Maryland Energy Rebates 2026

Maryland residents in 2026 can access BGE Smart Energy Savers rebates now (up to $1,600 for heat pump water heaters, up to $100 for smart thermostats, averaging $3,000 through Home Performance with ENERGY STAR). HEAR rebates (up to $14,000) and HOMES rebates (up to $8,000) are approved by the DOE and will be administered by the Maryland Energy Administration, but the programs have not yet launched as of June 2026. Subscribe for launch updates at energy.maryland.gov/Pages/IRArebates.aspx. The EmPower Maryland program provides free efficiency upgrades for lower-income households.

No. The One Big Beautiful Bill Act (P.L. 119-21, signed July 4, 2025) terminated Section 25C and 25D federal energy tax credits for installations after December 31, 2025. Maryland residents who completed qualifying installations in 2025 can still claim those credits on their 2025 tax return. For 2026, HEAR and HOMES rebates (pending launch) plus BGE Smart Energy Savers and EmPower Maryland programs are the primary incentives available.

BGE Smart Energy Savers is one of the strongest utility rebate programs in the mid-Atlantic and is active right now. It offers up to $1,600 for heat pump water heaters, up to $100 for smart thermostats, a $100 home energy audit (a $400 value), and averaging $3,000 through its Home Performance with ENERGY STAR program. These rebates can be stacked on top of future HEAR and HOMES federal rebates once Maryland’s program launches. For example, a BGE customer installing a heat pump water heater could receive a BGE rebate of up to $1,600 plus a HEAR rebate of up to $1,750, for combined savings of up to $3,350. Visit bgesmartenergy.com for current rebate amounts.

HEAR rebates are available to households earning up to 150% of the Area Median Income (AMI). In the Baltimore-Columbia-Towson metro, 80% AMI for a 4-person household is approximately $88,000; in the DC suburbs (Montgomery and Prince George’s counties), it rises to about $113,840 — among the highest in the nation. Households below 80% AMI receive the maximum HEAR rebate amounts; those between 80% and 150% AMI receive scaled rebates.

EmPower Maryland is a state energy assistance program funded through utility rates, providing free energy efficiency upgrades for low-income Maryland households. Services include energy audits, LED lighting, weatherization, and sometimes HVAC upgrades. Eligibility is generally based on income (typically at or below 60% of the state median income) or participation in other assistance programs like MEAP or Medicaid. EmPower Maryland is administered by BGE, Pepco, Delmarva Power, and other utilities — contact your utility to apply.

Pepco serves Montgomery County, Prince George’s County, and the DC suburbs in Maryland. Pepco administers its own utility rebate programs for Maryland customers, including participation in the EmPower Maryland low-income efficiency program. For current 2026 rebate amounts on heat pumps, water heaters, and thermostats, visit pepco.com/home/save-energy/ or contact Pepco directly. Once Maryland’s HEAR and HOMES programs launch, Pepco-territory customers will be able to stack those federal rebates on top of Pepco utility incentives.

Yes — BGE Smart Energy Savers rebates are designed to stack with federal HEAR and HOMES rebates. For example: a BGE customer installing a heat pump water heater can receive up to $1,600 from BGE Smart Energy Savers plus up to $1,750 from HEAR (combined up to $3,350). For whole-home upgrades under HOMES, BGE’s Home Performance with ENERGY STAR program (averaging $3,000 in rebates) can stack on top of the HOMES rebate. Note that HEAR and HOMES are not yet open in Maryland as of June 2026 — BGE rebates are available today. Visit bgesmartenergy.com and subscribe to MEA updates at energy.maryland.gov to coordinate your timing for maximum savings.

Montgomery County falls within the Washington DC-Arlington-Alexandria MSA for HUD income limit purposes. For a 4-person household in this metro area, 80% AMI is approximately $113,840 and 150% AMI is approximately $213,450 (based on HUD FY2024 limits). This means many Montgomery County homeowners — even those with relatively high household incomes — may qualify for scaled HEAR rebates. Households below $113,840 (4-person) would qualify for maximum rebate amounts including up to $8,000 for a heat pump HVAC system. Note: Maryland’s HEAR program has not yet launched as of June 2026; subscribe for updates at energy.maryland.gov/Pages/IRArebates.aspx.