North Carolina Electricity Rates Explained

If you live in North Carolina, your electricity bill probably comes from Duke Energy. You did not choose them — they were assigned to you based on your address. Unlike states where you can shop around for the cheapest rate, North Carolina is a fully regulated electricity market. Your utility, your rate, and your options are all determined by where you live.

The good news: North Carolina electricity rates sit well below the national average. The average residential rate in 2026 is approximately 13.47 to 14.08 cents per kilowatt-hour, compared to a national average of about 17.45 cents per kWh. That translates to roughly $133-$145 per month for a typical household using about 989 kWh. Across the country, the average monthly bill is closer to $155.

But there are important wrinkles every North Carolina homeowner should understand. Duke Energy operates two separate utilities in the state with noticeably different rates. The company ended traditional net metering for new solar customers in late 2023, dramatically changing the math on rooftop solar. New energy legislation is reshaping the state's clean energy trajectory. And rate increases are coming — Duke has filed requests that would add $17 to $23 per month to typical bills starting in 2027.

This guide breaks down everything you need to know about electricity rates in North Carolina, from understanding your bill to finding real ways to save.

North Carolina's Regulated Electricity Market

In states like Texas, consumers can choose from over a hundred electricity providers competing on price. North Carolina works differently. It is a fully regulated market, which means your electricity provider is determined by your physical address, and you cannot switch to a competitor.

The North Carolina Utilities Commission (NCUC) oversees all investor-owned utilities in the state. When Duke Energy or Dominion Energy wants to raise rates, they must file a formal request with the NCUC. The NCUC Public Staff — essentially the state's consumer watchdog for utility matters — reviews the request, and various consumer groups, industry representatives, and environmental organizations can participate in the proceedings. The commission has a statutory deadline of 10 months to reach a decision. If they do not decide in time, the utility's requested rates can go into effect automatically.

This matters to you because unlike a deregulated market, you cannot escape a rate increase by switching providers. Your main tools are efficiency, program enrollment, and staying informed about rate proceedings so you can participate or at least plan ahead.

One exception to NCUC oversight: North Carolina's 26 electric cooperatives and 70+ municipal utilities are not regulated by the NCUC. They're governed by their own local boards. If you're served by a co-op like Piedmont Electric or Blue Ridge Energy, or a municipal utility like Fayetteville Public Works Commission, your rates are set locally.

What North Carolinians Actually Pay

Let's look at the real numbers. In 2026, the average North Carolina residential electricity rate falls between 13.47 and 14.08 cents per kWh depending on the data source. That is roughly 20-25% below the national average of 17.45 cents per kWh.

Average monthly bills by utility:

Utility	Territory	Typical Monthly Bill (1,000 kWh)
Duke Energy Carolinas (DEC)	Charlotte, Winston-Salem, Greensboro, Asheville	$148.62
Duke Energy Progress (DEP)	Raleigh, Durham, Fayetteville	$161.98
Dominion Energy NC	Outer Banks, northeastern NC	Varies (recently decreased)
Electric Cooperatives (26 total)	Rural areas statewide	Varies by co-op
Municipal Utilities (70+)	Various cities and towns	Varies by municipality

The statewide average monthly bill is approximately $133-$145 per month, but your actual bill depends heavily on which utility serves you. A DEP customer in Raleigh pays roughly $13 more per month than a DEC customer in Charlotte for the same usage — and that gap is poised to widen.

Rates have been climbing steadily. North Carolina residential rates have increased approximately 3% annually in recent years. Duke Energy Carolinas bills for a typical 1,000 kWh customer have risen from about $130 per month before 2024 to $148.62 in January 2026. That is an increase of more than $18 per month in just a few years. Nationally, rates have climbed even faster — up 21% over five years — so North Carolina is still gaining ground relative to most states. But the trend is upward, and proposed rate requests suggest it will continue.

For a detailed walkthrough of every charge on your statement, our guide on how to read your electric bill and spot overcharges explains what each line item means and how to catch billing errors.

