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Energy Incentives for Your Home

Financial incentives for adopting energy-efficient practices and renewable technologies are available from local, state, and federal sources.

The resources on this page are for single-family properties.  If you own a condo or multi-family property, please visit our multi-family incentives page.

 

Utility Incentives

Choose Your Utility Provider: Pepco -- BG&E -- Potomac Edison

 

Pepco

Pepco, using funding from the EmPower Maryland Act, provides a variety of incentives for energy savings in single-family homes, condo owners and renters. These include incentives for assessments of your home, as well as, cash for improvements that can dramatically reduce your home’s energy consumption.

While a short list of popular incentives are provided below for your convenience, please visit the Pepco website for the most current information.

 

My Account – Energy Tool

Get accurate information on your energy consumption from your utility account, including consumption trends and helpful tips that can help you identify energy savings opportunities in your home. You may even find out when your teenager was leaving the lights on all night!

Quick Home Energy Check-up (QHEC)

A walk through of your home by a qualified professional who will identify easy energy savings opportunities and install a variety of energy saving products such as compact fluorescent lamps (CFLs) and low-flow showerheads. This is provided to all Pepco residential ratepayers at no out of pocket cost.

Pepco Logo

Appliance Rebate Program

Provides Incentives ranging from $25 to $150 for common energy efficient home appliances such as refrigerators, washing machines, and dishwashers. Up to $350 is available for specialized appliances such as heat pump water heaters. You may be eligible for an additional “bounty” if you recycle your old appliance through Pepco.

Heating and Cooling Incentive Program

Provides incentives up to $500 for the installation of high-efficiency cooling and heat pumps. If you are not planning to replace your system soon, you can still benefit from up to $250 for comprehensive duct sealing or $100 for an air-conditioner or heat pump tune-up.

New Homes Program

Building a new home? Did you know ENERGY STAR qualified homes can save up to 20% compared to older homes. Incentives are available through your builder for selecting ENERGY STAR qualified homes. Visit for a list of qualifying builders.

Energy Star LogoHome Performance with ENERGY STAR

Provides a comprehensive home energy audit that can identify many more opportunities than the QHEC for $100 (ordinarily $400) through a highly qualified home performance professional of your choice. Participants who implement audit recommendations may receive up to $2,000 in incentives towards air-sealing, insulation and other common audit recommendations.


Pepco Energy Wise Rewards Program

The Energy Wise Rewards program enables residents (and businesses) to save money by allowing Pepco to automatically lower their energy consumption during peak periods. This program has the added benefit of reducing emissions and the need for new power plants.

By signing up for the program, the consumer receives a one-time bill credit and an annual reward for agreeing to let Pepco cycle their cooling equipment several times a year using an advanced smart thermostat or a switch on the cooling unit or heatpump.

When cycled, the equipment will run less than normal, thereby reducing demand on the utility grid. The amount saved is based on the participant's selected level of cycling (e.g., 75%). It is very important to carefully select cycling options as your home’s temperature will rise somewhat. If you have health problems or are heat sensitive you may want to start out with lower cycling options such as 50% which will lead to a lower temperature increase than full cycling of 100%.

If you are a multi-family property owner or manager you may be able to get special resources to help enroll your tenants or residents.  Contact Pepco for more information. 

 

BG&E Incentives

BG&E using funding from the EmPower Maryland Act, provides a variety of incentives for energy savings in single family homes and multi-family properties. These include incentives for assessments of your home, as well as, cash for improvements that can dramatically reduce your home's energy consumption.

While a short list of popular incentives are provided below for your convenience, please visit the BG&E website for the most current information.

 

BG&E LogoQuick Home Energy Check-up (QHEC)

A walk through of your home by a qualified professional who will identify easy energy savings opportunities and install a variety of energy saving products such as compact fluorescent lamps (CFLs) and low-flow showerheads. This is provided to all BG&E residential ratepayers at no out of pocket cost.

Appliance Rebate Program

Provides Incentives ranging from $25 to $150 for common energy efficient home appliances such as refrigerators, washing machines, and dishwashers. Up to $350 for specialized appliances such as heat pump water heaters. You may be eligible for an additional "bounty" if you recycle your old appliance through BG&E.

Heating and Cooling Incentive Program

Provides incentives up to $500 for the installation of high-efficiency cooling and heat pumps. If you are not planning to replace your system soon, you can still benefit from up to $250 for comprehensive duct sealing or $100 for a air-conditioner or heat pump tune-up.

Energy Star Logo

Home Performance with ENERGY STAR

Provides a comprehensive home energy audit that can identify many more opportunities than the QHEC for $100 (ordinarily $400) through a highly qualified home performance professional of your choice. Participants who implement audit recommendations may receive up to $2,000 in incentives towards air-sealing, insulation and other common audit recommendations.

 

New Homes Program

Building a new home? Did you know ENERGY STAR qualified homes can save up to 20% compared to older homes. Incentives are available through your builder for selecting ENERGY STAR qualified homes. Visit the BG&E website for a list of qualifying builders.


BG&E Peak Rewards Program

The Peak Rewards program enables residents (and businesses) to save money by allowing BG&E to automatically lower their energy consumption during peak periods. This program has the added benefit of reducing emissions and the need for new power plants.

By signing up for the program the consumer receives a one time bill credit and an annual reward for agreeing to let BG&E cycle their cooling equipment several times a year using an advanced smart thermostat or a switch on the cooling unit or heat pump.

