If you thought home energy incentives ended with the federal tax credit, you’re not alone. Many Maryland homeowners now believe they must pay the full cost of insulation, air sealing, and other efficiency upgrades themselves.
This misunderstanding can be expensive.
Waiting to make upgrades could lead to another season of higher energy bills, drafts, and rooms that never feel fully comfortable.
The federal credit is gone, but Maryland energy rebates for 2026 are still available. EmPOWER Maryland rebates from BGE and Pepco come through state utility programs, not the federal tax code, and will continue under current rules through 2026. If you meet income requirements, you may also qualify for free energy-saving improvements from the Maryland Department of Housing and Community Development (DHCD).
If you’re considering making improvements, now is a good time to schedule a home energy audit in Baltimore. An audit will show where your home is losing energy and which upgrades may qualify before the program rules change.
What Changed When the Federal Tax Credit Expired?
Why Homeowners Are Confused Right Now
The federal tax credit for energy efficiency upgrades is no longer available for improvements installed after 2025. This change only affects the federal income tax incentive, not Maryland’s separate utility-funded programs.
Maryland’s EmPOWER program is set by state law and funded by utility ratepayers. Because it doesn’t depend on the federal tax code, the federal change did not remove the state’s utility incentives.
This means homeowners can still explore Maryland insulation rebates and other efficiency incentives through their utility programs.
Maryland’s Utility-Funded Programs Are Still Paying Homeowners Back
EmPOWER Maryland Supports Energy-Efficiency Improvements
The EmPOWER Maryland Energy Efficiency Act started the statewide efficiency program in 2008. Maryland’s five largest electric utilities offer energy-saving programs through EmPOWER.
The state has updated the program several times. In 2024, House Bill 864 added new incentives to help homeowners switch from fossil fuel heating and appliances to electric alternatives. In 2025, House Bill 1532 increased short-term greenhouse gas reduction goals and removed incentives for natural gas equipment.
For homeowners, the important distinction is that EmPOWER Maryland rebates are still available because Maryland’s state and utility programs are separate from the federal tax incentive.
BGE and Pepco Offer Home Performance Programs
The BGE Home Performance with ENERGY STAR program reviews your entire home when identifying energy-saving improvements. BGE says participating homeowners can cut energy costs by up to 20% after an assessment identifies problem areas and they make the recommended upgrades.
Pepco’s Home Performance with ENERGY STAR program also offers Pepco rebates in Maryland using a similar audit-first approach for efficiency upgrades and electrification projects.
Both programs require a professional home energy assessment before you can get rebates for improvements. This means a home energy audit is the first step, not something you do after choosing an upgrade.
Because rebate programs can change, homeowners should check the latest program details or request an estimate to see what incentives are available.
The 2026 Deadline Homeowners Can’t Ignore
The Current EmPOWER HPwES Rebate Structure Ends in 2026
The current HPwES Maryland deadline is December 5, 2026. To get rebates under the current rules, all work must be installed, inspected, and pass the required testing by that date.
Maryland and its utilities are planning a new program for 2027. The new rebate amounts and eligibility requirements have not been announced yet.
Waiting until later in 2026 might not leave enough time for the assessment, upgrades, inspection, and testing. If you miss the deadline, you may have to apply under new rules with different terms.
Extra Help for Income-Qualified Homeowners
The Maryland Department of Housing and Community Development runs the Low Income Energy Efficiency Program, which installs energy-saving improvements for eligible households.
Eligibility for DHCD low-income weatherization depends on your household income and utility account status, not on the age or type of your insulation.
If you think you qualify, you can learn more about the low-income weatherization program before paying for upgrades for yourself.
Insulation and Air Sealing Remain the Foundation of Any Audit-Driven Upgrade
Energy audits often find air leaks and insufficient insulation, both of which can significantly raise heating and cooling costs. ENERGY STAR says homeowners can save about 15% on these costs by sealing air leaks and adding insulation in attics, floors, and basements.
Anne Arundel County, including Glen Burnie, falls within IECC Climate Zone 4A. Only Garrett County is in Zone 5. If you’re thinking about attic improvements, learn more from our Fiberglass Attic Insulation for Maryland Homes: A Climate Zone 4A Guide.
Frequently Asked Questions
Is the federal energy tax credit still available in 2026?
No. The federal home energy tax credit ended for improvements installed after 2025. Maryland’s state and utility programs are separate, so you can still get incentives through EmPOWER.
What is EmPOWER Maryland?
EmPOWER Maryland is a state energy-efficiency program started by the 2008 EmPOWER Maryland Energy Efficiency Act. Utility customers help pay for the program through charges on their bills, and participating utilities and DHCD run efficiency programs for eligible households.
Do I have to switch to an electric heat pump to get a rebate?
No. Some EmPOWER incentives are for electrification, but insulation, air sealing, and the required home energy audit are still part of the standard home-performance program.
What happens after the December 2026 deadline?
Maryland’s current Home Performance with ENERGY STAR rebate program will change in 2027. The state hasn’t announced the new rebate amounts or eligibility rules yet.
How do I know if I qualify for free weatherization?
Eligibility depends on your household income and utility account status under DHCD’s Low Income Energy Efficiency Program. DHCD or a participating contractor can help determine whether you qualify.
Don’t Miss the Current Maryland Rebate Window
The federal tax credit may be gone, but Maryland homeowners still have options. EmPOWER programs through BGE and Pepco remain active, and some households may qualify for free improvements through DHCD.
The key date is December 5, 2026. To get rebates under the current program, projects must be installed, inspected, and pass required testing by that date. Since a BPI-certified home energy audit is required first, be sure to leave enough time to complete the whole process.
To find out what your home may need and which incentives you can get, schedule a free estimate with DeVere Insulation Home Performance or call (443) 770-1111.
REFERENCES (MLA 9th Edition)
Baltimore Gas and Electric Company. “Home Performance with ENERGY STAR®.” BGE Smart Energy, bgesmartenergy.com/residential/help-me-save/home-performance.
Maryland Department of Housing and Community Development. “EmPOWER.” Maryland Department of Housing and Community Development, dhcd.maryland.gov/Energy-Home-Repair/pages/homeowner-grants/empower.aspx.
Maryland Energy Administration. “EmPOWER Maryland.” Maryland Energy Administration, energy.maryland.gov/Pages/Facts/empower.aspx.
Maryland Energy Administration. “Maryland Energy Code: A Law That Lowers Energy Bills, Keeps Homes Safe.” Maryland Energy Administration, energy.maryland.gov/Documents/YourHomeandtheEnergyCode.pdf.
Maryland Public Service Commission. “Energy Efficiency and EmPOWER Maryland.” Maryland Public Service Commission, psc.maryland.gov/regulated-utilities/electricity/energy-efficiency-and-empower-maryland/.
Potomac Electric Power Company. “Home Performance With ENERGY STAR® Program.” Pepco Home Energy Savings, homeenergysavings.pepco.com/md/residential/home-performance-with-energy-star-program.
United States Environmental Protection Agency. “Why Seal and Insulate?” ENERGY STAR, energystar.gov/saveathome/seal_insulate/why-seal-and-insulate.
DeVere Insulation Home Performance. “Rebates.” DeVere Insulation Home Performance, devereinsulationhomeperformance.com/rebates/.
