How to Get an HVAC License in North Carolina

Who Needs a Collection Agency License?

In North Carolina, HVAC professionals must obtain one of the following state licenses before beginning to work in that capacity:

• H1 license – for working on water-based heating systems. There are two different classes of contractor licenses, H1-I and H1-II. An H1-I license allows a contractor to work on any building, while an H1-II license restricts the contractor to working on single-family detached homes. There is also an H1 technician license.
• H2 license – for working on forced air heating and cooling units weighing over 15 tons. There are separate H2 licenses for contractors and technicians.
• H3 license – for working on forced air heating and cooling units of less than 15 tons. An H3-I license permits the contractor to work on any building, but H3-II contractors are allowed to work only on single-family detached homes. There is a separate H3 license for technicians.

What Does the Licensing Process Involve?

The North Carolina State Board of Examiners of Plumbing, Heating and Fire Sprinkler Contractors licenses HVAC professionals. Here are the steps in the licensing process:

1. Make sure that you meet the eligibility requirements for taking the exam for the specific license you’re seeking. There are different eligibility requirements for the Heating exam and the Refrigeration exam.
2. Pass the exam.
3. Complete the License Activation form and submit it to the Board, along with the required licensing fee (currently $130 for contractors and $65 for technicians).
4. In certain cities, you may be required to purchase an HVAC contractor license bond. Check with the authorities in each city where you plan to work to see if a bond is required. Get Bonded Now.

Why is a Surety Bond Required?

Cities that require HVAC contractors to purchase a surety bond do so for two main reasons: 1) to ensure that contractors operate in compliance with all relevant local regulations and 2) to provide funds for compensating any party that suffers a financial loss as a consequence of an HVAC contractor�s unlawful or unethical business practices.

How the HVAC Licensing Process Works in North Carolina

An HVAC contractor�s bond agreement is a legally binding contract involving three parties:

• The municipality requiring the bond (the obligee),
• The HVAC contractor purchasing the bond (the principal), and
• The company underwriting and issuing the bond (the surety).

If the principal violates any of the terms of the surety bond agreement in a way that causes the city or a consumer to suffer a financial loss, the injured party has the right to file a claim against the bond and receive financial compensation up to the full required amount of the bond. Each obligee determines what the required bond amount is in that jurisdiction (for example, $2,000 in Greensboro and $2,500 in Winston-Salem).

Although the principal is legally responsible for paying all valid claims against the bond, often the surety will pay a claim in advance. However, this is done only as a courtesy on behalf of the principal. The principal is required by law to reimburse the surety.

What Does It Cost?

The annual premium for an HVAC contractor bond is a small percentage of the required bond amount. The surety sets that percentage, the premium rate, based largely on the principal�s personal credit score. If your credit is excellent, you could pay a premium rate that is as low as 1%. Those with credit problems will pay a substantially higher premium rate.

Get Bonded Today

Request an online quote or call us today about the bond you�ll need to work as a licensed HVAC contractor in your part of North Carolina.