Duke Energy Carolinas vs. Duke Energy Progress

This is one of the most confusing aspects of North Carolina electricity. Duke Energy Carolinas (DEC) and Duke Energy Progress (DEP) are both owned by the same parent company, Duke Energy Corporation. They share a brand, a website, and a customer service number. But they are legally separate utilities with different generation fleets, different infrastructure, different rate cases, and — critically — different rates.

Why the difference matters:

	Duke Energy Carolinas (DEC)	Duke Energy Progress (DEP)
Service area	Central and western NC (Charlotte, Greensboro, Winston-Salem, Asheville)	Central and eastern NC (Raleigh, Durham, Fayetteville)
Typical monthly bill (1,000 kWh)	$148.62	$161.98
Monthly difference	—	+$13.36 more than DEC
Proposed 2027 increase	+$17.22/month	+$23.11/month
Proposed 2028 increase	Additional +$6.34/month	Additional +$6.59/month
Projected 2028 bill (1,000 kWh)	~$168.54	~$193.54

If Duke's proposed rate requests are approved as filed, a DEP customer would pay nearly $25 more per month than a DEC customer by 2028 — a gap of almost $300 per year for identical usage.

The two utilities file separate rate cases with the NCUC, and each has its own cost structure. DEP territory in eastern North Carolina has different grid infrastructure needs, a different mix of power plants, and its own set of investment requirements. These are not just bureaucratic differences — they show up directly on your monthly bill.

Duke Energy's combined 2027-2028 rate requests total approximately $1.7 billion in additional revenue: about $1 billion from DEC customers and $729 million from DEP customers. The stated reasons include grid modernization, clean energy investments, and fuel cost recovery. These requests are pending NCUC approval as of early 2026, and the final approved amounts may differ from what Duke proposed.

Understanding Your Duke Energy Bill

A typical Duke Energy residential bill is built from several components. Unlike states with tiered pricing where you pay more per kWh as your usage increases, Duke Energy uses a flat energy rate structure for standard residential service. You pay the same per-kWh energy rate whether you use 500 kWh or 2,000 kWh.

Your bill breaks down like this:

1. Basic Facilities Charge — A fixed monthly fee of approximately $14-$18 regardless of how much electricity you use. This covers the cost of maintaining your connection to the grid. Even if you use zero electricity in a month, you still pay this charge.

2. Energy Charge — The per-kWh rate for the electricity you actually consume. This is the main variable portion of your bill.

3. Fuel Charge — Recovers the cost of natural gas, coal, and nuclear fuel used to generate your electricity. This charge fluctuates with fuel markets and is adjusted periodically.

4. Renewable Energy Charge — Funds compliance with North Carolina's Renewable Energy Portfolio Standard.

5. Energy Efficiency Charge — Supports Duke's demand-side management and energy efficiency programs (which, as you'll see below, fund rebates you can take advantage of).

6. Riders and Adjustments — Various regulatory surcharges for grid modernization, storm cost recovery, and other approved expenses.

The key insight: because Duke's standard rate is flat (not tiered), conservation alone will not change your per-kWh cost — but it will reduce the total kWh you're billed for. Every kilowatt-hour you eliminate saves you the same amount whether it is your first or your two-thousandth.

Duke Energy also offers a voluntary time-of-use (TOU) rate schedule for residential customers. On-peak hours are typically weekday afternoons and evenings, while off-peak hours cover nights, weekends, and holidays. If you can shift heavy electricity usage — laundry, dishwasher, EV charging — to off-peak hours, TOU rates can meaningfully reduce your bill. Our guide on time-of-use electricity rates explains how to make this work in practice.

Energy Legislation: HB 951 and SB 266

Two pieces of legislation have fundamentally shaped North Carolina's energy landscape in recent years, and both directly affect what you pay.

HB 951 — Energy Solutions for North Carolina (2021)

Signed into law in October 2021 with bipartisan support, HB 951 made North Carolina the first politically "purple" state with a statutory carbon reduction mandate. The law set two key targets: a 70% reduction in CO2 emissions from electric utilities by 2030 (from 2005 levels) and carbon neutrality by 2050.

