Maryland is lining up state help for heat pumps as new federal limits threaten one of the most valuable home energy incentives available to residents.
The Trump administration recently narrowed the ways federal rebate money can support cleaner home heating. At the same time, the Free State has committed tens of millions of its own dollars to heat pumps, which can reduce utility bills and improve air quality.
What happened?
Maryland can no longer count on using all its federal home-efficiency funding for fuel-switching projects. In early June, the administration changed two rebate programs so households replacing oil, propane, or gas heat with electric systems are no longer eligible, a move that reduced the state's flexibility in spending $136.6 million for home energy upgrades, WYPR reported.
The affected programs are the Home Owner Managing Energy Savings Rebates and High-Efficiency Electric Home Rebate. Both were established through the Inflation Reduction Act to offer rebates for home energy improvement work.
Anne Haveman, general counsel at the Chesapeake Climate Action Network, said the updated rules remove a key option for residents.
"You can't use this funding to go from, say, a propane heater to a heat pump or a gas heater to a heat pump," Haveman told WYPR. "You can only go from electric to electric, or you could upgrade your air conditioner."
TCD Picks » EDF Spotlight
💡EDF's Vital Signs newsletter delivers stories about game-changing solutions close to home and around the world
Why does it matter?
Heat pumps save energy because they transfer heat instead of creating it directly, allowing them to serve as an efficient replacement for both furnaces and air conditioners.
"These heat pumps are two to four times more efficient than the outdated systems that we're using to heat our homes," Haveman told the station.
According to WYPR, she also noted that roughly 500,000 to 1 million Maryland homes still rely on electric resistance heat. Replacing those systems with heat pumps could cut yearly costs by $2,000 or more for households struggling with high utility bills.
What's being done?
Maryland has already set aside state money to respond. Through the Utility RELIEF Act passed earlier this year, lawmakers dedicated $72.6 million specifically to heat pump upgrades.
TCD Picks » Quince Spotlight
💡These best-sellers from Quince deliver affordable, sustainable luxury for all
Eric Coffman, division director of energy programs at the Maryland Energy Administration, said those funds will be split between the existing Residential Energy Equity Program and a new direct-to-consumer rebate program, WYPR reported. The latter initiative is still being developed, and a funding opportunity announcement for the equity program is expected in July.
Coffman said the state plans to keep moving forward despite the federal setback.
"The changes to the electrification part of [the HOMES and HEEHR programs] do limit us to essentially not be able to do that fuel switching, so we're going to lean heavily into the state funds to do so because it's just an opportunity to get people savings sooner than later while helping them improve the condition and comfort of their homes," Coffman said.
Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.
