Frequently Asked Questions
We have compiled a list of questions that we frequently receive about the Smart $averŪ Incentive program. If your question is not listed, please contact us.
How can I find a trade ally in my area that can provide this service?
Click here for our trade ally search tool.
Do I have to use a trade ally from the list?
No, use of a trade ally is not restricted to the list. Duke Energy in no way implies promotional support of any specific trade ally noted on the list. The purpose of the trade ally list is to provide a service to our customers looking for a potential trade ally. Customers are responsible for verifying certifications/licensing, if any, of the trade ally they choose.
What if I install the equipment myself?
Customers can install the equipment; however, Duke Energy may require site verification. Self-installed labor costs are not eligible for incentives.
Are newly constructed buildings available for incentives?
If the customer meets eligibility requirements, incentives are available for new construction with the exception of the equipment marked retrofit only on the application.
When do I submit my application?
Once the eligible measures have been installed and are operable, you may submit your application. Applications must be submitted within 90 days of project completion.
What happens if incentives change before my project is completed?
Incentives are subject to change based on changes in the market. However, Duke Energy posts all changes on our website a minimum of three months prior to the change. Projects that were proposed prior to the incentive change date will be eligible for the original incentive amount. A copy of the proposal is required by Duke Energy to verify the proposal date. Projects without proposals will be eligible for the original incentives if the application is submitted within the 90-day required time frame.
Who receives the incentive payment: the customer or the trade ally?
Unless otherwise indicated on the application, the customer will receive the incentive check. However, the customer may choose to sign the incentive check over to the trade ally by signing the Payment Release Authorization section of the application. By signing, the customer also agrees that such action constitutes an irrevocable assignment of the incentive. The assigned incentive must reduce the purchase price paid for the equipment by an equal amount.
How do I determine the status of my application?
Call Duke Energy at 1-866-380-9580 for status updates.
How do I know if I am an eligible customer?
The following are eligible:
Ohio, Indiana, North Carolina and South
Carolina Nonresidential electric
customers are eligible.
Kentucky Nonresidential electric customers not on rate TT (Time-of-Day Rate for Service at Transmission Voltage).
*Companies that have elected to opt out of the Energy Efficiency Rider are not eligible.
**Ohio nonresidential customers on rate TS electing to receive Smart $aver® incentives or Mercantile Self Direct rebates will see an increase in their energy efficiency rider ($.000049 to $.001781 per kWh) from the point of receiving the rebate, forward.
How long does it take to receive my incentive payment?
Checks are generally mailed within 10 business days.
Where do I find out more information about the equipment and/or customer requirements?
Refer to the incentive application form for the equipment and customer requirements.
How do I become a Duke Energy Smart $aver Participating trade ally?
Fill out the trade ally form and fax to 1-866-908-4921 or mail to the following address:
Email to: PrescriptiveIncentives@Duke-Energy.com
Fax to: (866) 908-4921
This is a one-time registration. Once you have submitted a signed form, you do not have to fill it out again. Your company name and contact information will appear on the Smart $aver website as a tool to help customers find contractors in their area.
Duke Energy in no way implies promotional support of any specific trade ally noted on the list. Use of a trade ally is not restricted to the list. To remain on the list, a trade ally must submit or assist an eligible customer in submitting at least one incentive application during an 18-month period. Failure to do so will result in your company's name being removed from the list. If you submit an application for the next 18-month period, you will automatically be reinstated on the list.
What are the benefits of being on the participating trade ally list?
Your company name and contact information will be included in the Duke Energy trade ally search tool posted on the Smart $aver website. Customers can access the site and search for trade allies by location or specific technologies or equipment, in which they are interested in purchasing or installing.
How do you define a trade ally?
Any third-party who promotes the sale of and/or installs qualifying high-efficiency equipment for the customer is considered a trade ally. Trade allies who both sell and install the equipment are responsible for making sure the equipment is installed and operable before submitting the application. If the trade ally is responsible for the sale of the equipment only, then the trade ally is not required to ensure installation of the eligible equipment. All license requirements, if any, are solely the trade ally's responsibility.
Participating trade allies include equipment contractors, equipment trade allies, equipment manufacturers and distributors, energy service companies, and engineering or architectural firms, etc.
Where do I mail my application when completed?
Mail completed applications and trade ally forms to:
Email to: PrescriptiveIncentives@Duke-Energy.com
Fax to: (866) 908-4921
I am a trade ally/manufacturer and would like to talk to someone from Duke Energy about having my product included in Duke Energy's portfolio of high-efficiency measures.
