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Maryland Water Heater Incentives and Options

Compare heat-pump options and check current utility incentives. Federal homeowner credits have ended for new installations, and Maryland HEAR rebates have not launched.

How to Apply →

Program status checked October 6, 2026. Federal homeowner credits 25C and 25D are unavailable for new installations after December 31, 2025. Maryland HEAR and HOMES rebates have not launched. On September 30, 2026, the Maryland Energy Administration submitted updated applications for both programs to the U.S. Department of Energy. Confirm current utility funding before committing to work.

Official sources: IRS: 25C, IRS: 25D, Maryland Energy Administration: IRA rebate status.

How heat pumps work

Heat pumps transfer heat to provide heating and cooling. Performance depends on outdoor temperature, the equipment, installation and the home. Ask an installer to compare heating capacity, cooling performance and operating costs using your actual electricity and fuel rates.

Common heat-pump options

  • Ducted air-source systems use ductwork to serve the home.

  • Ductless mini-splits may suit additions or homes without suitable ducts.

  • Cold-climate models have specific low-temperature capabilities; check the equipment data and backup requirements.

  • Geothermal systems use a ground loop and require a site-specific design and installation budget.

Check utility eligibility before replacing equipment

Do not assume a gas-to-electric conversion, a particular SEER2 or HSPF2 rating, or an ENERGY STAR label guarantees an incentive. Confirm the exact system, existing heat source, approved provider, funding and application sequence with your utility.

Federal and Maryland program status

No 25C or 25D homeowner credit is available for a new 2026 installation. Maryland HEAR and HOMES rebates remain unavailable as of September 12, 2026. Do not sign a contract expecting a future HEAR rebate to make the system free.

Compare complete quotes

  • Include electrical, duct and other required work.

  • Ask for cooling and heating load calculations and commissioning.

  • Show each confirmed discount separately.

  • Review backup heat, noise, maintenance and warranty terms.

Considering a heat pump?

Compare the full project cost and verified utility options for your home.

See How to Apply →