Maryland: Clean Energy Grant Program - Geothermal Heat Pumps

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Rebates for geothermal heat pumps at $2,000, and grants at $500/ton of refrigeration capacity.

Learn more about this energy rebate or find a contractor who knows about this rebate and will help you get started.


EnergySavvy does not administer rebate programs. If you have any questions about this incentive, please click on the More Information link to view the rebate program website or contact the rebate program directly.
Note: Effective November 1, 2011 rebates for residential geothermal systems are capped at $1,000. The overall residential Clean Energy Grant Program (which includes solar, geothermal, and wind energy incentives) has also been allocated $2.5 million in additional funds, bringing total Fiscal Year 2012 funding to $8.8 million.

The Maryland Energy Administration (MEA) offers rebates of up to $1,000 for residential geothermal heat pump systems and $7,000 for non-residential geothermal heat pump systems. Grants for both are provided at a rate of $500 per ton of refrigeration capacity, equivalent to 12,000 BTUs. Funding for the program is provided annually from the Maryland Strategic Energy Investment Fund (SEIF), which receives income from greenhouse gas emission auctions under the Regional Greenhouse Gas Initiative (RGGI).

The definition of geothermal heat pump property does not include swimming pools, hot tubs, or any other energy storage device that has a primary function other than storage. In addition, systems should have a minimum Energy Efficiency Ratio (EER) of 14.0 and a minimum Coefficient of Performance (COP) of 3.0 according to the testing standards of the Air Conditioning and Refrigeration Institute (ARI) or another nationally recognized agency.

Rebate applications must include information on the type of system being installed, the installer, and contain copies of any necessary permits. Not all systems are guaranteed rebates and the MEA may elect to award an amount different than the one requested in the application. If a project is approved the applicant then has 270 days to install the system, assemble the necessary supporting documentation, and submit a completion certificate to the MEA claiming their rebate, or they risk losing their rebate. If a system has already been installed prior to submitting an application to MEA, the project is still eligible for a grant, as long as the system meets the program requirements and was placed in service during the same fiscal year (e.g., July 1, 2010 – June 30, 2011) that the application was submitted. Persons with previously installed systems should contact the MEA for further information. More Information: Maryland Website
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