Email the following information to firstname.lastname@example.org:
- Company name and contact information
- Description and application of your product(s)
- Manufacturer's specification sheets
- Any other supporting documentation that explains why this product(s) should be considered as part of Duke Energy's high-efficiency equipment portfolio
The equipment that currently appears in the portfolio has been pre-approved by the utility commissions of each state.
Once a year, Duke Energy will review the current portfolio and evaluate each technology against any new technologies and market standards. Engineering studies will be completed on any potential new technologies. Before changes can be made to the portfolio, Duke Energy must seek approval from the utility commission in that state. Changes to the program will be posted on the Duke Energy website and reflected in the applications.
What are examples of energy conservation measures that could receive Custom Incentives?
Custom Incentive applications may include, but are not limited to, variable speed air compressors, thermal improvements to the roof and wall insulation, upgrades to windows and doors, on-demand ventilation systems, energy management systems, HVAC tune-up initiatives, energy recovery systems, energy-saving process upgrades, retro-commissioning of existing buildings, and non-prescriptive lighting measures such as reflectors.
What are the criteria for eligibility and what information do I need to provide?
Proposed energy conservation measures may be eligible for Custom Incentives if they clearly reduce electrical consumption and/or energy demand. Customers must submit a complete Custom Incentive application, questionnaire and supporting documentation, which outlines the proposed project and provides energy-saving estimates and implementation costs. To avoid delays in receiving your preliminary incentive offer, ensure that the application is completely filled out and that all the additional supporting data that is needed to review the project is attached to the application.
Currently, program guidelines do not allow for incentives that reduce the simple payback to under one year.
If you would like more information on the application data requirements for your project and/or a general idea of what incentive you might expect, please use the Smart $aver Custom Incentive Planning Form for project pre-screening. Use the form to provide us with a little information on your proposed project, and we will respond with advice on submitting a full application form.
What is the process for Custom Incentive applications?
Please allow at least one month for your Custom Incentive application to be reviewed. Trade Allies who are completing an application to be incorporated into a customer proposal should plan well in advance to allow sufficient time.
Phase I: Application
The process begins when Duke Energy receives a Custom Incentive application (see application for submission instructions). After receipt, the application will be initially reviewed and the customer will be notified if there is any missing information. Once the application is complete, a technical review of the project takes place. During the technical review, the customer may be contacted again with a request for additional supporting data. Once the technical review is complete and all data has been accepted, the preliminary incentive is calculated and communicated to the customer. Duke Energy strives to review applications as quickly as possible, reviews currently average 1 month in duration, with some applications requiring additional time. The length of time varies depending on the number of applications under review and the complexity of your project. If, at any time during the process, Duke Energy determines that the energy conservation measures do not meet its requirements, then the customer will be notified immediately.
Phase II: Installation and
Once a preliminary incentive is approved and accepted by the customer, the customer may proceed with installation. Upon completion, the customer notifies Duke Energy by submitting a completion form provided with the offer letter as well as receipts, invoices, or other proof of installation. Duke Energy then issues the payment in approximately 10 business days.
Phase III: Measurement &
Duke Energy verifies a portion of approved Custom Incentive applications. This involves an independent third-party visiting the facility where the energy conservation measures were installed to take measurements of the energy reductions.
What amount of Custom Incentive can be expected on an approved application?
Duke Energy calculates an incentive for each individual Custom Incentive application. The incentive is ultimately tied to the impact of the measures on the customer's load profile. Past incentives range from approximately 25 to 150 percent of the projected annual electrical savings from the proposed energy efficient equipment.
Why does the application form ask for so much detail?
Duke Energy's Custom Incentive program is designed differently from other utilities. We do not limit the amount we can provide in incentives, but we are only compensated for real, verified electrical energy and demand reductions that result from approved projects. Duke Energy performs a significant amount of due diligence on the information submitted in each application to ensure that the claimed energy conservations impacts will be realized after installation.
If you are unsure whether it is worth your time to submit a Custom application, please complete the Smart $aver Custom Incentive Planning Form. Provide us with a little information on your proposed project and we will respond with advice on submitting a full application form.
What rate should be used to calculate annual monetary savings from a proposed project?
Refer to your bill(s) or ask your Duke Energy Account Manager about your electricity rate schedule. If your facility is billed on a time-of-use rate, then the cost savings estimate should be calculated using on-peak and off-peak charges, as well as the appropriate energy and demand for on-peak and off-peak hours.
