Who issues the HVAC license in North Carolina
The State Board of Examiners of Plumbing, Heating, and Fire Sprinkler Contractors licenses every contractor who installs, alters, services or restores heating and air conditioning systems in North Carolina. The Board is created by Article 2 of Chapter 87 of the General Statutes and keeps its office in Raleigh. Licensing is statewide, so the same certificate works in Charlotte, Greensboro, Asheville and Wilmington. No North Carolina city or county issues a competing HVAC contractor license of its own. G.S. 87-16 sets the Board at seven members appointed by the Governor, and the statute names the seats: one licensed air conditioning contractor, one licensed heating contractor, one licensed plumbing contractor, one licensed fire sprinkler contractor, one plumbing or mechanical inspector from a North Carolina city, one member from a school of engineering of the Greater University of North Carolina, and one member with no tie to the construction industry. Members serve seven year terms, with one term expiring each year. The Board describes its own role as prescribing the standard of competence, experience and efficiency for applicants, receiving and investigating complaints against both licensed and unlicensed heating and air conditioning contractors, holding hearings, and prosecuting unlicensed contractors through the courts. Field investigations are handled by Administrative Officers assigned to regions of the state, and those officers can open what the Board calls a field complaint on their own without a consumer ever filing anything. That matters to a working contractor, because the enforcement arm is not passive and does not wait for a homeowner to complain.
Sourcesncleg.gov 1nclicensing.org 2nclicensing.org 3
Heating Group 1, 2 and 3 explained
North Carolina does not issue one generic HVAC license. The Board splits heating work into three groups, and the group you hold decides what equipment you may legally touch. Heating Group 1 covers wet or water based comfort heating systems, meaning high or low pressure steam, vapor or hot water, including the piping, ducts and mechanical equipment tied to that system. Heating Group 2 covers a forced air heating and cooling system with mechanical refrigeration capacity in excess of 15 tons. Heating Group 3 covers a forced air heating or cooling system with a mechanical refrigeration capacity of 15 tons or less, including electric heating elements and combustion equipment feeding an air distribution system of ducts. The statute adds a rule that trips people up: systems installed in single family residences fall under Heating Group 3 regardless of size. Group 1 and Group 3 are further split into Class I and Class II. Class I covers any building, residential, commercial or industrial. Class II is limited to single family detached dwellings only. Heating Group 2 has no class split. So the five heating contractor codes an HVAC firm can hold are H1-I, H1-II, H2, H3-I and H3-II. Fuel piping privileges are built into the Heating Group 1, 2 and 3 contractor licenses, so a separate fuel piping exam is not required for someone already holding or applying for one of those. Limited electrical work incident to HVAC work runs through a separate SP-PH license issued by the electrical contractors board.
Sourcesnclicensing.org 1ncleg.gov 2
Which license a working HVAC company actually needs
Most residential and light commercial change out companies in North Carolina are operating on Heating Group 3. If the firm only ever works on single family detached dwellings, H3-II is enough. The moment the crew sets a condenser on a duplex, a townhome, a strip center or an office, the firm needs H3-I, because Class II is written to single family detached dwellings only. If the firm sells and installs rooftop packaged equipment or chiller adjacent forced air systems over 15 tons of cooling, it needs Heating Group 2 on top of that. Boiler, steam, hydronic and radiant work is Heating Group 1 and is a different exam entirely, so a company that adds hydronic heat to its service mix cannot ride its Group 3 license to do it. The license belongs to a qualifying individual, not to the company, and the individual lists that qualification with the Board in the name the business trades under. The Board is direct about the consequence: each place of business of a licensed firm must have at least one listed qualified individual regularly on active duty to supervise and direct all licensed work. The work itself may then be performed by the licensee or by the firm bona fide W2 employees. Every branch office needs its own listed qualifier. A contractor planning a second location in another market should solve that staffing problem before signing the lease, not after.