When cycled, the equipment will run less than normal, thereby reducing demand on the utility grid. The amount saved is based on the participant's selected level of cycling (e.g., 75%). It is very important to carefully select cycling options as your home's temperature will rise somewhat. If you have health problems or are heat sensitive you may want to start out with lower cycling options such as 50% which will lead to a lower temperature increase than full cycling of 100%.

 

Potomac Edison

Potomac Edison, using funding from the EmPower Maryland Act, provides a variety of incentives for energy savings in single family homes and multi-family properties. These include incentives for assessments of your home, as well as, cash for improvements that can dramatically reduce your home’s energy consumption.

While a short list of popular incentives are provided below for your convenience, please visit the Potomac Edison website for the most current information.

 

Home Energy Analyzer

Potomac Edison LogoGet accurate information on your energy consumption from your utility account, including consumption trends and helpful tips that can help you identify energy savings opportunities in your home.

Appliance Rebate Program

Provides incentives ranging from $25 to $150 for common energy efficient home appliances such as refrigerators, washing machines, and dishwashers. Up to $30 for energy efficient residential lighting fixtures and up to $350 for specialized appliances such as heat pump water heaters. You may be eligible for an additional "bounty" if you recycle your old appliances.

Quick Home Energy Check-up (QHEC)

A walk through of your home by a qualified professional who will identify easy energy savings opportunities and install a variety of energy saving products such as compact fluorescent lamps (CFLs) and low-flow showerheads. This is provided to all Potomac Edison residential ratepayers at no out of pocket cost.

Energy Star Logo

Provides a comprehensive home energy audit that can identify many more opportunities than the QHEC for $100 (ordinarily $400) through a highly qualified home performance professional of your choice. Participants who implement audit recommendations may receive up to $2,000 in incentives towards air-sealing, insulation and other common audit recommendations.

 

Heating and Cooling Incentive Program

Provides incentives up to $500 for the installation of high-efficiency cooling and heat pumps. If you are not planning to replace your system soon, you can still benefit from up to $250 for comprehensive duct sealing or $100 for an air-conditioner or heat pump tune-up.

 

County & State Incentives

 

Maryland Home Energy Loan Program

The Maryland Clean Energy Center and Maryland Energy Administration have partnered to provide unsecured loans of up to $20,000 at as low as 6.99% interest rate to qualifying Maryland property owners interested in improving the energy efficiency of their homes. Remember the loan program works best when used with Home Performance Program offered by your utilities. For more information, visit the Maryland Home Energy Loan Program

 

Maryland Clean Energy Grant Program

Operated by the Maryland Energy Administration, the Residential Clean Energy Grant Program provides grants for a variety of clean energy installations for homeowners. Including:

  • $1,000 per solar photovoltaic installation
  • $500 per solar water heating installation
  • $3,000 per geothermal heating and cooling installation 

Note that funds often run out quickly, so make sure you reach out to the Maryland Energy Administration for updated information. 

 

Renewable Energy Certificates

Renewable energy certificates document the “clean energy” attributes of a solar electric, solar thermal or geothermal system. These certificates can be sold using a process developed by the Maryland Public Service Commission to meet state regulatory requirements levied on energy suppliers. The good news is this can result in cash for you if you own and operate your system (if you lease, your provider has most likely sold these on your behalf). The process is a little hard to navigate, so it is definitely something to talk to your utility provider about. 

Learn more about RECs.

Seal of Montgomery County

 

Montgomery County Energy Efficiency Tax Credit

Montgomery County homeowners are eligible for up to $250 in tax credits for energy efficiency improvements such as air-sealing and insulation, heating and cooling equipment, windows and doors.  The credit can be taken once per year for purchases made during that year.  The amount available annually is $100,000 and applications are processed in the order they are received.  Go to the Department of Finance application for renewable energy credits. Section 2 of the application applies to the Energy Conservation Devices

 

Federal Incentives

 

Energy Efficiency Tax Credits

If you have made energy efficient upgrades to your home, you could be eligible for some tax relief. The American Taxpayer Relief Act of 2012 retroactively renewed the federal Energy Efficiency Tax Credits for homeowners who made qualifying improvements in 2012 or 2013.

The credit can mean up to $500 of cash in your pocket. This means up to:

  • $500 for insulation and air sealing materials.

  • $200 for windows, doors and skylights,

  • $500 for cool roofing products,

  • $150 for high efficiency heating equipment

  • $300 for high efficiency air conditioners

  • And more…………

 

How Can I Take Advantage of the Tax Credit?

Look over any improvements you made recently, even if you received incentives from the County or State, to determine if you are eligible for money.

  • If you made energy efficient improvements in 2011 or 2012, but did not use the credit, you may be able to get some cash back.

  • If you did not make improvements in the past but are considering them in the future, 2013 would be a great year to get started.  The credit is expected to expire again at the end of this year. 

There are rules to the Taxpayer Relief Act’s tax credit for consumer energy efficiency, such as most improvements must meet certain efficiency standards. Further, the tax credit is limited to $500 total, so you are not eligible for tax relief in 2013 if you received $500 in credit in 2012, and so on. When in doubt, consult your tax professional.

 

Federal Clean Energy Tax Credit

Residents who installed solar energy systems, geothermal heatpumps, or small wind turbines before December 2016 may be eligible for a 30% tax credit.  Federal Clean Energy Tax Credit is one of the single largest incentives for the installation of these environmentally beneficial technologies.