominion Energy, electric cooperatives, and municipal utility programs. Here's what's actually available.
Updated July 20, 2026 · Verified July 20, 2026
Rates and program availability may change after this date.
North Carolina
Open
Energy Saver NC is live statewide with up to $8,000 through HEAR or $16,000 through HOMES for income-qualifying households. Duke Energy Smart $aver adds $350–$2,500 depending on the upgrade. Federal 25C/25D tax credits expired Dec 31, 2025. Households above 150% AMI are limited to utility rebates only.
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The short version
✓ Energy Saver NC HEAR: up to $8,000
Home Electrification and Appliance Rebates cover up to $8,000 for a heat pump, plus up to $1,750 for a heat pump water heater. Available to households below 150% of Area Median Income (AMI) — not available above 150% AMI. Instant point-of-sale discount.
✓ Duke Energy Smart $aver: $350–$2,500
Duke Energy Progress and Duke Energy Carolinas share the Smart $aver program: $350–$900 for replacing an existing heat pump, $1,500 for switching from electric resistance, up to $2,500 for dual-fuel, cold-climate, or geothermal conversions, plus a flat $500 for heat pump water heaters. Available to all Duke customers regardless of income.
✓ Total potential savings: $2,000–$14,250+ (typical stacked scenarios)
$2,000 (above 150% AMI) to $14,250+ (below 80% AMI). Full electrification packages through HOMES can reach ~$16,000 total incentives for the lowest-income households.
✗ Federal tax credits expired
Both Section 25C (up to $2,000) and Section 25D (30% of costs) expired December 31, 2025. No federal tax credit is available for heat pumps installed in 2026.
⚠ HEAR is only for switching to a heat pump — not replacing one
The HEAR heat pump rebate only applies when upgrading from a non-heat-pump system (like electric resistance, gas furnace, or propane). If you already have a heat pump and need to replace it, HEAR does not cover the heat pump itself. You may still qualify for HOMES whole-home rebates or Duke Energy's Smart $aver replacement rebate ($350–$900).
Federal tax credits have ended
Both Section 25C and Section 25D federal tax credits expired on December 31, 2025. The "One Big Beautiful Bill" Act (signed July 4, 2025) accelerated their termination. Equipment must have been installed by that date to qualify — a heat pump purchased in 2025 but installed in 2026 does not qualify. There is no federal tax credit for residential heat pump installations in 2026. For details, see our federal heat pump tax credit explainer.
North Carolina has no state-level tax credit for heat pumps either. The state's Renewable Energy Tax Credit expired in 2016 and has not been reinstated. The incentives that remain are all rebate programs, primarily through Energy Saver NC and utility companies.
Energy Saver NC: Home Electrification and Appliance Rebates (HEAR)
HEAR is the centerpiece of North Carolina's heat pump incentive landscape. Administered by NC DEQ's State Energy Office through contractor APTIM, the program launched January 2025 and is now available in all 100 counties. It's funded by $208 million in IRA funds on a first-come, first-served basis through 2031 or until exhausted.
Income eligibility
| Tier | Household income | Coverage |
|---|---|---|
| Tier 1 | Below 80% of Area Median Income (AMI) | Up to 100% of costs |
| Tier 2 | 80–150% AMI | Up to 50% of costs |
| Above 150% AMI | Above 150% AMI | Not eligible |
Enrollment in federal assistance programs (SNAP, LIEAP, Medicaid) auto-qualifies a household for Tier 1. Renters can participate with landlord approval, and multifamily building owners can receive a greater rebate level if over 50% of tenants meet the income eligibility requirements. HEAR rebates are not retroactive — get approved and use a Registered Contractor before work begins.
Maximum HEAR rebate amounts (up to $14,000 total per dwelling)
| Upgrade | Maximum rebate |
|---|---|
| ENERGY STAR heat pump (space heating/cooling) | $8,000 |
| Electrical panel upgrade | $4,000 |
| Electrical wiring | $2,500 |
| ENERGY STAR heat pump water heater | $1,750 |
| Insulation, air sealing, ventilation | $1,600 |
| ENERGY STAR heat pump dryer | $840 |
| ENERGY STAR electric range or cooktop | $840 |
HEAR is an instant point-of-sale discount
Unlike most rebate programs, HEAR applies the discount at the time of purchase — you do not pay the full cost and wait for reimbursement. All work must be performed by an Energy Saver NC Registered Contractor — self-installation projects do not qualify. One rebate per appliance type per dwelling.
If you're replacing broken equipment in a hurry, NC DEQ recommends the HEAR pathway — unlike HOMES, HEAR does not require scheduling a full home energy assessment first.
