A new high-efficiency HVAC system is one of the larger home expenses most Charleston homeowners will face. What many don't realize is that between federal tax credits, utility rebates, and manufacturer incentives, the real out-of-pocket cost can be substantially lower than the sticker price — sometimes thousands of dollars lower.
This guide covers every rebate and credit program available to South Carolina homeowners in 2025 and into 2026, including the federal 25C credit under the Inflation Reduction Act, Duke Energy Progress rebates, Dominion Energy programs, and how to stack them.
Important: Rebate programs change frequently. Always verify current amounts and qualifying equipment directly with the utility or program before purchasing. The information below reflects available programs as of early 2025.
Available Programs for SC Homeowners
Federal 25C Energy Efficient Home Improvement Credit
Duke Energy Progress SmartSaver Rebates
Dominion Energy SC Efficiency Rebates
ENERGY STAR® Rebate Finder
How to Maximize Your Savings
Step 1: Choose Qualifying Equipment
Not all high-efficiency equipment qualifies for every program. Before purchasing, confirm that the specific model you're considering meets the SEER2, HSPF2, and ENERGY STAR requirements for each program you want to claim. When you schedule an installation consultationwith us, we'll identify which units qualify for which programs based on your location and utility provider.
Step 2: Get the Manufacturer Certification
For the federal 25C credit, you'll need a Manufacturer's Certification Statement confirming the installed equipment meets efficiency requirements. Your HVAC contractor should provide this at the time of installation. Keep it with your tax records.
Step 3: Submit Utility Rebates Promptly
Most utility rebate programs require submission within 60–90 days of installation. Collect your invoice, equipment model numbers, and any required installation forms immediately after the work is completed. Don't wait until tax season.
Step 4: File Form 5695 With Your Taxes
The 25C federal credit is claimed on IRS Form 5695 with your annual federal tax return. It's a non-refundable credit — meaning it reduces your tax liability dollar for dollar, but you can't receive a refund if the credit exceeds what you owe. Consult your tax advisor for personalized guidance.
Real-World Example
Let's say you install a qualifying 18 SEER2 heat pump in Charleston for $6,500 total installed cost. You could potentially receive:
- Federal 25C credit: Up to $2,000 (for qualifying heat pumps)
- Duke Energy SmartSaver rebate: $100–$200
- Total potential savings: $2,100–$2,200
That brings a $6,500 system down to an effective cost of approximately $4,300–$4,400 — a significant difference that makes upgrading to high efficiency significantly more attractive.