How does one apply for a project that involves some energy conservation measures that qualify for Prescriptive Incentives and some that require a Custom Incentive application?
If equipment that is eligible for a Prescriptive Incentive is submitted through the Custom application, the equipment will still receive the same incentive as it would through a Prescriptive application.
If the equipment that requires a Custom Incentive application is not integrated with the equipment that qualifies for a Prescriptive Incentive, then we encourage you to only submit the equipment that requires a Custom Incentive application. This will speed up the review process. If a combination of Prescriptive-eligible and Custom equipment is submitted, then we may ask you questions about the equipment in order to determine the most appropriate way to calculate an incentive.
My project reduces non-electrical energy use. Does it qualify?
Duke Energy's Smart $aver Custom Incentive program is only applicable to projects that reduce electrical energy and/or demand through energy efficiency measures.
Another electric utility provides a rebate that is not listed on Duke Energy's Smart $aver Prescriptive Incentive application. Is it eligible for a Custom Incentive?
Possibly. Submit a Custom Incentive application and the energy conservation measure will be considered.
Can I apply for a Custom Incentive if my project has already started?
No. Custom Incentives require pre-approval, which means that you must apply and receive approval before you start your project. The timing of the application is critical. You should apply once you have a proposal for a measure that will reduce your electrical usage, but BEFORE any equipment has been ordered, purchased or installed.
What do I do if I receive a Custom Incentive offer and the energy conservation measures I undertake subsequently become part of the Prescriptive Incentive program?
Whenever feasible, energy efficiency equipment will be added to the list of Prescriptive Incentives. If the Prescriptive Incentive program adds a measure for which you have already received a Custom Incentive offer, then the following will apply:
- If the measure is added to the Prescriptive application before you complete your project, then you may receive the higher of the two amounts for your project.
- If the measure is added to the Prescriptive application after you have applied for a Custom Incentive payment for your project, then you will receive the Custom Incentive. There will be no adjustments to the incentive paid if the Prescriptive and Custom Incentives differ.
Because the Prescriptive Incentives involve averages across all customers and Custom Incentives are based on one customer, it is common for there to be some variation in Custom Incentive and Prescriptive Incentive offer amounts.
Are the following eligible for Custom Incentives?
- Capacitor banks: No. In most cases, the benefits of installing capacitors do not include significant energy and/or demand reductions.
- Compressed air redundancy: Smart $aver incentives require that the equipment being replaced be removed and disposed of properly. In the case of compressed air, adding system redundancy can be important. We permit you to keep the old compressed air system as a back-up to the new system in case of failure or maintenance. To qualify for a Custom Incentive and keep the old compressed air system as a back-up, the customer must provide and commit to an operational plan for the back-up system when submitting the custom application.
- De-lamping: Some de-lamping is eligible. As with any lighting project, the proposed light levels must be appropriate to the space involved. Provide a lumen method and study with a Custom Incentive application for de-lamping, and keep in mind that the de-lamping must have a simple payback of more than one year to be eligible for an incentive.
- Induction light fixtures: Yes. As with any lighting project, the fixture application must be appropriate to the proposed induction fixture. This prevents subsequent retrofits from negating the projected energy savings.
- LEDs: Some LEDs are eligible and others are not at this time. See details below.
- T8 and T5 fluorescents replacing T12 fluorescent: Installation of high performance and reduced wattage T8 fluorescents to replace T12 fluorescents may be eligible. Incentives for T5 and standard T8 fluorescents replacing T12 have been or are being phased out. See details below.
Yes. With new construction and
major renovations, the baseline is
equal to the equipment or
facilities that the customer would
install if an incentive was not
available from Duke Energy.
Typically, this baseline is the
facilities/equipment that meet the
building energy code requirements,
which is usually based on ASHRAE
90.1 2007. The table below gives
state-by-state listings for new
construction and major renovation
baselines applicable to
most projects. In some
cases, such as state-owned
facilities, more stringent
standards may apply. Inquire at
if you believe that code calls for
a different baseline for your
project. Also, for new
construction, the incremental
implementation cost is the
difference between the cost of the
baseline equipment/facilities and
the cost of the proposed
The proposed design must consume
less electrical energy and be more
costly to implement than the
baseline design to receive an
State Applicable Building Code IN ASHRAE 90.1 2007 OH ASHRAE 90.1 2007 KY ASHRAE 90.1 2007 NC 20% better than ASHRAE 90.1 2007 SC ASHRAE 90.1 2004
- Polarized refrigerant oil additives: No. It is not clear that these additives can consistently produce savings in the ranges that vendors claim. Most HVAC manufacturers do not recommend using these additives in their systems, and, in some cases, will void the warranty of the system.
