EmPOWER Maryland Program Guide: How to Lower Your Electric Bill with Utility Rebates

If you have ever squinted at your BGE or Pepco bill and wondered what the “EmPOWER Maryland” line item is doing there, you’re not the only one. It is one of the most misunderstood charges in the state—and one of the few you can get back.

What Is the EmPOWER Maryland Program?

The EmPOWER Maryland program was created by the EmPOWER Maryland Energy Efficiency Act of 2008. Maryland was facing rising peak demand, an aging grid, and prices that jumped sharply after rate caps expired. Rather than build more power plants, lawmakers took the cheaper route: help people use less.

The law set statewide targets to cut per-capita electricity consumption, peak demand, and greenhouse gas emissions, and made Maryland’s utilities responsible for meeting them. Since then, it has funded millions of home energy audits, insulation jobs, and appliance rebates. The Maryland Public Service Commission’s most recent report found that for every dollar spent in the 2023 program year, EmPOWER programs generated roughly $2.21 in benefits statewide—about $799 million in lifetime savings on a $362 million investment.

How EmPOWER Maryland Is Funded

Here is the part most customers miss: EmPOWER is not funded by a state grant or federal money. It is funded by you.

Every residential and commercial customer of a participating utility pays a monthly surcharge on the delivery portion of the bill. For the average household, that charge grew from roughly $5–$7 a month in 2015 to $15–$20 a month in 2025 — $180 to $240 a year leaving your pocket whether you use the program or not.

That reframes the whole question. Claiming EmPOWER Maryland rebates is not asking for a handout. It is recovering money you have already paid into a pool your neighbors are actively drawing from.

Recent Legislative Updates: What Changed in 2024, and Again in 2026

Two bills reshaped the program in recent years, and both matter to what you can claim today.

House Bill 864 (2024) shifted EmPOWER’s primary yardstick from kilowatt-hours saved to greenhouse gas emissions reduced. That redirected a large share of funding toward beneficial electrification—replacing fossil-fuel furnaces, boilers, and water heaters with high-efficiency electric equipment. It is why the Maryland heat pump rebate became so generous, reaching up to $15,000 for qualifying systems and $3,500 for heat pump water heaters, plus contractor bonuses. HB 864 also brought Choptank Electric Cooperative into the program.

House Bill 1532 (2026), the Utility RELIEF Act, went in the opposite direction. Signed by Governor Moore on May 12, 2026, it scales the program back from 2027 through 2029 to lower the surcharge: the annual savings target drops from 2.5% to 1.75% of kilowatt-hour sales, greenhouse gas targets phase in more slowly, and natural gas efficiency programs end after 2026. Lawmakers project about $640 million in ratepayer savings over three years—roughly $150 per customer annually—with funding building back toward current levels through 2036. Low-income programs run by the Maryland Department of Housing and Community Development were protected from the cuts.

Here’s what to take away: the current cycle runs through December 2026, and the leaner cycle begins January 2027. If you have been putting off an insulation job or a heat pump replacement, the incentive math is better this year than it will be next.

Which Utilities Participate in EmPOWER Maryland?

Maryland utility rebates under EmPOWER are delivered by your local utility, not by the state directly. Participating companies include:

Important Note: You Do Not Need to Switch Utilities

Your utility is assigned by geography, and you cannot choose a different one—but you do not need to. Every residential customer who pays the EmPOWER surcharge is eligible for that utility’s programs. BGE customers use BGE’s portal; Pepco customers use Pepco’s. Rebate amounts and application steps differ slightly, but the core offerings are consistent statewide.

Available EmPOWER Maryland Residential Programs and Incentives

Here is what Maryland energy efficiency programs actually put on the table for homeowners and renters.

Quick Home Energy Check-ups and Comprehensive Audits

The Quick Home Energy Check-up (QHEC) is the easiest entry point, and free for most customers. A certified technician walks through your home and installs low-cost measures on the spot at no charge—LED bulbs, low-flow showerheads and aerators, water heater pipe insulation—and then leaves a written report outlining next steps. Most visits take about an hour.

For a deeper diagnosis, Home Performance with ENERGY STAR® adds a blower door test to measure air leakage, an insulation inspection, and a duct and combustion safety evaluation. It carries a modest copay in most territories, and BGE reports participating households receive rebates averaging around $3,000 toward the work that follows.

