North Carolina changed its heat pump rebate rules on September 1, 2026, and the change reversed who qualifies. If you heat with gas, the $8,000 you read about last month isn’t available to you anymore. If you heat with electricity, including with a heat pump you already own, money just opened up that was closed before. Here’s the current picture for Chapel Hill, Durham, Cary, and the surrounding Triangle.
What changed on September 1, 2026
Energy Saver North Carolina stopped paying for fuel-switching projects on September 1, 2026. The state’s HEAR pathway will no longer rebate a heat pump that replaces a gas, propane, or oil system. At the same time it started allowing electric-to-electric upgrades, which it previously excluded. North Carolina’s own program notice puts it in two lines:
“Fuel Switching Projects are NOT allowed: Rebates will no longer be allowed for the replacement of gas or any other fossil fuel appliances through the HEAR rebates pathway.” “Electric-to-Electric Upgrades ARE allowed: HEAR rebates are now permitted to replace existing electric appliances with more efficient electric equipment.”
The order came from the U.S. Department of Energy in Program Notices 26-1 and 26-2, issued May 29, 2026, with a September 1 compliance deadline. It applies to every application that hadn’t already reached rebate reservation status. If yours was approved and reserved before September 1, you keep the terms you were approved under.
Why you’ll find two different answers online
Expect to see the old rules for a while yet, including on the program’s own website. As of late September, Energy Saver NC’s HEAR eligibility page and its Program Requirements PDF both still carry the original footnotes: “Existing Heat Pump will not be eligible for replacement” and “Rebates are available only when upgrading from a non-electric appliance.” The state says it’s updating those materials. The Program Changes notice is the current rule. The older pages haven’t caught up, and we’re working from the current one.
What you can get in 2026
Four incentive sources matter for a Triangle heat pump, plus one federal credit that’s gone. Which one applies to you now depends almost entirely on what you heat with today.
| Program | Max for a heat pump | Income limit? | Who it fits now |
|---|---|---|---|
| Energy Saver NC (HEAR) | Up to $8,000 | At or below 150% AMI | Electric heat only. Replacing an electric furnace, baseboard, radiant heat, or an existing heat pump |
| Energy Saver NC (HOMES) | Up to $16,000 | At or below 150% AMI | Whole-home projects modeled to save at least 20% energy |
| Duke Energy Smart $aver | $350 to $2,500 | None | Most homeowners, through a Find It Duke contractor |
| Federal 25C tax credit | Gone | n/a | Expired for systems installed after Dec. 31, 2025 |
The distinction that costs people money is the first one. Energy Saver NC used to pay you for getting off gas and refused to pay for replacing a heat pump. As of September 1 it’s the reverse. The money is real, with more than $200 million allocated statewide. It’s just pointed at a different set of homes than it was in August.
A rebate only means something against the total, so it helps to know what a heat pump costs to install here before you compare programs.
Do you qualify for Energy Saver North Carolina?
Energy Saver North Carolina is a state rebate program run by the NC Department of Environmental Quality, funded through two U.S. Department of Energy programs and now active in all 100 counties. It has two paths: HEAR for specific equipment, HOMES for whole-home efficiency work. For a heat pump, HEAR is usually the relevant one, and it now has two tests to pass rather than one. Homeowners and renters can both participate, though renters need the property owner to sign off.
The income test comes first
Eligibility is based on your household income compared to Area Median Income for your county. Below are the 80% AMI limits, which is the threshold for having 100% of eligible project costs covered.
| Household size | Durham, Orange & Chatham counties | Wake County (Cary, Apex) |
|---|---|---|
| 1 person | $64,750 | $72,950 |
| 2 people | $74,000 | $83,400 |
| 3 people | $83,250 | $93,800 |
| 4 people | $92,500 | $104,200 |
| 5 people | $99,900 | $112,550 |
Source: Energy Saver North Carolina, Area Median Income Summary, 2025 limits.
Wake County’s limits run about $11,700 higher than Durham, Orange, and Chatham at a family of four, because Wake is calculated separately while those three share a metro area. So a Cary family of four earning $100,000 qualifies for the full-coverage tier, while a Chapel Hill family at that same income doesn’t. The Triangle isn’t one market for rebate purposes.
