New Trump rules make it more costly to electrify North Carolina homes

The Department of Energy has issued new guidance that blocks homeowners from using federal rebates to switch from fossil-fuel appliances, like propane furnaces or gas stoves, to electric ones such as heat pumps. This affects rebate programs created by the 2022 Inflation Reduction Act, which North Carolina and 12 other states have already started rolling out. States have three months to fall in line with the new rules. The change does not touch a separate rebate program for whole-home efficiency upgrades.

North Carolina's program, Energy Saver NC, offers up to $14,000 for appliance and efficiency upgrades, and up to $16,000 for insulation and other whole-home improvements for the lowest-income households. Only low- and middle-income households qualify. So far, participants have cut their yearly utility bills by an average of $880. Under the new rules, homeowners can still get rebates to replace an old, inefficient electric heater with a heat pump, or to install a heat pump if they can show it will cut their energy use by 20% or more through the whole-home portion of the program. What they can no longer do is use appliance rebates to move away from propane, oil, or gas heat entirely.

This matters most for households burning delivered fuels like propane or oil, which can cost hundreds of dollars a month to heat a home. Clean energy advocates are considering legal action, arguing the change conflicts with the law that created the rebates. North Carolina officials say they'll announce how they're adjusting the program by August 31.