- Power factor correction equipment: No. The annual kilowatt-hour savings of power factor correction equipment is negligible.
- Renewable energy generation technologies: No. See details below.
- Surge protector/voltage control devices: No. In most cases, the benefits of voltage control devices do not include significant energy and/or demand reductions.
- VFDs on new equipment: For some new equipment, a VFD is considered to be a standard feature. In those cases, the VFD is not eligible for an incentive. Where a VFD is not standard for new equipment, an appropriate baseline can be established and the project simple payback is above one year, the application can be considered. On retrofit projects, VFDs can be considered if reduced electrical consumption is projected for the equipment on which the VFD is to be installed.
- VSD air compressors (Ohio & Indiana only): Eligibility depends on the equipment being replaced. New air compressors with variable speed drives are now eligible for a Prescriptive Incentive and should not be submitted through the Custom application. To qualify for a Prescriptive Incentive, the new unit must be a variable speed rotary vane compressor or variable speed screw compressor that replaces a rotary unit with inlet modulation control. Replacing other types of compressors as well as other compressed air system upgrades may qualify for Custom Incentives. Examples include replacing load/unload and variable displacement units; equipment replacement that results in a change in system size; and replacements integrated with automatic drains, air storage and controls.
Are T5 and standard T8 fluorescents replacing T12 fluorescents eligible for Smart $aver Custom Incentives?
Eligibility varies by state. In Kentucky, North Carolina, Ohio and South Carolina, incentives for T5 and standard T8 fluorescents replacing T12 fluorescents have been phased out due to energy efficiency legislation and shifts in common practice. In Indiana, T5 and standard T8 fluorescents replacing T12 fluorescents remain eligible for incentives. In all states, replacements of T12 fluorescents with high performance or reduced wattage T8 fluorescents are eligible for incentives. Replacing HID or other lighting technologies with more energy efficient T5 and standard T8 fluorescents are eligible for incentives in all states. Finally, the replacement of T12 fluorescent with technologies that are more efficient than T5 and standard T8 fluorescents remains eligible for incentives in all states.
Eligibility Notes: In all cases, eligibility is dependent on receiving pre-approval through a custom application. Reduced wattage and high performance T8s must appear on the appropriate CEE qualified products list.
Smart $aver Custom Incentives and renewable energy generation technologies
The Smart $aver program regulations do not allow Duke Energy to offer incentives for renewable energy generation projects. Although these projects will reduce a customer's electricity purchases from Duke Energy, the approved programs are designed specifically for energy efficiency.
Example technologies that are not eligible for Smart $aver incentives include solar PV, wind, biomass-fueled generation, and combined heat and power. Any Smart $aver Custom Incentive application for these renewable energy generation projects will be declined. Currently, solar thermal for water heating is under review and eligibility is yet to be determined. Any Smart $aver Custom Incentive application for solar thermal for water heating will be placed on hold until eligibility is determined.
Are LED light bulb replacements eligible for Smart $aver Custom Incentives?
LED light bulbs that have earned the
ENERGY STAR® rating for the proposed use
can be evaluated for a Custom
Details of Smart $aver Custom Incentive LED lamp eligibility are listed below.
Indoor LED Lamps:
- Ohio & Indiana - Energy Star LED lamps replacing indoor incandescent bulbs must be submitted using the Smart $aver Prescriptive application. Other Energy Star LED Lamp replacements may be eligible for a Custom Incentive.
- Carolinas & Kentucky - Energy Star LED lamps may be eligible for a Custom Incentive. LED lamps must be listed on the Energy Star Qualified Light Bulbs list to qualify.
Outdoor LED Lamps
- Ohio & Indiana - Energy Star LED lamps replacing incandescent bulbs (retrofit only) may be eligible for a Custom Incentive. LED lamps must be listed on the Energy Star Qualified Light Bulbs list to qualify.
- Carolinas & Kentucky - Energy Star LED lamps may be eligible for a Custom Incentive. LED lamps must be listed on the Energy Star Qualified Light Bulbs list to qualify.
