As power bills climb, NC expands rebate program

Gov. Josh Stein announced on Tuesday the statewide expansion of Energy Saver NC, a rebate program designed to lower household electricity bills, as North Carolina grapples with rising energy costs and growing pressure on the power grid.

The program is now available in all 100 counties and offers thousands of dollars in rebates to help eligible households make energy-efficient upgrades. The announcement comes as many customers are already paying higher utility bills and as Duke Energy seeks additional rate increases to cover grid upgrades and new power generation tied to rising electricity demand, including from energy-intensive data centers.  

“The cost of living is too high for too many families, whether it’s housing, health care, groceries or electricity,” Stein said during an NC Strong update in Raleigh. “That’s why we must act to keep costs as low as possible.”

Energy Saver NC is a $208 million federally funded program through the U.S. Department of Energy. It offers up to $16,000 in rebates for whole-home efficiency upgrades, such as heating and cooling systems, and up to $14,000 for energy-efficient appliances. State officials estimate households that qualify for the program could save nearly $1,000 a year on utility bills.

State leaders say improving energy efficiency can help families save money while also easing strain on the power grid, which has faced increasing pressure during extreme winter weather and periods of peak demand.

Utilities say electricity demand is rising rapidly. Duke Energy has pointed to industrial growth, including data centers, as a key driver of the need for major grid investments and additional power generation. Those plans include building new natural gas plants and keeping some coal-fired units operating longer than previously planned.

Stein criticized legislation passed last year over his veto that shifted more construction costs and fuel-price volatility onto residential customers. He has warned that the policy exposes households to higher long-term electricity costs by locking utilities into fossil fuel investments.

“Gas is an extremely volatile-priced fuel,” Stein said. “The cheapest form of energy to produce today is solar and wind. With battery storage, you can use that power when the sun isn’t shining or the wind isn’t blowing.”

Climate and consumer advocates say meeting rising demand with fossil fuel infrastructure risks locking in higher emissions and higher costs for decades, particularly as electricity use increases from industrial development.

Those concerns come as Duke Energy reported about $5 billion in net income last year, even as customers were asked to conserve power during recent cold snaps and face potential rate increases.

“Duke Energy is celebrating profits with shareholders at the same time it is texting households to conserve power during freezing temperatures,” said Will Scott, director of Southeast climate and clean energy at the Environmental Defense Fund. Scott said the same law Stein vetoed allows utilities to recover construction costs and earn returns before projects are completed, shifting financial risk from the company to customers.

Spokesperson Bill Norton said data centers are required to pay the full cost of connecting their facilities to the grid.

“To protect residential customers, our contracts with data centers require these facilities to pay the full costs associated with delivering service to their sites,” Norton said. He added that data centers pay substantial energy bills and that newer contracts require them to reduce or shift electricity use during times of peak demand.

Still, many of the broader costs associated with grid upgrades and new power plants — including investments driven by rising industrial demand — are shared across all ratepayers. Data centers also receive favorable tax treatment under state law, including exemptions from sales tax on electricity, an issue Stein said the state is still evaluating.

Norton said Duke Energy supports energy efficiency programs like Energy Saver NC and said reducing energy use helps lower systemwide costs. He said the company remains focused on maintaining reliability and limiting customer bill increases.

The North Carolina Energy Policy Task Force is expected to release a report next week examining how the state can meet growing electricity demand — including from data centers — while limiting long-term costs and emissions. The recommendations could shape future decisions on power plants, grid investments and the state’s broader energy strategy.