Heat pumps are one of many clean heat energy appliances that play an essential role in decarbonizing buildings. They are highly efficient and produce no direct emissions, resulting in better air quality for all Marylanders. 

Heat pumps use electricity to transfer heat from one place and move it to another rather than burning a fuel to generate heat. Modern air-to-air heat pumps can deliver up to three times more heat energy than the electrical energy they consume and are thus more energy-efficient than traditional furnaces or boilers. 

While installing a heat pump is a great step toward cleaner buildings, air seal and insulating your home can provide additional benefits by reducing uncomfortable drafts and lowering your heating and cooling bills. If this is done before your heat pump is installed, it can even save you money on the upfront cost of that system. Marylanders can get an energy audit that will help identify key areas to improve their building’s envelope. 

Additionally, when considering heat pump options, building owners should consider variable speed systems which prioritize comfort and efficiency. To help pay for these more efficient systems, homeowners can receive up to $2,000 off qualifying heat pumps plus up to $1,200 for energy efficiency investments with the Federal Energy Efficient Home Improvement Credit. Additional rebates worth up to $8,000 for low and moderate income households will be available soon from the Maryland Energy Administration.   

The Maryland Climate Poll​ution Reduction Plan introduces key policies to reduce pollution, create jobs, save Marylanders money, and make households more comfortable. Two key policies, collectively called the Clean Heat Rules​, are the Clean Heat Standard and the Zero-Emissions Heating Equipment Standard. Together, they will mobilize investment in clean heat solutions for homes and businesses and transition all newly installed space and water heating systems to zero direct emissions by the end of this decade to reduce carbon pollution and improve air quality inside homes and the ambient air. 

Rebates and Financing

There are several rebate programs available for homeowners who are ready to decarbonize. Under the federal Energy Efficient Home Improvement Credit , you can qualify for a tax credit of 30% of the project cost (up to $2,000 annually) for air source heat pumps, heat pump water heaters, and biomass stoves and boilers with a thermal efficiency rating of at least 75%. Costs may include labor for installation. 

The State of Maryland offers two rebates (based on Available Funding). Under the Residential Clean Energy Rebate Program, you can receive financial assistance up to $3000 to install new geothermal heat pumps. ​Inflation Reduction Act Residential Rebate Programs (soon to come) offer rebates worth up to $8,000 for low and moderate income households. Finally, loans are available via the Clean Energy Advantage (CEA) Loan Pilot Program.