Energy Saver NC: Homeowners Managing Efficiency Savings (HOMES)
HOMES provides rebates based on modeled whole-home energy savings, verified through a free energy assessment. Unlike HEAR's per-appliance approach, HOMES rewards the total energy reduction from your project. HOMES is also the one Energy Saver NC pathway that can be retroactive: projects started on or after August 16, 2022 may qualify if they meet all DOE requirements under the modeled approach North Carolina uses.
| Tier | Income level | 20–34% savings | 35%+ savings |
|---|---|---|---|
| Tier 1 | Below 80% AMI | Up to $16,000 | Up to $16,000 |
| Tier 2 | 80–150% AMI | Up to $2,000 | Up to $4,000 |
⚠ You cannot receive both HEAR and HOMES for the same upgrade
A household can participate in both programs, but not for the same piece of equipment. The optimal strategy for low-income households: use HOMES for the heat pump (higher $16,000 cap) and HEAR for the water heater and other appliances.
Utility rebates
Utility rebates in North Carolina are available to all customers regardless of income. They're smaller than Energy Saver NC rebates but stack on top of them.
Duke Energy Progress and Duke Energy Carolinas
Both Duke utilities share the Smart $aver rebate program with identical amounts, effective for HVAC equipment installed after August 1, 2025. There is no assessment prerequisite — Duke's free Home Energy House Call is optional — and there is no homeowner application to file for HVAC rebates: your contractor completes the work and submits the rebate application. Rebates arrive as a prepaid Mastercard.
Most tiers pay two rates depending on timing: a Replace on Failure rate when your existing equipment has failed, and a higher Early Replacement rate when you proactively replace a working system. Duke's own Smart $aver page cross-promotes Energy Saver NC — the programs are designed to stack.
| Upgrade | Rebate |
|---|---|
| Replace existing heat pump (three efficiency tiers) | $350–$900 |
| Electric resistance → heat pump | $1,500 |
| Heat pump → dual-fuel system (adds gas backup) | $2,000 (Replace on Failure) / $2,500 (Early Replacement) |
| Heat pump → cold-climate heat pump | $2,100 (Replace on Failure) / $2,400 (Early Replacement) |
| Heat pump → geothermal | $2,300 (Replace on Failure) / $2,500 (Early Replacement) |
| Mini-split, 18+ SEER2 | $700 (Replace on Failure) / $900 (Early Replacement) |
Heat pump water heater rebate: a flat $500 for units installed after January 1, 2025 (ENERGY STAR certified, UEF 3.3 or higher; tankless and standard electric models excluded). The unit must be installed and operable before applying, and your contractor submits the application within 60 days — self-purchased units can use the retail path at smartsaverincentives.com. HVAC systems must be AHRI-matched with an ECM blower motor, and duct sealing is included with replacements. The dual-fuel, cold-climate, and geothermal conversion rebates require an existing heat pump with electric resistance strip heat serving at least 1,000 square feet; mini-splits must condition at least 1,000 square feet. A $125 smart thermostat rebate is also available.
Duke's rebates differ significantly across the six states it serves — the amounts above are the Duke Energy Progress and Duke Energy Carolinas program, and Florida, Indiana, and Kentucky customers get different rebates entirely. For the full state-by-state breakdown, see our Duke Energy heat pump rebates guide.
Dominion Energy North Carolina
Dominion serves northeastern NC (Outer Banks, Elizabeth City area) and has a more limited program. Dominion NC offers no residential air-source heat pump purchase rebate (unlike Duke Energy). Heat pump water heater rebates are available: $250 for 40–59 gallon and $400 for 60+ gallon (ENERGY STAR, replacing existing electric water heater).
Electric cooperatives and municipal utilities
North Carolina's 26 electric cooperatives each set their own programs. Highlights: Piedmont Electric offers up to $600 per heat pump system. Blue Ridge Energy offers $150 for an ASHP (15.2+ SEER2) or $250 for geothermal. Municipal programs vary — Fayetteville PWC offers $250–$400 tiered by efficiency, Concord offers $400 flat, and several smaller towns offer $300–$500. Check with your specific utility for current amounts.
Local power companies in parts of North Carolina distribute TVA power and participate in the region-wide TVA EnergyRight program instead: $500–$800 for ducted heat pumps by SEER2 tier, $800 for mini splits, and $1,500 for geothermal, with installation required through TVA's Quality Contractor Network. If your electric bill comes from a TVA-served utility, see our complete TVA EnergyRight guide.
Local programs: Asheville and Buncombe County
Most NC cities rely entirely on Duke Energy and Energy Saver NC — no separate city programs. The exception is the Asheville area: the Electrify Asheville-Buncombe County (Electrify ABC) initiative provides a free navigator service to help homeowners stack rebates and connect with approved contractors. The NC Clean Energy Fund also offers below-market-interest loans for Buncombe County electrification projects.
