Maryland Heat Pump Rebates
Stackable incentives available to Maryland homeowners installing a qualifying heat pump in 2026.
What's available in Maryland
Maryland has one of the most generous heat pump incentive landscapes in the country in 2026, anchored by the EmPOWER Maryland statewide ratepayer-funded efficiency program. The flagship Home Performance with ENERGY STAR pathway — delivered identically by BGE, Pepco, Delmarva Power, Potomac Edison, and SMECO — covers up to 75% of project cost (max $15,000) for replacing fossil-fuel heating with a heat pump, gated by a discounted $100 BPI home energy audit. BGE, Pepco, and Delmarva also offer up to $1,600 stand-alone heat pump water heater rebates, and the Maryland Energy Administration separately runs a $3,000 geothermal rebate plus the MD GAP pilot for new-construction geothermal in LMI communities. Maryland has not yet fully launched its IRA-funded HEEHRA/HOMES income-qualified rebate program for heat pumps as of early 2026; when launched, households under 80% AMI will be eligible for up to $8,000 per heat pump.
HEEHRA in Maryland
HEEHRA rebate: Point-of-sale rebate up to $8,000 for households at or below 80% of area median income. Funded by the IRA, administered by each state. Maryland is finalizing program rules.
How heat pump rebates work in Maryland
Maryland has one of the most generous heat pump incentive landscapes in the country in 2026, anchored by the EmPOWER Maryland statewide ratepayer-funded efficiency program. The flagship Home Performance with ENERGY STAR pathway — delivered identically by BGE, Pepco, Delmarva Power, Potomac Edison, and SMECO — covers up to 75% of project cost (max $15,000) for replacing fossil-fuel heating with a heat pump, gated by a $100 BPI home energy audit. BGE, Pepco, and Delmarva also offer up to $1,600 stand-alone heat pump water heater rebates, and the Maryland Energy Administration separately ran a $3,000 geothermal rebate that is now closed to new applications as FY26 funding was exhausted. Montgomery County's Electrify MC pilot adds up to $2,500 for county residents (limited to Elysian Energy as the contractor). Potomac Edison customers can claim an additional $4,000 Switch-to-Electric rebate that stacks with EmPOWER HVAC rebates for a combined ~$5,700 per heat pump. The state has not yet fully launched its IRA-funded HEEHRA/HOMES income-qualified rebate program as of early 2026.
Maryland rebate programs
EmPOWER Maryland Home Performance with ENERGY STAR — Whole-Home Electrification Rebate
$15,000Up to $15,000 (covering ~75% of project cost) when replacing fossil-fuel heating with an electric heat pump. Delivered statewide through BGE, Pepco, Delmarva Power, Potomac Edison, and SMECO; requires a $100 BPI home energy audit. Effective May 1, 2025 onward.
EmPOWER Maryland Heat Pump Water Heater Rebate
$1,600Up to $1,600 instant rebate on qualifying ENERGY STAR certified heat pump water heaters. Available identically through BGE, Pepco, and Delmarva Power for Maryland residential electric customers.
Maryland Energy Administration Geothermal Heat Pump Rebate
$3,000Flat $3,000 rebate for residential ground-source (geothermal) heat pump systems with a new heat exchanger loop. FY26 is the FINAL year of this program (FY26 budget $150,000, not the previously-noted $2M). The application JotForm portal is currently CLOSED to new applications as MEA processes existing submissions; total funding requests have exceeded the FY26 budget. Existing FY26 applicants are still being processed; no new applications accepted. Federal §25D 30% residential clean energy credit for geothermal remains available through 2032 as a separate path.
Montgomery County Electrify MC Heat Pump Incentive
$2,500Up to $2,500 incentive (range $1,000-$2,500) for a heat pump installed under Montgomery County's Electrify MC pilot program. Geographically limited to Montgomery County, MD residents and stacks with EmPOWER. Work must be coordinated and completed by Elysian Energy (the County-selected contractor); incentive applied at time of purchase. Outside Montgomery County this rebate is not available.