For consumers, the most significant change was the introduction of multi-year rate plans. Instead of filing individual rate cases, utilities can now submit three-year rate plans. Years two and three of these plans are capped at 4% increases (year one has no cap). This gives customers more predictability about upcoming rate changes, but it also streamlines the approval process in ways that some consumer advocates argue favor the utilities.

The NC Public Staff originally projected HB 951 would add about $3.50 per month to average residential bills by 2030. Critics estimated the total impact could be much higher — potentially increasing bills by as much as 50% over a decade when accounting for all the grid modernization and clean energy investments the law enables.

SB 266 — The "Power Bill Reduction Act" (2025)

SB 266 passed the North Carolina General Assembly in 2025. Governor Josh Stein vetoed it in July 2025, citing a study that found it could cost ratepayers $23 billion in additional costs by 2050. The legislature overrode the veto, and SB 266 became law.

Despite its name, the bill is controversial among consumer advocates. Its key changes include eliminating the interim 70% carbon reduction target by 2030 (while retaining the 2050 carbon neutrality goal) and allowing Duke Energy to increase rates outside the normal NCUC ratemaking process. It also opens the door for cost recovery on new natural gas plants. The NC Sustainable Energy Association's analysis concluded that removing the carbon target could actually increase long-term costs to ratepayers by $23 billion by 2050.

As of 2026, environmental and consumer groups continue to challenge SB 266's implementation. The law's long-term impact on your electricity bill remains uncertain, but it has shifted the state's energy policy direction in ways that will play out over the coming decade.

North Carolina's Solar Landscape

North Carolina ranks 5th in the nation for total installed solar capacity with 10,027 megawatts — enough to power approximately 1.1 million homes. The state's solar market is valued at $14.4 billion and supports about 7,500 jobs. Only California, Texas, Florida, and Arizona have more solar capacity installed.

But there is a critical distinction: North Carolina's solar success has been driven overwhelmingly by utility-scale installations, not rooftop solar. The state ranks just 17th nationally for residential solar. And a major policy change in 2023 made the economics of rooftop solar significantly less attractive for new customers.

The Net Metering Change

If you're considering solar panels for your home and you're a Duke Energy customer, this is the most important thing to understand: traditional net metering is no longer available for new customers. Duke Energy ended it in October 2023.

Under the old system, when your solar panels produced more electricity than your home used, the excess was exported to the grid and credited at the full retail rate — roughly 14 cents per kWh. That made rooftop solar a strong financial investment.

New Duke Energy solar customers are now placed on the Net Metering Bridge (NMB) rider. Under this structure, excess solar exported to the grid is credited at just 3.4 cents per kWh — roughly 75% less than the retail rate. This dramatically changes the payback math.

Customers who applied for interconnection before October 2023 are grandfathered under the old rules until 2027. But for everyone else, the reduced export credit means you need to maximize self-consumption — using your solar electricity as it's produced rather than exporting it to the grid.

This is exactly why solar-plus-battery systems have become the smart play in North Carolina. A home battery lets you store excess solar generation during the day and use it in the evening and overnight, minimizing what you export at the low 3.4 cents per kWh rate. For a deeper look at choosing the right system, check out our solar panel buyer's guide.

One bright spot: if you're a Dominion Energy NC customer in the northeastern part of the state, full net metering is still available. Solar exports are credited at the retail rate, making rooftop solar significantly more financially attractive in Dominion territory.

Solar Incentives Still Available

Despite the net metering change, several incentives help offset the cost of going solar:

• Federal Investment Tax Credit (ITC): 30% of your total solar installation cost, available through 2032 under the Inflation Reduction Act. On a $25,000 system, that is $7,500 back on your federal taxes.

• Duke Energy PowerPair Program: Rebates for solar-plus-battery installations. Solar panels earn $0.36 per watt (up to 10 kW) for up to $3,600. Battery storage earns $400 per kWh (up to 13.5 kWh) for up to $5,400. Combined maximum: up to $9,000. Note that Duke Energy Progress has reached capacity for this program; limited slots may remain in Duke Energy Carolinas territory.

• Property Tax Exemption: Solar installations are 80% exempt from property tax increases on residential properties, so adding panels will not significantly raise your property taxes.