Sourcesnclicensing.org 1ncleg.gov 2nclicensing.org 3
Experience required before you can sit for the exam
To be eligible for the Heating Group 1, Heating Group 2 or Heating Group 3 contractor examination, an applicant must have 2 years of on site full time experience, which the Board states as 4,000 hours, in the installation, maintenance, service or repair of heating systems related to the category being applied for. The experience counts whether or not a license was required for the work performed, which means helper and apprentice time on residential change outs is usable. Up to one half of the requirement, 2,000 hours, may be satisfied with academic or technical training directly related to the field, stated by the Board as 45 quarter hours or 30 semester hours. Experience gained in other states can be submitted. The Board is equally clear about what does not count: Certified Code Enforcement Official experience does not meet the experience requirement, and certificates in engineering or any other field not directly related to the license being sought do not count either. Technician licenses carry lighter thresholds, at 18 months or 3,000 hours for Class I and 15 months or 2,500 hours for Class II. Current and former military personnel and military spouses may receive credit for experience gained during active service. The statute also allows a shortcut on the residential side: evidence that a plumbing or heating licensee has continuously maintained a license in good standing for a minimum of 10 years is accepted as experience for Class II qualifications. Applicants may also be required to show they are at least 18 years old.
Sourcesnclicensing.org 1ncleg.gov 2
The North Carolina heating contractor exam
Examinations are computer based and administered by PSI Services LLC. The Board lists test centers in Asheville, Charlotte, Fayetteville, Greenville, Raleigh, Wilmington and Winston Salem, and an applicant living in another state with PSI centers may be allowed to test there. Each of the Heating Group 1, Heating Group 2 and Heating Group 3 contractor examinations runs 4.0 hours, with a separate business and law examination of 1.5 hours. The business and law portion is not required again if the applicant already holds a currently active contractor license with this Board and passed the Board business and law exam after August 2003. Board rule 21 NCAC 50 .0305 sets examinations on a maximum obtainable grade of 100 points with a grade of 70 required to pass. Exams are open book. All examinations are based on the current North Carolina State Building Codes and other references, and candidates must bring the approved reference books into the test center, where the materials are checked against the Board published Book Reference List and Requirements. The approval letter carries an authorization period of 90 days in which the exam must be taken. Results are given at the test center immediately after the exam. A failing candidate must wait 90 days before retesting and must submit a re-examination application and fee, and may attend an exam review in Raleigh first. Rescheduling with PSI at least three days ahead is free, but a no show forfeits the exam fee.
Sourcesnclicensing.org 1nclicensing.org 2reports.oah.state.nc.us 3nclicensing.org 4
What the license costs
An application for a license by examination requires a fee of $150.00 under Board rule 21 NCAC 50 .1101, made up of a $75.00 application fee and a $75.00 examination fee, and the Board states the examination application fee is non-refundable whether or not a license is granted. Passing is not the end of the spending. A License Activation Form and fee must be submitted within 45 days of passing the exam or the applicant has to retest, and the Board activation form prices Heating Group 2, Heating Group 3 Class I, Heating Group 3 Class II, Heating Group 1 Class I and Heating Group 1 Class II at $150 each. Rule 21 NCAC 50 .1102 sets the annual license fee for plumbing, heating and fuel piping contractor licenses at $150.00. A second or subsequent individual listed on the license of a corporation, partnership or trade name business pays $75.00 a year. A licensee who holds Code Officials Qualification Board qualifications and works full time as a local government plumbing, heating or mechanical inspector pays $25.00. An application to reissue or transfer a license to a different corporation, partnership or individual name costs $25.00, and adding a licensee to an existing license also costs $25.00. Other posted charges include $20.00 for a copy of a license and $25.00 per license record search for an abstract of a license record. Reference books required for the exam are bought separately from the Board or the publisher.