ENERGY STAR-qualified products are eligible for Custom Incentives where an LED light bulb will replace a non-LED light bulb in an existing fixture. On new construction, ENERGY STAR-qualified products are eligible for Custom Incentives as compared to the alternative non-LED light bulb that is appropriate for the fixture being installed.
Are LED fixtures eligible for Smart $aver Custom Incentives?
Some LED fixtures (where both bulb and ballast are replaced) are eligible for Custom Incentives. While we believe LED lighting has the potential to save customers a significant amount of energy, we provide incentives for only the most efficient and reliable products on the market. LED fixture Smart $aver Custom Incentive eligibility is listed below:
LED Fixture - Indoor:
- Ohio & Indiana - Energy Star or DLC qualified LED fixtures replacing 60 to 100 watt incandescent downlights should be submitted using the Smart $aver Prescriptive application. Energy Star or DLC qualified LED fixtures replacing the following may be eligible for a Custom Incentive, as long as the fixture is approved for the intended use.
- Incandescent downlights less than 60 watts or greater than 100 watts,
- Non-downlight incandescent, or
- Any non-incandescent fixture.
Some fixture categories will not be covered by Energy Star or DLC evaluation standards. Refer to the documentation below for direction in applying for Custom Incentives for such fixtures.
- Carolinas & Kentucky - Energy Star or DLC qualified LED fixtures replacing any fixture may be eligible for a Custom Incentive, as long as the fixture is approved for the intended use. Some fixtures categories will not be covered by Energy Star or DLC evaluation standards. Refer to the documentation below for direction in applying for Custom Incentives for such fixtures.
LED Fixture - Garage & Outdoor:
- Ohio & Indiana - Energy Star or DLC qualified LED fixtures replacing high intensity discharge fixtures are eligible for Smart $aver Prescriptive Incentives. Energy Star or DLC qualified LED fixtures replacing other fixtures may be eligible for a Custom Incentive, as long as the fixture is approved for the intended use. Some fixtures categories will not be covered by Energy Star or DLC evaluation standards. Refer to the documentation below for direction in applying for Custom Incentives for such fixtures.
- Carolinas & Kentucky - Energy Star or DLC qualified LED fixtures replacing any fixture may be eligible for a Custom Incentive, as long as the fixture is approved for the intended use. Some fixture categories will not be covered by Energy Star or DLC evaluation standards. Refer to the documentation below for direction in applying for Custom Incentives for such fixtures.
For more information on Energy Star and DLC performance standards, please visit the following:
If the fixture category is not addressed by Energy Star or DLC, what are the LED qualification requirements?
Through the Smart $aver Custom Incentive process, Duke Energy can evaluate specialty fixtures on a case-by-case-basis, as resources allow. Because of the added fixture qualification requirement in the review process, turnaround time for incentive offers, if granted, may take longer than with other applications. Prospective applications should include any and all available warranties, specifications and independent lab test results. Such documents include the following:
- Product data sheet with complete information on exact options being specified.
- LM-79 test. Provide report on
results of testing, conducted according
to IES standard LM-79 that provides
efficacy, output, color and photometric
distribution of your product. At a
minimum, the LM-79 test report(s)
- Luminaire efficacy (Lm/w)
- Light output (Lumens)
- Color rendering index (CRI)
- Correlated color temperature (CCT)
- LM-80 test. Provide LED package manufacturer IES LM-80 test report with results showing relative (%) light output over time at 55°C, 85°C and X°C (a third temperature at the manufacturer's choice).
- In-Situ temperature test. Provide test report indicating the temperature of the hottest LED In-Situ in ANSI/UL 1598-04 (hardwired) or ANSI/UL 153-05 (corded) environments. This temperature measurement will be used with LM-80 data to validate lumen maintenance and useful life of product. Note that this temperature measurement should be specially requested from the manufacturer as they are getting their UL testing.
- Product warranty and proof of UL listing.
Additional documentation, including photometric layouts, site plans and project site information may be required.
Testing by the U.S. Department of Energy's CALiPER (Commercially Available LED Product Evaluation and Reporting) program indicates that some manufacturers provide product specification sheets that show inaccurate or misleading information. Due to this, a Custom Incentive application for any proposed LED fixture requires a copy of a lab test reports performed by a CALiPER testing laboratory, listed at http://www1.eere.energy.gov/buildings/ssl/test_labs.html." Test reports from any laboratory not listed on the CALiPER website will not be accepted.
ENERGY STAR® is a registered trademark of the US Environmental Protection Agency