If you’ve been thinking about replacing your heating and cooling system in Frederick County, Carroll County, Howard County, Montgomery County, or surrounding Maryland areas, now is the time to stop thinking and start doing.
BGE just announced they’re reducing their HVAC rebate incentives for system replacements starting September 15, 2025. That means homeowners in Frederick, Westminster, Eldersburg, Columbia, Ellicott City, Hagerstown, Gaithersburg, Rockville, and Germantown could lose hundreds — even thousands — in instant savings if they wait.
How HVAC Rebates and Tax Credits Work in Maryland
When you install a high-efficiency HVAC system — like a qualifying heat pump or central AC unit — you may be eligible for:
- BGE Rebates: Instant discounts from BGE for energy-efficient HVAC upgrades.
- Washington Gas HVAC Rebates: Offers rebates for high-efficiency furnaces and heat pumps in homes heated by gas.
- PEPCO Energy Efficiency Rebates: Savings for customers in Montgomery County, Prince George’s County, and surrounding areas.
- Potomac Edison HVAC Rebates: Incentives for energy-efficient cooling units in Western Maryland.
- Federal Tax Credits: The Inflation Reduction Act HVAC tax credit currently offers up to $2,000 for certain high-efficiency systems.
These programs can be stacked to reduce your HVAC installation cost, which is why many Maryland homeowners are upgrading before the deadlines expire.
What’s Changing With BGE HVAC Rebates in 2025
Starting September 15, 2025, BGE will reduce rebate amounts for eligible HVAC system replacements. For example:
- A $1,000 rebate might drop to $500 or less.
- Some systems will see smaller drops, but every bit counts.
If you replace your system before the deadline, you lock in today’s higher rebate rates.
Why Other Utilities May Follow BGE’s Lead
BGE isn’t the only utility with rebates. Our area also benefits from Washington Gas, PEPCO, and Potomac Edison HVAC incentive programs.
Here’s the pattern we’ve seen: when one major utility company cuts back incentives, the others often follow within months. These programs are often tied to similar state energy goals and funding cycles.
That means if BGE is reducing rebates this fall, Washington Gas HVAC rebates, PEPCO HVAC incentives, and Potomac Edison energy savings programs could be next for homeowners in Frederick County, Carroll County, Howard County, and Montgomery County.
The Future of Federal HVAC Tax Credits in 2026
Right now, the federal energy efficiency tax credit is a huge win for Maryland homeowners upgrading to high-efficiency systems. But proposed legislation — including the so-called “Big Beautiful Bill” — could reduce or eliminate these credits starting in 2026.
The takeaway? Don’t gamble on future incentives. Install an HVAC unit in 2025 and lock in the credit while it’s still available.
Why Maryland Homeowners Should Act Now
- Bigger BGE Rebates Before Sept 15 – Get the higher rebate amounts before the cut.
- Multiple Utility Rebates – Stack incentives from Washington Gas, PEPCO, and Potomac Edison before they follow suit.
- Guaranteed 2025 Tax Credit – Avoid uncertainty in 2026.
- Lower Energy Bills Now – Enjoy immediate monthly savings with a high-efficiency system.
Get Your Free HVAC Replacement Estimate in Maryland
At Honest Air, we help homeowners in Frederick County, Carroll County, Howard County, Montgomery County, Middletown, Urbana, New Market, Brunswick, Walkersville, Westminster, Eldersburg, Columbia, and Ellicott City:
- Pick qualifying high-efficiency HVAC systems
- Complete all rebate paperwork for BGE, Washington Gas, PEPCO, and Potomac Edison
- Secure every possible tax credit and incentive before they’re reduced
Don’t wait. Call us today to lock in your BGE HVAC rebate and federal tax credit before they disappear.