Duke Energy Heat Pump Rebates 2025: Complete Guide for All Six States

If you're a Duke Energy customer considering a heat pump upgrade, you're in luck. Duke Energy offers rebates across all six states they serve—North Carolina, South Carolina, Ohio, Indiana, Kentucky, and Florida. But here's the catch: rebate amounts, eligibility requirements, and application processes vary significantly by territory.

This gets confusing fast. A homeowner in Charlotte, NC might qualify for different rebates than someone just across the state line in Rock Hill, SC—despite both being Duke Energy customers. Add in federal tax credits worth up to $2,000, and you need a clear roadmap to maximize your savings.

Let's break down exactly what Duke Energy offers in each territory, how to stack these rebates with federal programs, and the specific steps to claim your money.

Understanding Duke Energy's Territory-Specific Programs

Duke Energy operates distinct utility companies across their service area, each with its own rebate structure. This isn't just bureaucratic complexity—it reflects different state regulations, energy goals, and customer bases.

The six Duke Energy territories:

• Duke Energy Carolinas (North Carolina and South Carolina)
• Duke Energy Progress (North Carolina and South Carolina)
• Duke Energy Ohio
• Duke Energy Indiana
• Duke Energy Kentucky
• Duke Energy Florida

Your specific rebate depends on which Duke Energy company serves your address. The easiest way to confirm? Check your electric bill or use Duke Energy's service territory lookup tool.

Current Duke Energy Heat Pump Rebates by State (November 2025)

Important note: Rebate amounts and program details change periodically. Always verify current offerings directly with Duke Energy before making equipment purchase decisions. The information below represents programs as of November 2025.

North Carolina and South Carolina (Duke Energy Carolinas & Progress)

Duke Energy's Carolinas territories offer some of the most robust heat pump incentives. Current rebate information is available at Duke Energy's North Carolina rebate page and South Carolina rebate page.

Residential Heat Pump Rebates (verify current amounts):

• Standard heat pump replacement: Typically $300-$600
• Heat pump water heater: Typically $500-$600
• Ductless mini-split heat pump: Typically $300 per indoor unit (up to 3 units)

Key requirements:

• Must meet or exceed minimum efficiency ratings (typically 15 SEER2 and 8.8 HSPF2, but verify current standards)
• Installation by Duke Energy Trade Ally Network contractor may be required
• Pre-approval not required, but equipment must be installed after rebate program launch date
• Cannot combine with Duke Energy's income-qualified programs

Income-qualified customers may be eligible for enhanced rebates through Duke Energy's Neighborhood Energy Saver program, which can provide significant additional assistance for qualifying households.

Ohio (Duke Energy Ohio)

Ohio customers have access to rebates through Duke Energy's Smart $aver program. Current details are available at Duke Energy Ohio's rebate portal.

Heat Pump Rebates (verify current amounts):

• Air-source heat pump (whole-home): Typically $400-$500
• Ductless mini-split heat pump: Typically $300 per indoor unit (maximum $900)
• Ground-source (geothermal) heat pump: Typically $1,000-$1,200

Efficiency requirements (verify current standards):

• Air-source: Typically minimum 15 SEER2 and 8.8 HSPF2
• Ground-source: Typically minimum 16.2 EER and 3.6 COP

Notable feature: Ohio customers may also access rebates for smart thermostats (typically $50) when installed with qualifying heat pumps, adding to overall savings.

Indiana (Duke Energy Indiana)

Indiana's program focuses on energy efficiency upgrades. Current offerings are listed at Duke Energy Indiana's rebate page.

Heat Pump Rebates (verify current amounts):

• Central air-source heat pump: Typically $300-$400
• Ductless mini-split system: Typically $250 per indoor unit (up to $750)

Requirements (verify current standards):

• Typically minimum 15 SEER2 and 8.8 HSPF2 for air-source systems
• Must replace existing electric heating system
• Installation through participating contractor recommended but requirements vary

Kentucky (Duke Energy Kentucky)

Kentucky customers have access to rebates through the PowerShare program. Details are available at Duke Energy Kentucky's efficiency programs page.

