2026 North Carolina Heat Pump Water Heater Incentives: Energy Saver North Carolina & Utility Stacking Guide
Benefits of an ENERGY STAR® certified heat pump water heater
Heat Pump water heaters are ~70% more efficient that standard electric water heaters and save the average households in North Carolina $369* every year on their electric bills. A Heat Pump water heater is the only water heater that quickly pays for itself (payback) with the energy savings.Â
Heat Pump water heaters pull heat from the surrounding ambient air and pass it on to the water. They operate like your refrigerator, just in inverse. They help cool the garage. It is much more efficient to transfer heat than to create heat.
Heat pump water heaters get installed exactly like a standard electric water heater. The only difference is the need for a condensate drain nearby (or use a condensate pump to a sink) and a minimum of ~700 cubic feet (i.e 10′ x 10′ x 7′) around the water heater (consult the specific manufacturers’ Use & Care manual, louvered doors and air ducting options exist for smaller enclosures).
To operate properly Heat Pump water heaters cannot reside on a recirculation system that runs continuously. Install a timer or a motion sensor.
*Based on DOE test procedure and Energy Guide comparison of 50-gallon nominal capacity pre-2015 standard electric (3,609 kWh) and ACiQ 50-gallon heat pump water heater (866 kWh) using DOE EF to UEF conversion rates. Annual energy savings of 2,743 kWh/year and average NC residential electricity cost of 13.47 cts/kWh. Savings may vary. Source accessed March 2026: https://www.eia.gov/electricity/monthly/epm_table_grapher.php?t=epmt_5_6_a
âš¡ March 2026 Compliance Update:
The Federal 25C tax credit expired on 12/31/2025. This page covers the active 2026 HEAR Rebates and local utility stacking rebate options currently available to homeowners in Arizona.
Home Electrification and Appliance Rebates [HEAR]
The Home Electrification and Appliance Rebate [HEAR] Program is a State initiative funded Federally in 2022 that gives low-to-moderate-income households an instant discount of up to $14,000 to switch to high-efficiency electric appliances. Unlike a tax credit that you wait months for, this rebate is applied at the time of purchase, essentially acting like a high-value coupon.
1. High-Value Instant Savings in North Carolina
You don’t get a check in the mail; you get a lower price on the invoice.
Heat Pump Water Heaters: Up to $1,750 off.
Heat Pump Heating/Cooling: Up to $8,000 off.
Electrical Panels/Wiring: Up to $6,500 off (if needed for new appliances). and more…
2. Eligibility is Income-Based
The program is designed for households earning less than 150% of the Area Median Income (AMI).
Low Income (<80% AMI): The rebate covers 100% of the cost (up to the caps above).
Moderate Income (80%–150% AMI): The rebate covers 50% of the cost (up to the caps above).
3. Point-of-Sale Convenience
Because this is a point-of-sale program, you must work with a state-approved contractor or retailer. You simply apply on the State portal and get your State Voucher. The contractor deducts the amount of the voucher directly from your quote.
How to Claim Your Voucher in North Carolina (4 Simple Steps)
To get the rebate, you must follow North Carolina’s official process before you buy your new water heater.
1. Check Your Eligibility Visit EnergySaverNC.org to use the official screening tool. North Carolina prioritizes residents based on Area Median Income (AMI):
Low Income (<80% AMI): Covers up to 100% of the project cost (max $1,750 for HPWH).
Moderate Income (80%–150% AMI): Covers up to 50% of the project cost (max $1,750 for HPWH).
Note: Enrollment in LIEAP or Medicaid often grants automatic eligibility.
2. Submit an Application Complete the online application at the Energy Saver NC portal. You will need to provide:
Your most recent electric utility bill (e.g., Duke Energy, Dominion Energy).
Proof of household income (Tax returns, W-2s, or pay stubs).
A signed Landlord Consent Form (if you are a renter).
3. Receive Your Approval Once your income is verified, you will receive an approval notification. Unlike a physical coupon you print out, North Carolina’s system typically links your approval to your profile, which a Certified Contractor then accesses to apply the “Point-of-Sale” discount.
4. Ready to find a contractor? Select a certified professional from the Energy Saver NC Contractor Directory.
Alternatively, we invite you to come back to NewWaterHeaterDecisions.com and fill in the form at the bottom of this page. We will connect you with 3 qualified North Carolina installers who are certified for the HEAR program and typically quote a competitive standard install flat price before stepping into your home. If your Utility offers a rebate we show you how to redeem it
By clicking “submit” on the form below, you provide your express written consent to be contacted by up to the following 3 Contractors: Air Experts Heating & Cooling, Charlotte Comfort Systems, or Boer Brothers Family of Services regarding your quote request. You agree to receive communications via phone, text, or email, including automated technology, even if you are on a Do Not Call list. Consent is not a condition of purchase.
5. Complete Your Install Your selected contractor will perform the installation and deduct the rebate amount (up to $1,750) directly from your invoice. You only pay the remaining balance.
Â
