Maryland Heat Pump Rebates
Deadlines, checked October 31, 2026
  • BGE and Potomac Edison: a participating contractor must install HVAC equipment by December 31, 2026.
  • Pepco: the instant coupon rebate on heat pump water heaters ended October 31, 2026. The mail-in rebate still works if you buy by November 30 and mail the application within 30 days of purchase, no later than December 7.
  • 2027 isn't settled. BGE and Pepco say they're waiting on a Maryland Public Service Commission decision about extending programs into 2027.

Find your Maryland heat pump rebate

Pick the company on your electric bill and what heats your home today. You'll see what your utility pays, the deadline, and the official page, copied straight from the utility's own site.

MBRACE checked these pages so you don't have to. He's the DMV's curious koala. He goes to the official source, writes down the date, and shows you where every number came from.

Could you get upgrades at no cost?

Maryland's EmPOWER Limited Income program, run by the Department of Housing and Community Development (DHCD), installs energy upgrades at no charge for eligible households. Check the income limit for your household size.

You're also automatically income-eligible if you currently take part in programs such as SNAP, Medicaid, SSI, TANF, HUD housing assistance, utility bill assistance through OHEP, and others on DHCD's full list. The program may provide insulation, hot water system improvements, furnace cleaning, tuning and safety repairs, and health and safety items. Ask DHCD what it can do for heating equipment in your home.

DHCD EmPOWER Limited Income program → · Phone 1-855-583-8976 (Maryland only)

Do I need a new system?

Eight quick questions. We'll show you which answers matter and why. This helps you decide what to ask. It isn't an inspection: only a technician who sees your equipment can diagnose it.

The road, in order

Most lost rebates come from doing things out of order: buying first, then learning the program needed an assessment or a participating contractor.

  1. 1

    Check your current system

    Use the questions above. Planning before something breaks gives you time to use rebates properly.

  2. 2

    Know your utility and its deadline

    Your electric company decides which rebates you can use. BGE and Potomac Edison need the install done by December 31, 2026.

  3. 3

    Get an energy assessment

    An assessment shows where the house leaks heat. Whole-home rebates (Home Performance with ENERGY STAR) start with a home energy audit by a participating contractor. At BGE the audit costs $100, and the current program needs an approved reservation, with the work finished and the final application submitted by December 31, 2026. Source: BGE Home Performance, checked Oct 31, 2026. Other utilities' rules may differ, so ask yours.

  4. 4

    Seal air leaks and add insulation

    A tighter house needs a smaller system. Doing this first can lower the size, cost and running cost of the heat pump.

  5. 5

    Size it right

    Ask for a Manual J load calculation. It tells you what size system the house actually needs.

  6. 6

    Install with a participating contractor

    Maryland's HVAC rebates are paid through participating contractors. A non-participating installer can cost you the rebate. Get two or three quotes.

Five questions to ask every contractor
  1. Are you a participating contractor in my utility's program right now?
  2. Which tier does this model meet (SEER2 and HSPF2), and what rebate does that give me?
  3. Will you do a Manual J load calculation before you quote a size?
  4. Will the job be finished before my utility's deadline?
  5. Who files the rebate paperwork, and is the rebate taken off my price or paid to me later?

Get the Maryland rebate checklist

The six steps, the five contractor questions and your utility's deadline on one page. We'll also email you when Maryland's 2027 rebates are announced.

We never sell or share your email, and we don't pass it to contractors.

Questions Marylanders ask

Can I get both the "efficiency" and the "switching" amount?

No. Utilities list two different offers. You get the one that matches what you're replacing: the switching (electrification) amount if you're moving off gas, oil or propane, and the efficiency amount if you're replacing electric equipment.

What are Tier 1 and Tier 2?

Efficiency levels set by each utility using the equipment's SEER2 (cooling) and HSPF2 (heating) ratings. Higher-rated equipment reaches Tier 2 and earns more. Your contractor can tell you which tier a model meets.

What happens after December 31, 2026?

As of October 31, 2026, BGE and Pepco say they're waiting on a Public Service Commission decision about extending programs into 2027. Amounts and rules could change. We'll update this page when the decision is published.

Is the federal tax credit still available?

No. The federal 25C credit doesn't cover heat pumps placed in service after December 31, 2025. Utility and state programs are what's left.

Why don't you show my total savings?

Because the honest answer depends on your house, your equipment and your energy prices. A guessed number can cost you money. We show the official rebate amounts and deadlines, with the date we checked them.

Sources, checked October 31, 2026

Not rechecked on Oct 31: the federal 25C end date (from IRS guidance, checked Oct 15, 2026). Amounts are subject to change and available while funding lasts, per the utilities. The utility's own page is always the final word.

Corrections and updates

Every change to a fact on this page is listed here with its date, what changed, and why.

DateChange
Oct 31, 2026Page first published. All amounts, deadlines and income limits checked against the official pages listed in Sources.