Maryland Heat Pump Rebates
Maryland heat pump rebates pay as much as $7,100 toward geothermal through Potomac Edison, or $4,000 toward a cold climate unit. Pepco also pays up to $15,000 toward home electrification upgrades, and open discounts exist at every major electric utility.
Find the Maryland rebates for your ZIP code
If JavaScript is off, find your state in the table of programs.
Who sends your electric bill?
What are you putting in?
- Largest standard rebate available
- $15,000 Pepco Maryland HVAC Efficiency Program and Appliance Rebates, open to Potomac Electric Power Co customers
- HEAR appliance rebates
- Not yet open Run by MEA. Official page
- HOMES whole-home rebates
- Not open yet Paid on the energy saved by a whole-home upgrade. Official page
- Federal tax credit 25C
- Ended No credit for heat pumps installed after 31 December 2025
Maryland heat pump rebate programs
To see which rebates your home can get, match your electric utility with the program name.
| Program | Who can get it | Central heat pump | Ductless mini-split | Heat pump water heater | Geothermal | Status | Apply |
|---|---|---|---|---|---|---|---|
| BGE Smart Energy Savers HVAC and Heat Pump Water Heater Rebates (EmPOWER Maryland) | Served by Baltimore Gas & Electric Co | Up to $3,000 | Up to $500 for electric-to-electric; up to $3,000 to switch fuel | Up to $1,600 | Up to $3,000 electric-to-electric; up to $5,000 fuel switch | Open | Official page |
| Pepco Maryland HVAC Efficiency Program and Appliance Rebates (EmPOWER Maryland) | Served by Potomac Electric Power Co | Up to $15,000 | Up to $15,000 | Up to $1,600 | $3,000 energy efficiency; $5,500 electrification | Open | Official page |
| Delmarva Power Maryland HVAC Efficiency Program (EmPOWER Maryland) | Served by Delmarva Power | $3,500 | $600 energy efficiency; $3,500 electrification | None | $2,250 energy efficiency; $5,500 electrification | Open | Official page |
| Potomac Edison Maryland HVAC Program and Switch-to-Electric Program (EmPOWER Maryland) | Served by The Potomac Edison Company | Up to $4,000 | Up to $800 ($3,000 Switch-to-Electric) | $1,500 (Switch-to-Electric up to $2,500) | $7,100 | Open | Official page |
| MEA Geothermal Rebate Program (FY26) | Everyone in the state | None | None | None | $3,000 for a new GHC system | Closed | Official page |
Claiming Maryland Heat Pump Rebates Through Your Utility
Each major electric company in the state gives instant discounts through the utility efficiency program the state requires. Your contractor files the rebate claim for you, so pick an approved installer first and a model after.
- Pick an approved contractor that participates through Baltimore Gas and Electric, Pepco, Delmarva Power, Potomac Edison, or Southern Maryland Electric Cooperative.
- Before you sign a contract, have the contractor take the rebate straight off the written quote.
- The current program deadline is December 31, 2026, so make sure your contractor finishes the install by then.
To claim Pepco's rebate of up to $15,000 for whole-home electrification, begin with a $100 Home Energy Assessment. That rebate must be reserved by your contractor by December 31, 2026, with the work done inside 90 days. Pepco's water heater rebate of $1,600 requires a purchase dated by November 30, 2026, plus receipts submitted by December 7, 2026.
Federal Rebate Status and Free Upgrades for Lower-Income Households
Instead of paying upfront, families with limited income can get home energy improvements at no cost. The Maryland Weatherization Assistance Program ranks as the country's largest residential energy conservation program. Your household qualifies if it earns no more than 60% of the State Median Income, or no more than 200% of the federal poverty line. For one person, that income limit is $48,085, and for a family of four it is $92,470. Residents receiving Supplemental Security Income within the last 12 months qualify automatically.
Moderate-income customers of Pepco can also receive a free home energy assessment. The separate federal Home Energy Rebates cover appliances and whole-home projects, but they are still being planned and not open yet. Updated applications went to the Department of Energy from the Maryland Energy Administration on September 30, 2026, and federal approval is still pending.
Federal Tax Credit Changes, State Programs, and Fuel Switching Rules
In Maryland, nearly half of all households mainly heat with electricity, while roughly one household in 10 burns heating oil, propane, or kerosene. State utility rebates for natural gas equipment were ended by House Bill 1532 in 2025, which shifted utility funds toward electric heating. Thanks to that shift, you get a much bigger payment from utilities when a heat pump replaces natural gas, oil, or propane.
When you replace fossil fuel with a cold climate heat pump, Potomac Edison pays as much as $4,000, plus up to $3,000 to update wiring. The term cold climate heat pump means an outdoor unit made to keep its heating efficiency when the winter air falls below freezing. The state's Geothermal Rebate Program, worth $3,000 for ground-source systems, is closed because requests went past its $150,000 budget. The federal 25C tax credit has ended, so nothing put in service after December 31, 2025 qualifies for it.
Common Questions About Maryland Heat Pump Rebates
In Maryland, what extra incentives help cover the cost of a heat pump installation?
Besides standard heating rebates, the Maryland Clean Energy Advantage Loan from Baltimore Gas and Electric charges 0% interest for 24 months. When you switch from a fossil fuel water heater, the utility also pays 75% of your home preparation costs, up to $1,500. Switch to a multi-zone ductless mini-split, a heater that needs no ducts, and Pepco or Delmarva Power will pay $3,500.
Can you still claim the federal heat pump tax credit in 2026?
No. On July 4, 2025, the residential energy credits were ended by Congress under the One, Big, Beautiful Bill, Public Law 119-21. According to Internal Revenue Service Fact Sheet FS-2025-05, issued August 21, 2025, no credit applies to 2026 installations. For news on federal rebates still to come in Maryland, you can write to irarebates.mea@maryland.gov, the state energy office inbox.
In Maryland, how do efficiency ratings change the size of a heat pump rebate?
Two ratings set your rebate size: HSPF2, which measures heating efficiency, and SEER2, the cooling efficiency rating found on the label. If you switch fuels, a 16.9 SEER2 system earns up to $2,000 at Baltimore Gas and Electric or $2,500 at Pepco. With a 15.2 SEER2 model, the rebate is up to $1,500 from Baltimore Gas and Electric, or $2,000 from Pepco.
In Maryland, are heat pumps worth it?
Since 2008, residents have saved $14.5 billion by installing energy measures through state utility efficiency programs, which cost $4.1 billion. Utilities will still pay you to upgrade an aging unit if electricity already heats your home. When you upgrade electric to electric, Baltimore Gas and Electric offers as much as $1,000 for an air-source unit and $3,000 for closed-loop geothermal.
Get Maryland installer quotes with the rebates taken off
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.