How the tiers work:
- At or below 80% AMI (the table above): 100% of eligible project costs, up to a $14,000 lifetime household maximum for HEAR.
- Above those limits but under 150% AMI: 50% of eligible project costs. The 150% line isn’t a simple multiple of the 80% figures. For a household of four it sits at $173,400 in Durham, Orange, and Chatham, and $199,050 in Wake.
- Above 150% AMI: not eligible for the state program. See below for what still applies.
Enrollment in SNAP, LIEAP, or Medicaid may qualify you for the top tier without separate income verification. And if you checked from Cary or Apex a year ago and were told the program wasn’t available there, that changed in early 2026.
The equipment test is the one that changed
A heat pump now qualifies for the HEAR rebate when it replaces existing electric heating equipment with something more efficient. That’s the whole test, and it’s the opposite of the rule that applied through August 2026.
Situations that qualify now:
- Replacing an electric furnace, electric baseboard, or radiant electric heat with a heat pump. Already eligible, still is.
- Replacing an existing heat pump with a more efficient one. Specifically excluded before September 1, permitted now. If you were told last year that your 15-year-old heat pump disqualified you, ask again.
- New construction. Unchanged by the September notice.
Situations that no longer qualify:
- Replacing a gas furnace, propane, or oil heat with a heat pump. This was the program’s headline use case and it’s now barred under HEAR.
Two conditions still apply. The heat pump has to become the primary heating and cooling system rather than a supplement, and your Registered Contractor has to run an ACCA Manual J load calculation and size the equipment per Manual S. We do that anyway, because a system sized off a rule of thumb short cycles and struggles with humidity here. The maximum is $8,000 for one system per home.
New this cycle: insulation and air sealing upgrades may be required alongside a HEAR heat pump project. You don’t need to know whether yours does when you apply. The assessment determines it.
What does HOMES pay, and what’s the number to watch?
HOMES is the whole-home path, and it’s the one worth asking about if you heat with gas. It runs on a calibrated energy model and requires a project projected to hit at least 20% energy savings, so it usually means bundling air sealing, insulation, and duct work with the HVAC. The caps depend on income more sharply than most write-ups admit:
- Below 80% AMI: the lesser of $16,000 or 100% of project cost.
- Between 80% and 150% AMI: the lesser of $4,000 or 50% of project cost.
That $4,000 surprises people who’ve read that HOMES pays “up to $16,000.” It does, but only at the lower tier, and hitting 35% modeled savings instead of 20% raises neither cap. You can use both HOMES and HEAR, but not on the same equipment.
One honest caveat: the September 1 notice covers HEAR only. It says nothing about whether the same fuel-switching restriction reaches HOMES. What we can tell you is that the HOMES measure list in the program’s own requirements document still names forced-air furnaces and dual fuel heat pumps as eligible equipment. We won’t tell you HOMES is open to gas-heat conversions, and we won’t tell you it’s closed. We check it with the program for your project, because guessing here costs thousands.
Other HEAR rebates worth knowing about
If we’re already in your house for a heat pump, these often come up:
- Up to $1,750 for an ENERGY STAR heat pump water heater. Our water heater replacement cost guide covers what a swap runs here
- Up to $1,600 for insulation, air sealing, and ventilation
- Up to $4,000 for an electrical panel and $2,500 for wiring, but only when that work is what makes an eligible appliance installable on the same application
- Up to $840 each for a heat pump clothes dryer and for an electric range, cooktop, or oven
Everything counts against the same $14,000 household lifetime cap. HEAR is an instant discount, not a reimbursement: the quote you sign already has the rebate taken off.
If you heat with gas, propane, or oil, here’s what to do now
Apply anyway. That’s North Carolina’s own instruction, and it’s the part of this change almost nobody is reporting. The state’s program page tells fossil-fuel households directly: “Current and new HEAR applicants should continue applying, even if their home has fossil fuel systems.”
HEAR covers more than the heat pump. A gas-heat household can still be eligible for the heat pump water heater, the electrical panel and wiring work, and the insulation and air sealing rebates on the same application. The heat pump line is closed to you. The rest of it is not.
Two other things matter if you were counting on that $8,000:
- Duke Energy doesn’t have a gas-to-heat-pump rebate either. We looked, because we’d rather tell you than let you find out at signing. Every conversion line in Duke’s table starts from an existing heat pump or from electric resistance heat.
