What Maryland's HB 864 Means for Your Business — and Why 2026 Is the Year to Act

If you own or manage a commercial building in Maryland, 2024 was a big year for energy incentives — even if you didn't hear much about it. The Maryland General Assembly passed House Bill 864, significantly expanding the EmPOWER Maryland program and increasing the funds available for commercial energy efficiency upgrades. The result: more money on the table for Maryland businesses willing to act before the 2024–2026 program cycle ends.

Here's what changed, what it means for your bottom line, and how to take advantage before rebate budgets run dry.

What Is EmPOWER Maryland, and Why Does It Matter?

EmPOWER Maryland is the state's flagship energy efficiency program, established in 2008 under the Maryland Energy Efficiency Act. It's funded by a small surcharge on every electric bill in the state — meaning every Maryland electricity ratepayer, including your business, has already been contributing to this fund. The goal of the program is to reduce electricity demand statewide and help Maryland meet its climate commitments.

For commercial businesses, the program translates into rebates covering a substantial portion of the cost of energy-efficient equipment and services. Since its inception, EmPOWER Maryland has delivered over $14.5 billion in energy savings on a $4.1 billion investment — a 3.5:1 return — making it one of the most effective utility efficiency programs in the country.

What HB 864 Changed in 2024

Prior to HB 864, EmPOWER Maryland's commercial programs had a relatively narrow focus on traditional energy efficiency measures — lighting upgrades, HVAC tune-ups, and building envelope improvements. HB 864 expanded that scope in several meaningful ways:

1. Electrification Incentives Added

HB 864 directed the Maryland Public Service Commission to expand EmPOWER programs to include building electrification measures — replacing fossil fuel systems with high-efficiency electric alternatives. This means rebates are now increasingly available for heat pump conversions and other all-electric upgrades, not just traditional efficiency measures. For commercial building owners looking ahead to Maryland's Climate Solutions Now Act requirements, this creates a pathway to get incentive support for electrification projects.

2. Increased Program Funding Targets

The bill increased the energy savings targets that utilities must meet, which in practical terms means utilities have increased the budgets available for commercial rebate programs. More budget means more applications can be approved before funds are exhausted — but it also means competition for those funds is higher than ever.

3. Expanded Income-Qualifying Commercial Provisions

HB 864 added new provisions specifically targeting small businesses and nonprofits in lower-income communities, with enhanced rebate rates for eligible properties. If your business serves or is located in a designated priority funding area, you may qualify for higher rebate percentages than the standard rates.

What Programs Are Available Right Now?

Under EmPOWER Maryland's 2024–2026 cycle, commercial buildings can access rebates for three main categories of improvements:

HVAC Tune-Up Programs (Up to 85% Rebate)

For commercial buildings with rooftop units (RTUs) or split systems that are 2+ years old, HVAC tune-up programs provide rebates covering up to 85% of the service cost (for small commercial customers with BGE or Pepco). The tune-up includes a comprehensive inspection, refrigerant charge check, coil cleaning, controls calibration, and system optimization — all performed by a licensed HVAC technician.

Typical energy savings from a commercial HVAC tune-up: 5–20% reduction in HVAC energy consumption. For a building spending $2,000/month on cooling, that's up to $400/month in savings from a single service visit.

Building Tune-Up Programs (Up to 85% Rebate)

The Building Tune-Up program takes a whole-building approach, optimizing everything from HVAC controls and scheduling to lighting controls, plug loads, and building envelope. Small commercial buildings (under 75,000 sq ft) can access rebates of up to 85%, while larger buildings (75,000+ sq ft) qualify for the large building program with 50% rebates plus ongoing savings verification support.

Lighting Upgrade Programs (Up to 80% Rebate)

LED lighting upgrades remain one of the highest-ROI energy investments for commercial buildings. Under EmPOWER Maryland's 2024–2026 cycle, lighting rebates cover up to 80% of upgrade costs, with instant discounts also available at participating distributors. LED fixtures use up to 90% less electricity than fluorescent or metal halide alternatives and last 3–5x longer.

Why 2026 Is the Right Time to Act

The current EmPOWER Maryland program cycle runs through 2026 — meaning this is the final year of the current funding cycle. Here's why acting now rather than waiting makes strategic sense:

How Maryland Smart Energy Can Help

Understanding rebate programs is one thing. Getting the paperwork done, scheduling qualified technicians, and ensuring your application is submitted correctly is another. Maryland Smart Energy is an authorized EmPOWER Maryland service provider working with all four major utilities — BGE, Pepco, Delmarva Power, and SMECO.

We handle the entire process: assessment, scheduling, service delivery, and rebate application. Our clients pay for the service upfront, then receive the utility rebate check directly — ensuring transparency and giving you full control of your rebate funds.

To find out which programs your building qualifies for, schedule a no-cost walkthrough assessment with our team.