If your home is heated with oil, propane, or even natural gas, there’s good news: Maryland’s updated energy efficiency programs now offer significantly larger rebates for switching to efficient electric systems like heat pumps.
At Atlas Home Energy, we’ve helped hundreds of homeowners upgrade to more comfortable, cost-effective systems. With these recent changes, the incentives are better than ever—especially if you’ve had a home energy audit in the past and are now considering insulation, air sealing, duct sealing, or HVAC upgrades.
Let’s break it down.
Electrification means replacing fossil-fuel equipment—like oil, propane, or gas heating systems—with high-efficiency electric alternatives such as heat pumps or heat pump water heaters. This shift helps homeowners lower energy bills, reduce maintenance, and gain more stable, year-round comfort. With electricity prices typically more stable than oil or propane and heat pumps offering both heating and cooling, the benefits are hard to ignore. Add in lower carbon emissions and significantly expanded rebates, and it becomes a compelling upgrade for most Maryland homes.
Maryland’s Home Performance with ENERGY STAR® (HPwES) program and midstream HVAC rebate programs have undergone important updates that are a win for homeowners. The incentive cap for electrification projects has increased to 75% of the project cost, up to $15,000. That’s a significant step up from the $10,000 cap for non-electrification projects. These enhanced incentives apply to upgrades that include electric HVAC systems or electric water heating. For projects that do not include electrification, the incentive cap remains at 75% of the project cost, up to $10,000.
Another major change is expanded eligibility for oil, propane, and natural gas customers. Previously, homeowners with propane or oil heat weren’t eligible for electrification rebates at all. Now, they are—and natural gas customers benefit from increased rebate rates as well. If you’ve had an energy audit in the past and didn’t move forward because your fuel type wasn’t eligible or the incentives weren’t high enough, now is the time to revisit that conversation. Ask us to run a new rebate calculation. The savings may have increased dramatically.
Electrification projects usually fall into one of two categories: full electrification or hybrid systems. Full electrification means replacing your entire heating system with an electric heat pump, with no backup furnace or fuel system. This typically qualifies for the largest incentives and offers the cleanest, most efficient setup.
Hybrid systems keep a fossil-fuel furnace in place as a backup for extremely cold days. The heat pump becomes the primary heating and cooling system, while the furnace only turns on when outdoor temperatures drop below a set point—usually 40°F. These systems must be controlled by a single thermostat and properly configured to qualify for rebates. Water heating upgrades also qualify. Replacing your gas, oil, or propane water heater with a high-efficiency heat pump water heater (HPWH) counts toward electrification incentives.
Some homes require electrical panel upgrades or fuel tank removals before they can fully electrify. These are called “make-ready” costs. Maryland’s utilities are offering up to $3,000 in make-ready incentives to help offset these expenses. Many of the heat pump rebates are processed through the midstream program, meaning they’re credited to the contractor through their equipment distributor. This reduces paperwork for the homeowner and ensures a smoother rebate process. Atlas will manage this part on your behalf.
To make sure you get the full value of the available rebates, there are a few things we’ll need to document. That includes basic photos of your old and new equipment (with model and serial numbers), proof of efficiency (through AHRI certificates), and thermostat settings if you’re installing a hybrid system.
If your project includes electrical panel upgrades or other “make-ready” improvements, those will also need to be noted in your energy assessment and contract. And if you’re installing mini-splits, they’ll need to have integrated controls in order to qualify.
Don’t worry — we’ll walk you through all of it, and make sure nothing gets missed.
If you’ve already had a home energy audit but didn’t move forward with upgrades due to fuel type limitations or lower rebate caps, now is the time to check in. The landscape has changed, and the rebates are far more generous than they were just a year ago. A quick update to your audit file and rebate calculation could open the door to thousands more in savings.
Whether you’re exploring electrification for the first time or are ready to move forward with insulation, HVAC, or duct sealing upgrades, Atlas Home Energy Solutions is here to help. We’ll guide you through the updated rebate structure, help you determine which systems make sense for your home, and manage the documentation to make the process smooth from start to finish.
If you’re ready to lower your energy bills, increase your comfort, and take advantage of one of the best incentive programs Maryland has ever offered, contact us today. We’ll help you take the next step toward a smarter, more efficient home.
Atlas Home Energy
