Updated October 13, 2026. Rebate programs change often. Confirm amounts with your utility or contractor before you sign.
1. The federal tax credits have ended
The federal Energy Efficient Home Improvement Credit (25C, for insulation, windows and heat pumps) and Residential Clean Energy Credit (25D, for solar and geothermal) ended for work placed in service after December 31, 2025, under the 2025 federal budget law. For 25D, an expenditure counts when installation is completed, so a system paid for in 2025 but finished in 2026 doesn't qualify. Utility rebates and county credits are now the main incentives.
2. BGE Home Performance with ENERGY STAR
Most of Anne Arundel County is served by BGE. Its whole-house program starts with a home energy audit for $100 (a $400 value). Insulation, air sealing and other envelope work then earn rebates based on modeled savings, up to $10,000 or 75% of the job cost, rising to $15,000 or 75% when you fully or partially electrify heating or water heating. Projects generally include attic insulation to R-49 and attic air sealing. Duct sealing, heat pumps (from $400 and up, scaled to savings), ductless mini-splits and smart thermostats can be bundled in.
Why it fits a remodel: when walls, attics or basements are already open, insulation and air sealing cost less, and the rebate can cover a big share of it.
3. BGE rebates without an audit
Heat pump water heaters: up to $1,600, with up to $1,500 more toward preparation costs when switching from gas, oil or propane. BGE's instant, in-store version of this rebate ends October 31, 2026. Smart thermostats: up to $100 each, up to three per household. Heating and cooling: rebates through participating HVAC contractors, plus extra incentives for switching from fossil fuels; BGE doesn't publish per-unit amounts, so ask your contractor.
4. SMECO customers
Parts of southern Anne Arundel County are served by SMECO, which offers instant rebates on HVAC upgrades, heat pump water heaters, smart thermostats and dehumidifiers, and a home energy improvement program. Call SMECO at 877-818-4094 for current amounts.
5. State programs
The federally funded home energy rebate programs (HOMES and HEAR) have not launched in Maryland; the state resubmitted its applications to the U.S. Department of Energy in September 2026. The state's geothermal rebate closed after its final year. New state programs for income-eligible solar, EV chargers, batteries and heat pumps have been announced; check the Maryland Energy Administration for launch dates.
6. Anne Arundel County tax credits
The county offers one-time property tax credits for solar and geothermal systems: the lesser of 50% of the cost (after other grants and credits) or $2,500 each. Apply by June 1 for the following tax year; a credit can't exceed the county tax you owe.
