Maryland Home Energy Rebates and Tax Credits Available in 2026

EmPOWER Maryland is a statewide energy efficiency initiative that funds rebate programs administered through your utility company (BGE, Pepco, Potomac Edison, or SMECO). These programs provide rebates for HVAC equipment, insulation, air sealing, smart thermostats, and home energy assessments. The EmPOWER programs are among the most generous utility rebate programs in the country. Combined with federal tax credits, Maryland homeowners can recover a significant portion of the cost of major energy improvements. The programs are funded by a small surcharge on utility bills, so you're already paying for them—take advantage of the rebates. Income-qualified Maryland households are eligible for enhanced EmPOWER benefits, including higher rebate amounts and potentially free services for some improvements. If your household income is below 250% of the federal poverty level, you may qualify for these enhanced benefits.

BGE (Baltimore Gas & Electric) serves Montgomery County, Howard County, and other central Maryland areas in the DMV. Their EmPOWER residential programs include the Quick Home Energy Check-up (a free assessment that includes installation of energy-saving measures during the visit), and more comprehensive home performance rebates for larger improvements. HVAC rebates through BGE cover qualifying heat pumps, central AC, furnaces, and smart thermostats. The program often offers bonus rebates during seasonal promotions, so timing your purchase can yield additional savings. Water heater rebates are also available for heat pump water heaters, which provide significant energy savings in Maryland's climate. BGE's insulation and air sealing rebates cover attic, wall, and basement/crawl space improvements. These rebates can be paired with the federal 25C tax credit for combined savings that make comprehensive insulation upgrades highly affordable.

Pepco serves Prince George's County and portions of Montgomery County with EmPOWER programs that mirror but don't always match BGE's offerings. Pepco's Home Performance with ENERGY STAR program provides rebates for comprehensive home energy improvements performed by participating contractors. Pepco's HVAC rebates cover heat pumps, central AC, and ductless mini-splits meeting ENERGY STAR specifications. Like BGE, Pepco often runs seasonal bonus promotions that increase rebate amounts during spring and fall when HVAC installations are most common. For income-qualified customers, Pepco offers the Home Energy Savings Program which provides free energy improvements including insulation, air sealing, and in some cases HVAC repairs. This program serves households at or below 250% of the federal poverty level.

The Maryland Energy Administration (MEA) oversees state-level energy programs that complement utility rebates. MEA's programs include grants for renewable energy, loans for energy improvements, and the administration of federal IRA-funded rebate programs specific to Maryland. Montgomery County offers its own sustainability programs, including the Home Energy Loan Program (HELP) which provides low-interest financing for energy improvements. This financing can bridge the gap between project costs and rebate/tax credit reimbursements, making improvements affordable without large upfront expenditures. Maryland's property tax credits for energy improvements vary by county. Some jurisdictions offer reduced property tax assessments for homes with qualifying energy improvements, providing ongoing savings in addition to one-time rebates and tax credits.