Annapolis, MD Heat Pump Leasing & Installation
In this guide
01
Benefits of Palmetto Heat Pumps
Say goodbye to clunky old systems and surprise repairs. Palmetto Comfort Plan gives you a brand-new heat pump, installation, and full support, all wrapped into one subscription.
Year Round Comfort
A high-efficiency heat pump keeps your home cool in summer, warm in winter, and your energy use in check all year long.
Forget the maintenance
With a Comfort Plan subscription, installation and maintenance are fully covered, no surprise bills, no weekend DIY.
Rewards for renewing
Stick with us and earn credits toward your next system upgrade. It’s our way of saying thanks for building a cleaner, comfier future with us.
02
Annapolis, MD Heat Pump Load Calculator
Use our calculator below to estimate your home’s heating and cooling needs based on Annapolis’s ACCA-standard design conditions: 92°F for cooling and 5°F for heating, with a 72°F indoor target. For a precise Manual J load calculation and personalized quote, connect with Palmetto’s team. Get in touch with our team for an official quote.
Step 1 of 3
Home location & size
Your home’s location and size directly impact heating needs.
Step 2 of 3
Home attributes
Step 3 of 3
Additional details
Description of what this means for context.
Estimated Heating Needs
Your home’s location falls within the a climate zone with the average extreme winter falling between 10° – 15° F.
Home Details
Recommended equipment capacity
60,000 BTU
5 Tons
Calculated Cooling Mode
102,000 BTU
8.5 Tons
03
Buy it or finance it. Your comfort, your call
There's no wrong way to get cozy. Here's how the options stack up, so you can choose what works best for you.
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Loan |
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|---|---|---|---|
| Payment schedule | $0 upfront, then monthly subscription | Full price upfront | $0 upfront, then monthly payment |
| Term length | 10 or 12 years | None | Variable |
| End of term options | Flexible with 25% renewal term credits to new system | No credits to new system | No credits to new system |
| Maintenance included | |||
| Eligible for incentives |
Cash
Loan
Local Incentives
Annapolis, MD Heat Pump Rebates & Incentives
Local and federal incentive programs can significantly reduce the cost of a new heat pump system. Here are the programs available to Annapolis homeowners.
EmPOWER Maryland Heat Pump Rebate
Up to $15,000Maryland's EmPOWER Maryland program offers up to $10,000 - $15,000 in rebates for home energy upgrades including heat pump systems. Homeowners who switch from fossil-fuel heating systems to electric heat pumps can receive up to $15,000, covering 75% of the project cost, for full or hybrid electrification projects when replacing gas, oil, or propane systems.
Maryland Geothermal Rebate Program
$3,000The Maryland Energy Administration (MEA) Geothermal Rebate Program provides geothermal heating and cooling system rebates for Maryland residents on Maryland residential properties. The program offers $3,000 for a new geothermal heating and cooling system.
Federal IRA Tax Credit
Up to $2,000The Inflation Reduction Act provides a federal tax credit of up to $2,000 for qualifying heat pump installations through 2032.
Annapolis homeowners have access to substantial heat pump incentives in 2026. Maryland's EmPOWER program offers up to $15,000 in rebates for switching to electric heat pumps, while a $3,000 geothermal rebate is available through the Maryland Energy Administration. These state programs can be combined with the federal IRA tax credit of up to $2,000. Palmetto can help homeowners navigate these programs, complete required energy audits, and maximize available rebates and tax credits to reduce upfront costs.
Incentive information is based on publicly available data as of 2026 and may change. Contact program administrators to verify current availability and eligibility requirements.
04
Climate Zones
Annapolis sits in IECC Climate Zone 7, which means cold winters that can dip to 5°F and warm summers reaching 92°F. This temperature range matters—your heat pump needs to handle both extremes efficiently. At Palmetto, we understand Annapolis's climate and help homeowners choose systems sized correctly for year-round comfort. Enter your ZIP code below to confirm your zone, or explore other climate zones to see how they compare.