- Dual fuel is worth a conversation, and not as a consolation prize. Pairing a heat pump with your existing gas furnace lets the heat pump carry the mild weather that is most of a Triangle winter, then hand off to gas when it gets genuinely cold. No rebate builds it from a gas furnace, but the operating cost math often stands on its own. We compare heat pump, gas furnace, and dual fuel running costs side by side.
Duke Energy rebates, with no income limit
Duke Energy runs two separate residential rebate programs, and nearly every guide online treats them as one. They have different money, different requirements, and different contractors. Getting this wrong is the difference between $500 and $2,500 on the same job. Duke’s rebates also differ by state and by jurisdiction within a state, so a figure you find online may be accurate somewhere other than here.
Smart $aver, through a Find It Duke contractor
Smart $aver pays the larger numbers and requires a contractor from Duke’s Find It Duke network. Boer Brothers is a Find It Duke Trade Ally, so we can file these for you. The figures below are for Duke Energy Progress, which serves the Triangle. If a guide quotes different numbers, check whether it’s quoting Duke Energy Carolinas or, more often, Duke’s Florida territory.
Straight replacements, for projects completed after August 1, 2025:
| Equipment | Efficiency | Replace on failure |
|---|---|---|
| Air-source heat pump | 15.2 SEER2 / 7.5 HSPF2 | $350 |
| 16 SEER2 / 7.5 HSPF2 | $450 | |
| 17+ SEER2 / 7.5 HSPF2 | $700 | |
| Mini or multi split | 18+ SEER2 / 9.0 HSPF2 | $700 |
| Geothermal heat pump | 19+ EER2 | $700 |
| Central air conditioner | 15.2 / 16 / 17+ SEER2 | $200 / $300 / $400 |
| Smart thermostat | Installed with qualifying equipment | $125 |
Conversions pay considerably more, and this is where the September 1 change and Duke’s table line up:
| Conversion | Replace on failure | Early replacement |
|---|---|---|
| Electric furnace, baseboard, or radiant heat to a heat pump | $1,500 | $1,500 |
| Heat pump to dual fuel, 80%+ AFUE | $2,000 | $2,500 |
| Heat pump to cold-climate heat pump or ducted mini/multi split | $2,100 | $2,400 |
| Heat pump to geothermal | $2,300 | $2,500 |
| Heat pump to non-ducted mini/multi split | $800 to $1,000 | $1,400 to $1,600 |
Every conversion except the first carries a condition Duke footnotes and most guides leave out: the heat pump you’re converting has to have electric resistance strip heat serving at least 1,000 square feet of conditioned living space. The electric furnace, baseboard, and radiant heat row carries no such requirement.
Two things here deserve your attention. The first row is the same household HEAR just opened up: with electric resistance heat, the state rebate and the Duke conversion rebate now point at you at once. The second is that early replacement pays roughly double replace-on-failure, which is the strongest argument there is for replacing on your own schedule. To qualify, the old system has to still provide both heating and cooling, with no failed compressor, no cracked heat exchanger, and no major refrigerant leak. Once it dies, that money is off the table.
Smart $aver also requires duct sealing on most measures and submission within 60 days of service. Your contractor files it, and the rebate comes back as a card in the mail or a digital Mastercard.
The condensing unit and air handler have to be replaced at the same time. A partial swap won’t qualify.
Duke’s Weatherization program, if your income qualifies
Duke also runs a free Weatherization program for households under 200% of the Federal Poverty Guidelines, with an HVAC replacement incentive up to $8,000, raised from $6,000. Check it even if Energy Saver NC turned you down, because 200% of Federal Poverty Guidelines is a different test than 80% of Area Median Income.
Duke incentives stack with Energy Saver NC on the same project. North Carolina DEQ says so directly: a household can take both a state rebate and a utility incentive on the same product, as long as the combined total doesn’t exceed what the equipment and installation actually cost.
Not a Duke customer? Check your co-op
Parts of Orange, Chatham, Durham, and Person counties are served by Piedmont Electric rather than Duke, and the co-op runs its own rebate: up to $600 per electric heat pump, plus a one-time $100 for joining the smart thermostat program. The system has to condition at least 1,000 square feet on a primary residence averaging 800 kWh a month or more. Check the name on your power bill before you assume the Duke numbers above are yours.
