Commercial Energy Incentives
Owners of Montgomery County commercial properties can take advantage of financial incentives to adopt energy-efficient practices and renewable technologies. Incentives are available from utilities, as well as local, state, and federal sources.
Additional incentives may be available. For the most current information about Maryland incentives and programs, please see the Database of State Incentives for Renewables & Efficiency (DSIRE) website.
Utility Incentives
Maryland’s major utility energy using funding from the EmPOWER Maryland Act, provides a variety of incentives for energy savings in commercial buildings properties. These programs are highly diverse and offer solutions for a variety of building owners and operators.
Commercial incentives from electricity providers may include rebates or discounts for:
- Lighting
- Chillers and packaged HVAC units
- Demand management programs
- Combined heat and power systems
- Commercial kitchen equipment, such as freezers, ice makers, and dishwashers
- Energy-efficient appliances, such as dehumidifiers and clothes washers
- Energy audits and commissioning
Additional commercial incentives are available from your natural gas provider including:
- Eligible water heaters
- Combined heat and power systems\
- High-efficiency natural gas boilers and burners
- Boilers and other space heating systems
- Food service appliances and systems
- Generators
- Energy management systems
Montgomery County Incentives
Energy-Efficient Buildings Property Tax Credits
The County’s Energy-Efficient Buildings program is a two-tiered incentive of property tax credits for new and existing energy-efficient commercial and multi-family buildings. Existing building owners can earn up to a 100% property tax credit against County taxes for two years for eligible energy efficiency improvements. Newly constructed building owners can earn up to a 100% property tax credit against County taxes for four years for constructing a new building exceeding current building code requirements.
Learn more about property tax credit
Commercial Property Assessed Clean Energy (C-PACE) Financing
Montgomery County offers a program for commercial property owners to access C-PACE financing. C-PACE is an innovative way to finance energy efficiency and renewable energy upgrades, repaid as a surcharge on the property tax bill.
Learn more about the County’s C-PACE financing program
State Incentives
Maryland Energy Administration's Loan and Grant Programs
- Maryland Energy Administration(MEA) offers energy incentive programs for commercial property owners that identify energy saving practices and affordable ways can install renewable energy systems. MEA offers energy efficiency loans, as well as grants for energy efficiency and grants for clean energy projects. Note that some funds often run out quickly, so make sure you reach out to the MEA for updated information.
- Parking Lot Solar PV Canopy with Electric Vehicle Charger Program - To drive down the initial costs associated with installing solar PV canopy systems, MEA awards grants to qualified applicants on a competitive basis. Selected grantees meeting grant program requirements and restrictions will receive an award in of up to $300/kW of installed solar PV capacity, with a cap of $150,000 per project. Learn more about this program on MEA’s website.
Maryland Clean Energy Center Programs
Maryland Clean Energy Center provides attractive financing options for non-profit and for-profit businesses looking to make energy efficiency and renewable energy upgrades. Learn more on MCEC’s website.
Federal Incentives
Commercial Energy Efficiency Tax Deduction
Commercial Energy Efficiency Tax Deduction (179-D) is a tax deduction of up to $1.80 per square foot available to owners or designers of new or existing commercial buildings that save at least 50% of the heating and cooling energy of a building that meets ASHRAE Standard 90.1-2007. Partial deductions can be taken for measures affecting any one of three building systems: the building envelope, lighting, or heating and cooling systems.
Federal Clean Energy Tax Credits
Federal Clean Energy Tax Credits are available to businesses and for-profit organizations who installed solar energy systems, geothermal heat pumps, or small wind turbines. This tax credit is one of the single largest incentives for the installation of these environmentally beneficial technologies. Visit the ENERGY STAR website to learn more about these tax deductions.
ENERGY STAR Rebate Finder
ENERGY STAR Special Offer and Rebate Finder can help locate money-saving opportunities. Considering purchasing an ENERGY STAR qualified product or making improvements to your business in the near future? Looking for businesses and manufacturers with special rebates? Use the ENERGY STAR Special Offer and Rebate Finder.
Federal Tax Credits for All-Electric and Plug-in Hybrid Vehicles
Federal Tax Credits for All-Electric and Plug-in Hybrid Vehicles is available for commercial businesses, if the qualifying vehicle is purchased for business use. The credit for the business use of an electric vehicle is reported on Form 3800, General Business Credit. Learn more about this credit here.
Fannie Mae Multifamily Green Financing Initiative
Fannie Mae Multifamily Green Financing Initiative provides mortgage financing to apartment buildings and cooperatives to finance energy and water efficiency property improvements. This program also integrates sustainability considerations into underwriting, asset management, and securitization processes. Learn more about Fannie Mae’s financing options.
Additional Tax Incentives are available for energy efficiency upgrades in commercial properties. Learn more about these incentives on DOE’s website.