South Carolina Heat Pump Rebates
Stackable incentives available to South Carolina homeowners installing a qualifying heat pump in 2026.
Rebate data is re-verified against primary sources every two months.
What's available in South Carolina
South Carolina has a robust set of utility-funded heat pump rebates across its two large investor-owned utilities (Duke Energy Carolinas/Progress and Dominion Energy SC), the state-owned Santee Cooper, and several electric cooperatives (Palmetto, Berkeley; Blue Ridge offers an 8% on-bill heat pump loan rather than a rebate). Typical air-source heat pump rebates run $400-$1,000, heat pump water heater rebates $400-$800, and geothermal rebates $500-$1,250. Customers can stack only within their service territory - these programs are mutually exclusive by utility. South Carolina also offers a 25% state income tax credit for geothermal systems, capped at the lesser of $3,500 per year or 50% of state tax liability, with unused credit carried forward up to 10 years; the geothermal credit is available for systems placed in service before January 1, 2032. The state-administered federal IRA HEAR program (up to $8,000 per heat pump within a $14,000 household total, for households at or below 150% AMI) and HOMES program ($2,000-$16,000) are funded with $137M through the SC Energy Office and were still pre-launch as of September 2026: energy.sc.gov says rebates are not currently available and gives only an anticipated availability in 2026. Utility rebates plus the 25% state geothermal tax credit are the primary 2026 incentive layers.
HEEHRA in South Carolina
HEEHRA rebate: Point-of-sale rebate up to $8,000 for households at or below 80% of area median income. Funded by the IRA, administered by each state. South Carolina is finalizing program rules.
How heat pump rebates work in South Carolina
South Carolina has a robust set of utility-funded heat pump rebates across its two large investor-owned utilities (Duke Energy Carolinas/Progress and Dominion Energy SC), the state-owned Santee Cooper, and several electric cooperatives (Berkeley, Palmetto, Blue Ridge). Typical air-source heat pump rebates run $400-$1,000, heat pump water heater rebates $400-$800, and geothermal rebates $500-$1,250. Duke Energy SC's Smart $aver was restructured in 2025 to efficiency-tiered amounts: roughly $350–$700 for an air-source heat pump replacement (up to $900 on early replacement), and $1,500 for converting from an electric furnace/strip heat to a heat pump, with higher tiers ($2,000–$2,500) for dual-fuel, cold-climate, and geothermal conversions. Dominion Energy SC offers $400–$500 for an ENERGY STAR heat pump replacement, plus a separate $650 rebate specifically for converting an all-electric furnace to a heat pump. Santee Cooper's EmpowerHome program provides tiered heat pump rebates of $300–$400 per system for single-phase units (up to $700 for hybrid systems and $600 for geothermal). Customers can stack only within their service territory — these programs are mutually exclusive by utility. South Carolina also offers a 25% state income tax credit for geothermal systems. The state-administered federal IRA HEAR program (up to $8,000 for households ≤150% AMI) and HOMES program ($2,000-$16,000) were still pre-launch as of September 2026, with energy.sc.gov listing only an anticipated availability in 2026 and no portal open date.
South Carolina rebate programs
Duke Energy Smart $aver — Heat Pump Rebate
$1,500Restructured to efficiency-tiered amounts (effective for projects completed after 8/1/2025). Air-source heat pump replacement pays $350 (15.2 SEER2) / $450 (16) / $700 (≥17) on replace-on-failure, or $700–$900 on early replacement. Converting from an electric furnace/baseboard/strip heat to an air-source heat pump pays $1,500. Higher-value conversion tiers exist (dual-fuel $2,000–$2,500, cold-climate $2,100–$2,400, geothermal $2,300–$2,500). A free Home Energy Check is required first; paid via Mastercard. Duke Energy Carolinas and Progress residential customers in SC.