How programs stack
NC DEQ confirms that households can receive both Energy Saver NC rebates and utility incentives for the same product. Two limits apply: combined rebates for a product cannot exceed the purchase price of that product, and you cannot receive both HEAR and HOMES for the same upgrade. Households above 150% AMI are limited to utility rebates only.
Above 150% AMI — electric resistance to ducted heat pump + HPWH (~$15,500 project)
- Energy Saver NC: $0 (not eligible)
- Duke Smart $aver — electric resistance to heat pump: $1,500
- Duke Smart $aver — heat pump water heater: $500
Realistic maximum: ~$2,000
80–150% AMI — electric resistance to ducted heat pump + HPWH (~$15,500 project)
- HEAR — heat pump (50% of $12,000, capped at $8,000): $6,000
- HEAR — HPWH (50% of $3,500, capped at $1,750): $1,750
- Duke Smart $aver — electric resistance to heat pump: $1,500
- Duke Smart $aver — heat pump water heater: $500
Realistic maximum: ~$9,750
Below 80% AMI — electric resistance to ducted heat pump + HPWH (~$15,500 project)
- HOMES — heat pump (100% of $12,000 costs): $12,000
- Duke Smart $aver — heat pump: $0 (HOMES already covers the product's full purchase price)
- HEAR — HPWH (100% of $3,500, capped at $1,750): $1,750
- Duke Smart $aver — heat pump water heater: $500
Realistic maximum: ~$14,250
What you'll actually pay
For a typical ~$15,500 electric-resistance-to-heat-pump + water heater project: ~$13,500 out of pocket for households above 150% AMI, ~$5,750 for 80–150% AMI, or as little as $1,250 or less for households below 80% AMI. Adding insulation and air sealing to the project scope can push the lowest-income tier to $0 out of pocket through HOMES.
Note: Duke Smart $aver has no rebate tier for converting a gas furnace to a heat pump — households making that switch rely on HEAR or HOMES alone for the heat pump itself. North Carolina has no state tax credit for heat pumps. No state loan program directly reduces the purchase price, though Carolina SURE and Duke Energy's Improve & Save on-bill financing can help with the remaining balance.
Weatherization and financing
North Carolina's Weatherization Assistance Program (WAP) serves households at or below 200% of the Federal Poverty Level with free energy audits, insulation, air sealing, and HVAC repair or replacement. Check current availability — some WAP operations were paused in late 2025 due to federal budget uncertainty.
Financing options
Carolina SURE (via Clean Energy Fund of the Carolinas): income-based approval with no credit score requirement and no closing costs. Duke Energy Improve & Save: on-bill financing at 7.33% over 10 years with no credit check, available to all Duke residential customers.
Climate context: mountains vs. Piedmont vs. coast
North Carolina spans IECC Climate Zones 3A, 4A, and 5A, creating meaningfully different heat pump requirements from coast to mountains. Standard heat pumps work well for most of the state, but western mountain residents should invest in cold-climate equipment.
| City | Design temp (99%) | IECC zone | Recommendation |
|---|---|---|---|
| Wilmington | 25°F | 3A | Standard ASHP |
| Raleigh | 19–20°F | 4A | Standard ASHP |
| Charlotte | 20–22°F | 3A/4A | Standard ASHP |
| Asheville | 13–14°F | 4A | Cold-climate ASHP recommended |
| Boone / Spruce Pine | 5–10°F | 5A | Cold-climate ASHP essential |
✓ Best candidates for a heat pump in North Carolina
Homeowners with electric resistance strip heat (covers a large share of NC homes). Propane or fuel oil users in rural and mountain areas — volatile fuel prices make heat pumps especially cost-effective. Households below 150% AMI in any part of the state, where Energy Saver NC can cover 50–100% of costs. Manufactured home residents in eastern NC, where electric resistance heating is common and energy burdens are high.
North Carolina's residential heating is already about 66% electric — but much of that is inefficient electric resistance. Switching to a heat pump can cut electricity use for heating by 50% or more while also providing air conditioning. For mountain residents considering home battery storage, a heat pump paired with solar and battery can significantly reduce dependence on grid power during winter peaks.
How to apply
Check your income eligibility
Visit energysavernc.org to pre-qualify. You'll need household income and household size. Enrollment in SNAP, LIEAP, or Medicaid auto-qualifies for the highest tier.
Find a Registered Contractor
All HEAR and HOMES work must be performed by an Energy Saver NC Registered Contractor. Use the contractor finder to locate one in your area. For HOMES, the contractor will also arrange your free home energy assessment.
