New Year, Bigger Incentives: As temperatures fall in the Carolinas, Duke Energy increases financial incentives for customer energy efficiency and demand response programs

Rhea-AI Summary

Duke Energy (DUK) has significantly increased incentives and eligibility for residential and business energy efficiency programs in North Carolina, effective January 1, 2025. The North Carolina Utilities Commission-approved updates include doubled and tripled incentives for various programs.

Key residential program enhancements include: Home Energy House Call offering free energy assessments and products, Smart $aver® home improvement rebates increasing from $350 to $500 for HVAC and other upgrades, pool pump incentives tripling to $900, and Power Manager®/EnergyWise Home® offering up to $150 upfront plus annual credits.

Business programs saw increases of 20-25% on average, with PowerShare® capacity credits rising from $3.50 to $5 per kW. The company also expanded assistance programs for income-qualified customers, including increased weatherization incentives up to $8,000 for HVAC replacement and $1,500 for refrigerator replacement.

Positive

• Significant increase in incentive values across multiple programs (some doubled or tripled)
• Business program incentives increased by 20-25% on average
• PowerShare capacity credits increased from $3.50 to $5 per kW
• Expanded eligibility and increased support for income-qualified customers

Negative

• None.

Insights

Market Research Analyst

This incentive program expansion represents a strategic move by Duke Energy to manage peak load demands while improving customer relations. The doubled and tripled incentives, particularly the $500 HVAC rebates and $900 pool pump incentives, are substantial enough to drive meaningful customer adoption. The PowerShare program's increased capacity credits from $3.50 to $5.00 per kW demonstrates a serious commitment to demand response management.

The timing of this announcement, during peak winter season, is calculated to maximize impact when customers are most conscious of energy costs. The expanded weatherization program, with increased HVAC replacement incentives of up to $8,000, targets a important market segment that can deliver significant load reductions. This comprehensive approach to demand-side management could yield substantial cost savings for Duke Energy by reducing the need for expensive peak generation capacity.

Financial Analyst

Duke Energy's enhanced incentive program is a shrewd financial strategy that serves multiple objectives. While the increased payouts represent higher upfront costs, the long-term benefits include reduced infrastructure investment needs and lower peak demand costs. The expanded income-qualified programs, including the $42 monthly Customer Assistance Program credits, help mitigate regulatory risks by demonstrating strong commitment to affordability and accessibility.

The business segment initiatives, with 20-25% higher efficiency incentives, target commercial customers who typically represent more substantial load profiles. The program's structure allows Duke Energy to better predict and manage its load curve, potentially reducing the need for costly peaker plants and improving overall grid efficiency. This proactive investment in demand-side management could yield significant ROI through avoided capacity costs and improved regulatory relationships.

• Growing menu of options offers customers more savings and better control over how they use their energy
• Some incentives have doubled or even tripled

CHARLOTTE, N.C., Jan. 6, 2025 /PRNewswire/ -- Duke Energy has increased incentives and eligibility for many of its residential and business energy efficiency and demand response programs in North Carolina, expanding ways customers can save energy and money. The updates were approved by the North Carolina Utilities Commission (NCUC) and launched on Jan. 1, 2025.  

"We're just getting into the heart of the winter season when extreme temperatures can lead to an increase in energy use," said Kendal Bowman, Duke Energy North Carolina state president. "Some of our program incentives have doubled – or even tripled – making now the most rewarding time to make energy efficiency improvements or enroll in programs at your home or business to help save."

Residential program incentive increases

Customers can better manage their energy use and save energy and money with energy efficiency programs. Through demand response programs, customers can receive bill credits when they choose to shift their use to lower energy demand periods. Duke Energy has increased incentives for five residential programs and expanded four residential programs.

Residential programs with increased incentives include:

• Home Energy House Call – this free home energy assessment program helps customers better understand their energy use and find ways to save energy and money by being more efficient. Customers can now receive free energy efficiency products customized to their individual needs that can be installed at no charge during their energy assessment. Virtual options for the energy assessment are also available for eligible customers.
• Smart $aver® home improvement rebate – this program rewards customers with rebates when making energy-efficient upgrades to their home. HVAC, insulation, water heaters and heat pump incentives have increased from $350 to $500 and pool pump incentives have tripled from $300 to $900.
• Power Manager® and EnergyWise Home® – customers with electric heat enrolled in these programs receive bill credits for shifting their energy use away from peak periods. They may receive an incentive as much as $150 upfront plus $50 per year, depending on which devices they enroll. New for 2025, customers with an electric water heater can also receive an extra $25 per year.

For more information on all residential program incentives that have increased in 2025, visit the Duke Energy website.

Business program incentive increases

Duke Energy has also increased energy efficiency and demand response incentives for business customers. This includes PowerShare®, a voluntary large user load curtailment program that has increased capacity credits for decreasing energy use from $3.50 to $5 per kW. EnergyWise Business, a program similar to PowerShare but for smaller business customers, has increased customer incentives from $30 to $50 per average kW saved. In both business programs, customers determine what steps they take to reduce energy consumption.

