Heating and cooling can account for 50% of your home's energy use.* Upgrading to a high-efficiency HVAC system can reduce energy costs by up to 20% annually while improving comfort and performance. If your equipment is more than 10 years old, it may be time to consider an upgrade.
Why choose high-efficiency heating and cooling equipment?
- Get rebates: Rebates plus additional incentives could be available for customers switching from natural gas, oil or propane. Check with an HVAC contractor to determine eligibility.
- Save energy: High-efficiency heating and cooling equipment can save energy and lower utility costs, reducing your annual energy bill by nearly $140, depending on where you live.*
- Boost comfort: These systems provide excellent “zone” space conditioning, so you can control the level of heating or cooling in different rooms (or zones) in your home.
Path to HVAC Savings Starts Here
- Start with our Home Equipment Tool to explore upgrade options, estimated costs, available incentives, and potential energy savings for your home.
- Work with a participating contractor to determine what rebates and incentives may be available to you.
- Explore flexible financing options – you may qualify for 0% interest loans to help with cost of a new system, click here to learn more.
- Not ready to upgrade? Get a no-cost HVAC Tune-up to keep your existing system in good condition. Click here to schedule your tune-up.
High Efficiency HVAC Equipment
Qualifying HVAC Equipment Specifications
Minimum required efficiency levels
| Equipment | Tier | SEER2 | HSPF2 | Energy Efficiency Incentive Amounts | Electrification Incentive Amounts |
|---|---|---|---|---|---|
| Air Source Heat Pump OR Ducted Mini-split Heat Pump | 1 | 15.2 | 6.7 (Packaged) 7.5 (Split) | $800 | $2,000 |
| 2 | 16.9 | $1,300 | $2,500 | ||
| Cold Climate Air Source Heat Pump | 1 or 2 | 15.2 | 8.1 | N/A | $3,500 |
| Ductless Mini-split Heat Pump | Multi-Zone | 15.5 | 7.5 | $800 | $3,500 |
| Single Zone | 18 | 7.5 | $500 | N/A | |
| Central Air Conditioner | 1 | 15.2 | N/A | $300 | N/A |
| 2 | 16.9 | N/A | $500 | N/A | |
| Geothermal Heat Pump (Closed Loop) | 17.1 EER & 3.6 COP | $3,000 | $5,500 | ||
| Smart Thermostat | ENERGY STAR Certified | $100 | N/A | ||
Energy saving assistance for limited income households
Income eligible customers can get help lowering their energy bills and increasing their home’s comfort—at no cost. EmPOWER Maryland and the Maryland Department of Housing and Community Development offer energy-saving upgrades, like better insulation, lighting upgrades, water heater improvements, and more. Visit www.mdhousing.org/empower or call 1-855-583-8976 to learn more.
*Source: ENERGYSTAR.gov
***Both Single Packaged Units and Split Systems are eligible for ASHP and CAC rebates.
Offer valid for Pepco residential customers in Maryland only, and Effective only for equipment installed on and after April 1st, 2024: The Residential HVAC Midstream program is targeting high SEER2 energy efficient ASHPs, Ductless Mini-Splits, and CACs. The programs will continue to collect SEER2, EER2, and HSPF2 data on the applications, however equipment will only need to meet or exceed SEER2 and HSPF2 values listed to qualify for incentive funds. EER2 does not have a minimum energy efficiency requirement to qualify.
Is it time to replace your HVAC system?