Sourcesnclicensing.org 1reports.oah.state.nc.us 2nclicensing.org 3nclicensing.org 4
Renewal, expiration and getting a dead license back
Every license this Board issues expires on the last day of December. G.S. 87-22 states that all licenses expire on the last day of December in each year following their issuance or renewal. The Board is blunt that there is no grace period, and that all activities requiring a license, including bidding, contracting, supervising and installing, must stop until the license is renewed. The renewal window opens 90 days before expiration, usually October 1, and renewal invoices carrying a user ID and password are mailed and emailed in early October. Not receiving the invoice does not excuse the licensee. Renewal can be done online with a credit card or by mailing the printed invoice with a check or money order. The statute requires the Board to add $25.00 to the fee when a licensee fails to renew and pay during the month of January, and the 2026 renewal invoice carries that $25.00 late processing fee for payments after January 31. Board rule 21 NCAC 50 .0409 allows a license that has expired to be reinstated within three years of expiration on written request and payment of the current license fee, the fee for the unpaid prior years, and the late processing fee. Past that, the statute requires reexamination on failure to renew within three years after expiration. Renewals are processed in two to three business days and the new expiration date appears on the Board website immediately, with printed certificates following by mail.
Sourcesnclicensing.org 1nclicensing.org 2ncleg.gov 3nclicensing.org 4
Continuing education is not a renewal condition here
North Carolina is unusual on this point, and contractors moving in from other states get it wrong. The Board states plainly that it does not require licensees to complete continuing education classes, and that the requirement for continuing education as a condition of renewal was eliminated on December 31, 2012. G.S. 87-22 still gives the Board authority to adopt rules requiring attendance at programs of continuing education as a condition of renewal, so the power exists and is simply not being used. Nothing about that means education disappeared. What replaced the mandatory hours is Disciplinary Education, a program the Board established on January 1, 2013. When a complaint is investigated and adjudicated, the Board may require the licensee to complete specific Board approved courses aimed at the problems the investigation found. The Board lists those courses as Board Laws and Rules, Business Management, Plumbing Design and Code, Fuel Gas Design and Code, Well Seal Installation, Protection and Sanitation, Mechanical Code, and Mechanical Design. Any applicant or licensee may attend voluntarily rather than under an order. The Board also maintains an Education page listing independent providers by category, including HVAC, Fuel Gas, Business and Plumbing, covering code, design and exam preparation classes, and licensees contact those providers directly for dates and fees. For a contractor building a service department, this means training budget is a competitive decision rather than a compliance checkbox, and code knowledge is enforced after the fact through complaints.
Sourcesnclicensing.org 1ncleg.gov 2
Insurance, bonding and workers compensation
Article 2 of Chapter 87 does not impose a surety bond or a minimum general liability insurance policy as a condition of holding a North Carolina plumbing or heating contractor license, and the Board fee and licensing rules in 21 NCAC 50 do not add one. That is a genuine difference from states that tie the license to a bond amount. It does not mean an HVAC contractor here operates uninsured. General liability coverage is demanded by general contractors, property managers, builders and commercial customers as a condition of getting on the job, and equipment manufacturers and distributors set their own requirements for dealer programs. Workers compensation is a separate statutory obligation. Under G.S. 97-2, employment subject to the Workers Compensation Act includes all private employments in which three or more employees are regularly employed in the same business or establishment. An HVAC firm that puts a third employee on the payroll crosses that line, and the coverage requirement follows the headcount rather than the contractor license. Coverage is also triggered at one or more employees where the work involves the use or presence of radiation. Vehicle liability coverage on service trucks and vans is governed by North Carolina motor vehicle law and is not administered by this Board. Because the Board does not verify insurance at renewal, proof of coverage is something a contractor should keep current and produce on demand, since the customer or the general contractor is the party who will actually ask for it.
Sourcesncleg.gov 1ncleg.gov 2reports.oah.state.nc.us 3
Listing the license with your company
A North Carolina heating license is held by an individual, and that individual lists the qualification with the Board in the name the business actually uses. Board rule 21 NCAC 50 .0407 requires licensees to list their license with the Board in the name in which they conduct business. A license can be issued or renewed in the name of a corporation, partnership, State or local government agency, private educational institution, or a business with a trade name, provided G.S. 87-26 is satisfied. The license number assigned to that firm is the number of the first licensee listed on the license. Additional licensees can be added, and when a licensee ends the association, both the firm and the licensee must notify the Board within 30 days on the Board form. The Board answers the moonlighting question with a flat no. The license must be listed with the Board in the name in which business is being conducted and may only be used for contracting and permitting in that name, and performing work in any name or capacity other than what is listed is not allowed. If the license holder leaves, dies, is injured, is called to active duty or resigns, the Board states that all contracting activity, including quoting, bidding, contracting, obtaining permits and performing work already in progress, must cease until another licensee is in place as the firm qualifier. Changing the trade name requires a Trade Name Change Application and a $25.00 reissuance fee.
