Maryland Utility RELIEF Act Adds $72 Million for Heat Pumps
Key Highlights
- The legislation allocates $72.65 million for Maryland’s Residential Energy Equity Program to help low- and moderate-income households install heat pumps.
- Heat pumps are up to three times more efficient than traditional gas furnaces, offering significant energy savings.
- Legislation aims to reduce greenhouse gas emissions by 60% in five years and achieve net-zero emissions by 2045.
ANNAPOLIS, Maryland — Maryland’s Utility RELIEF Act has passed the General Assembly, adding more than $72 million for home energy upgrades and expanding funding tools for heat pumps and building electrification.
The Utility RELIEF Act, formally titled Reducing Energy Load Inflation for Everyday Families, includes several measures aimed at lowering energy costs, supporting clean energy adoption, and creating jobs.
Among the provisions is $72.65 million for Maryland’s Residential Energy Equity Program. The funding is intended to help low- and moderate-income households install modern, efficient, zero-emission heat pumps.
The legislation also updates Maryland’s Strategic Energy Investment Fund, authorizing the program to provide loans, grants, rebates, and other incentives for building and transportation electrification.
In addition, the law directs the Maryland Energy Administration to develop programs offering grants and loans to businesses and homeowners seeking to weatherize buildings, install heat pumps, or complete upgrades needed to meet Maryland’s Building Energy Performance standards.
For HVAC contractors, the measure could increase demand for residential retrofit work, heat pump installations, weatherization projects, and related electrical upgrades as new programs are rolled out.
The Utility RELIEF Act also includes provisions tied to utility ratemaking, data center tariffs and registry requirements, a reverse auction for new clean energy generation, and changes to state energy efficiency programs.
“Maryland families are facing rising energy costs,” said Sen. Ron Watson (D-23-Bowie). Watson said the legislation increases access to efficient heating and cooling technologies that can help reduce household costs while supporting the state’s clean energy economy.
Supporters of the bill said building electrification investments could also create jobs for Maryland contractors, electricians, and building trades professionals.
According to the release, heat pumps are up to three times more efficient than traditional gas furnaces. It also stated Maryland households can save an average of $250 to $550 annually on energy bills by using a heat pump, with higher savings possible for homes using electric resistance or delivered-fuel heating systems.
The release added that the legislation supports Maryland’s emissions goals of reducing greenhouse gas emissions by 60% in the next five years and reaching net-zero emissions by 2045.