Climate Zone 1
Climate zone 1 is not typically seen within the United States outside of Alaska. It represents the coldest climates on the planet.
Climate Zone 1A
Avg. extreme winters: -60° to -55° F
Climate Zone 1B
Avg. extreme winters: -55° to -50° F
Annapolis Electricity Prices
Understanding electricity costs in Annapolis helps you make smarter decisions about home heating and cooling—especially as rates continue to climb.
Maryland's electricity rates have jumped 37% since 2021, rising from 13.1 to 17.9 cents per kWh. That's now higher than the national average, meaning Annapolis homeowners pay more to power their homes.
Heat pumps offer a practical response to rising rates. Because they're 2-3x more efficient than traditional HVAC systems, they use significantly less electricity to deliver the same heating and cooling comfort you expect.
As electricity costs continue rising, that efficiency gap matters more each year. A heat pump's lower energy consumption means your monthly bills stay manageable, and those savings compound over the system's lifetime.
Price of Energy: Maryland vs National Average
Annapolis Area Utility Providers
Annapolis residents are served primarily by two utility providers: BGE and Pepco. According to 2023 data, BGE's electricity rate was 16.5¢ per kWh, while Pepco's rate was 18.2¢ per kWh.
These rates sit close to Maryland's 2023 state average of 16.60¢ per kWh and slightly above the national average of 16.0¢ per kWh. The variation reflects Maryland's energy infrastructure investments and regional transmission costs.
Understanding your electricity costs matters when considering heating and cooling options. Heat pumps use electricity efficiently—often moving three times more heat energy than the electricity they consume—which can lower overall energy spending even in areas with higher rates.
Annapolis Utilities Electricity Rates
Let our smart tools do the heavy lifting.
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Repair versus replace
When a heat pump is in need of repair it is worth considering whether a replacement would be a better investment. While each case is unique, we generally recommend investing in a new unit when repairs exceed $5,000.
A heat pump's lifetime is impacted by a number of factors including environment, use and the quality of the unit. It's important to choose the right unit for your climate zone and home's unique attributes.
When you are in need of repair, we recommend choosing a service provider that is an expert in the heat pump brand you have installed, and checking online reviews to ensure you are investing in the right level of service.
| Potential repair | Cost range | Description |
|---|---|---|
| Capacitor Replacement | $150 - $400 | Common issue when unit struggles to start or makes a humming noise. Capacitors store the electrical energy needed to start the compressor and fan motors. |
| Refrigerant Recharge | $250 - $750 | Needed when the system loses cooling or heating efficiency due to low refrigerant levels. Includes leak detection, repair of minor leaks, and recharging the system to the manufacturer-specified level. |
| Reversing Valve Replacement | $450 - $900 | Required when the unit cannot switch between heating and cooling modes. The reversing valve directs refrigerant flow and is unique to heat pump systems. |
| Compressor Replacement | $1,500 - $3,000 | Major repair needed when the unit fails to heat or cool entirely. The compressor is the heart of the system, circulating refrigerant between the indoor and outdoor coils. |
| Evaporator/Condenser Coil Replacement | $1,200 - $2,800 | Replacement needed when coils develop leaks or corrosion that cannot be economically repaired. Coil damage reduces heat transfer efficiency and can cause refrigerant loss. |
| Control Board Replacement | $500 - $1,200 | Required when the system has electrical failures or erratic behavior. The control board manages all system operations including defrost cycles, fan speeds, and compressor staging. |
| Full System Replacement | $4,500 - $8,000+ | When repairs exceed the value of the unit or multiple major components fail simultaneously. Includes removal of the old system and installation of a new heat pump with updated refrigerant lines and electrical connections. |
Frequently Asked Questions
Yes, heat pumps make excellent sense in Annapolis. The city's Climate Zone 7 conditions—with winter design temperatures around 5°F and summer peaks near 92°F—fall well within the operating range of modern heat pumps. These systems efficiently handle both heating and cooling needs year-round, which is particularly valuable given Maryland's current electricity rate of 17.9¢ per kWh.
