Rebates by state / Maryland

Maryland energy & heat pump rebates 2026: EmPOWER and the December 31 deadline

By Ionel Glogoveanu, editor. Every figure on this page was checked against the official source on the date shown.

Maryland’s strongest home energy rebate in 2026 is EmPOWER Maryland: through your electric utility’s Home Performance with ENERGY STAR program, switching a gas, oil or propane furnace, boiler or water heater to a heat pump pays up to $15,000 or 75% of the job, after a $100 energy assessment and attic insulation and air sealing. The date that matters is December 31, 2026, the last day of EmPOWER’s 2024–2026 cycle: Pepco requires your contractor to reserve rebates by then, and Potomac Edison’s discounts cover equipment installed by then. Federal HEEHR has not launched (MEA resubmitted its applications to DOE on September 30, 2026), and the 25C tax credit ended in 2025.

Every Maryland program at a glance

December 31, 2026: the date that decides your rebate

EmPOWER Maryland runs in three-year cycles approved by the Public Service Commission, and the current one covers 2024 through 2026. Its last day, December 31, 2026, is written into two utilities’ offers. Pepco’s Home Performance page says your Participating Contractor must reserve your electrification rebates by that date, by submitting an approved scope of work, and that the approved work must be finished within 90 days of the reservation. Potomac Edison’s discounts apply to qualifying equipment purchased and installed by a participating contractor through the same date. BGE does not publish a reservation deadline, so ask your contractor which date applies before you sign. What happens on January 1 is not known yet: the Commission is still setting the 2027–2029 programs, and it asked the utilities to file plans for smaller ones (see what 2027 may bring). A project that reaches reservation in 2026 does so under terms you can read today.

Add the Pepco deadline to your calendar · Add the Potomac Edison deadline · All verified deadlines

Pepco customers: what EmPOWER pays and how to claim it

Pepco’s Home Performance with ENERGY STAR program starts with a Home Energy Assessment: $100 for homes up to 3,000 square feet with a single combustion appliance zone, more for larger homes, and free for households that qualify for its Moderate Income Offering. A Participating Contractor models your home and prices each upgrade; the rebate follows the modeled savings, up to $10,000 or 75% of the job, rising to $15,000 or 75% when a combustion furnace, boiler or water heater is switched to a qualifying heat pump. Pepco’s rebate table lists heat pump rebates starting at $400 for a Tier 1 air-source system, $650 for Tier 2 and $1,500 for geothermal, and the scope must include attic insulation to R-49 and attic air sealing. Upgrades must be completed within 12 months of the assessment, the same equipment cannot also claim the HVAC Efficiency discount, and financing starting at 0% for 24 months is offered. Program line: 866-353-5798.

Looking to pay a Pepco bill? That is on Pepco’s own site: Pay My Bill.

The instant discount, and why the numbers disagree. Pepco’s HVAC Efficiency program takes a discount off the contractor’s price for qualifying heat pumps, but Pepco does not publish the amounts to customers. Montgomery County’s official Electrify MC page says EmPOWER’s contractor incentives reach up to $2,000–$3,500 for efficient air-source heat pumps, while widely shared guides give $800–$1,700. Ask your contractor to show the discount as its own line on the quote.

BGE customers: no published heat pump amount, $1,600 on a water heater, three income tiers to $15,000

BGE runs the same statewide framework under the BGE Smart Energy Savers name, operated by ICF, and we read fourteen of its pages in full on October 6, 2026. Unlike Pepco, BGE publishes no percentage-of-job ceiling and no heat pump amount at all: its Heating and Cooling page says to “check with a participating HVAC contractor” and that the rebate is reflected in the contract price. What it does publish: 75% of home preparation up to $3,000 when a heat pump replaces gas, oil or propane; up to $1,600 on a heat pump water heater plus 75% of preparation up to $1,500; Home Performance rebates “averaging $3,000” after a $100 audit, up to $15,000 when equipment is bundled with air sealing and insulation; and a moderate-income program (one person $74,801–$93,500, four people $106,801–$133,500) whose tiers pay up to $5,000, $12,500 and $15,000 for about $250, $500 and $750. Smart thermostats earn $100 each, up to three; the check-up and HVAC tune-up are free. The page also still offers a $3,000 MEA geothermal grant that closed in January 2026. Two dates arrived on October 9, 2026, read the next day: the water heater instant coupon — the Lowe’s / The Home Depot path — ends October 31, 2026 (the application and contractor paths carry no date), and the last 2026 Quick Home Energy Check-up is November 30, to be requested by November 6. Every program, the four water heater paths and the status question are on our BGE page. Program line: 1-877-685-7377.