Sourcesnclicensing.org 1reports.oah.state.nc.us 2ncleg.gov 3
License number on your contracts, proposals and ads
North Carolina writes display duties into both the statute and the Board rules, and they reach the paperwork an HVAC contractor hands customers every day. G.S. 87-21(e) is headed Posting License and License Number on Contracts. It requires that the current license be posted in the business location of the licensee, and that the license number appear on all proposals or contracts and requests for permits issued by municipalities. Board rule 21 NCAC 50 .0406 repeats and widens that duty for firms. Under subsection (c) of that rule, the contractor license number and qualification of the firm must be displayed on firm contracts, proposals, permit applications, and telephone yellow page advertising. The practical reading for a modern HVAC company is that the number and the qualification belong on every written estimate, every proposal, every signed agreement and every permit application, and on printed directory advertising where the rule names it directly. The rule text does not name websites, vehicle lettering or social media, so a contractor who puts the number there is going beyond what the rule requires, which is still a reasonable habit because customers and inspectors look for it. The same rule makes the licensed contractor responsible for all proposals, bids, contracts, supervision to the extent of the qualification, compliance with applicable codes and standards, and assurance that permits and inspections are obtained. Violating a provision of Article 2 is a misdemeanor under G.S. 87-25.
Sourcesncleg.gov 1reports.oah.state.nc.us 2
What unlicensed HVAC work costs in North Carolina
G.S. 87-25 makes unlicensed heating contracting a Class 2 misdemeanor. The statute reaches further than the obvious case. It covers anyone who engages in or offers to engage in the business of heating contracting without a license, anyone holding a limited license who practices or offers to practice work the limited license does not authorize, anyone giving false or forged evidence to the Board to obtain a license, anyone falsely impersonating another practitioner, anyone using an expired or revoked license, and anyone who violates any provision of Article 2. That second clause is the trap for licensed firms: an H3-II holder taking a job on a small commercial building, or an H3-I holder installing a 20 ton rooftop unit, is in the same statutory category as someone with no license at all. A bona fide employee working in the course of employment for a Board licensee is not treated as engaging in the business. The Board can also go to superior court under G.S. 87-25.1 for a restraining order and injunction against a violator, whether or not criminal prosecution has started or administrative sanctions have been imposed. When the Board prevails, the court shall award the Board its reasonable attorney fee, capped at $5,000, plus the costs of obtaining relief and of investigating and prosecuting the violation. An examination applicant who has not paid such an award cannot take any Board examination until it is satisfied.
Sourcesncleg.gov 1nclicensing.org 2
Reciprocity and out of state contractors
The Board states that there are no license reciprocity agreements with any other state. Anyone wanting licensure must meet the North Carolina requirements and pass the applicable examinations. Two narrower paths exist. North Carolina has a Technical Examination Waiver Agreement with South Carolina for plumbing and HVAC contractors, but the applicant must still pass the North Carolina business law exam. Second, the Neighbor State License Recognition Act covers individuals who are currently permanent residents of North Carolina and currently hold licensure in Georgia, South Carolina, Tennessee, Virginia or West Virginia. The Board checklist for that route asks for a copy of an active North Carolina driver license, proof of a current physical North Carolina home address plus a matching utility bill, copies of all current licenses held in any state, city or county jurisdiction, proof of neighboring state licensure for a minimum of one year, verification direct from each agency where licensure was gained by exam, a criminal background report through Castle Branch, and a notarized sworn statement that the applicant has never surrendered a license and has no pending discipline. The existing license must be at the same or substantially equivalent practice level as the North Carolina license sought. The applicant must also attend a free four hour seated Board Laws and Rules class offered by the Board, and everything goes in as a single package. Foreign corporations and foreign limited liability companies must hold a certificate of authority from the Secretary of State before the Board will license them.
