Geothermal Heat Pumps

The BGE Smart Energy Savers Program offers a $1,500 rebate on super-efficient geothermal heat pumps.

Qualifying ENERGY STAR® geothermal pumps must be purchased by December 31, 2019 to be eligible for rebates. Purchased geothermal pumps must be installed by January 1, 2020, and the rebate application and all required documentation must be received no later than February 28, 2020 from your participating contractor to qualify.

What is a geothermal heat pump?

Geothermal heat pumps are different from conventional heat pumps. They use the temperature of the ground instead of the outside air to provide heating and air conditioning to your home. Because they use the earth's natural temperature, geothermal heat pumps are among the most energy efficient and comfortable heating and cooling technologies currently available.

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Why should I consider a geothermal system?

  • Proven technology: Geothermal systems are a super-efficient alternative to traditional heating and cooling equipment, and one of the fastest growing technologies on the market.
  • Energy savings: Geothermal heat pumps are at least 45% more energy efficient than standard heating and cooling systems, meaning you’ll save energy and money year after year.
  • 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. Plus, geothermal systems offer improved indoor humidity control.
  • Quietness: Because these systems don’t have outdoor condensing units like air conditioners do, there's no concern about noise outside your home. In fact, a two-speed geothermal heat pump is so quiet inside the home that most users usually don’t even notice when the system is operating.
  • Hot water heating: Some geothermal heat pumps can deliver hot water at the same efficiency as heating and cooling. Super-efficient models could even cut your water heating costs by half.*
  • Durability: Geothermal heat pump systems have relatively few moving parts. Because those parts are sheltered indoors, the systems are durable and highly reliable. The underground piping often carries warranties of 25 to 50 years, and the heat pumps often last 20 years or more.
  • Return on investment: Depending on factors such as your climate, soil conditions, system features you choose and available financing and incentives, you may be able to get back your initial investment through lower utility costs in as little as 2 years.**
  • Environmental protection: According to the U.S. Environmental Protection Agency, geothermal heat pumps can reduce energy consumption—and related greenhouse gas emissions—up to 44% compared to air source heat pumps.

Take advantage of these incentives!

  • $1,500 rebate on geothermal heat pumps from the BGE Smart Energy Savers Program.
  • Grants up to $3,000 for the installation of new geothermal systems (not applicable for the replacement of existing geothermal systems) from the Maryland Energy AdministrationGrant funding is limited and available on a first come, first serve basis.
  • You may be eligible for federal tax credits up to 30% through December 31st, 2019. Up to 26% through December 31st 2020. 
  • Systems installed after January 1, 2013, are eligible to receive renewable energy credits.
  • Some counties and municipalities offer additional incentives. Learn more.

Find a qualified or authorized contractor now.


Note: If you apply for a rebate on geothermal heat pump equipment, you cannot apply for a rebate on the same equipment under the Home Performance with ENERGY STAR program.