Heat pump rebates in Maryland (2026)

Because several rebate trackers still list Maryland state incentives that you cannot currently apply for, and one of them is advertised on a utility’s own website. If you are budgeting an installation, knowing what is not there is worth more than a longer list.

The Maryland Energy Administration’s position, in its own words: “The U.S. Department of Energy (DOE) has conditionally approved Maryland’s applications for both Home Energy Rebate Programs under the Inflation Reduction Act (IRA). Additional approvals from DOE are still required before funding is received and the programs can officially launch.”

There is no application portal and no published dollar amounts. A note dated 9 June 2026 adds that DOE issued new programme guidance on 1 June 2026 which MEA is “currently reviewing ... and evaluating its implications for Maryland’s programs.”

So: real, funded in principle, and not something you can claim today.

MEA’s Geothermal Rebate Program paid “$3,000 for a new GHC system” on a first-come, first-served basis. It is over:

“Total funding requests have exceeded the full FY26 program budget of $150,000 ... The application JotForm Portal is now closed to new applications.” The submission deadline of 27 February 2026 has passed, and MEA states “FY26 will be the final year for the program”.

Watch out for this one: BGE’s own website was still advertising “grants up to $3,000 for installing new geothermal systems” when we checked. That is stale. The state closed the portal in January 2026.

These run under EmPOWER Maryland and are open now.

BGE and Pepco — Home Performance with ENERGY STAR (requires an energy audit, discounted to $100 from the usual $400):

• Air source heat pump Tier 1 — from $400, based on estimated energy savings
• Air source heat pump Tier 2 — from $650
• Geothermal (ground source, closed loop) — from $1,500
• Ductless mini-split from $250 · multi-zone ductless from $400

The cap is the interesting bit, and it rewards getting off fossil fuel: “up to $10,000 or 75% of total project cost; up to a maximum of $15,000 or 75% of job cost if your project includes switching a combustion-fuel furnace, boiler, or water heater to a qualifying electric heat pump.”

Income-qualified offerings are substantially more generous. Both BGE and Pepco run a moderate-income track where a household pays a fixed contribution and receives work valued far higher — Pepco’s Tier 4 is described as: “Pay $750 and get attic air sealing and insulation, mechanical ventilation, and upgrading either to a heat pump water heater or air-sourced heat pump ($15,000 value).” BGE’s equivalent tier reaches a total of up to $15,000.

Both use the same published income band — roughly $72,951–$85,620 for a single-person household, rising to $137,551–$210,880 for eight, adding $13,450 per additional person. Note there is a minimum as well as a maximum: below it, you are directed to the Limited Income Energy Efficiency Program instead.

Pepco was also running a limited-time bonus on electrification air source heat pump installs completed between 15 May and 15 August 2026. The bonus amount is not published — ask your contractor.

BGE’s instant point-of-sale HVAC rebate amounts and Pepco’s midstream per-unit amounts are not published — both direct you to an HVAC contractor to find out. We have not quoted numbers we could not read on an official page. We also have not yet checked Delmarva Power, SMECO, Potomac Edison or Washington Gas; that work is queued.

• Maryland Energy Administration — IRA Home Energy Rebate Programs (launch status, 9 June 2026 update)
• Maryland Energy Administration — Geothermal Rebate Program (closure notice, $3,000 award, final year)
• BGE — Home Performance with ENERGY STAR rebates
• BGE — income-based savings for home energy improvements
• Pepco Maryland — Home Performance with ENERGY STAR and moderate income offering

Programmes change without notice. If a figure here is out of date, tell us — we fix it and change the date at the top.