Heat Pump Rebates (verify current amounts):

• Qualifying heat pump system: Typically $300-$400
• Heat pump water heater: Typically $400-$500

Eligibility notes:

• Must be Duke Energy Kentucky residential customer
• Equipment must meet ENERGY STAR® requirements (verify current standards)
• Rebates processed on a first-come, first-served basis with annual budget limits

Florida (Duke Energy Florida)

Florida's program differs significantly due to the state's cooling-focused climate. Current program details are at Duke Energy Florida's residential rebates page.

Heat Pump Rebates (verify current amounts):

• High-efficiency heat pump (16+ SEER2): Typically $200-$300
• Super-efficient heat pump (18+ SEER2): Typically $350-$450

Florida-specific requirements:

• Focus on cooling efficiency due to climate
• Must replace existing system (new construction eligibility varies)
• Annual income limits may apply for enhanced rebates

Stacking Duke Energy Rebates with Federal Incentives

Here's where the real savings potential emerges. Duke Energy rebates stack with federal programs, and you can claim both—but the order matters.

Federal 25C Tax Credit (Energy Efficient Home Improvement Credit)

What you get: Up to $2,000 tax credit for qualifying heat pump installations

Key details as of November 2025:

• Covers 30% of equipment and installation costs (up to $2,000)
• Minimum efficiency: 16 SEER2 and 9 HSPF2 (higher than most Duke rebate requirements)
• No income restrictions
• Claimed on your federal tax return for the year of installation

Important: This is a tax credit, not a rebate. You need tax liability to benefit fully. The 25C tax credit is currently authorized through December 31, 2032, under the Inflation Reduction Act. Verify current status at IRS.gov before claiming.

Learn more in our Complete Guide to Federal Heat Pump Tax Credits 2025

Inflation Reduction Act Rebate Programs (HOMES and HEEHRA)

These programs are rolling out state-by-state and offer point-of-sale rebates. Implementation timelines and specific amounts vary by state.

HOMES Program:

• Based on whole-home energy savings (not income-restricted)
• Up to $8,000 for projects achieving 35%+ energy reduction
• Stacks with Duke Energy rebates and federal tax credits

HEEHRA (High-Efficiency Electric Home Rebate Act):

• Income-restricted (80% and 150% Area Median Income tiers)
• Up to $8,000 for heat pump installations
• Point-of-sale discount (reduces upfront cost)

Current status: Implementation varies by state. North Carolina and Florida have announced programs targeting 2025-2026 launches, but specific dates and final rebate amounts are pending. Check your state energy office for specific timelines and confirmed rebate amounts.

Real-World Stacking Example: North Carolina

Scenario: Charlotte homeowner installing a 16 SEER2, 9 HSPF2 heat pump

• System cost: $12,000 (equipment + installation)
• Duke Energy Carolinas rebate: $600 (verify current amount)
• Federal 25C tax credit: $2,000
• HOMES rebate: $2,000 (estimated—pending program launch and final rules)

Total potential savings: $4,600 Estimated net cost: $7,400

That's a potential 38% reduction in total project cost—with $600 received immediately, $2,000 at tax time, and $2,000 as a point-of-sale discount (once HOMES launches with confirmed rebate amounts).

Note: HOMES rebate amounts shown are estimates based on proposed program structures. Actual rebates will depend on final state program rules and whole-home energy savings achieved. Contact your state energy office for confirmed program details once launched.

Duke Energy's Trade Ally Network: What You Need to Know

Most Duke Energy territories require or strongly recommend using Trade Ally Network contractors. Here's why that matters:

Trade Ally contractors are:

• Pre-vetted by Duke Energy for quality and customer service
• Trained on rebate program requirements and paperwork
• Familiar with efficiency standards and proper sizing
• Often able to handle rebate applications on your behalf

Finding a Trade Ally:

1. Visit Duke Energy's website for your specific territory
2. Use the contractor search tool (requirements vary by state)
3. Get quotes from at least 3 contractors
4. Verify they're current Trade Ally members before signing contracts

Pro tip: Some territories require Trade Ally installation for rebate eligibility. Always confirm current requirements before hiring any contractor.

