Rebates for Green Home Building

Local government and utility rebates for new green homes have expanded notably in the past few years in our region, and some programs have changed over time from previous years and previous articles posted here.  Here is a quick overview of what financial incentives are available for new construction in 2022 and beyond.

For Builders

From Duke Energy Progress

The utility’s Residential New Construction rebate program offers two paths:

  • 90 cent rebate per kilowatt hour of electricity saved up to $9,000 with their HERS + HERO program (requires enrolling in a third-party verification program, getting a HERS score, meeting some minimum construction standards, and hiring a rater to verify). Participating in this path is one of two possible prerequisites in Green Built Alliance’s own Green Built Homes certification program.
  •  $300 to $350 for ENERGY STAR®-qualified heating and water heating equipment 

From Duke Energy Carolinas

New in 2022, the utility’s Residential New Construction program has expanded into Duke Energy Carolinas territory as well. The program offers same two paths, but with slight differences:

  • 75 cents per kilowatt hour of electricity saved up to $6,000 max with their HERS + HERO program (same process for third-party verification).
  • $300 for each new ENERGY STAR®-qualified heat pump installed 

From the City of Asheville

Rebates against building permit fees are available: 

  • $500 rebate for a new home certified through our Green Built Homes program
  • $250 rebate for a new home that earn a verified HERS score of 49 or lower
  • $175 rebate for a new home with a solar photovoltaic system
  • $100 rebate for an ENERGY STAR®-labeled new home
  • $100 rebate for protecting an existing tree or planting a new tree during construction 

From the Town of Black Mountain

  • A $500 permit fee rebate is available for homes that earn Green Built Homes or LEED for Homes certification.

From the Federal Government

Historically, there has been a business tax credit from the federal government for each new home that meets certain energy-efficiency criteria, often called the 45L tax credit, though historically this credit also expired and had to get extended by Congress every year (previously it was as much as $2,000 per home). This credit is expected to be extended for 10 years as part of the Inflation Reduction Act, which was in the process of being passed as this publication was going to print in August 2022. The incentive was expected to be increased to $2,500 for each ENERGY STAR®- labeled new home and $5,000 for each certified DOE Zero Energy Ready Home. Check with your HERS Rater for eligibility of your future projects.

For Homeowners

From Duke Energy Carolinas or Duke Energy Progress

From Dominion Energy (formerly PSNC)

  • ENERGY STAR®-labeled homes received a 5 percent discount on gas consumption. 

From the Federal Government

There has long been a federal personal income tax credit on the cost of qualifying solar electric, solar thermal, or geothermal systems installed as part of new construction or added to an existing home. In 2021, that credit started to sunset from 30 percent of eligible system costs down to 26 percent. However, the Inflation Reduction Act, which was in the process of being passed at the time of this publication, may extend then 30 percent offering for another 10 years. Otherwise, this tax credit still offers 22 percent of system costs until the end of 2023.

You can also view this article as it was originally published on page 14 of the 2022-23 edition of the directory.