Duke Energy Heat Pump Water Heater Rebate
$500$500 for an ENERGY STAR 50-gallon heat pump (hybrid) water heater and $800 for an 80-gallon unit; both must have a UEF of at least 3.3. Duke Energy residential electric customers in single-family homes; the unit must be installed and running before you apply, and a free Home Energy Check must be completed within the prior 24 months (12 months for an emergency replacement). Standard electric, gas, and tankless units do not qualify.
Dominion Energy SC Heating and Cooling Equipment Rebate
$500$400–$500 for installing a new ENERGY STAR heat pump (minimum 15.2 SEER2). Residential electric customers only; AHRI-rated equipment installed by a licensed mechanical contractor. For electric-furnace-to-heat-pump conversions, see the separate Dominion Energy SC Electric Furnace to Heat Pump Rebate entry ($650).
Dominion Energy SC Heat Pump Water Heater Rebate
$750$750 rebate for purchase and installation of an ENERGY STAR certified heat pump water heater for residential electric customers in Dominion Energy SC territory.
Dominion Energy SC Electric Furnace to Heat Pump Rebate
$650$650 rebate for replacing an all-electric furnace (electric heat strips only) with a new ENERGY STAR heat pump. Separate from the standard $400–$500 Dominion heat pump replacement rebate. Must be installed by a licensed mechanical contractor; application within 90 days of install. Dominion Energy SC residential electric customers only.
Santee Cooper EmpowerHome Heat Pump Water Heater Rebate
$400$400 rebate for Santee Cooper customers who purchase and install a qualifying heat pump water heater in single-family or multifamily homes; rebate paid in 6–8 weeks.
Santee Cooper EmpowerHome Heat Pump Rebate
$400Tiered rebates for Santee Cooper residential customers under the 2026 Smart Energy Existing Homes program (Dec 2025–Nov 2026): single-phase heat pump $300/system (≥15.2 SEER2) or $400/system (≥16.3 SEER2); mini/multi-split $40–$80 per ½ ton; hybrid $500–$700; geothermal $600/system. Must use a Santee Cooper Trade Ally. Headline amount reflects the higher single-phase tier.
Palmetto Electric Cooperative Dual-Fuel Heat Pump Rebate
$700$700 rebate per system for Palmetto Electric members installing a qualifying Dual-Fuel Heat Pump; rebate form must be completed with the contractor and returned prior to installation.
Palmetto Electric Cooperative Buried Treasure Geothermal Rebate
$1,000$200/ton up to a $1,000 maximum rebate for installing a qualifying ground-source (geothermal) heat pump; pre-approval and Palmetto Electric inspection required.
11 utility-specific programs not shown here. Enter your ZIP in the calculator to filter to just your utility.
A worked example: geothermal install in Greenville
Tamika owns a 2,100 sq ft home in Greenville served by Duke Energy Carolinas. She has a half-acre lot suitable for a horizontal geothermal loop and a failing gas furnace. She gets quotes for a 3.5-ton closed-loop ground-source heat pump (WaterFurnace 7 Series, 41 EER / 5.3 COP, ENERGY STAR certified) installed at $34,800 including the loop field. Duke's restructured Smart $aver now publishes a geothermal-conversion tier of roughly $2,300–$2,500; assume $2,500 here. South Carolina's 25% state income tax credit for geothermal systems applies to her install at 25% of $34,800 = $8,700 (capped at $3,500/year, carry-forward up to 10 years if her annual liability doesn't absorb the full credit). The federal §25D residential clean energy credit was repealed effective December 31, 2025, so her 2026 install gets no federal credit — but South Carolina's 25% state geothermal credit remains. Her household income is approximately 110% of Greenville County AMI — SC HEAR hasn't launched. Combined: $2,500 Duke + $8,700 SC = $11,200 in rebate-plus-state-credit stack against $34,800 installed. Net effective cost: $23,600.
