North Carolina homeowners may qualify for rebates when upgrading to certain high-efficiency water heaters. Eligibility depends on the type of equipment installed, household income, utility provider, existing equipment, and current program availability.

Rebate programs can change, and funding may be limited. Homeowners should confirm eligibility and obtain any required approval before purchasing equipment or beginning installation.

Heat pump water heaters use electricity to transfer heat from the surrounding air into the water, making them considerably more efficient than standard electric water heaters.

Qualifying homeowners may be eligible for:

• Up to $1,750 through the Energy Saver North Carolina HEAR program
• Up to $500 through Duke Energy for qualifying heat pump water heaters
• Additional incentives from certain electric cooperatives or municipal utility providers

The Energy Saver North Carolina rebate is income-based:

• Households below 80% of area median income may receive up to 100% of eligible project costs, subject to the $1,750 limit.
• Households between 80% and 150% of area median income may receive up to 50% of eligible project costs, subject to the $1,750 limit.
• Households above 150% of area median income do not qualify for the HEAR rebate.

Energy Saver North Carolina requires qualifying ENERGY STAR® equipment and installation through a contractor registered with the program. Approval must generally be obtained before installation. Rebates cannot exceed the actual eligible project cost.

Enbridge Gas North Carolina currently offers rebates for qualifying natural-gas tankless water heaters:

• $150 for a qualifying tankless gas water heater rated 0.82 UEF or higher
• $300 for a qualifying tankless gas water heater rated 0.95 UEF or higher

These rebates apply to qualifying natural-gas-to-natural-gas equipment replacements at properties served by Enbridge Gas North Carolina. New gas installations, conversions from electric equipment, and customers of other gas providers may not qualify.

Equipment must be new and installed before the application is submitted. The rebate form and proof of purchase must generally be submitted within 90 days of installation.

Energy Saver North Carolina administers two income-based home-energy rebate programs:

• Home Electrification and Appliance Rebates, or HEAR, provides up to $14,000 per qualifying household for approved electrical appliances and electrification improvements.
• Homeowners Managing Efficiency Savings, or HOMES, provides rebates for projects that produce measurable whole-home energy savings. Qualifying households may receive up to $16,000.

The $14,000 and $16,000 amounts are overall program limits—not automatic rebates for installing a water heater. Actual eligibility and rebate amounts depend on household income, project cost, equipment requirements, documented energy savings, and available funding.

A homeowner cannot receive both HEAR and HOMES funding for the same individual improvement. Certain utility incentives may be combined with Energy Saver North Carolina rebates, but total incentives cannot exceed the qualifying project cost.

Federal Energy Efficient Home Improvement Credits for heat pump and high-efficiency gas water heaters expired December 31, 2025.

Water heaters installed during 2026 do not qualify for the former:

• Federal credit of up to $2,000 for qualifying heat pump water heaters
• Federal credit of up to $600 for qualifying high-efficiency gas water heaters

Homeowners who installed qualifying equipment during 2025 should consult a qualified tax professional or review current IRS guidance to determine whether they can claim the credit on their 2025 federal tax return.

Red Fox Plumbing installs heat pump, tankless, and conventional water heaters throughout Matthews, Mint Hill, Stallings, Indian Trail, Charlotte, and surrounding North Carolina communities.

We can help evaluate the property, existing equipment, utility service, installation requirements, and available water-heater options. Rebate eligibility is determined by the individual program—not Red Fox Plumbing—and incentives are not guaranteed.

Before selecting equipment, homeowners should verify:

• Household and property eligibility
• Their electric or natural-gas utility provider
• Required efficiency ratings and approved equipment
• Whether advance approval is required
• Whether the installer must be registered with the rebate program
• Application deadlines and available program funding

Contact Red Fox Plumbing to discuss your water-heater replacement options and determine which type of system is the best fit for your home.