2025 Maryland Heat Pump Rebate

Give us a call at (888) 532-0197, or send us a message to schedule your home energy audit.

Thanks to the EmPOWER Maryland program, the audit only costs $100 instead of $400, and it’s required to unlock up to $10,000 - $15,000 in rebates for home energy upgrades like insulation, air sealing, duct sealing, and heat pump systems.

to book an appointment with one of our consultants. We’ll help you find the best energy-saving upgrades, and you'll get a complete breakdown of the pricing, rebates and tax credits.

In Maryland, homeowners who switch from fossil-fuel heating systems to electric heat pumps can receive substantial rebates through the Home Performance with ENERGY STAR® (HPwES) program.

Maximum rebate amount

As of May 1, 2025, the HPwES program offers:

Up to $15,000, covering 75% of the project cost, for full or hybrid electrification projects.

This incentive applies to homeowners replacing fossil-fuel heating systems (such as gas, oil, or propane) with electric heat pumps or heat pump water heaters.

Factors influencing rebate amount

The exact rebate amount is determined based on:

• Energy Modeling: Participating contractors like EDGE ENERGY use approved software to estimate the energy savings of your specific project.
• Scope of Work: Projects that include comprehensive upgrades—like air sealing, insulation, and ductwork improvements—may qualify for higher rebates.
• Fuel Type Being Replaced: Switching from oil or propane may yield different savings compared to replacing electric or gas systems.

Average rebate amount

While the maximum rebate is $15,000, most homeowners get between $3,000 and $8,000.

It's important to note that actual rebate amounts can vary significantly based on the specifics of your home and the upgrades performed.

Additional incentives

Beyond the HPwES rebates, homeowners may also be eligible for federal tax credits, such as:

• 30% of project costs, up to $2,000, for heat pump installations.
• 30% of project costs, up to $1,200, for insulation and air sealing improvements.

These tax credits can further reduce the out-of-pocket expenses for energy-efficient home upgrades. How much can you save with rebates and tax credits? Give us a call at (888) 532-0197 to find out.

No, you don’t need to do everything at once.

The first step is to schedule a home energy audit by giving us a call at (888) 532-0197.

From there, you can pick and choose what to upgrade. Whether it's a heat pump, insulation, or duct sealing, each project can qualify for rebates on its own.

The rebate amount depends on modeled energy savings. Bigger upgrades usually mean bigger savings, but you're in control of the pace.

Yes! You can still get up to $10,000 back for energy upgrades that don’t include electrification.

That covers things like insulation, air sealing, ductwork, and more - basically anything that helps your home use less energy.

You’ll still need to start with a home energy audit to qualify: (888) 532-0197

Nope. Maryland’s core rebates through the Home Performance with ENERGY STAR® program are available to all homeowners, regardless of income.

There are additional rebates that do target low- and moderate-income households, but the main incentives don’t have income restrictions.

You can stack them. Maryland rebates lower your upfront cost, and federal tax credits help reduce what you owe at tax time.

Just remember: tax credits are based on what you pay out of pocket, so your federal savings will be calculated after the state rebates are applied.