BGE Heat Pump Rebate
For a central heat pump in Maryland, BGE provides a rebate of up to $3,000 through the BGE heat pump rebate. You can receive up to $1,600 for a heat pump water heater.
Find out what your address gets in Maryland.
- Any income: heat pump rebate
- A maximum of $3,000
- Heat pump water heater
- $1,600
- 25C federal tax credit
- This program has ended. No credit applies to heat pumps installed after 31 December 2025.
For applications and current rules, visit the official BGE Smart Energy Savers HVAC and Heat Pump Water Heater Rebates page.
BGE Heat Pump Rebate Amounts
For heat pumps and heat pump water heaters, BGE rebates vary by system and income and pay toward the equipment.
| What you install | Rebate | Who | Conditions |
|---|---|---|---|
| This cold-climate air source heat pump has SEER2 15.2 and HSPF2 8.1 and replaces natural gas, oil or propane | A maximum of $3,000 | Any income | Only fuel switches qualify (N/A for electric-to-electric); a participating contractor is required; the system must be AHRI rated |
| Tier 2 covers a non-cold-climate air source heat pump or ducted mini-split (SEER2 16.9) | Electric-to-electric: up to $1,000; gas, oil or propane: up to $2,000 | Any income | Tier 1 (SEER2 15.2) rebates: up to $500, or up to $1,500 |
| Ductless heat pump, multi-zone (SEER2 15.5, HSPF2 7.5) | Electric-to-electric: up to $500; fuel switch: up to $3,000 | Any income | Single zone (SEER2 18): up to $400 |
| Closed-loop geothermal heat pump (17.1 EER, 3.6 COP) | Fuel switch: up to $5,000. Electric-to-electric: up to $3,000 | Any income | |
| Heat pump water heater (select models) | Up to $1,600 | Any income | Home preparation costs may also get up to 75% coverage, up to $1,500, if you switch from gas, oil or propane |
Steps for Claiming BGE Heat Pump Rebates
- Under BGE Smart Energy Savers HVAC and Heat Pump Water Heater Rebates, a participating contractor applies the rebate to the contract price, and installation must be completed by December 31, 2026. HPWH purchases must happen by Dec 31, 2026. The instant rebate coupons end Oct 31, 2026. You must select a BGE Participating Contractor, and the contract price includes the rebate.
Receive installer quotes with this rebate included
Most rebates on this page are paid through the installer or need the installer's paperwork, so the quote is where the money is settled. Tell us the ZIP code and what you want installed, and installers who work with these programs send a written price with the rebates taken off.
Pages related to this topic
Heat Pump Rebates by Utility
For every electric company covered here, see the largest heat pump rebate it pays.
Pepco Heat Pump RebateSee what Pepco pays customers in Maryland and how to claim it.
Duke Energy Heat Pump RebateLearn what Duke Energy pays customers in Florida, North Carolina and South Carolina, and how to claim it.
LADWP Heat Pump RebateSee what LADWP pays customers in California and how to claim it.
Every heat pump rebate in Maryland
Compare Maryland's other utility and state programs side by side.