Sourcesnclicensing.org 1nclicensing.org 2ncleg.gov 3
Permits in the Charlotte and Raleigh markets
The state license lets you contract. Local inspection departments still control the job. In the Charlotte market, Mecklenburg County Code Enforcement issues building, electrical, plumbing and mechanical permits under G.S. 160D-1110, and separate permits are required for building, electrical, heating, air conditioning and plumbing work rather than one combined permit. Mecklenburg publishes a residential threshold under which permits may not be required for work costing $40,000 or less, then lists carve outs that swallow the exemption for this trade: the addition, replacement or change in the design of a heating or air conditioning system is named as work that still requires a permit. A residential change out in Mecklenburg is therefore permitted regardless of price. In the Raleigh market, Wake County issues trade permits for plumbing, electrical or mechanical work when a building permit is not required. The residential trade permit fee is $75, and Wake states that the $75 covers electrical, mechanical and plumbing together regardless of how many trades are involved, while commercial trade permit fees are based on project cost for each trade. Wake requires the application to list all trade contractors under Contacts in its permit portal and, for mechanical and water heater work, to state the appliance type, whether it is gas or electric, its location and the areas it serves. Remodeling that opens walls or touches framing pushes the job to a building alteration permit instead. Board rule 21 NCAC 50 .0406 puts responsibility for obtaining permits and inspections on the licensed contractor.
Sourcescode.mecknc.gov 1wake.gov 2reports.oah.state.nc.us 3
How a customer checks your license
The Board runs a public license portal at public.nclicensing.org. The Verify License Search page lets anyone search without logging in, and the classification dropdown lists every qualification separately, including Heating Group 3 Class I Contractor, Heating Group 3 Class II Contractor, Heating Group 2 Contractor, Heating Group 1 Class I Contractor and Heating Group 1 Class II Contractor, along with the matching technician qualifications. All fields are optional but at least one must be entered, so a customer can look you up by license number, by name or by classification. The same portal offers a Find License Near Me search, which surfaces licensed contractors by location, and a CE Class Search. It also carries the public facing service requests: File a Complaint, Request License Verification, Request Closed Complaint and Request License Roster. The Board tells licensees to check a license for the current expiration date by entering the license number, and warns that a License Not Found message means the license has not been renewed for the current year or is not valid for another reason. Two things follow for a contractor. First, the exact trade name you listed with the Board is the name a homeowner will find, so a mismatch between your listed name and the name on your truck creates doubt at the worst moment. Second, disciplinary outcomes are published by the Board as consent agreements, letters of caution and resolution agreements.
Sourcespublic.nclicensing.org 1nclicensing.org 2nclicensing.org 3
EPA Section 608 sits on top of the state license
A North Carolina heating contractor license says nothing about refrigerant handling. That is federal. Under EPA regulations at 40 CFR Part 82, Subpart F, issued under Section 608 of the Clean Air Act, technicians who maintain, service, repair or dispose of equipment that could release ozone depleting refrigerants into the atmosphere must be certified. EPA organizes the testing around a Core section plus equipment specific sections: Type 1 for small appliances, Type 2 for high pressure equipment and Type 3 for low pressure equipment. EPA does not issue certification cards itself, and technicians obtain and replace cards through approved certifying organizations. This is an individual credential attached to the technician, not to the company, and it is separate from anything the State Board of Examiners of Plumbing, Heating, and Fire Sprinkler Contractors issues or tracks. A North Carolina firm running split system and heat pump work therefore needs two different things in place at once: a listed Board qualifier with the right Heating Group classification for the equipment and the building type, and Section 608 certified technicians for every person opening a refrigerant circuit. A newly licensed H3-I contractor who hires a helper cannot send that helper to recover refrigerant on the strength of the company license. Neither credential substitutes for the other, and the Board classification definitions describe the mechanical scope of work rather than refrigerant handling authority.
Sourcesepa.gov 1nclicensing.org 2