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Incentives/Policies for Renewables & Efficiency

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Geothermal Heat Pump Grant Program   

Last DSIRE Review: 10/16/2014
Program Overview:
State: Maryland
Incentive Type: State Rebate Program
Eligible Renewable/Other Technologies: Geothermal Heat Pumps
Applicable Sectors: Commercial, Industrial, Residential, Nonprofit, Schools, Local Government, Institutional
Amount:Residential: $3,000 per project
Non-residential: $90-$180 per ton (varies by system size)
Maximum Incentive:Residential: $3,000
Non-residential: $4,500
Eligible System Size:Residential: 1 - 10 tons
Non-residential: 1 - 50 tons
Equipment Requirements:Must meet ENERGY STAR standards
A minimum Energy Efficiency Ratio (EER) of 14.0;
A minimum Coefficient of Performance (COP) of 3.0
Installation Requirements:Must comply with all State and local laws and ordinances
Must displace electric
Ownership of Renewable Energy Credits:Remains with project owner
Funding Source:Strategic Energy Investment Fund (SEIF)
Start Date:2007
Expiration Date:When funds are exhausted
Web Site:
Authority 1:
MD STATE-GOVT §9–20B-01 et seq.
Authority 2:
COMAR 14.26.04

The Maryland Energy Administration (MEA) offers rebates of $3,000 for residential geothermal heat pump systems and up to $4,500 for non-residential geothermal heat pump systems. The residential program offers a flat per system incentive ($3,000) for systems with up to 10 tons of refrigeration capacity (1 ton is equivalent to 12,000 BTUs). The non-residential program offers $180 per ton for systems of less than 25 tons and $90 per ton for systems from 25 - 50 tons. It is important to note that these system size/capacity ranges are exclusive, not additive in nature. For example, a 37.5 ton system would be eligible for an incentive of $3,375 (37.5 tons X $90/ton), not $180/ton for the first 25 tons plus $90/ton for the additional 12.5 tons. Funding for the program is provided annually from the Maryland Strategic Energy Investment Fund (SEIF), which receives income from greenhouse gas emission auctions under the Regional Greenhouse Gas Initiative (RGGI).

The definition of geothermal heat pump property does not include swimming pools, hot tubs, or any other energy storage device that has a primary function other than storage. In addition, systems should have a minimum Energy Efficiency Ratio (EER) of 14.0 and a minimum Coefficient of Performance (COP) of 3.0 according to the testing standards of the Air Conditioning and Refrigeration Institute (ARI) or another nationally recognized agency.

Rebate applications must include information on the type of system being installed, the installer, and contain copies of any necessary permits. Not all systems are guaranteed rebates and the MEA may elect to award an amount different than the one requested in the application. If a project is approved the applicant then has 270 days to install the system, assemble the necessary supporting documentation, and submit a completion certificate to the MEA claiming their rebate, or they risk losing their rebate. If a system has already been installed prior to submitting an application to MEA, the project is still eligible for a grant, as long as the system meets the program requirements and was placed in service during the same fiscal year (e.g., July 1, 2010 – June 30, 2011) that the application was submitted. Persons with previously installed systems should contact the MEA for further information.

  Public Information Officer - MEA
Maryland Energy Administration
60 West Street, 3rd Floor
Annapolis, MD 21401
Phone: (410) 260-7655
Phone 2: (800) 723-6374
Web Site:
NCSU - home
Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2014 - 2015 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.