• No state solar tax credit: North Carolina's previous 35% state credit expired in 2015 and has not been renewed. There is also no state sales tax exemption for solar equipment.

If you're interested in solar but do not want to install panels on your own roof — or if you rent — community solar may be an option worth exploring, though availability in North Carolina remains more limited than in states like Minnesota or New York.

How to Lower Your Duke Energy Bill

You cannot choose a different electricity provider in North Carolina, but you have more control over your bill than you might think. Duke Energy offers a surprisingly robust set of rebate programs, demand response options, and efficiency incentives.

Duke Energy Smart $aver Rebates

These rebates, updated in January 2025, help offset the cost of major efficiency upgrades:

Upgrade	Rebate Amount
Heat pump or central AC	$500 (increased from $350)
Variable-speed pool pump	$900 (tripled from $300)
Insulation (attic, wall, floor)	Rebate available (varies)
Heat pump water heater	Rebate available (increased in 2025)

If you're planning any HVAC or insulation work, apply for Smart $aver rebates before you start the project. The application process is straightforward and can save you hundreds. For help choosing the right system, our heat pump guide compares the top models for North Carolina's climate.

Demand Response Programs

These are among the easiest savings available — essentially free money for minimal inconvenience:

• Power Manager / EnergyWise Home: Allow Duke to briefly cycle your AC, water heater, or EV charger during peak demand periods. In return, you receive up to $150 upfront plus $50 per year depending on which devices you enroll. Electric water heater enrollment earns an extra $25 per year as of 2025.

• Smart thermostat program: If you've previously qualified for a Duke income-qualified program and have electric heat, you may be eligible for a free smart thermostat plus installation. Even if you do not qualify for the free program, investing in a smart thermostat is one of the highest-impact upgrades for managing your energy costs.

EV Charging Incentives

If you drive an electric vehicle, Duke offers substantial help with home charging:

Program	DEC Territory	DEP Territory
Level 2 charger installation credit	$1,133	$1,117
Charger leasing (no upfront cost)	—	$12.89-$17.10/month for 36 months
EV time-of-use rates	Available (lower off-peak rates, typically 11 PM - 7 AM)	Available
Managed charging credits	Additional bill credits for utility-controlled charging	Additional bill credits

Charging your EV overnight on a TOU rate is dramatically cheaper than charging during peak hours. If EV ownership is in your future, this alone can be worth hundreds per year.

Practical Savings Strategies

Beyond Duke's formal programs, these steps can meaningfully reduce your monthly bill:

1. Track your usage with a home energy monitor. Knowing where your electricity goes is the first step to using less of it. Our home energy monitor guide reviews the best options.

2. Upgrade insulation and air seal your home. In North Carolina's climate — hot, humid summers and chilly winters — air leaks and poor insulation are major energy wasters. Duke's Smart $aver program will help pay for improvements.

3. Switch to a heat pump if you have not already. Heat pumps handle both heating and cooling more efficiently than separate furnace and AC systems. With Duke's $500 rebate and potential Inflation Reduction Act rebates, the upgrade is more affordable than ever. Our whole-home electrification guide walks through the full process.

4. Shift heavy usage to off-peak hours. If you're on a TOU rate, running your dishwasher, laundry, and EV charger at night can make a noticeable difference.

5. Audit your bill regularly. Even in a regulated market, billing errors happen. Knowing how to read your electric bill can help you catch mistakes and understand what you're paying for.

For a comprehensive breakdown of efficiency strategies, our guide on how to cut your electric bill in half covers everything from quick wins to major upgrades.

Low-Income Assistance Programs

North Carolina offers several programs for households struggling with energy costs. If you or someone you know qualifies, these programs can provide substantial relief.

LIEAP (Low-Income Energy Assistance Program)

Funded by the federal LIHEAP program and administered by NC DHHS, LIEAP provides:

Benefit Type	Amount	Eligibility
Heating assistance	$300-$500 (one-time)	130% FPL (150% for seniors/disabled)
Cooling assistance	Up to $600	150% FPL
Crisis assistance	Up to $600	Year-round, through county DSS
Weatherization	Up to $12,000	200% FPL

Total FY 2026 funding: $94.6 million. Applications open December 1-31 for priority households (seniors 60+, disabled, SNAP recipients), then January 1 through March 31 for the general eligible population — or until funds run out.

