Residential New Construction

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Residential New Construction

With rebates up to $9,000, we make it easier than ever to build energy-efficient homes. Our Residential New Construction Program provides generous cash incentives to builders and developers who build new energy-efficient homes and multi-family residences in our service territory.

  Whole-House Eligibility Requirement Incentive
HERO  Meet 2012 NCECC HERO  standards $750
HERO plus HERS Score  Meet HERO standards and submit confirmed
annual kWh savings from the Energy Summary Report.
$0.90/kWh



  Equipment Incentive Description Incentive
Tier 1  AC or heat pump with SEER (Seasonal Energy Efficiency Ratio) of 14 or greater
but less than 15. The HVAC system must meet the Quality Installation Standard
of 90%. High-Efficiency Heat Pumps: The unit(s) shall be a minimum SEER of
14 with ECM.High-Efficiency Central AC: The unit(s) shall be a minimum
SEER of 14 with ECM.
$250 
Tier 2  AC or heat pump with SEER of 15 or greater. $300 
  Quality Installation Standard (Optional for Tier 2).  $75
HPWH  ENERGY STAR qualified HPWH(s) with minimum
Energy Factor of 2.0.
$350/unit

Program overview

Builders can choose to participate in one of two incentive options:
  • Equipment Incentives up to $725 per home for installing specific high-efficiency equipment such as water heaters and cooling systems.
  • Whole-house Incentives up to $9,000 per home based on the High Efficiency Residential Option (HERO) code. (The HERO code is an optional part of the 2012 North Carolina Energy Conservation Code.) This option offers incentives starting at $750 for meeting the HERO code. Builders pursuing this option who also have their homes HERS rated are eligible for rebates up to $9,000 based on the amount of kilowatt hours (kWh) saved.
In addition, builders who meet or exceed the HERO code will be given the option of offering a Heating and Cooling Energy Usage Limited Guarantee to homebuyers. The guarantee is an effective marketing tool for relaying the home’s improved energy efficiency to prospective buyers.

Applications can include measures completed in 2015 as long as builders meet all program requirements and comply with the following dates: For equipment incentives, builders must provide an equipment installation invoice dated after July 1, 2015. For whole-house incentives, builders must provide a HERS certificate dated after July 1, 2015.

All incentive processing, quality assurance and participating builder education/training will be managed by the program implementer, ICF International.

Download our Builder Program Overview flyer.

Builders & Developers

Steps to participate:

1. Contact a HERS, who will be a valuable resource as you make energy efficiency decisions throughout your design and build process. See our list of participating raters.

2. Complete a Program Participation Agreement and submit a W-9  
3. Complete program orientation and training covering:
  • Program Orientation (required for builders, developers and subcontractors) 
  • Building Science Training
  • Sales & Marketing Training
4. For homes that are only pursuing equipment rebate incentives:
  • Obtain invoice and AHRI documentation detailing efficiency of the equipment
  • Submit documentation into the Home Registration System
5. For homes pursuing whole house incentive
  • Submit house plans for Plan Review
  • Builders may use Duke Energy Progress' plan review services contractor, ICF International, or they can use their own HERS rater who has been screened and approved by Duke Energy Progress
6. Schedule a HERS rater to test home

7. Once house is certified: 
  • Pay HERS rater
  • Provide Heating and Cooling Energy Usage Limited Guarantee to homeowner, if participating in the guarantee program
  • Upload all required home information and supporting documentation
  • Receive incentive rebate from Duke Energy Progress 

Eligibility:

  • Projects must be new construction served by Duke Energy Progress 
  • All building permits must be issued after March 31, 2015
  • Single-family homes and multi-family developments, three or less stories, qualify for either the Equipment Incentives or the Whole-House Incentives, but not both
  • Multi-family developments over three stories and manufactured homes qualify only for the Equipment Incentives
  • Builders submitting for incentives under the HERO and HERS path of the Whole-House option must receive a HERS Index Score verified by a certified HERS Rater in good standing with RESNET
  • Builder or developer must be licensed to build in the state in which they are working

HERS Raters

Steps to participate:

1. Complete a Program Participation Agreement.
2. Complete required orientation and training.
3. Complete work agreement with builder.
4. Complete Plan Review and submit plan for QA (if applicable).
5. Provide weekly schedule of onsite QA as requested by the program implementer, ICF International.
6. Test/inspect home as needed and submit REM/Rate file and other supporting documentation into the Home Registration System.
7. Certify home

Eligibility:

Be a current member and in good standing with RESNET
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Frequently Asked Questions

  • Builders can choose to participate in one of two incentive options:

    1. The equipment option: offers incentives of up to $350 for installing qualified heat pump water heaters ($350), up to $250 for installing high-efficiency air source heat pump and central air conditioning HVAC systems that are up to SEER 15 or up to $300 for installing high-efficiency air source heat pump and central air conditioning HVAC systems that are SEER 15 or Higher ($300).

