Duke Energy Rate Hike Could Make Efficiency Upgrades Pay Off Faster
Duke Energy's proposed 2027 rate increases and an ending bill credit raise the stakes for efficiency upgrades. Here is what the projects cost.
Higher electricity rates in North Carolina would make a home that uses less power more valuable. Several upgrades that cut electricity use cost less than many owners expect. Here is what is happening, and what the related projects cost.
What is happening
According to WRAL, Duke Energy is asking North Carolina regulators for higher residential rates starting in January 2027. The company first sought increases of roughly 18% over two years for both of its state utilities. After pushback, the proposed settlements are lower: about 9.5% over two years for Duke Energy Carolinas and 6.8% for Duke Energy Progress. The increases would phase in beginning Jan. 1, 2027.
The North Carolina Utilities Commission can approve or change the proposals. WRAL reports that Attorney General Jeff Jackson did not sign either settlement and wants regulators to reject the increases.
A second change affects lower-income households. A Customer Assistance Program that gives eligible customers a $42 monthly credit is scheduled to end Dec. 31, according to WRAL. That is $504 a year for a household that loses the full credit. WRAL says about 80,000 customers are enrolled. Duke told the outlet that eligible participants will keep receiving credits through December, and that the program's future is up to the Commission.
WRAL also reports that the settlements include $20 million in proposed shareholder contributions for bill assistance and for health and safety repairs that help income-qualified households get into weatherization programs. Duke also points to its Neighborhood Energy Saver program, which offers free energy-saving support.
What it means for your projects
We can't predict what regulators will decide, and we don't set rates. The practical point is simple: the more electricity a house needs to stay comfortable, the more a rate increase costs. Here are the upgrades that matter most, with our live cost figures. All figures are before sales tax.
Heating and cooling
Heating is the biggest winter electricity load in many homes. A ducted heat pump installation typically costs $14,500, with a usual range of $11,300 – $18,800. Which system you pick changes the price:
| Material | Typical | Usual range | Lifespan |
|---|---|---|---|
| Ducted air-source heat pump | $14,500 | $11,300 – $18,800 | – |
| Dual-fuel hybrid (keeps gas furnace) | $15,600 | $12,200 – $20,300 | – |
| Ductless multi-zone (whole home) | $23,900 | $18,600 – $31,100 | – |
If you want a smaller project, a ductless mini-split for three rooms typically costs $10,000, with a range of $7,850 – $13,000. See our [heat pump cost guide](Heat pump installation).
Federal tax credits no longer help here. The 25C and 25D credits ended, according to the IRS: 25D doesn't apply to spending after Dec. 31, 2025, and 25C doesn't apply to property placed in service after that date. Check the DSIRE database for state and utility rebates. Some states also run federal-funded home energy rebate programs, and availability varies.
Envelope upgrades
Windows are a slower payback, but they affect comfort and heating load. Replacing six windows typically costs $3,300, with a range of $2,600 – $4,300. Frame material is the main variable:
| Material | Typical | Usual range | Lifespan |
|---|---|---|---|
| Aluminium (thermally broken) | $2,450 | $1,950 – $3,200 | 30-45 years |
| Vinyl / uPVC | $3,300 | $2,600 – $4,300 | 25-35 years |
| Fibreglass | $4,150 | $3,250 – $5,400 | 30-50 years |
| Composite | $4,550 | $3,550 – $5,950 | 30-50 years |
| Timber | $7,500 | $5,850 – $9,800 | 30-60 years |
Details are in our Window replacement.
Water heating
Water heating is a steady year-round load. A heat pump water heater is one of the options in our water heater table. A typical replacement costs $1,900, and a heat pump unit with a mid-range setup is $3,400. Switching fuel or adding a circuit costs more. Compare the options in our Water heater replacement.
Solar
Rooftop solar can offset some purchased electricity. A 6 kWp system typically costs $24,700, with a range of $19,200 – $32,100. The federal 25D credit is gone, so the economics now rest on your own rates and any state or utility incentives. A 10 kWh battery option is $32,300 at the mid tier. See our Solar panels.
How to approach it
- Start with the biggest loads. Heating, cooling and water heating usually matter more than small fixes.
- Check utility and state programs first. Rebates and free programs can change the order of your projects. If you have a low income, ask your utility about weatherization help.
- Get several quotes. Plumbing, electrical and structural changes usually need a local permit, so make sure bidders include it.
- Check the price. Our "is my quote fair" tool compares a contractor's number with our figures.
How we calculate
Our figures combine labor hours multiplied by local rates with materials. We check them against market prices and real quotes. They are estimates, not bids, and they exclude sales tax, which varies by state and sometimes applies to materials only.
The rate decision is still pending. If you are planning an efficiency upgrade, you don't need to wait for it. Get quotes now and compare them with the live figures above.