Potomac Edison, Delmarva Power and SMECO

Potomac Edison, which serves much of western Maryland, runs EmPOWER through energysaveMD-home.com and puts a firm end date on its offers: discounts apply to qualifying products purchased through, and installed by a participating contractor by, December 31, 2026. Its Switch to Electric program pays up to $3,000 toward the electrical make-ready work that a conversion from gas, oil or propane usually needs, and its heat pump water heater offer adds a discount of up to $2,500. Its Home Performance program also starts with a $100 audit by a BPI-certified energy expert, and amounts are available while funding lasts. Delmarva Power, on the Eastern Shore, and SMECO, in Southern Maryland, deliver the same statewide Home Performance framework, but we did not re-read their program pages for this update, so we do not quote their equipment amounts here. If either is your utility, start with its Home Performance page and ask whether a 2026 reservation deadline applies to you.

Insulation first: the rule that decides the $15,000

The largest Maryland rebate is not a heat pump rebate on its own. Pepco’s FAQ is explicit: to qualify for electrification rebates, the home must have an operating gas, propane or oil furnace, boiler or water heater, and you must complete weatherization — at least attic insulation and air sealing — before becoming eligible. Both Pepco’s and BGE’s rebate tables require the scope to include attic air sealing and attic insulation to R-49, unless a participating contractor finds it unnecessary. The logic is sizing: a tighter house needs a smaller heat pump, which runs more efficiently and models larger savings, and the rebate follows those modeled savings. Air sealing must be done before the insulation goes in, and many projects also need mechanical ventilation to meet indoor air quality standards. If your attic is already at R-49 and sealed, say so at the assessment. For what insulation pays elsewhere, and the insulate-first rule in the federal programs, read our insulation rebates guide.

Montgomery County: Electrify MC, amount by amount

Montgomery County’s Electrify MC pilot adds a county incentive on top of EmPOWER, taken off the price at the point of sale, but only on work done through the contractor the county chose by competitive bid, Elysian Energy, which also runs the program’s help desk at 301-830-5767. The amount depends on the equipment: $1,000 for a ducted or air-to-water heat pump, $2,000 for a mini-split that covers at least half the heating load or for a geothermal heat pump, and $2,500 for a cold-climate heat pump. For ducted, cold-climate and geothermal systems, the old fossil-fuel heating cannot be kept as backup. A heat pump water heater adds $500, and $1,000 more is available when two fossil-fuel appliances that share a flue in a masonry chimney are electrified together. Smaller amounts cover an electric range ($500), an electric dryer ($250) and oil tank removal ($500). We previously listed Electrify MC as a flat $2,500; that correction is logged.

HEEHR (HEAR) and HOMES in Maryland: applications resubmitted, still not launched

The Maryland Energy Administration rewrote its IRA Home Energy Rebate Programs page on September 30, 2026; our daily source check caught the change on October 2 and we read the new page on October 3. Its “Program Status Update 9/30/26” says the Department of Energy recently issued updated program guidance and application materials, that states which have not yet launched — “like Maryland” — are required to revise and resubmit their applications, and that on September 30, 2026 MEA submitted updated applications for both programs to DOE. The timeline for launch remains dependent on when DOE reviews and approves them. The page now names the programs HOMES and HEEHR, following DOE’s renaming; the earlier wording about conditional approval, the June 9 update and the name HERO are gone. Questions still go to irarebates.mea@maryland.gov, and MEA still offers email alerts from the page. Any guide calling Maryland HEAR live is describing the federal framework, not Maryland.

