Maryland Heat Pump Rebates & Incentives: Your Guide
Explore Maryland's heat pump rebates, state loan programs, and local property tax credits. Find utility incentives from SMECO, BGE, Pepco, and more to save on energy-efficient upgrades.
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Quick Answer: Maryland Heat Pump Incentives at a Glance
Maryland residents and businesses can access four layers of incentives for heat pump installations:
Utility rebates provide the most immediate cash back. SMECO's Residential Energy Efficiency Rebate Program (smeco.coop) offers rebates for heat pump water heaters. BGE, Pepco, Delmarva Power, and Potomac Edison also have energy efficiency programs with rebates for ENERGY STAR-qualified equipment. Rebate amounts and eligible heat pump types vary by program and change often. Check each utility's current program page before budgeting.
State loan programs help cover the difference between rebates and the total project cost. The Maryland Clean Energy Center runs the Clean Energy Advantage Loan Program ($3,000-$50,000 at 0% interest) for residential customers of BGE, SMECO, Potomac Edison, Delmarva Power, Pepco (excluding Montgomery County), or Washington Gas. The Maryland Department of Housing and Community Development offers the Be SMART Home Energy Loan for homeowners (up to $30,000 at 6.99%). The Maryland Energy Administration (MEA) provides the Jane E. Lawton Conservation Loan for governments, nonprofits, and businesses.
Local property tax credits are available
Sources & Verification (7)
- IRC §25C — Energy Efficient Home Improvement Credit (30% up to $2,000 for heat pumps).
- IRC §45L — New Energy Efficient Home Credit for builders ($5,000 per ENERGY STAR home).
- DOE Home Energy Rebate Programs — HEEHRA & HOMES (Sections 50121 & 50122 of IRA).
- ENERGY STAR Most Efficient certification — DOE/EPA performance tier referenced in IRC §25C eligibility.
- Income Tax - Energy Efficient Home Improvement Credit
- Renewable Energy Portfolio Standard - Wastewater Heating or Cooling System
- Climate Solutions Act of 2020 – Greenhouse Gas Emissions Reduction Act
Last verified: June 7, 2026
Editorial process: See methodology →
How we verify: 9 source adapters (FAA, DSIRE, IRS, OpenStates, etc.) → AI draft → AI editor → AI polish → spot human review.
Related guides
Gear & Tools for Maryland Projects
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- ecobee Smart Thermostat PremiumHeat-pump compatible, qualifies for most state electrification rebates. Inspectors recognize the brand.
- Google Nest Learning ThermostatWorks with cold-climate heat pumps and most utility demand-response rebate programs.
- Infrared Thermometer (Klein IR1)Verify heat-pump output temperature before and after install. Cheap validation tool inspectors appreciate.
- Mini-Split Installation Line Set KitIf you're doing a DIY-assist install (legal in some states), the line set is the bottleneck. Pre-flared copper pair.
- The Homeowner's Guide to Heat PumpsSelection, sizing, and rebate-stacking guide. Covers the IRA 25C credit, state rebates, and utility on-bill programs.