Get the work done — the rebate applies automatically
HEAR rebates are instant point-of-sale discounts applied at the time of installation. You do not pay the full price and wait for reimbursement. Your contractor handles the rebate paperwork.
Have your contractor submit your Duke Smart $aver rebate (this is separate from Energy Saver NC)
Duke rebates are a separate process, but there's no homeowner application to file for HVAC rebates — your contractor completes the work and submits the rebate application. Duke's free Home Energy House Call assessment is optional, not required. See Duke's Smart $aver page for current requirements. Rebate arrives as a prepaid Mastercard.
What to watch
IRA funding runway
Energy Saver NC is funded by $208 million in IRA allocations through 2031, but funding is first-come, first-served and finite. Early applicants have an advantage.
WAP and HARRP availability
Weatherization program operations were paused in late 2025 due to federal LIHEAP/HARRP budget uncertainty. Confirm current status with your local community action agency before counting on WAP assistance.
Frequently asked questions
What heat pump rebates are available in North Carolina in 2026?
North Carolina heat pump rebates in 2026 come from three main sources: Energy Saver NC HEAR rebates up to $8,000 for a heat pump (for households below 150% of Area Median Income), HOMES whole-home rebates up to $16,000 for the lowest-income tier, and Duke Energy Smart $aver rebates of $350–$2,500 depending on the upgrade — up to $900 for replacing an existing heat pump and up to $2,500 for conversions to dual-fuel, cold-climate, or geothermal systems. Federal tax credits under Sections 25C and 25D expired December 31, 2025.
Can I stack Energy Saver NC rebates with Duke Energy rebates in North Carolina?
Yes. NC DEQ confirms that households can receive both Energy Saver NC rebates and utility incentives for the same product. Two limits apply: combined rebates for a product cannot exceed the purchase price of that product, and you cannot receive both HEAR and HOMES for the same individual upgrade. In the best case, a household below 80% AMI can reduce out-of-pocket costs to near zero by combining HOMES with HEAR for different appliances plus Duke Energy Smart $aver rebates.
Do I need a cold-climate heat pump in North Carolina?
It depends on where you live. In the Piedmont and coastal areas (Charlotte, Raleigh, Wilmington), standard inverter-driven heat pumps handle winter conditions well, with design temperatures of 17–22°F. In the western mountains (Asheville, Boone), cold-climate heat pumps are strongly recommended. Asheville’s design temperature drops to 13–14°F, and higher elevations can see single digits. Contractors recommend cold-climate-rated models above 2,500 feet elevation.
Who administers North Carolina’s Energy Saver NC program?
Energy Saver NC is administered by the North Carolina Department of Environmental Quality (NC DEQ) State Energy Office, with contractor APTIM managing day-to-day operations. The program launched January 16, 2025, and became available in all 100 North Carolina counties as of February 10, 2026. Applications are processed through energysavernc.org on a first-come, first-served basis.
Does HEAR cover replacing an existing heat pump in North Carolina?
No. The HEAR program only covers upgrading from a non-heat-pump system to a heat pump. If you already have a heat pump and need to replace it, HEAR does not apply. You may still qualify for HOMES rebates (which are based on whole-home energy savings, not system type) or Duke Energy Smart $aver rebates — $350–$900 for replacing an existing heat pump, or $2,000–$2,500 for converting an existing heat pump to a dual-fuel, cold-climate, or geothermal system.
Sources
- Energy Saver NC — Program Portal
- NC DEQ — Energy Saver North Carolina
- Energy Saver NC — HEAR Program Details
- NC DEQ — All 100 Counties Press Release (Feb 2026)
- Duke Energy — Smart $aver Rebates
- Duke Energy — Smart $aver Heat Pump Water Heater
- NC DEQ — Energy Efficiency Rebates FAQ
- Duke Energy — Increased Incentives Announcement (Jan 2025)
- Dominion Energy NC — Save Energy
- Piedmont Electric — Heat Pump Rebate
- Blue Ridge Energy — Smart Rebates
- NC DEQ — Weatherization Assistance Program
- Carolina SURE Loan Program
- IRS — 25C/25D Termination FAQ
Disclaimer: This page covers the main statewide, utility, and IRA heat pump incentives available to North Carolina homeowners in 2026. It does not calculate savings, guarantee eligibility, or represent any incentive program. Rebate amounts for electric cooperatives and municipal utilities vary by provider and are shown as examples, not a complete directory. We verify status regularly but programs can change without notice. Always confirm current amounts and eligibility with Energy Saver NC, Duke Energy, and your contractor before making decisions.
See how this state compares → Heat Pump Rebates by State (2026)