Apex HVAC Replacement: Load Switches and Rebates

Most of the Triangle buys electricity from Duke Energy. Many Apex homes don't: the Town of Apex runs its own electric utility, and that changes an HVAC replacement in three practical ways. There's a small grey box on the side of many Apex houses, the load management switch, that your installer has to deal with. There are monthly bill credits for letting the town cycle your equipment at peak times. And there's a town rebate for certain heat pumps, with conditions Duke customers never see. Check your electric bill first; if it comes from the Town of Apex, this page applies to you.

The load management switch

Apex's program has run since 1993. The town says that all new homes, and renovation projects on homes costing more than $10,000, automatically receive load management switches provided by the town. The town describes the switch as a small, light-grey box about 8.5 inches high, often mistaken for a cable TV box.

During peak demand, a few times a month, the town sends a radio signal that cycles off equipment for short periods:

Air conditioners and heat pump compressors. At the minimum 25% control level, the compressor is cycled off for up to about 7 minutes out of every half hour, while the indoor fan keeps running.
Electric heat strips. In winter, the auxiliary strips are held off during peaks while the heat pump compressor keeps heating.
Electric water heaters. The element is turned off for a period; stored hot water is still available.

The town's 2022 residential construction procedures say switches are provided free of charge and must be connected to air conditioners and electric water heaters on new homes served by town power before the final building inspection.

What this means for your replacement

The most important line on Apex's HVAC partners page: the town does not reconnect the device after an HVAC installation or change-out; that's the HVAC company's responsibility. When you get bids:

Ask each contractor whether they've worked on Apex load-managed systems and how they'll reconnect the switch to the new outdoor unit and heat strips.
Write the reconnection into the contract, along with the switch installation instructions the town publishes for HVAC technicians.
Don't be alarmed by a short delay. The town notes that after power is restored to the AC, the switch keeps the unit off for five to ten minutes, which protects the compressor from short-cycling.
Call the town if something seems wrong. Apex lists 919-249-3531 for load management questions, including whether an event is underway.

Bill credits by control level

Apex pays customers credits for participation. Its load management page lists, for central air conditioners:

Control level	What happens	Summer credit (four months)
25% (minimum)	Compressor off about 7 minutes per half hour	$4.00 per month
50% (optional)	About 15 minutes per half hour	$8.00 per month
100% (optional)	Compressor off for the whole event	$20.00 per month

The town's program facts page lists a $2.00 monthly credit for electric water heater control. Heat strip control earns its own winter credit; check the town's current schedule.

The town heat pump rebate

Apex offers a $300 rebate to its electric residential customers for a new all-electric heat pump with electric heat strips, including replacement of older heat pumps and gas or oil furnaces. Conditions include:

a load management switch with at least 25% control of the AC cycle and heat strip control;
a commitment to stay in the load management program for at least five years;
dual-fuel systems don't qualify, nor does gas or propane heat;
permits for repairs and renovations under $10,000 don't trigger a switch and so aren't eligible.

A companion $100 rebate applies to new electric water heaters with a switch, with a 40-gallon minimum quick-recovery tank; tankless, gas and hybrid electric water heaters don't qualify. The town says the program can be changed or ended at any time, so confirm current terms with Apex Electric Utilities before you sign.

Duke Energy's Smart $aver rebates are for Duke customers. If you're on town power, the Apex program is the one that applies.

Dual fuel vs. all-electric in Apex

Because the town rebate excludes dual-fuel systems, Apex homeowners with natural gas weighing a heat pump plus gas furnace should compare total cost without the rebate. For all-electric homes, a properly sized heat pump with load-managed heat strips is what the program is designed around.

Permits and licensing

HVAC replacement needs a mechanical permit from Apex's Building Inspections & Permitting, and the contractor must hold the right North Carolina heating license. Under G.S. 87-21, residential systems fall under heating group three regardless of size; verify licenses at nclicensing.org. For Apex's permit portal and office, see the Apex area page. For sizing, ducts and bid comparisons, see our HVAC guide.

HVAC in Apex: questions

Do I have to keep the load management switch?

New homes and qualifying renovations on town power receive switches, and the town rebate requires five years of participation. Ask Apex Electric Utilities about your options.

Will load management make my house uncomfortable?

At the 25% level, the compressor cycles off for short periods while the fan runs, and the town says comfort changes are usually undetectable. Higher levels earn more credit with more noticeable effects in extreme heat.

Who reconnects the switch after a new system goes in?

Your HVAC contractor. The town doesn't do it.

Keep planning

Sources

Checked by the Raleigh Home Projects editorial team on October 20, 2026. Rules and prices change, so confirm details with the agency or your contractor before you sign.