Guide to Maryland Geothermal Energy Credits

Harnessing Maryland’s Renewable Energy Potential

As Maryland continues to lead the way in renewable energy adoption, geothermal energy has emerged as a sustainable and cost-effective solution for homeowners and businesses alike. To encourage the adoption of this clean energy source, Maryland offers Geothermal Energy Credits that help offset installation costs while promoting energy efficiency.

This guide provides a comprehensive overview of Maryland’s Geothermal Energy Credits, covering eligibility, application procedures, financial incentives, and ways to maximize savings. Whether you’re a homeowner in Montgomery County or Prince George’s County, this guide will help you navigate the available incentives and take full advantage of Maryland’s renewable energy programs.

Understanding Maryland Geothermal Energy Credits

What Are Geothermal Energy Credits?

Maryland’s Geothermal Energy Credits are financial incentives aimed at homeowners, businesses, and government entities that install geothermal heating and cooling systems. These credits are part of the state’s Renewable Energy Portfolio Standard (RPS), which requires a portion of the state’s energy to come from renewable sources.

By installing a qualifying Ground Source Heat Pump (GSHP) system, residents and businesses can claim state and federal tax credits, helping to reduce the initial investment in geothermal energy.

Residential Tax Credits for Geothermal Heat Pumps — Source: Department of Energy

How Geothermal Energy Works

Geothermal systems use the Earth’s consistent underground temperatures to provide energy-efficient heating and cooling.

Winter: The system extracts heat from the ground and distributes it indoors.
Summer: Heat is removed from the building and transferred back into the earth.

This process significantly reduces energy costs, with many homeowners saving 30% to 70% on heating and cooling expenses.

Benefits of Geothermal Energy in Maryland

Environmental Benefits

Reduces Greenhouse Gas Emissions: Unlike fossil fuel systems, geothermal energy has minimal carbon emissions.
Decreases Energy Consumption: Geothermal systems are up to 500% more efficient than traditional HVAC systems.
Promotes Sustainability: Supports Maryland’s goal of reducing carbon emissions by 40% by 2030.

Economic Benefits

Lower Utility Bills: Geothermal energy can cut heating and cooling costs by up to 70%.
Increased Property Value: Energy-efficient homes with geothermal systems are more attractive to buyers.
Job Creation: Expanding geothermal adoption supports local green energy jobs in Montgomery and Prince George’s Counties.

Energy Independence

Reduces Reliance on Fossil Fuels: By harnessing local geothermal resources, Maryland enhances energy security.
Provides Stable Energy Costs: Unlike fossil fuel prices, geothermal energy costs remain predictable over time.

Eligibility Criteria for Maryland Geothermal Energy Credits

Who Can Apply?

Residential Homeowners: Single-family homes, townhouses, and condominiums.
Businesses & Commercial Properties: Offices, schools, non-profits, and industrial buildings.
Government Entities: Municipal buildings and public schools.

Qualifying Geothermal Systems

Ground Source Heat Pumps (GSHPs)
Closed-Loop Systems (Horizontal/Vertical)
Open-Loop Systems (Using Groundwater)

Project Requirements

Installed by a Certified Contractor
Compliance with Maryland’s Energy Regulations
Proper Permits and Documentation

How to Apply for Maryland Geothermal Energy Credits

Required Documentation

Proof of Installation (Contract & Invoices)
System Specifications (Type, Efficiency Ratings, and Capacity)
Permit Approvals from Montgomery County or Prince George’s County

Application Steps

Download the Application Form from the Maryland Energy Administration website.
Complete the Application with details about the property, system type, and contractor information.
Submit the Application electronically or via mail before the deadline.
Await Approval & Verification (May include a site inspection).
Receive Geothermal Energy Credits to claim on your Maryland state taxes.

Maximizing Your Maryland Geothermal Energy Credits

Combine with Federal Tax Credits

The Federal Residential Renewable Energy Tax Credit covers 30% of installation costs.
Apply for both state and federal credits to maximize savings.

Check for Local Rebates & Incentives

Pepco & BGE Rebates: Check with local utility providers for additional geothermal rebates.
County-Level Grants: Montgomery County and Prince George’s County offer additional incentives.

Maintain System Efficiency

Schedule annual maintenance to ensure peak efficiency.
Monitor Energy Usage to track savings and detect any inefficiencies.

Investing in Maryland’s Geothermal Future

Maryland’s Geothermal Energy Credits make renewable energy more accessible and affordable for residents and businesses. By taking advantage of these incentives, you can:

Reduce upfront installation costs
Lower energy bills
Support Maryland’s clean energy goals

For more details, visit:

Interested in Geothermal Systems?

For expert guidance, cost estimates, and installation services, contact Maryland Geothermal today! Don't hesitate to reach out if you have any questions regarding geothermal installations in Maryland. Contact us by phone (703) 719-8409 or email jake@northamericangeo.com.

Maryland Geothermal proudly serves communities across both Prince George and Montgomery counties, including Bowie, College Park, Greenbelt, Laurel, Hyattsville, Upper Marlboro, Glenarden, New Carrollton, District Heights, Mount Rainier, Riverdale Park, Seat Pleasant, Berwyn Heights, Bladensburg, Brentwood, Capitol Heights, Cheverly, Edmonston, Fairmount Heights, Forest Heights, Landover, Landover Hills, North Brentwood, North Bethesda, Mitchellville, Olney, Fort Washington, Glenn Dale, Bethesda, Clarksburg, Kensignton, Rockville, Gaithersburg, Darnestown, Chevy Chase, and Potomac.