    2. The whole-house option: gives generous incentives of up to $9,000 to builders and developers who build to or exceed the 2012 N.C. Energy Conservation Code's High Efficiency Residential Option (HERO). Participating homes in S.C. must be built to N.C. HERO standards. In addition, it provides builders with an optional three-year Heating and Cooling Energy Usage Limited Guarantee that they can market and extend to homebuyers. The Limited Guarantee is administered by a third party in collaboration with Duke Energy Progress.


    Program applications can include measures completed in 2015 as long as builders meet all program requirements and comply with the following dates:
    • For Equipment Incentives, builders must provide an equipment installation invoice dated after October 1, 2015. 
    • For Whole-House Incentives, builders must provide a HERS certificate dated after October 1, 2015.
  • Beginning January 1, 2012, the North Carolina Building Code Council launched the High Efficiency Residential Option (HERO), which is detailed in Appendix 4 of the 2012 N.C. Energy Conservation Code. 

    This voluntary “stretch” code is comprised of measures that achieve 15 to 20% better energy efficiency than minimum state code requirements. The HERO code includes the most cost-effective measures to achieve this level of efficiency and can be met by following either a specific Prescriptive Path or a more flexible Performance Path. The Performance Path requires an energy cost analysis, provided by a HERS rater and verified by a design professional, to ensure the home’s energy usage is at least as low as the same home built to the Prescriptive Path.
  • The new program will not provide incentives for ENERGY STAR certified homes unless they also meet HERO requirements. Certain HERO requirements do contribute to or exceed the requirements for ENERGY STAR certification. (Please consult a HERS rater for details.)

    Note that homes built to ENERGY STAR standards after December 2001 may qualify for Duke Energy Progress' Residential Energy Conservation Discount. This discount is applied to the qualifying homeowner’s monthly electric bill. Homeowners or builders must provide a form certifying that the home has met the Department of Energy/Environmental Protection Agency’s ENERGY STAR Labeled Home Certification. These documents can be faxed to 919.546.7381 or e-mailed to ECDiscount@duke-energy.com. For complete requirements, refer to the Residential Service Energy Conservation Discount Rider.
  • Similar to its function in the ENERGY STAR® for New Homes Program, the Home Energy Rating System (HERS) Index is incorporated into the whole-house incentive levels of Duke Energy Progress' new program.  

    The HERS Index is a scale for which home energy is measured and communicated. The lower the HERS score, the lower the expected energy usage. By working with a certified RESNET® Home Energy Rater, the home is given a score based on energy performance, which determines the rebate incentive level. A HERS Index is also an effective tool for demonstrating the efficiency of the home to buyers and can be leveraged in communicating the true cost of ownership.

    For more information about the HERS Index, visit www.resnet.us/hers-index.
  • The HERO code Performance Path requires an energy cost analysis, provided by a certified RESNET® HERS rater to ensure the home’s energy usage is at least as low as the same home built to the Prescriptive Path. By working with a certified RESNET HERS rater, the home is given a score based on energy performance, which determines your rebate incentive level. Find a list of program approved HERS raters here.
  • Builders who meet or exceed the 2012 HERO code will have the opportunity to participate in a Heating and Cooling Energy Usage Limited Guarantee as a means of marketing the home’s improved energy efficiency to prospective buyers. (Homes in S.C. must be built to N.C. HERO standards.) Each home in the program must receive a HERS Index Score verified by a certified HERS rater and will be modeled using REMrate™ software to calculate the heating and cooling energy usage that home should use during an average weather year. The home will then be assigned a maximum annual heating and cooling energy usage amount and an estimated annual heating and cooling cost to help homeowners realize the value of the home and better understand its true cost of ownership.

    The guarantee is only applicable to the initial homeowner and will apply for three years from registration. Should a customer’s heating and cooling energy usage exceed the stated guarantee after 12 months following the completion of the first billing cycle, and if all conditions of the guarantee have been met, the customer would be eligible to receive a payment for the amount that exceeds that guarantee. The Limited Guarantee is administered by a third party (ICF International) in collaboration with Duke Energy Progress.

    Complete details on the Limited Guarantee are available here.
  • For more information or questions regarding Duke Energy Progress' Residential New Construction Program, please email rncnewhomes@icfi.com or call toll free 844.385.3762*.

    *Please note that the number listed above is only for the Duke Energy Progress Residential New Construction Program. To apply for new service, customers please call 800.452.2777; builders call 800.636.0581.

Builder support

For questions about Duke Energy Progress' Residential New Construction Program, please email us at rncnewhomes@icfi.com or visit www.duke-energyrncinfo.com.

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