Annapolis homeowners can access heat pump technology through flexible options that fit different budgets and preferences. Palmetto's Comfort Plan requires no upfront investment and includes all maintenance and repairs, while direct purchase allows you to own the equipment outright and potentially qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act, plus local rebates.
Heat pumps perform exceptionally well in Annapolis's Climate Zone 7, where design temperatures range from 5°F in winter to 92°F in summer. Modern heat pumps efficiently handle both heating and cooling in this moderate Mid-Atlantic climate, typically achieving 200-300% efficiency compared to traditional systems. With Maryland's electricity rate at 17.9¢ per kWh, this efficiency translates to meaningful energy savings year-round.
Cold-climate heat pumps maintain strong performance even during Annapolis's coldest days, making them a reliable choice for local homeowners. Palmetto offers flexible installation options including our Comfort Plan with $0 upfront cost and all maintenance included, or direct purchase with potential federal tax credits up to $2,000. Both pathways help Annapolis residents access efficient heating and cooling tailored to the region's climate needs.
The choice between leasing and buying a heat pump in Annapolis depends on your financial priorities and homeownership plans. Purchasing outright means you own the equipment and can claim federal tax credits up to $2,000 under the Inflation Reduction Act, plus any local Maryland rebates. Leasing through Palmetto's Comfort Plan requires $0 upfront and includes all maintenance, repairs, and warranty coverage with a predictable monthly payment.
For Annapolis homeowners planning to stay long-term who want to maximize incentives, purchasing may offer better value over time. However, if you prefer avoiding the upfront cost—typically $10,000-$20,000 for a complete system—and want worry-free maintenance in Maryland's Climate Zone 7 conditions (with winter lows near 5°F), leasing provides immediate comfort without financial stress or repair uncertainties.
Heat pump costs in Annapolis typically range from $5,000 to $20,000 for a complete installation, depending on your home's size, existing ductwork, and the system capacity needed to handle Maryland's Climate Zone 7 conditions (winter lows around 5°F and summer highs near 92°F). System efficiency ratings and installation complexity also impact the final price.
Palmetto offers two flexible options to fit your budget: our Comfort Plan requires $0 upfront with a predictable monthly payment that includes all maintenance and repairs, or direct purchase where you own the equipment outright and may qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act plus local rebates. Both options help Annapolis homeowners reduce energy costs with Maryland's current electricity rate at 17.9¢ per kWh.
Yes, heat pumps are typically worth it financially for Annapolis homeowners. With Maryland's electricity rate of 17.9¢ per kWh, heat pumps can reduce heating and cooling costs by 30-50% compared to traditional systems because they move heat rather than generate it, making them significantly more efficient.
Palmetto makes heat pumps even more accessible with two financial options: our Comfort Plan requires $0 upfront and includes all maintenance and repairs, while direct purchase may qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act plus local rebates. Most homeowners see the investment pay for itself through energy savings within several years.
Heat pumps in Annapolis are installed by licensed HVAC contractors who specialize in heating and cooling systems. These professionals assess your home's specific needs in Climate Zone 7, where winter temperatures can drop to 5°F and summer temperatures reach 92°F, to ensure proper system sizing and installation.
Palmetto provides heat pump installation in Annapolis through qualified local contractors. You can choose between our Comfort Plan with $0 upfront cost and included maintenance, or direct purchase to own your system outright and potentially qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act.
HVAC stands for Heating, Ventilation, and Air Conditioning—it's an umbrella term for any system that controls your home's temperature and air quality. A heat pump is actually a specific type of HVAC system that both heats and cools your home by transferring heat rather than generating it, making it highly efficient in Annapolis's Climate Zone 7 conditions.
Unlike traditional HVAC systems that use separate furnaces and air conditioners, a heat pump handles both jobs in one unit. With Maryland's electricity rate at 17.9¢ per kWh, this efficiency can translate to meaningful savings. Palmetto makes heat pump installation accessible through our Comfort Plan with $0 upfront, or direct purchase options that may qualify for federal tax credits up to $2,000.