Heat Pump Upgrades in Maryland: What to Check Before You Start

Published October 15, 2026 · Maryland Energy Rebates guides · Program details change; check current terms with your utility.

Why heat pumps are getting attention in Maryland

A heat pump moves heat rather than making it, which is why it can both heat and cool a home from one outdoor unit. Maryland's winters are cold enough that the equipment choice matters, and the policy direction has shifted toward electric heating: the 2024 update to the EmPOWER law requires utilities to add incentives for switching from fossil-fuel heating to efficient electric alternatives, and the 2025 update removes EmPOWER incentives for natural gas equipment (see the Maryland Energy Administration's EmPOWER page). The result is that BGE, Pepco and Delmarva Power all currently promote heat pump offers. Whether your home qualifies, and for what, depends on the rules on your utility's program page.

Use the checklist below before you sign anything. It is written for homeowners replacing a furnace, boiler, central air conditioner or an older heat pump, and for anyone adding a ductless system to a room that is never comfortable.

1. Check your utility's heat pump program first

Start with the delivery utility on your bill, not the retail supplier. The program pages are: BGE Heating and Cooling, Pepco HVAC Efficiency Program and Delmarva Power HVAC Efficiency Program; Potomac Edison customers should read FirstEnergy's Maryland energy saving page and SMECO members the SMECO save energy page. On the page, note: the minimum ratings the equipment must meet, whether a participating contractor must install it, whether an assessment or pre-approval comes first, how the incentive is paid (to you or as a discount on the contractor's invoice) and any deadline. Our Utility Programs page links every utility, and the BGE vs Pepco vs Delmarva guide compares the three largest.

2. Decide what kind of heat pump fits the house

• Ducted air-source heat pump. Replaces a central furnace and air conditioner using the existing ducts. The ducts need to be in reasonable condition and sized for the airflow; a contractor should test or inspect them.
• Ductless mini-split. One outdoor unit with one or more wall or ceiling heads. Good for additions, bonus rooms and homes without ducts. Multi-zone systems need careful sizing per head.
• Cold-climate models. Equipment designed to keep heating capacity at low outdoor temperatures. ENERGY STAR explains the categories and what the ratings mean on its air-source heat pump page. In Maryland, ask the contractor how the unit's capacity and efficiency hold up at the design temperature for your county, not just at the rating point.
• Dual-fuel or hybrid. A heat pump paired with an existing furnace as backup. Check the utility page: some programs have specific rules for backup heat and for systems paired with gas equipment.

3. Confirm the ratings and the certificate

Heat pump efficiency is listed as SEER2 (cooling), HSPF2 (heating) and EER2, and the utility's program sets minimums for each. Every quote should name the exact outdoor and indoor model numbers, and you (or the contractor) should look the matched combination up on the AHRI Certification Directory and keep the certificate. Programs usually require the AHRI reference number on the application, and a mismatched indoor unit can change the ratings. Our Heat Pump Rebates page lists the ratings to ask about in more detail.

4. Insist on a load calculation, not a rule of thumb

Ask for a Manual J load calculation for the house (or the zone) and a Manual S equipment selection. "Same size as the old one" is the most common sizing mistake: the old furnace was probably oversized, and a heat pump that is too large short-cycles, dehumidifies poorly in a Maryland summer and wears out sooner. If you plan to add insulation or air sealing, do that first or make sure the calculation reflects it, because a tighter house needs a smaller system. The Insulation and Air Sealing page explains how the whole-home programs fit with equipment upgrades.

5. Plan the backup heat and the electrical work

Most Maryland installations include supplemental electric heat strips for the coldest days, and the control settings for when they come on affect your bill more than almost anything else. Ask how the thermostat will be configured and whether the system "locks out" backup heat above a set outdoor temperature. Also check the electrical panel: a heat pump, its air handler and the strips may need new circuits, and some older homes need a panel upgrade. Make sure the quote includes the electrical work, the condensate drain, the pad or wall bracket and any refrigerant line replacement, so there are no add-ons later.

6. Read the quote the way the program will

1. Model numbers for every component, with the AHRI number.
2. Any incentive shown as its own line, with the program it comes from.
3. Permit and inspection included (Maryland counties require mechanical and electrical permits for this work).
4. Commissioning: refrigerant charge verified, airflow measured, thermostat settings documented.
5. Warranty terms for parts, compressor and labour, and who registers the equipment.
6. Removal and disposal of the old equipment.

Compare at least two quotes on the complete scope. A lower price that leaves out the electrical work or the permit is not lower. See HVAC Rebates and Eligibility for the general equipment checks.

7. Keep the paperwork the application asks for

Typical requirements: the itemised invoice marked paid, the AHRI certificate, model and serial numbers, the installation date, your account number, and proof that the contractor is enrolled in the program if that is required. Photograph the data plates on the outdoor and indoor units before the installer leaves. Our How to Apply page has a step-by-step list, and How to Qualify explains what programs look at.

8. Know what is not available right now

Two things homeowners often count on are not currently open. The federal homeowner tax credits 25C and 25D are not available for new installations after December 31, 2025 (see the IRS 25C page). Maryland's federally funded HOMES and HEAR rebates, which were expected to include heat pump incentives, have not launched; MEA reports that it submitted updated applications to the U.S. Department of Energy on September 30, 2026 and will post updates on its Home Energy Rebates page. Plan the project on the utility program rules that are open today, and treat anything pending as a possible bonus rather than part of the budget. Our Programs overview tracks what is open, ended and pending.

Quick checklist

• Delivery utility identified and its heat pump program page read this week.
• Assessment, pre-approval or contractor reservation done if the program requires it.
• Equipment type chosen (ducted, ductless, cold-climate, dual-fuel) for the house.
• Model numbers and AHRI certificate match the program's minimum ratings.
• Manual J and Manual S in hand; insulation and air sealing considered first.
• Backup heat settings, electrical work, permit and commissioning in the quote.
• Invoices, photos and approvals kept for the application.

Program terms change with each EmPOWER plan cycle. Check current terms with your utility, and confirm in writing anything a contractor tells you about an incentive before you sign.