New North Carolina Energy Tax Credits
The 2022 Inflation Reduction appropriated close to $209 million to North Carolina for the creation of programs to give incentives in the form of rebates for residential energy consumers to install energy efficiency upgrades in their homes.
The funding will be split into 2 programs: HOMES & High-Efficiency Electric Homes (HEEH)
Rebates will be applied to the installation of:
- Electric Heat Pump Clothes Dryers
- Electric Heat Pump for space heating and cooling
- Electric Heat Pump water heaters
- Electric panel & wiring upgrades
- Electric Stove, cooktop, range, or oven
- Air sealing
- Duct Sealing
- Insulation
- Materials to improve ventilation
To qualify, technologies must be certified under the EPA’s ENERGY STAR program.
Single-family homes, multi-family residential buildings, new-construction homes, and rental properties may qualify for rebates.
Eligibility for these rebates is income-based. More funds are available for households that are below 150% Area Median Income (AMI) and below 80% (AMI). The total combined rebate is capped at $14,000 per household.
HUD has an easy-to-use tool to look up the Area Median Income where your property is located.
Here is a list of major NC Metros and their Area Median Income for 2022:
| City | AMI | 150% of AMI | 80% of AMI |
| Raleigh | $110,100.00 | $165,150.00 | $88,080.00 |
| Durham | $95,500.00 | $143,250.00 | $76,400.00 |
| Charlotte | $96,300.00 | $144,450.00 | $77,040.00 |
| Wilmington | $90,600.00 | $135,900.00 | $72,480.00 |
| Asheville | $80,000.00 | $120,000.00 | $64,000.00 |
| Greensboro | $73,000.00 | $109,500.00 | $58,400.00 |
How Much Rebate Money is Potentially Available to NC Households?
*US Department of Energy: Office of State & Community Energy Programs
Illustrative Examples based on 2022 AMI:
- The Johnson Household lives in Raleigh, NC and they want to insulate their home to save money on their electricity bills.
Johnson’s income: $75,000
80% AMI for Raleigh: $88,080
Eligible for lower-income rebates? Yes
Project Scope
| Attic Insulation | $3,300.00 |
| Whole-home air sealing | $1,200.00 |
| Duct Sealing & Insulation | $1,600.00 |
| Smart Thermostat | $150.00 |
| Total | $6,250.00 |
| Modeled Energy Savings | 24% |
| Eligible Rebate | $4,000.00 |
| Project Net Cost | $2,250.00 |
2. The Williams Household lives in Greensboro, NC and they want to update their home’s dated electrical system and install a new heat pump.
William’s Income: $60,000
80% AMI for Greensboro: $58,400
Eligible for lower-income rebates? No
Project Scope
| Electric Panel Upgrade | $3,500.00 |
| Electric Wire Upgrade | $2,000.00 |
| Heat Pump | $6,000.00 |
| Total | $11,500.00 |
| Over cost limits for technologies or total cost? | No |
| Eligible Rebate | $5,750.00 |
| Project Net Cost | $5,750.00 |
How do I claim these rebates?
North Carolina residents will need to wait and see how NC decides to roll out its rebate programs.
It is likely that we will see rebates at the Point of Sale for items like appliances and a more complicated system for upgrades made through contractors.
In any case, the US Department of Energy has indicated that funding for these rebates will come later in 2023, and thus it is unclear if rebates will be applied retroactively to upgrades that were implemented in the first half of the year.
We will know more about how to claim these rebates later in 2023.