Multi-Family Energy Incentives and Resources
Energy costs can significantly impact a multi-family property’s operating budget. Energy-efficient improvements can reduce energy costs which can help trim overhead, keep rents competitive, improve property value, and attract and retain tenants. To make financial incentives for adopting energy-efficient practices and renewable technologies are available from utilities, as well as local, state, and federal sources.
The resources on this page are for condominium and multi-family property owners. If you live in a single-family home or unit in a multi-family residential building,
please visit our residential energy incentives and projects page.
Energy Assessments
As a first step towards saving energy, commercial property owners can get an energy assessment. Energy assessments performed by in-house staff of a licensed professional can help provide a better understanding of how energy is used in the building and recommended energy efficiency upgrades.Depending on the type of assessment and test performed, you can take advantage of free/discounted assessments offered by your utility company; you can hire a professional contractor to do a full energy assessment for a couple hundred dollars or more; or you can perform the assessment yourself:
Utility-provided Assessments
- Pepco offers Quick Energy Check-ups for multi-family and multi-dwelling properties at no cost. Incentives are also offered more in-depth energy assessments. Visit Pepco’s Check-ups and Audits webpage to find a qualified contractor and apply for an assessment.
- BGE offers Building Tune-ups for multi-family properties. Contact BGE to learn more about this program.
Hire a Certified Contractor
- Several programs train and certify contractors to conduct commercial energy assessments. Having a certified contractor conduct your assessment ensures that it complies with the program's standards. Note, many energy auditors are not contractors, so they have no financial stake in making energy improvement recommendations.
Do-It-Yourself with Online Tools and Resources
- DOE’s Building Energy Asset Score is national standardized tool for assessing the physical and structural energy efficiency of commercial and multifamily residential buildings. The Asset Score generates a simple energy efficiency rating that enables comparison among buildings, and identifies opportunities to invest in energy efficiency upgrades. It is available for voluntary use and is 100% free to use. Learn more about the tool on DOE’s website.
- EPA’s ENERGY STAR Program has tools and resources to help you benchmark the energy use of your multi-family property, earn the ENERGY STAR certification, and target energy-efficiency upgrades in your properties with checklists and case studies. Learn more about benchmarking and resources on EPA’s website.
- BGE’s Business Energy Advisor is an online portal of energy information specific to Multi-family properties. Learn more on BGE’s website.
- Potomac Edison’s Business Energy Analyzer is a tool to save energy and money that produces a report analyzing major sources of energy use and identifying strategies and projects to save energy. Potomac Edison customers can learn more about this tool here.
Financial Incentives
Owners of Montgomery County multi-family 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
The utilities that service Montgomery County offer a wide variety of incentives for energy efficiency upgrades using funding from the
EmPower Maryland Act. For incentive programs eligibility, utilities tend to consider owners of multi-family properties as commercial property owners.
Incentives from electricity providers may include rebates or discounts for:
- Energy-efficient appliances, such as refrigerators, air conditioners, and clothes washers
- Lighting
- Heating and air-conditioning systems and units
- Demand management programs
- Combined heat and power systems
- Programmable thermostats
- Energy audits and commissioning
Additional incentives are available from your natural gas provider including:
- Eligible water heaters
- High-efficiency natural gas boilers and burners
- Programmable thermostats
- Furnaces
- Food service appliances and systems
Click on your utility below to access their incentives websites:
Government Programs and Incentives
To encourage energy savings, local, state, and federal governments offer rebates, tax credits, and financing programs. The incentives listed below are geared towards multi-family properties, however multi-family properties owners can also take advantage of incentives for commercial buildings.
Federal Incentives
- Federal Tax Credits are available for commercial and multi-family building owners that save at least 50% of the heating and cooling energy as compared to ASHRAE Standards. Partial tax deductions are also available for certain energy efficiency measures. Visit the ENERGY STAR website to learn more about these tax deductions.
- Additional Tax Incentives are available for energy efficiency upgrades in commercial and qualifying multi-family properties. Learn more about these incentives on DOE’s website.
- 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 on their website.
State Incentives
- Maryland Energy Administration offers programs for commercial and multi-family 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.
- Maryland Department of Housing and Community Development has a number of multi-family energy efficiency improvement programs for low and moderate income housing developments. Loans and grants are available to implement cost-effective energy conservation measures that will collectively reduce energy use by at least 15%. For more information about these programs visit Maryland’s DHCD website.
Montgomery County Incentives
- Property Tax Credit for Energy and Environmental Design: Montgomery County organizations that pay property taxes and achieve high levels of green achievement verified by either the U.S. Green Building Council (or an equivalent standard approved by the County’s Department of Permitting Services) are eligible for a property tax credit between 10% and 75% for 3 or 5 years depending on the LEED rating system (or equivalent) and level of achievement. Learn more about the property tax credit on the Department of Finance’s website.
The incentives also vary between buildings “covered” by the County’s 2006 Green Building Law, which required all newly constructed or extensively modified non-residential or multifamily residential buildings that are at least 10,000 gross floor area to achieve a minimum of LEED certified or equivalent. Covered buildings are subject to the law whereas uncovered buildings are not.
| Rating System | Achievement Level | Percentage Credit | Credit Year |
|---|---|---|---|
| LEED NC or CS | Gold | 25% | 5 |
| LEED NC or CS | Platnium | 75% | 5 |
| LEED - EBOM | Gold | 10% | 3 |
| LEED - EBOM | Platnium | 50% | 3 |
Buildings not covered under the 2006 Green Building Mandate, which would typically be older existing buildings or buildings constructed after 2008 that are under 10,000 square feet, are eligible for the following incentives:
| Rating System | Achievement Level | Percentage Credit | Credit Year |
|---|---|---|---|
| LEED NC or CS | Silver | 25% | 5 |
| LEED NC or CS | Gold | 50% | 5 |
| LEED NC or CS | Platnium | 75% | 5 |
| LEED - EBOM | Silver | 10% | 3 |
| LEED - EBOM | Gold | 25% | 3 |
| LEED - EBOM | Platnium | 50% | 3 |
The tax credit must be applied for within 1 year of the building being certified as a high energy performance building.
Download the application for the tax credit from the Division of Treasury website. (PDF, 85KB)