Potomac Edison Switch-to-Electric Heat Pump Incentive (FirstEnergy)
$4,000Up to $4,000 for converting fossil-fuel (oil, gas, propane) heating to a qualifying air-source or ductless heat pump; stacks with EmPOWER HVAC rebates for a combined ~$5,700 per heat pump. Requires decommissioning the fossil-fuel system. Available to Potomac Edison residential customers in Allegany, Carroll, Frederick, Garrett, Howard, Montgomery, and Washington counties (Potomac Edison customers only — not BGE/Pepco/Delmarva/SMECO). Valid through 2026-12-31.
5 utility-specific programs not shown here. Enter your ZIP in the calculator to filter to just your utility.
A worked example: oil-to-heat-pump conversion in Baltimore
Imani owns a 1,750 sq ft home in Baltimore served by BGE, currently heated by a 20-year-old oil-fired boiler. She gets quotes for a 3-ton ducted air-source heat pump installed with new ductwork (the existing home is hydronic, so duct installation is part of the scope), full displacement of the oil system, and a NEEP cold-climate certified outdoor unit. Installed cost including ductwork: $26,500. Because the install replaces fossil-fuel heating with a heat pump, she qualifies for EmPOWER Maryland's Whole-Home Electrification Rebate at 75% of project cost, capped at $15,000. Her rebate lands at the $15,000 cap. Layered on top, BGE's heat pump water heater rebate at $1,600 doesn't apply to this scope (no HPWH installed). Her household income is approximately 95% of Baltimore's AMI — Maryland HEEHRA hasn't launched, so the federal income-qualified rebate isn't available. The federal §25C credit is gone. Combined stack: $15,000 against $26,500. Net out-of-pocket: $11,500. The $100 BPI home energy audit prerequisite is included in the project quote.
Choosing a contractor in Maryland
Maryland licenses HVAC contractors through the Maryland Department of Labor (Master HVAC license). Verify at dllr.state.md.us before signing. EmPOWER Maryland Whole-Home Electrification rebates require a contractor enrolled with the specific utility's EmPOWER program — BGE Smart Energy Saver, Pepco Energy Wise, Delmarva Energy Wise Rewards, etc. The $100 BPI home energy audit is a prerequisite; the contractor scheduling the audit must be BPI-certified. Confirm both the EmPOWER enrollment and BPI certification at the quote stage. Montgomery County Electrify MC participants must use Elysian Energy as the contractor — no other contractor can file the Electrify MC incentive.
Common pitfalls for Maryland homeowners
- Counting on the Maryland geothermal rebate after April 30, 2026. The Maryland Energy Administration's $3,000 geothermal heat pump rebate is closed to new applications as of April 30, 2026 — FY26 funding requests exceeded the $150,000 FY26 budget. Existing FY26 applicants are still being processed. The federal §25D 30% credit for geothermal remains available through 2032 and is much larger than the state rebate was; lean on §25D for geothermal economics in 2026.
- Skipping the $100 BPI home energy audit. EmPOWER Whole-Home Electrification rebates require a $100 BPI home energy audit as a prerequisite. A homeowner who installs equipment first and applies for the rebate afterward will be denied. The audit is heavily discounted from market rate ($300-$500 typical for BPI assessments) because EmPOWER subsidizes it — schedule it through your utility's EmPOWER program before equipment is ordered.
Estimate your net cost
Used to determine HEEHRA eligibility (under 80% area median income).
- EmPOWER Maryland Home Performance with ENERGY STAR — Whole-Home Electrification Rebate−$15,000
- Potomac Edison Switch-to-Electric Heat Pump Incentive (FirstEnergy)−$4,000
- Montgomery County Electrify MC Heat Pump Incentive−$2,500
- EmPOWER Maryland Heat Pump Water Heater Rebate−$1,600
Estimate only. Includes only programs accepting applications today — waitlisted or closed programs are excluded. Mutually exclusive programs (e.g. HEEHRA vs HOMES) and project-cost caps are applied per current program rules; confirm with your installer and utility before signing.
How to claim each rebate
- Get pre-approved (where required). Some utility programs require approval before install. Check program details before signing a contract.
- Use a participating contractor. Many programs require a licensed installer from an approved contractor list — especially HEEHRA, which routes through CEC-approved contractors who process the rebate at point of sale.
- Save documentation. AHRI certificate, model numbers, and itemized invoice are required for most utility rebates.
- Submit utility rebate within 60–90 days of install. Some programs are first-come first-served and close mid-year — funding can run out before the calendar year does.