Many of the company's energy efficiency business program incentive amounts have increased on average 20%-25%. A Duke Energy Business Energy Advisor can recommend smart measures for commercial and industrial customers to save energy and money. For more information on business programs and increased incentives, visit duke-energy.com/GetSavings.  

Assistance programs expanding

Duke Energy is committed to serving its customers and communities and offers programs and resources to help customers who may be experiencing a time of uncertainty or are having trouble paying utility expenses due to financial hardships. Programs and services for Duke Energy qualifying customers have also been updated for 2025 to offer more options for energy savings for those who need it most. These changes include:

• Weatherization – incentives have increased for this free program that helps income-qualified customers reduce expenses and save energy through the installation of energy conservation measures around their homes. Among other incentives, the HVAC replacement incentive has increased from $6,000 to $8,000 and the refrigerator replacement has increased from $1,000 to $1,500. The program has also expanded its service providers and broadened eligibility for participation. Participating customers must have an income of less than 200% of the Federal Poverty Guidelines.
• A new income-qualified demand response program offered by Duke Energy Carolinas and Duke Energy Progress allows electric heat customers who have previously qualified for a Duke Energy income-qualified program to receive a free smart thermostat, installed at no cost. Customers will receive incentives in the form of bill credits for shifting energy use during peak demand, up to $150 depending on how they choose to participate. The program is open to customers who have previously qualified for the Neighborhood Energy Saver, Weatherization or High Energy Use pilot programs.
• Neighborhood Energy $aver – incentives have increased for this free program that offers walk-through energy assessments to help customers learn how their homes use energy and lower monthly electric bills as well as a variety of free energy-saving products. Customers for the program qualify based on the neighborhood they reside in. Qualifying neighborhoods must meet 50% of residents or more with an income of less than 200% of the Federal Poverty Guidelines.

Duke Energy continues to offer additional resources for limited-income customers, including:

• Customer Assistance Program (CAP) – a 12-month program that provides a monthly credit of up to $42 to qualifying customers.
• Share the Light Fund® – assistance for customers who need help paying their energy bill.
• Installment Plans – customized payment plans to break down charges into more manageable installments, helping make larger amounts more manageable.

Winter savings tips to help save on energy bills

Duke Energy's programs and tips can help customers save energy and money by providing them the tools they need to make informed decisions for their household energy use.

Tracking energy usage and making small adjustments within your home or business can help unlock energy savings. More information on energy-saving solutions and low- to no-cost energy-saving tips and projects can be found on the Duke Energy Winter Energy Savings webpage: duke-energy.com/SeasonalSavings.  

Duke Energy

Duke Energy (NYSE: DUK), a Fortune 150 company headquartered in Charlotte, N.C., is one of America's largest energy holding companies. The company's electric utilities serve 8.4 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky, and collectively own 54,800 megawatts of energy capacity. Its natural gas utilities serve 1.7 million customers in North Carolina, South Carolina, Tennessee, Ohio and Kentucky. 

Duke Energy is executing an ambitious clean energy transition, keeping reliability, affordability and accessibility at the forefront as the company works toward net-zero methane emissions from its natural gas business by 2030 and net-zero carbon emissions from electricity generation by 2050. The company is investing in major electric grid upgrades and cleaner generation, including expanded energy storage, renewables, natural gas and nuclear.  

More information is available at duke-energy.com and the Duke Energy News Center. Follow Duke Energy on X, LinkedIn, Instagram and Facebook, and visit illumination for stories about the people and innovations powering our energy transition.

Contact: Logan Stewart
24-Hour: 800.559.3853
Twitter: @DE_LoganS

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SOURCE Duke Energy

FAQ

What are the new Smart $aver rebate amounts for Duke Energy (DUK) in 2025?

Duke Energy's Smart $aver rebates for HVAC, insulation, water heaters, and heat pump incentives increased from $350 to $500, while pool pump incentives tripled from $300 to $900.

How much did Duke Energy (DUK) increase its PowerShare business incentives in 2025?

Duke Energy increased PowerShare capacity credits from $3.50 to $5 per kW for business customers who participate in load curtailment.

What are the new weatherization incentives for Duke Energy (DUK) income-qualified customers?

Duke Energy increased HVAC replacement incentives from $6,000 to $8,000 and refrigerator replacement incentives from $1,000 to $1,500 for income-qualified customers.

How much can residential customers save with Duke Energy's (DUK) Power Manager program in 2025?

Residential customers can receive up to $150 upfront plus $50 per year, with an additional $25 per year for electric water heater enrollment.

What percentage did Duke Energy (DUK) increase business program incentives in 2025?

Duke Energy increased business program incentive amounts by an average of 20-25% across various energy efficiency programs.