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Federal rebates for gas-to-electric heating conversions have ended — but electric-to-heat-pump upgrades still qualify. What changed

North Carolina home energy costs & incentives

Energy Saver NC is open, statewide, and you apply yourself — which makes North Carolina one of the easiest states in the country to actually use.

Prices pulled August 16, 2026

What energy costs here

14.02¢

per kWh, residential electricity

19% below the national average of 17.3¢. 35th most expensive of 51.

Up 24% since 2021 (5.5% a year), against 27% nationally.

$1.58

per therm, residential natural gas

$16.42 per thousand cubic feet, 2024 annual. National average $1.48/therm.

Up 16% since 2021 (3.8% a year).

Heat pump vs. gas furnace — Heat pump favored

North Carolina's electricity-to-gas price ratio works out at 2.6-to-1. At these prices a heat pump should cost less to run than a gas furnace across the heating season, before counting the air conditioning it also replaces.

Below roughly 3.5-to-1 a heat pump usually wins on running cost; above roughly 5-to-1 a furnace may be cheaper through winter. How that comparison works · run it with these rates

State averages from the U.S. Energy Information Administration (electricity, gas), pulled 2026-08-16. Real bills vary substantially by utility within a state, and by rate plan within a utility — check a recent bill for your own numbers before relying on any of this. The heat pump verdict above follows from these averages, so it moves if your rates differ.

What's different in North Carolina

North Carolina launched its rebate program in January 2025 and reached all 100 counties in February 2026. It started in high energy burden communities and expanded outward in phases, which is a deliberately different rollout from states that opened everywhere at once and ran out of money. If you looked at this a year ago and your county was not covered, look again.

You apply directly, which is rarer than it sounds. In a lot of states the contractor drives the application and you never see the paperwork. In North Carolina the homeowner applies at the program's own site — so you control the timeline and you can see where your application actually is.

The two tracks have different front doors and it is worth picking correctly. The whole-home efficiency track starts with a free home assessment that establishes the savings your project has to hit. The electrification and appliance track lets you apply with contractor quotes and skips the assessment. If you already know you want a heat pump or a heat pump water heater, the second path is much shorter.

Whichever route you take, installation has to be done by a registered contractor to qualify. Registered means registered with this program specifically — not merely licensed in North Carolina — so confirm your installer's status with the program before you sign anything, not after the work is done.

Income shapes what you get rather than whether you qualify. Households below 80% of area median income are prioritised, and households up to 150% remain eligible at reduced rebate levels. Being above the lowest tier does not automatically put you out.

Check with the administrator before you sign anything. Program budgets run out, terms change without notice, and most require approval before work starts — a rebate you apply for afterwards is usually a rebate you don't get. Treat this page as a starting point for your own call, not as confirmation that you qualify. We last checked these programs on August 16, 2026.

North Carolina programs

Energy Saver North Carolina

Both rebate tracks, open statewide across all 100 counties. Homeowners apply directly. The whole-home track begins with a free assessment; the appliance track works from contractor quotes. Installer must be registered with the program.

Program details

NC DEQ — Energy efficiency and weatherization programs

Weatherization assistance and related efficiency programs for income-qualified households, run alongside the rebates.

Program details

The federal position — the same everywhere

  • Residential Clean Energy Credit (Section 25D)Ended

    Ended. No credit for expenditures made after 31 December 2025.

  • Energy Efficient Home Improvement Credit (Section 25C)Ended

    Ended. No credit for property placed in service after 31 December 2025.

Full detail, sources and changelog on the national incentive tracker.

Where to check for your address

Your own utility is worth checking separately — utility rebates are often the largest remaining incentive and rarely appear in any central listing.

Not tax advice

Everything here is general information gathered from public sources. It is not tax, financial or engineering advice, and it cannot account for your utility, your income, your equipment or your return. Energy prices are state averages that move; program terms and budgets change without notice. Confirm anything you plan to budget around directly with the program administrator, your utility and a licensed professional before you commit money.

If you find something on this page that is out of date, tell us at minchangyi@me.com and we will correct it.

Run the numbers for your house

These open with North Carolina's average rates already filled in. Correct them from a recent bill before you rely on the result — state averages hide a lot of variation between utilities.

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