Step-by-Step Application Process

While details vary by territory, here's the general process:

Before Installation

1. Verify eligibility: Check your Duke Energy territory and current rebate offerings at Duke Energy's rebate portal
2. Choose equipment: Ensure it meets minimum efficiency requirements
3. Select contractor: Use Trade Ally Network if required/available
4. Get quotes: Include rebate amounts in your cost calculations
5. Use a rebate calculator: Estimate your total savings by combining utility rebates, federal tax credits, and potential state IRA rebates to understand your complete financial picture

During Installation

6. Save documentation: Keep all receipts, invoices, and equipment specifications
7. Verify model numbers: Confirm installed equipment matches quoted specifications
8. Request contractor assistance: Many will handle rebate paperwork

After Installation

9. Submit application: Most Duke Energy territories use online portals
10. Include required documents:
    • Proof of purchase (itemized invoice)
    • Equipment specifications (AHRI certificate number)
    • Proof of Duke Energy account
    • Contractor information
11. Track application: Most territories provide online status tracking

Processing time: Typically 6-8 weeks, but can vary by territory and time of year. Peak season (spring/fall) may see longer processing times.

Common Pitfalls to Avoid

1. Missing efficiency requirements Don't assume your contractor knows Duke Energy's specific minimums. The federal tax credit requires 16 SEER2/9 HSPF2, but some Duke rebates only need 15 SEER2/8.8 HSPF2. Confirm which standards apply to your situation.

2. Installing before checking current rebates Duke Energy updates rebate amounts annually and sometimes mid-year. A rebate that was $600 last year might be $500 this year—or vice versa. Always check current offerings at Duke Energy's website before signing contracts.

3. Forgetting about rebate deadlines Some territories operate on fiscal years with limited budgets. Applications are often processed first-come, first-served. Installing in December might mean missing that year's funding.

4. Losing documentation You'll need your paperwork for Duke Energy rebates AND federal tax credits. Create a dedicated folder (physical or digital) and keep everything together.

5. Not verifying Trade Ally status A contractor who was a Trade Ally last year might not be current. Verify status at the time of installation, not when you got your initial quote months earlier.

Income-Qualified Programs: Enhanced Savings

Duke Energy offers enhanced programs for income-qualified customers across most territories:

Neighborhood Energy Saver (Carolinas):

• Can provide significant assistance toward heat pump installation costs
• Available to income-qualified customers (typically at or below 200% of federal poverty level)
• Includes energy audit and additional efficiency upgrades

Similar programs exist in other territories. Contact Duke Energy customer service to ask about income-qualified efficiency programs in your area. These programs often provide better value than standard rebates, especially when combined with federal HEEHRA rebates (also income-restricted).

Next Steps: Maximizing Your Heat Pump Savings

Immediate actions:

1. Confirm your Duke Energy territory using your electric bill
2. Check current rebate amounts for your specific territory at Duke Energy's rebate portal
3. Calculate potential federal tax credit using the 30% rule (up to $2,000) at IRS.gov
4. Research your state's IRA rebate status for HOMES and HEEHRA programs through your state energy office
5. Use a rebate calculator to estimate your total combined savings from all available programs
6. Get quotes from at least 3 contractors, preferably Trade Ally members

Timeline considerations:

• Now through spring 2026: Best time to plan and research
• Spring 2026: Peak installation season (longer contractor wait times)
• Summer 2026: Consider fall installation to avoid peak pricing
• Tax filing 2026: Claim your federal 25C credit for 2025 installations

Resources:

• Duke Energy Rebate Portal
• IRS Energy Credits Information
• ENERGY STAR Heat Pump Guide
• DSIRE Database (State Incentives)

The combination of Duke Energy rebates and federal incentives makes 2025 an excellent year to upgrade to a heat pump. Yes, the process involves paperwork and coordination across multiple programs. But for most homeowners, the $4,000-$6,000 in combined potential savings makes it absolutely worth the effort.

Start by confirming your territory and current rebate amounts at Duke Energy's website—then work backward from there to build your complete savings strategy.