Heating, Cooling, and Electrification Incentives

This is where the largest dollars sit.

• Heat pump rebates. The Maryland heat pump rebate is among the strongest in the country, offering up to $15,000 for qualifying cold-climate systems that replace aging fossil-fuel or electric resistance heating. Heat pump water heaters cost roughly $1,600 to $3,500 depending on utility and equipment tier. Modern cold-climate units hold efficiency well below freezing—they work in Garrett County winters, not just Annapolis ones.
• Duct sealing, air sealing, and insulation. Weatherization is frequently covered at 75% or more of project cost through Home Performance with ENERGY STAR, with per-project caps that vary by utility. Attic insulation, crawlspace encapsulation, rim joist sealing, and duct sealing all qualify—unglamorous work that delivers the fastest payback on this list.

Efficient Appliances and Smart Home Upgrades

• Appliance rebates. ENERGY STAR® certified refrigerators, clothes washers, dryers, dehumidifiers, and room air conditioners carry rebates or instant discounts, some applied right at the register.
• Smart thermostats. Rebates up to $100 on qualifying models, plus bill credits if you enroll in demand response (BGE Peak Rewards, Pepco Energy Wise Rewards, and similar).
• Appliance recycling. Have a second refrigerator or freezer humming in the garage? Utilities will haul it away for free and pay you a cash incentive. The unit must be working, and generally 10 to 30 cubic feet—retiring one often saves $100 or more a year on its own.

BGE and Pepco energy rebates overlap heavily in structure, so moving between Maryland service territories means a familiar menu waiting.

The Limited Income Energy Efficiency Program (LIEEP)

Not every Maryland household can front the cost of a project and wait for a rebate check. The Limited Income Energy Efficiency Program (LIEEP) exists for exactly that reason.

• Program focus. The Maryland Department of Housing and Community Development (DHCD) administers LIEEP rather than individual utilities, though it draws on the same EmPOWER surcharge. It was shielded from the 2026 program reductions.
• Benefits. Qualifying households receive free weatherization in Maryland at zero out-of-pocket cost—attic, wall, and floor insulation, air sealing, HVAC repair or replacement, hot water upgrades, efficient lighting, refrigerator replacement, and related health and safety repairs. No rebate form, no reimbursement wait, because you don’t pay anything up front.
• Eligibility. Households at or below 200% of the Federal Poverty Level generally qualify. Based on 2026 federal guidelines:

(Note: Add roughly $11,400 for each additional household member. Figures are rounded and updated annually—confirm current limits when you apply.)

Automatic eligibility pathways: You may qualify without an income review if your household already receives benefits from the Office of Home Energy Programs (OHEP), the Maryland Energy Assistance Program (MEAP), the Electric Universal Service Program (EUSP), SNAP, or the Utility Service Protection Program (USPP). Renters are eligible with landlord consent, and multifamily buildings can enroll at the property level. To apply, call 1-855-583-8976 or visit mdhousing.org/empower.

EmPOWER Maryland Solutions for Businesses and Nonprofits

Commercial customers pay the EmPOWER surcharge, too—often a substantial one—and Maryland commercial energy rebates are frequently the better value per dollar.

Small Business Direct Install

For businesses with modest peak demand, a utility-approved contractor performs a no-cost assessment, then installs qualifying upgrades with the utility covering a high share of the cost, typically 70% or more.

Common measures include LED lighting and controls, commercial HVAC tune-ups, refrigeration and anti-sweat heater controls, walk-in cooler upgrades, and smart thermostats.
Restaurants, convenience stores, houses of worship, salons, and small medical offices see the strongest returns.

Custom and Prescriptive Rebates

Larger projects run two tracks.

1. Prescriptive rebates pay a fixed amount per unit of standard equipment—per ton of rooftop HVAC, per horsepower of variable frequency drive, per qualifying fixture.
2. Custom rebates cover projects that do not fit a category: process equipment, building envelope overhauls, commercial heat pump conversions, and building automation systems. Custom incentives are calculated from modeled or measured savings and require pre-approval before work begins.

Nonprofits and local government facilities qualify on the same terms as for-profit businesses.

EmPOWER Maryland’s rebate programs allow you to take back some control of your electric bill. Since the highest incentive levels are set to decrease after 2026 under the Utility RELIEF Act, now is the ideal time to schedule a home audit, lock in lower supply rates, and maximize your savings.