What 2027 may bring: smaller EmPOWER programs

In April 2026 the General Assembly passed the Utility RELIEF Act, which, as reported by WYPR and Utility Dive, lowers EmPOWER’s annual greenhouse gas reduction target from 2.5% to 1.75% for 2027 through 2029, lets utilities count solar toward up to 20% of it, and removes the EmPOWER charge from gas customers’ bills from 2027. In July, according to WYPR, the Public Service Commission asked each utility to file two versions of its 2027–2029 plan: one with a 30% smaller program and one with a 45% smaller program. The utilities filed their proposals in early September, Maryland Matters reported, and the Commission will choose after public hearings. On October 9, 2026 BGE put the first utility-side confirmation on its own pages: “BGE is awaiting a decision by the Maryland Public Service Commission about extending our energy efficiency programs into 2027” (read October 10). None of this changes what you can claim in 2026, and no utility has announced 2027 rebate amounts. What it does mean is that today’s ceilings are the ones on paper. If a heat pump is already in your plans, reaching reservation under the current cycle removes the uncertainty; if it is not, nothing here is a reason to rush a decision you would not otherwise make.

What to do now, in this order

1. Find your utility on your electric bill — BGE, Pepco, Delmarva Power, Potomac Edison or SMECO. EmPOWER runs through it.
2. Book the $100 assessment with a Participating Contractor: Pepco, BGE or Potomac Edison. October or November leaves room before December 31.
3. Ask two questions at the assessment: which reservation or installation date applies to you, and whether your attic already meets the R-49 and air sealing requirement.
4. Compare the Home Performance route with the instant-discount route on the same project; the same equipment cannot claim both.
5. In Montgomery County, contact Electrify MC before choosing an installer: its incentive applies only to work done through Elysian Energy.
6. Get the reservation confirmation in writing and plan the installation inside Pepco’s 90-day window.
7. Keep every invoice and model number. If HEEHR launches later, you will need to show what was covered and when.

Where the official pages disagree

Three inconsistencies on the utilities’ own sites are worth knowing before you book. First, who can apply at Pepco: its main program page limits the offer to single-family homes that are not condominiums or apartments; its rebates page accepts homeowners or tenants with the landlord’s written permission in single-family homes, town homes, row homes and buildings with one to four units; and its FAQ says you must own the house. Renters and condominium owners should get Pepco’s answer in writing before paying for an assessment. Second, smart thermostats: Pepco’s rebate page allows up to three, while the rebate table it links to allows two. The third, financing at BGE — one page describing the Maryland Clean Energy Advantage Loan at 0% for 24 months with no end date while BGE’s Home Performance page said the program was extended through December 31, 2025 — narrowed on our October 10 re-read: the Home Performance page no longer mentions the loan at all, so only the undated description remains. We report each as published and update when the utilities align their pages.

Before you sign a quote: what we’d verify

• The date. Which reservation or installation deadline applies to your utility, and the date your reservation was actually approved.
• The assessment comes first. Signing an install contract before the assessment can cost you the Home Performance tier — sequence matters.
• Participation. Both the assessment and the instant discounts run through participating contractors; check your contractor is on your utility’s list.
• The discount on its own line. Instant discounts are not published to customers; ask for the amount in writing.
• Backup heat. Keeping a gas furnace as backup changes which rebates apply, and rules out Electrify MC for ducted and cold-climate systems.
• A real Manual J load calculation. An oversized heat pump wastes the rebate and the operating savings.

Sources and method

Every figure on this page was read on September 26, 2026 on the official source, and the Maryland Energy Administration’s IRA Home Energy Rebate Programs page again on October 3, 2026 (Program Status Update 9/30/26) and on October 10; on October 10, 2026 we also re-read, for the one-page sheet, Pepco’s program and rebates pages, BGE’s water heater, check-up, Home Performance, electrification FAQ and income-based pages, Potomac Edison’s Switch to Electric page and Montgomery County’s Electrify MC page; Pepco’s Home Performance with ENERGY STAR pages, FAQ and rebate table, and its HVAC Efficiency page; fourteen BGE Smart Energy Savers pages (rebates hub, heating and cooling, electrification and its FAQ, Home Performance, income-based, water heater, thermostat, Connected Rewards, dehumidifier, recycling, check-up, tune-up, FAQ) on October 6, 2026; Potomac Edison’s Switch to Electric, heating and cooling, and Home Performance pages; Montgomery County’s Electrify MC page; the Public Service Commission’s EmPOWER report (the 2024–2026 cycle); and the IRS instructions for Form 5695. The 2027 outlook comes from news reporting, named in that section, because the Commission has not yet ruled. Where official pages disagree, we say so rather than choose.

