Residential Energy Incentives
Montgomery County residents can take advantage of financial incentives to adopt energy-efficient practices and renewable technologies in their homes. Incentives are available from utilities, as well as local, state, and federal sources
For a comprehensive listing of all energy incentives and programs for the County’s residents, visit Montgomery Energy Connection. General information on incentives are below.
Utility Incentives
The utilities that service Montgomery County offer a wide variety of incentives for energy efficiency upgrades using funding from the EmPOWER Maryland Act. Incentives may include rebates or discounts for: home energy assessments, energy-efficient appliances, demand management programs, programmable thermostats, and other similar efficiency actions. Access utility websites listed below.
County & State Incentives
Maryland’s Residential Clean Energy Grant Program
Operated by the Maryland Energy Administration, the Residential Clean Energy Grant Program provides grants for a variety of clean energy installations for homeowners, including solar photovoltaic systems, solar water heating systems, and geothermal heating and cooling system. Note that funds often run out quickly, so make sure you reach out to the Maryland Energy Administration for updated information.
BeSMART Home Energy Loan
The BeSMART Home Loan Program offers innovative financing to improve home energy efficiency through replacement and upgrading of appliances, heating, cooling and ventilation systems and whole house envelope improvements across the state. These changes are intended to save the homeowner money, increase the safety and comfort of the home, and add value to the home. Home owners may choose their weatherization and energy efficiency professionals from a list of eligible providers whose qualifications have been reviewed by The Maryland Department of Housing and Community Development. BeSMART Home Loan Brochure
Montgomery County Energy Efficiency Tax Credit
Montgomery County homeowners are eligible for up to $250 in tax credits for energy efficiency improvements such as air-sealing and insulation, heating and cooling equipment, windows, and doors. The credit can be taken once per year for purchases made during that year. The amount available annually is $100,000, and applications are processed in the order they are received. Go to the Department of Finance application for renewable energy credits. Section 2 of the application applies to the Energy Conservation Devices
Federal Incentives
Energy Efficiency Tax Credits
If you have made energy efficient upgrades to your home, you may be eligible for some Federal tax relief—even if you already received incentives from the County, State, or your utility company. Please note that not all ENERGY STAR certified products qualify for a tax credit. Visit EPA’s ENERGY STAR website to learn about the current Federal tax credits for consumer energy efficiency.
Inflation Reduction Act
The Inflation Reduction Act, or IRA, is a Federal law enacted on August 18, 2022, that includes billions of dollars for tax credits, rebates and federal programs for energy initiatives. Many incentives are available now, and others will be available in 2024 and beyond. Visit the Maryland Office of People’s Counsel for an IRA summary, and the Maryland Energy Administration for details on residential energy rebate programs.
IRA Tax Credit Resource Hub
The U.S. Department of the Treasury (Treasury) launched the Inflaction Reduction Act website intended to serve as a go-to resource for consumers, businesses, nonprofits, and state, local, and Tribal governments as they wade through IRA’s tax credit policies and guidance. The website includes tax guidance language, tools for consumers to find out how they can benefit from the tax incentives, and graphics detailing IRA’s impact so far. The website includes a link to the Treasury’s IRA Taxpayer Resource Hub, which helps homeowners, small business owners, and vehicle buyers learn about the IRA tax credits that apply to them.