Is Electrification Worth It in Maryland?

Maryland is mild enough for heat pumps to dominate.

Baltimore gets about 4,600 heating degree days—cold enough to need heat, but not brutal. BGE electricity costs $0.14/kWh. Natural gas runs $1.40/therm. You get EmPower Maryland rebates up to $1,800 for heat pumps, plus the $2,000 federal credit. Most Maryland homes built in the last 20 years already have heat pumps.

Solid yes for heat pumps. If you're heating with oil (still common in parts of Maryland), you'll save $1,000+ per year switching to electric. Even with gas, the payback is 6-8 years. And if you're near the Chesapeake, consider pairing with solar—Maryland's SREC program adds extra income on top of net metering.

Updated December 2024•Data from EIA, DSIRE, NREL
Heat Pump Payback
Not Recommended
With incentives
Annual Savings
$2,478
Full electrification
Available Incentives
$12,650
Federal + state + utility
CO₂ Reduction
12.8 tons
Per year

What Do Energy Costs Look Like in Maryland?

Here's the real data from EIA (Energy Information Administration). These are the rates that determine whether electrification makes financial sense.

Electricity Rate
$0.148/kWh
Natural Gas Rate
$1.62/therm
Average Electric Bill
$152/month
Average Gas Bill
$82/month
Climate Zone
mixed
Heating Degree Days
4,600
Cooling Degree Days
1,200
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Visual ROI Analysis

Payback Period Comparison

Lower is better • Shortest payback = fastest return on investment

Annual Savings Comparison

Higher is better • More annual savings = greater long-term benefit

Cumulative Net Savings Over Time

Point where line crosses $0 = payback achieved • Steeper line = faster savings growth

Which Upgrades Pay Off the Fastest?

I've broken down the economics for each major upgrade. Pay attention to the payback period—that's how long until savings equal your net cost.

🌡️

Heat Pump HVAC

Upfront Cost$12,000 - $22,000
Total Incentives-$3,000
Net Cost$9,000 - $19,000
Annual Savings$87/yr
Payback PeriodNot Recommended
Lifetime ROI14%
CO₂ Reduction2.9 tons/yr
☀️

Solar Panels

Upfront Cost$15,000 - $30,000
Total Incentives-$5,500
Net Cost$9,500 - $20,000
Annual Savings$1,039/yr
Payback Period14.9 years
Lifetime ROI135%
CO₂ Reduction3.3 tons/yr
💧

Heat Pump Water Heater

Upfront Cost$2,500 - $4,500
Total Incentives-$2,650
Net Cost$-150 - $1,850
Annual Savings$264/yr
Payback Period4.3 years
Lifetime ROI87%
CO₂ Reduction1.8 tons/yr
⚡

EV Charger + Electric Vehicle

Upfront Cost$800 - $2,500
Total Incentives-$1,500
Net Cost$-700 - $1,000
Annual Savings$1,088/yr
Payback Period0.5 years
Lifetime ROI1410%
CO₂ Reduction4.8 tons/yr

Should You Go All-In?

Here's what it costs to electrify everything at once—heat pump HVAC, solar panels, heat pump water heater, and EV charger. The upfront cost is high, but so are the savings.

Total Upfront Cost
$30,300 - $59,000
Total Incentives
-$12,650
Net Cost After Incentives
$17,650 - $46,350
Annual Energy Savings
$2,478/year
Lifetime Savings (18 years)
$44,608
Simple Payback
14.5 years
💡

Best ROI for Maryland

Based on your state's energy costs and climate, EV Charger offers the best return on investment with an average payback of 0.5 years and an ROI of 1410%.

0.0 years slower than average compared to the national average.

Ready to electrify your Maryland home?

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