What if your income is above 150% AMI?
Households above 150% of Area Median Income aren’t eligible for Energy Saver North Carolina. That covers most Triangle households who call us about a heat pump, and the Duke programs are what remains. They’re worth more than people assume, especially the conversion rebates, which carry no income test at all. Three other levers:
- Manufacturer and seasonal promotions on qualifying Trane systems. Our specials page has whatever is current.
- Financing, which for a lot of homeowners matters more than a one-time rebate. Duke’s Improve & Save on-bill option is worth asking about too.
- Right-sizing and sealing first. Air sealing and insulation before a replacement can let us install a smaller system, lowering the equipment price and the running cost. That’s a real reduction, not a rebate.
How the programs stack on a real project
HEAR rebates come off the price at installation and are never paid retroactively, so eligibility has to be confirmed before any work begins. Since September 1 it also depends on what you heat with, which is why this order starts with a question rather than a form.
- Identify your current heat source. Electric puts you in HEAR territory. Gas, propane, or oil does not, for the heat pump line.
- Check your Energy Saver NC eligibility at 866-998-8555 or CLICK TO VISIT ENERGYSAVERNC.ORG. It commits you to nothing, and once income is confirmed you get a free assessment with a certified assessor.
- Get an estimate from us. We run the load calculation and confirm which programs and which Duke path pay most on your job.
- Sign the quote showing your discount, then we do the work and file the documentation.
Frequently Asked Questions
I have a gas furnace. Did I just lose the $8,000 heat pump rebate?
For the heat pump itself, yes. As of September 1, 2026, Energy Saver North Carolina’s HEAR pathway no longer rebates a heat pump that replaces gas, propane, or oil heat. The state still tells gas-heat households to apply, because the heat pump water heater, electrical panel, wiring, insulation, and air sealing rebates on the same application may still be open to you. Ask about HOMES separately, since the September notice covers HEAR only.
Can I get a rebate to replace my old heat pump?
Yes, and this is new. Before September 1, 2026, Energy Saver North Carolina specifically excluded replacing an existing heat pump. The program now permits electric-to-electric upgrades, which includes replacing a heat pump with a more efficient one, subject to the same income limits. Duke Energy pays on that job too, and we check which Duke path pays more on your system before we quote it.
What income do I need to qualify in Durham or Chapel Hill?
For full coverage, a household of four in Durham, Orange, or Chatham County needs income at or below $92,500. In Wake County the same household can earn up to $104,200. Households between those limits and 150% of Area Median Income get 50% of project costs covered, and households above 150% AMI aren’t eligible for the state program.
Is there still a federal tax credit for a heat pump in 2026?
No. The 25C Energy Efficient Home Improvement Credit expired for systems installed after December 31, 2025, and the 25D Residential Clean Energy Credit, which covered geothermal, expired on the same date. State and utility rebates are what remain. If you’re reading a cost guide that still counts a 30% federal credit against your heat pump, it’s out of date.
Do rebates count as taxable income?
According to the U.S. Department of the Treasury, DOE Home Energy Rebates are treated as a reduction in purchase price rather than as income, so households shouldn’t report them as income. Boer Brothers doesn’t give tax advice, so check your own situation with your tax preparer.
Do I have to use a specific contractor, and can I install it myself?
Energy Saver North Carolina requires a Registered Contractor, and Boer Brothers is one. Self-installed projects don’t qualify. Duke Smart $aver requires a Find It Duke participating contractor, and Boer Brothers is one of those too. We handle the program paperwork for the projects we install.
Ready to find out what you qualify for?
The rules moved on September 1, and they moved in different directions for different homes. If you heat with electricity, you may qualify for money that was closed to you last month. If you heat with gas, better to know now than at signing.
Boer Brothers has served Chapel Hill, Durham, Cary, and the surrounding Triangle with a relationship-first, service-over-sales approach since 2007. We’ll look at your system, tell you plainly which rebates still apply to your house, and give you the real number before you decide anything.
Call 919.813.2556 or schedule an estimate online for heating and cooling service across the Triangle.
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