Choosing a contractor in South Carolina
South Carolina licenses HVAC contractors through the SC Department of Labor, Licensing and Regulation under the Residential Builders Commission. Verify at llr.sc.gov before signing. Duke Energy Smart Saver and Dominion Energy SC rebates each have their own approved contractor lists; the lists are on duke-energy.com and dominionenergy.com. Santee Cooper EmpowerHome and electric cooperative rebates (Palmetto, Berkeley, Blue Ridge) each have their own approved contractor expectations — confirm per program. For geothermal installs claiming the SC 25% state tax credit, IGSHPA accreditation on the installer adds confidence that the loop field is correctly designed and grouted.
Common pitfalls for South Carolina homeowners
- Hitting SC tax credit liability limits. The South Carolina 25% state income tax credit for geothermal systems is non-refundable, limited each year to the lesser of $3,500 or 50% of your state tax liability, and carries forward up to 10 years. A homeowner with a $34,800 geothermal install generates an $8,700 state credit but may not have enough state tax liability in a single year to absorb the full amount. Plan for multi-year credit utilization, and consult a tax professional before assuming the full $8,700 reduces year-1 taxes.
- Confusing Duke Energy Carolinas and Duke Energy Progress. Duke Energy Carolinas and Duke Energy Progress are two separate Duke subsidiaries serving different parts of SC — DEC covers the upstate, DEP covers parts of the midlands and Pee Dee. Both run Smart Saver rebates with similar (but not identical) terms. Confirm which subsidiary serves your address by checking your monthly electric bill.
Estimate your net cost
Used to determine HEEHRA eligibility (under 80% area median income).
- Duke Energy Smart $aver — Heat Pump Rebate−$1,500
- Dominion Energy SC Heat Pump Water Heater Rebate−$750
- Palmetto Electric Cooperative Dual-Fuel Heat Pump Rebate−$700
- Dominion Energy SC Electric Furnace to Heat Pump Rebate−$650
- Duke Energy Heat Pump Water Heater Rebate−$500
- Dominion Energy SC Heating and Cooling Equipment Rebate−$500
- Santee Cooper EmpowerHome Heat Pump Water Heater Rebate−$400
- Santee Cooper EmpowerHome Heat Pump Rebate−$400
Estimate only. Includes only programs accepting applications today — waitlisted or closed programs are excluded. Mutually exclusive programs (e.g. HEEHRA vs HOMES) and project-cost caps are applied per current program rules; confirm with your installer and utility before signing.
How to claim each rebate
- Get pre-approved (where required). Some utility programs require approval before install. Check program details before signing a contract.
- Use a participating contractor. Many programs require a licensed installer from an approved contractor list — especially HEEHRA, which routes through CEC-approved contractors who process the rebate at point of sale.
- Save documentation. AHRI certificate, model numbers, and itemized invoice are required for most utility rebates.
- Submit utility rebate within 60–90 days of install. Some programs are first-come first-served and close mid-year — funding can run out before the calendar year does.
If you can't afford a replacement in South Carolina
Rebates lower the price, but they still assume you can pay the rest. If your heating system is unsafe or has failed and a new one is out of reach, these programs repair or replace equipment at low or no cost for income-qualified households. Heat Pump Pricing Index is an independent information site — we don't fund, discount, or install equipment — so these are the doors to knock on first:
- Weatherization Assistance Program (WAP). Free energy and health-and-safety repairs — an unsafe furnace is exactly the kind of problem it fixes — for households at or near 200% of the poverty line. Apply through your local community action agency: how to apply (energy.gov).
- LIHEAP. Heating-bill help plus, in most states, a crisis component for broken or dangerous heating equipment. Same local agency; South Carolina LIHEAP contacts.
- USDA Section 504 Home Repair. For homeowners outside cities: 1% loans up to $40,000, and grants up to $10,000 for homeowners 62 and older to remove health and safety hazards. Program page and state offices (rd.usda.gov).
- Your utility and 211. Most electric and gas utilities run an income-qualified assistance fund — call the number on your bill and ask. Dialing 211 reaches a local specialist who knows which agencies in South Carolina currently have funds.
Safety first: if a technician has told you a heat exchanger is cracked, stop using the furnace and make sure you have a working carbon monoxide detector before anything else.