Heat Pump Rebates in Maryland: What Frederick Area Homeowners Can Access in 2026

Why heat pumps get the highest rebates

Maryland's EmPOWER program is structured to drive the energy outcomes the state has committed to — including electrification of heating loads currently served by gas or oil. Heat pumps replace both the air conditioning function and the heating function in one system, which is why they sit at the top of the rebate structure.

A conventional central AC replacement keeps the heating system unchanged and reduces summer electricity demand. A heat pump replacement eliminates the fossil fuel heating load entirely. That difference in energy impact is why the rebate amounts differ.

This matters practically because if you are replacing an air conditioner and your home is also served by gas heat, the heating system does not change and you receive the standard AC rebate. If you are replacing your entire system — both the cooling and heating function — with a heat pump, you are in a different and typically higher rebate category.

• Heat pump rebates reflect the full heating+cooling replacement value to the state's electrification goals.
• Standard AC replacement: rebate for the cooling upgrade only.
• Full heat pump installation: typically higher tier, as it replaces both heating and cooling.
• Cold-climate models may qualify for an additional tier above standard heat pump.
• Ductless mini-split heat pumps may qualify under the same or a separate program tier.

BGE EmPOWER heat pump rebates

BGE (Baltimore Gas and Electric) serves portions of Frederick County. Their SmartHome Energy Efficiency Program is the BGE-administered EmPOWER Maryland program. It offers rebates for qualifying heat pump installations, with income-qualified households eligible for enhanced amounts.

Rebate amounts are structured around equipment efficiency ratings — SEER2 for cooling efficiency, HSPF2 for heating efficiency. Higher-efficiency models qualify for higher rebate tiers. Cold-climate heat pumps rated to lower outdoor temperatures (typically with a heating rating at or below 5°F) may qualify for a separate enhanced tier.

For current BGE rebate amounts: go to bgesmarthome.com or call BGE directly. Rebate amounts change annually and cannot be guaranteed in content published mid-year. Ask your installer for the current amount for the specific model before signing.

• BGE SmartHome program: EmPOWER Maryland administration for BGE territory.
• Qualifying tiers based on SEER2 and HSPF2 ratings — higher efficiency may mean higher rebate.
• Cold-climate heat pump tier: additional incentive for models rated at very low outdoor temperatures.
• Income-qualified programs: enhanced amounts for households meeting income thresholds.
• Current amounts: bgesmarthome.com or call BGE directly.

Potomac Edison EmPOWER heat pump rebates

Potomac Edison (FirstEnergy) serves the western portion of Frederick County, including much of the city of Frederick. Their EmPOWER Maryland program runs parallel to BGE's program with similar structure but potentially different amounts, efficiency thresholds, and income tiers.

As with BGE, qualifying heat pumps must meet minimum SEER2 and HSPF2 efficiency thresholds. Cold-climate heat pumps may qualify for an enhanced tier. Income-qualified households may access higher rebate amounts.

For current Potomac Edison rebate amounts: go to firstenergyhome.com/md or call Potomac Edison directly. Confirm which utility serves your address before applying — an easy check is your utility bill.

• Potomac Edison serves western Frederick County and much of the city of Frederick.
• Program structure mirrors BGE but with potentially different amounts and thresholds.
• Check your utility bill to confirm whether BGE or Potomac Edison serves your address.
• Current amounts: firstenergyhome.com/md or call Potomac Edison directly.

HEEHRA: the federal program that has not launched in Maryland

The High-Efficiency Electric Home Rebate Act (HEEHRA) — part of the Inflation Reduction Act of 2022 — funded a separate point-of-sale rebate program for heat pumps and other electrification equipment. Unlike a tax credit, HEEHRA was designed to reduce the upfront purchase price rather than appear as a credit on a tax return, with higher amounts for lower-income households.

As of June 2026, HEEHRA had not launched in Maryland. The program requires state administration, and the Maryland Energy Administration (MEA) had not completed the enrollment process as of this writing. The program may launch at any point, or it may be affected by federal budget actions.

Check mea.maryland.gov for current HEEHRA launch status in Maryland. Do not rely on HEEHRA as a funding source in your heat pump installation budget until it has officially launched and you have confirmed eligibility.

• HEEHRA: IRA-funded heat pump rebate program, designed as a point-of-sale discount.
• Status in Maryland: not launched as of June 2026.
• If it launches, lower-income households would qualify for higher amounts.
• Current authoritative source: mea.maryland.gov.
• Do not rely on HEEHRA in your installation budget until it is confirmed launched.

What to do before scheduling your installation

The sequence that protects your rebate: (1) confirm which utility serves your address; (2) ask your installer if they are a participating contractor in that utility's program; (3) get the rebate amount for the specific model in writing before signing; (4) ask how the rebate will be applied — as a contractor discount or a separate utility application.

A contractor who cannot tell you the current rebate for your utility or who quotes amounts from a prior year is a sign to verify independently with your utility. Rebate amounts change at the start of each calendar year and occasionally mid-year.

• Step 1: confirm your utility — check your bill for BGE or Potomac Edison.
• Step 2: ask your installer if they are a participating EmPOWER Maryland contractor.
• Step 3: get the current rebate amount for the specific model confirmed before signing.
• Step 4: confirm how the rebate is applied — discount on invoice or separate application.
• Income documentation: if you may qualify for enhanced amounts, ask what documentation is needed.