Duke Energy Customer Assistance Program (CAP)

Established in 2023, this program provides a monthly bill credit of up to $42 per month for qualifying low-income households. A family of four earning less than approximately $50,000 per year may be eligible. The credit is applied automatically to enrolled customers' bills.

Duke Energy Weatherization Program

This is one of the most valuable programs available. Income-eligible Duke Energy customers can receive free comprehensive weatherization and energy efficiency upgrades, including:

• HVAC replacement: up to $8,000 (increased from $6,000 in 2025)
• Refrigerator replacement: up to $1,500 (increased from $1,000)
• Insulation, air sealing, duct repair, and other efficiency measures

The program is administered by the NC Community Action Association. If you think you might qualify, it is absolutely worth applying — a free HVAC replacement alone can save hundreds of dollars per year on your energy bills.

Grid Reliability and Hurricane Resilience

North Carolina faces real grid reliability challenges, particularly from hurricanes and severe storms. Hurricane Helene in 2024 was the most destructive storm in state history, underscoring why grid resilience is not an abstract concept here.

Duke Energy has invested heavily in hardening the grid over the past five years:

• Trimmed 43,500 miles of vegetation along power lines
• Replaced 116,430 distribution poles
• Upgraded 13,403 wood transmission poles to steel or concrete
• After Hurricane Helene, zero non-wood poles required replacement — steel and concrete poles proved their value under extreme conditions

The company has also tripled the number of North Carolina customers served by self-healing grid technology since 2022. As of 2025, 75% of NC customers are on self-healing circuits that automatically reroute power around faults. In the first 10 months of 2025 alone, this technology avoided more than 1.1 million customer outages and saved 2.6 million hours of total outage time.

These investments are a major driver of rate increases — grid modernization is expensive, and customers pay for it through their bills. But the reliability improvements are real and measurable, particularly for communities that have endured repeated hurricane-related outages.

If you live in a hurricane-prone area of North Carolina, a solar-plus-battery system can provide backup power during extended outages. It is not cheap, but after living through days without power, many homeowners consider it essential. Duke's PowerPair rebate (up to $9,000 for solar and battery combined) helps offset the investment.

Frequently Asked Questions

Can I choose my electricity provider in North Carolina?

No. North Carolina is a regulated electricity market. Your provider is determined by your address — most residents are served by Duke Energy Carolinas, Duke Energy Progress, or Dominion Energy. You cannot switch to a competing provider like you can in Texas or Pennsylvania. However, you can choose between rate plans within your assigned utility, such as standard or time-of-use rates.

Why is my Duke Energy bill so high?

The average North Carolina electricity bill is $133-$149 per month, but several factors can push yours higher. Hot, humid summers and cold winters drive significant seasonal spikes. Inefficient HVAC systems, poor insulation, older appliances, and electric water heaters are common culprits. You also pay a basic facilities charge of approximately $14-$18 per month regardless of usage. If your bill seems unusually high, request a home energy assessment from Duke Energy and check our guide on spotting overcharges on your electric bill.

Why are Duke Energy Progress rates higher than Duke Energy Carolinas?

Despite sharing the same parent company, DEC and DEP are legally separate utilities with different generation fleets, infrastructure, and cost structures. Each files its own rate cases with the NCUC. DEP territory in eastern North Carolina has different grid infrastructure needs and a different mix of power plants. The result is that DEP customers pay roughly $13 more per month than DEC customers for the same 1,000 kWh of usage — and proposed rate increases would widen that gap to nearly $25 per month by 2028.

Is rooftop solar still worth it in North Carolina?

It depends on your utility and how you design your system. For Duke Energy customers, the end of traditional net metering in October 2023 is the biggest factor. New solar customers only receive 3.4 cents per kWh for excess electricity exported to the grid — far below the roughly 14 cents per kWh retail rate. This makes a solar-only system less financially attractive than it once was. However, pairing solar with battery storage changes the equation by letting you consume more of your own generation. The federal 30% tax credit and Duke's PowerPair rebate (up to $9,000) also help. Typical payback periods are now 8-12 years. If you're a Dominion Energy customer in northeastern NC, full net metering is still available, making solar a stronger investment. Read our solar panel buyer's guide for a complete analysis.

