--- title: "Maryland Home Energy Rebates for 2026: BGE & More | TBG" description: "What still pays for insulation, heat pumps and heat pump water heaters in Anne Arundel County in 2026, now that the federal 25C and 25D credits have ended." url: https://thebrettgroup.com/guides/energy-rebates-maryland-remodel/ last_updated: 2026-10-13 --- [TBG](https://thebrettgroup.com/) / [Home Remodeling](https://thebrettgroup.com/remodeling/) / Energy rebates guide Local guide · Anne Arundel County · October 2026 # Energy rebates for Maryland home remodels in 2026 A remodel is the cheapest time to insulate, air-seal and switch to a heat pump. Here is what still pays for it in Anne Arundel County as of October 2026, and what has ended. Get matched with a builder who knows this - **$15,000**: Max BGE Home Performance rebate with electrification - **$100**: BGE home energy audit cost to you - **$1,600**: BGE heat pump water heater rebate (up to) - **Ended**: Federal 25C/25D credits for work done in 2026 **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. ## Where this comes up most [Glen Burnie →](https://thebrettgroup.com/remodeling/glen-burnie/) · [Linthicum →](https://thebrettgroup.com/remodeling/linthicum/) · [Odenton →](https://thebrettgroup.com/remodeling/odenton/) · [Crofton →](https://thebrettgroup.com/remodeling/crofton/) · [Severn and Hanover →](https://thebrettgroup.com/remodeling/severn-hanover/) · [Pasadena →](https://thebrettgroup.com/remodeling/pasadena/) ## Projects we match - [Additions](https://thebrettgroup.com/remodeling/additions/anne-arundel/): Bump-outs, second stories and in-law suites. - [Basement finishing](https://thebrettgroup.com/remodeling/basement/anne-arundel/): Living space, egress, bathrooms and waterproofing. - [Kitchen remodels](https://thebrettgroup.com/remodeling/kitchen/anne-arundel/): Layouts, cabinets, counters and full gut renovations. ## Common questions ### Can I still get the federal tax credit for a heat pump or insulation? Not for work completed in 2026. The federal 25C and 25D credits ended for property placed in service after December 31, 2025. ### What does BGE pay for insulation and air sealing? Through Home Performance with ENERGY STAR, rebates are based on modeled savings, up to $10,000 or 75% of the job cost, or up to $15,000 or 75% when the project electrifies heating or water heating. The audit costs $100. ### How much is the BGE heat pump water heater rebate? Up to $1,600, plus up to $1,500 toward preparation costs when switching from gas, oil or propane. The instant in-store version ends October 31, 2026. ### Does Anne Arundel County offer a solar tax credit? Yes: a one-time property tax credit of the lesser of 50% of the cost or $2,500, with a separate credit of the same size for geothermal systems. ## Official sources [BGE: Home Performance incentives (PDF, Jan 2026)](https://bgesmartenergy.com/sites/default/files/57560_BGE_Res_HPwES-Incentives_Table_Update_v3_Web_RELEASE.pdf) · [BGE: Heat pump water heaters](https://bgesmartenergy.com/residential/rebates-and-discounts/heat-pump-water-heater) · [BGE: Smart thermostats](https://bgesmartenergy.com/residential/rebates-and-discounts/smart-thermostats) · [SMECO: Heating and cooling rebates](https://www.smeco.coop/energy-efficiency/residential-programs/heating-cooling-rebates/) · [MEA: IRA home energy rebates](https://energy.maryland.gov/Pages/IRArebates.aspx) · [IRS: Energy Efficient Home Improvement Credit](https://www.irs.gov/credits-deductions/energy-efficient-home-improvement-credit) · [IRS: Residential Clean Energy Credit](https://www.irs.gov/credits-deductions/residential-clean-energy-credit) · [AA County: property tax credits](https://www.aacounty.org/node/7121) This guide is general information, not legal or engineering advice. Rules and maps change; confirm the requirements for your property with the permit office before you design or sign a contract. ## More local guides [Renovating or adding on in a flood zone in Anne Arundel County](https://thebrettgroup.com/guides/flood-zone-renovation-anne-arundel/) · [Building or adding on near the water: the Critical Area explained](https://thebrettgroup.com/guides/building-near-the-water-critical-area/) · [Remodeling ideas for Anne Arundel County's most common house types](https://thebrettgroup.com/guides/remodeling-anne-arundel-house-types/) · [Materials that hold up near the Chesapeake](https://thebrettgroup.com/guides/chesapeake-coastal-building-materials/) · [Septic upgrades and Bay Restoration Fund grants in Anne Arundel County](https://thebrettgroup.com/guides/septic-upgrades-bay-restoration-fund/) · [Deck permits in Anne Arundel County](https://thebrettgroup.com/guides/deck-permits-anne-arundel/) · [In-law suites and accessory dwelling units in Anne Arundel County](https://thebrettgroup.com/guides/in-law-suites-adu-anne-arundel/) · [Renovating a home in the Annapolis historic district](https://thebrettgroup.com/guides/annapolis-historic-district-renovation/) · [Do you need a permit to finish a basement in Anne Arundel County?](https://thebrettgroup.com/guides/basement-finishing-permit-anne-arundel/) · [Do you need a permit for a kitchen remodel in Anne Arundel County?](https://thebrettgroup.com/guides/kitchen-remodel-permit-anne-arundel/) · [Do you need a permit for a bathroom remodel in Anne Arundel County?](https://thebrettgroup.com/guides/bathroom-remodel-permit-anne-arundel/) · [Do you need a permit for a fence in Anne Arundel County?](https://thebrettgroup.com/guides/fence-permit-anne-arundel/) · [Do you need a permit for a shed or detached garage in Anne Arundel County?](https://thebrettgroup.com/guides/shed-permit-anne-arundel/) · [Remodeling permits in Anne Arundel County and Annapolis](https://thebrettgroup.com/guides/permits-anne-arundel-annapolis/) · [How to hire a home improvement contractor in Maryland](https://thebrettgroup.com/guides/hiring-a-contractor-maryland/)