Pepco Heat Pump Rebate
In Maryland, a whole-home heat pump system can receive up to $15,000 through the Pepco heat pump rebate. A rebate of up to $1,600 is available for a heat pump water heater.
In Maryland, check what your address gets.
If JavaScript is turned off, use the table of rebates.
Who sends your electric bill?
What are you putting in?
- Rebate for a heat pump (any income)
- A maximum of $15,000
- Heat pump water heater
- $1,600
- Federal tax credit 25C
- The credit has ended. Heat pumps put in after 31 December 2025 get No credit.
To apply, use the official page and check its current rules: Pepco Maryland HVAC Efficiency Program and Appliance Rebates
Pepco Heat Pump Rebate Amounts
Based on system and income, these Pepco rebates pay toward heat pumps or heat pump water heaters.
| What you install | Rebate | Who | Conditions |
|---|---|---|---|
| For electrification, an Air Source Heat Pump for cold climates (SEER2 15.2, HSPF2 8.1) | $3,500 | Any income | Electrification incentive (no energy-efficiency amount listed) |
| An Air Source Heat Pump, or a ducted mini-split, at Tier 2 (SEER2 16.9) | $1,300 energy efficiency; $2,500 electrification | Any income | Tier 1: $800 / $2,000 |
| Ductless mini-split heat pump, multi-zone | $800 energy efficiency; $3,500 electrification | Any income | Single zone: $500 |
| Geothermal Heat Pump (Closed Loop) | $3,000 energy efficiency; $5,500 electrification | Any income | 17.1 EER & 3.6 COP |
| ENERGY STAR certified Heat Pump Water Heater | Up to $1,600 | Any income | Purchase by November 30, 2026. Instant coupons expire Oct 31, 2026 |
| Home Performance with ENERGY STAR electrification upgrades | A maximum of $15,000 | Any income | A Home Energy Assessment costs $100. Reserve the scope by Dec 31, 2026, and complete the work within 90 days of that reservation |
Steps to Claim Pepco Heat Pump Rebates
- Pepco Maryland HVAC Efficiency Program and Appliance Rebates: for HVAC, discounts come through participating contractors/distributors. For HPWH, submit your application with receipts by December 7, 2026. Under HPwES, the contractor reserves rebates by December 31, 2026. The midstream HVAC program uses participating contractors; HPwES requires a Participating Contractor.
Ask installers for quotes that include this rebate
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.
Other related pages
Heat Pump Rebates by Utility
For each electric company we cover, see the largest heat pump rebate it pays.
BGE Heat Pump RebateMaryland customers: what BGE pays them, and how to claim it.
TVA Heat Pump RebateTVA customers in Alabama, Georgia, Kentucky, Mississippi, North Carolina and Tennessee: what TVA pays and how to claim it.
SMUD Heat Pump RebateSMUD customers in California: what SMUD pays and how to claim it.
Every heat pump rebate in Maryland
Maryland's other utility and state programs, compared side by side.