Are electricity rates going up in North Carolina?

Yes. Rates are projected to continue increasing approximately 2-3% annually over the coming decade. Duke Energy's proposed 2027-2028 rate requests would add $17-$23 per month for typical customers if approved as filed. The major drivers are grid modernization, clean energy transition investments, fuel costs, and hurricane hardening infrastructure. SB 266 (2025) may also affect the pace and cost of energy investments. That said, NC rates are still rising more slowly than the national average, and the state remains 20-25% below the national per-kWh rate.

What demand response programs can I sign up for?

Duke Energy's Power Manager / EnergyWise Home program pays you bill credits for allowing the utility to briefly cycle your air conditioner, water heater, or EV charger during peak demand periods. You can earn up to $150 upfront plus $50 per year, with an extra $25 per year for water heater enrollment. The cycling is brief and most participants report minimal impact on comfort. This is one of the easiest ways to put money back in your pocket with virtually no effort.

What help is available if I cannot afford my electric bill?

North Carolina has several assistance programs. LIEAP provides one-time heating payments of $300-$500 and cooling assistance up to $600, with applications opening each December. Duke Energy's Customer Assistance Program offers up to $42 per month in bill credits for qualifying low-income households. The Duke Energy Weatherization Program provides free home upgrades including HVAC replacement (up to $8,000) for income-eligible customers. Crisis assistance is available year-round through your county Department of Social Services.

How does North Carolina compare to other states for electricity costs?

North Carolina is one of the more affordable states for electricity. At 13.47-14.08 cents per kWh, the state's average residential rate is roughly 20-25% below the national average of 17.45 cents per kWh. The average monthly bill of $133-$145 is also about $10-$22 less than the national average. However, there is significant variation within the state — Duke Energy Progress customers in the Raleigh-Durham area pay notably more than Duke Energy Carolinas customers in the Charlotte area.

Your Action Plan: Lowering Your North Carolina Electricity Bill

Here is a concrete plan you can work through over the next few weeks to reduce your energy costs.

This week:

1. Pull up your Duke Energy account online and review your past 12 months of usage. Identify your highest and lowest months. Calculate your average monthly consumption.
2. Check which utility serves you (DEC, DEP, or Dominion) and understand your current rate structure.
3. Enroll in Duke Energy's Power Manager / EnergyWise Home demand response program. This takes minutes online and immediately qualifies you for bill credits with no lifestyle change.

This month: 4. Evaluate whether a time-of-use rate plan makes sense for your household. If you can shift laundry, dishwasher, and EV charging to nights and weekends, the savings can be meaningful. 5. Check your eligibility for income-qualified programs. If you qualify, the free weatherization program alone could save you thousands of dollars in upgrades and reduce your monthly bill permanently. 6. Schedule a home energy assessment through Duke Energy to identify your biggest efficiency opportunities.

Before your next major purchase: 7. If you need a new HVAC system, water heater, insulation, or pool pump, apply for Smart $aver rebates first. The $500 heat pump rebate and $900 pool pump rebate are significant. 8. If you drive an EV or plan to buy one, claim the Level 2 charger installation credit ($1,117-$1,133) and enroll in EV time-of-use rates.

For the longer term: 9. If you're considering solar, get multiple quotes and make sure the proposals account for the new net metering rules. Any quote that assumes full retail credit for exports is based on outdated information. Battery storage should be part of the conversation. 10. Stay informed about Duke Energy's pending 2027-2028 rate request. The NCUC proceedings are public, and the outcome will directly affect what you pay. The NC Public Staff represents consumer interests in these proceedings.

North Carolina's regulated market means you cannot shop for a cheaper provider, but it does not mean you're powerless. Between Duke's rebate programs, demand response credits, efficiency upgrades, and rate plan choices, the difference between a passive approach and an active one can easily be $500-$1,000 per year. In a state where rates are heading up, that gap will only widen.