Corrections involving Maryland. We log every error we find — ours and the market’s — with the official source: The AI answer above search results for “bge rebates” says Connected Rewards pays $10 a month. BGE pays $50 prepaid cards, up to $100 in the first year; BGE’s Heating and Cooling page still offers a $3,000 Maryland Energy Administration geothermal grant. MEA closed it to new applications on January 6, 2026; A Maryland contractor’s 2026 rebate guide says a federal tax credit may still apply to geothermal heat pumps; A national rebate directory says Maryland has launched HEAR and HOMES — and that 25C still applies; Our Maryland page listed Montgomery County’s Electrify MC as a flat $2,500. The amount depends on the equipment; Our New York and Maryland pages mislabeled three states as “accepting applications”; Maryland’s federal rebates were listed as live. They have not launched. See the full corrections log.

Frequently asked questions

What energy rebates can Maryland homeowners get in 2026?

EmPOWER Maryland is the program that pays now. Through your electric utility’s Home Performance with ENERGY STAR program you can receive up to $10,000 or 75% of job cost for efficiency work, and up to $15,000 or 75% when the project switches a gas, oil or propane furnace, boiler or water heater to a heat pump. Utilities add equipment offers, and Montgomery County adds Electrify MC. The federal HEEHR (HEAR) and HOMES rebates have not launched: MEA resubmitted its applications to DOE on September 30, 2026.

Is there a deadline for EmPOWER Maryland rebates?

Yes, for 2026 terms. EmPOWER’s 2024–2026 program cycle ends December 31, 2026. Pepco requires your contractor to reserve electrification rebates by that date, with the work finished within 90 days of approval, and Potomac Edison’s discounts apply to equipment purchased by that date. BGE publishes no reservation date for heat pumps, but two dated offers: its heat pump water heater instant coupon ends October 31, 2026, and the last 2026 Quick Home Energy Check-up is November 30 (request by November 6). Ask your contractor before you sign.

Do I have to insulate before I get a heat pump rebate in Maryland?

For the $15,000 electrification rebate, yes. Pepco and BGE both require the project to include attic air sealing and attic insulation to R-49, unless a participating contractor finds it unnecessary. Pepco’s FAQ says the weatherization must come before the electrification rebates.

Has the HEAR program launched in Maryland?

No. As of October 3, 2026, the Maryland Energy Administration says DOE issued updated program guidance and application materials, that states which have not launched, like Maryland, must revise and resubmit their applications, and that MEA submitted updated applications for both programs on September 30, 2026. The launch timeline depends on when DOE reviews and approves them; no date has been published.

How much does Electrify MC pay in Montgomery County?

It depends on the equipment: $1,000 for a ducted heat pump, $2,000 for a mini-split or geothermal heat pump, $2,500 for a cold-climate heat pump and $500 for a heat pump water heater. The incentive comes off the price only on work done through the county’s contractor, Elysian Energy.

Can renters use EmPOWER Maryland rebates?

Pepco’s own pages disagree. Its rebates page accepts tenants with the landlord’s written permission, in single-family homes, town homes, row homes and buildings with 1 to 4 units; its program FAQ says you must own the house. Ask Pepco’s program line, 866-353-5798, before you book. BGE’s page says the homeowner must be the BGE customer.

Is there still a federal tax credit for a heat pump or geothermal system in Maryland?

No. The 25C credit ended for property placed in service after December 31, 2025, and the 25D credit, which covered geothermal heat pumps, ended for expenditures after that date. EmPOWER pays toward both air-source and geothermal heat pumps instead.

Which utilities run EmPOWER Maryland?

BGE, Pepco, Delmarva Power, Potomac Edison and SMECO. Your electric bill decides which program you use, and each utility sets its own equipment offers inside the same statewide framework.

More state guides

Rebate rules are set state by state — see the full state-by-state registry, or the other states we cover in depth: New York, Wisconsin, Colorado, Washington, Georgia and Texas. Every dated rebate and tax deadline, Maryland’s included, is on our deadline calendar. For the federal side — what ended and what 2025 installs can still claim — read heat pump tax credit 2026.