Nathan Healy
Certified by Nathan Healy
Updated: February 2026
Quality home solutions since 2011
Palmetto serves thousands of customers across 25 states with an over 85% approval rating

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

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

Forget the maintenance

With a Comfort Plan subscription, installation and maintenance are fully covered, no surprise bills, no weekend DIY.

Rewards for renewing

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

Baltimore, MD Heat Pump Load Calculator

Use our calculator below to estimate your home’s heating and cooling needs based on square footage. It uses ACCA-standard design conditions for Baltimore, MD: 72°F indoor, 92°F outdoor for cooling, and 5°F for heating. For a precise Manual J load calculation and personalized quote, connect with our 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

Get Started

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.

Cash

Loan

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
Payment schedule $0 upfront, then monthly subscription
Term length 10 or 12 years
End of term options Flexible with 25% renewal term credits to new system
Maintenance included
Eligible for incentives

Cash

Payment schedule Full price upfront
Term length None
End of term options No credits to new system
Maintenance included
Eligible for incentives

Loan

Payment schedule $0 upfront, then monthly payment
Term length Variable
End of term options No credits to new system
Maintenance included
Eligible for incentives

Local Incentives

Baltimore, 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 Baltimore homeowners.

EmPOWER Maryland Heat Pump

Up to $15,000

Maryland's flagship energy efficiency program offering substantial rebates for homeowners who switch from fossil-fuel heating systems to electric heat pumps or heat pump water heaters through participating utilities (BGE, Pepco, Potomac Edison, Delmarva Power).

Eligibility: Any homeowner served by a participating utility company. Requires a $100 home energy audit (normally $400) performed by a BPI-certified contractor. Available to all homeowners regardless of income.

Learn more →

Maryland Geothermal Rebate

$3,000

The Maryland Energy Administration provides rebates for new geothermal heating and cooling system installations on residential properties.

Eligibility: Maryland residents on Maryland residential properties installing a new geothermal heating and cooling system. Program budget actively tracked as of January 2026.

Learn more →

Federal IRA Tax Credit

Up to $2,000

The Inflation Reduction Act provides a federal tax credit of up to $2,000 for qualifying heat pump installations through 2032.

Eligibility: Available to homeowners who purchase and install a qualifying heat pump system. Claimed on your annual federal tax return.

Learn more →

Baltimore homeowners have access to strong heat pump incentives in 2026. Maryland's EmPOWER program offers up to $15,000 in rebates for switching to electric heat pumps, plus a $3,000 geothermal rebate is available. These state programs can be combined with the federal IRA tax credit of up to $2,000, significantly reducing your upfront costs. Palmetto can help you navigate these programs, complete required energy audits, and maximize your total savings through strategic planning and expert guidance.

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

Baltimore sits in IECC Climate Zone 7, which means cold winters (design temp: 5°F) and hot, humid summers (design temp: 92°F). This wide temperature swing matters—your heat pump needs to handle both extremes efficiently. At Palmetto, we understand Baltimore's climate and can help you choose a system sized and rated for year-round comfort. Explore other zones below or enter your ZIP code to confirm yours.

US Climate Zone Map
Your location

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

05

Baltimore Electricity Prices

Understanding Baltimore's electricity costs is essential when considering your home's heating and cooling system—especially as rates continue to climb.

Maryland electricity rates have jumped 37% since 2021, rising from 13.1 to 17.9 cents per kWh by 2024. That's now higher than the national average, meaning Baltimore homeowners are paying more to power their homes.

Heat pumps offer a practical response to rising electricity costs. Because they're 2-3 times more efficient than traditional HVAC systems, they use significantly less electricity to deliver the same heating and cooling comfort your family needs.

As electricity rates continue their upward trend, the efficiency advantage of heat pumps becomes more valuable each year. Lower energy consumption means your monthly bills stay manageable, even when rates rise around you.

Price of Energy: Maryland vs National Average

10¢
20¢
30¢
13.7¢
13.1¢
15.0¢
14.5¢
16.0¢
16.6¢
16.5¢
17.9¢
2021
2022
2023
2024
US Average
Maryland

Baltimore Area Utility Providers

Baltimore residents receive electricity primarily from two utilities: Baltimore Gas and Electric (BGE) and Pepco. According to 2023 data, BGE's rates averaged 16.5¢ per kWh, while Pepco's rates were slightly higher at 18.2¢ per kWh.

BGE's rates sit just below the Maryland state average of 16.60¢ per kWh and slightly above the national average of 16.0¢. Pepco's rates run higher due to infrastructure investments and transmission costs in the region.

While electricity costs matter, efficiency matters more. Heat pumps use significantly less energy than traditional HVAC systems—often cutting energy consumption by 50% or more—which means lower bills even in areas with above-average electricity rates.

Baltimore Utilities Electricity Rates

BGE
16.50¢
+3%
Pepco
18.20¢
+14%
MD Average
16.60¢
+4%
US Average
16.0¢
06

Palmetto Reviews

Ready to start saving with a heat pump?

Speak with a Palmetto heating & cooling expert to find out exactly how much you can save.

Get a Free Quote
Palmetto mobile app
07

Let our smart tools do the heavy lifting.

Get personalized tips, usage insights, project tracking, and that daily satisfaction of making your energy work smarter with the Palmetto mobile app.

  • Rewards for smarter energy usage
  • Energy insights & Dashboard
  • Personalized Savings Tools
  • Whole Home Energy Management
  • Support Whenever You Need It
Download the App
08

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.

$5,000
Recommended repair threshold

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.

Ready to start saving with a heat pump?

Speak with a Palmetto heating & cooling expert to find out exactly how much you can save.

Get a Free Quote
09

Frequently Asked Questions

Yes, heat pumps make excellent sense in Baltimore. Modern heat pumps work efficiently in Climate Zone 7, handling Baltimore's cold winters (down to 5°F design temperature) and warm summers (up to 92°F). With Maryland's electricity rate at 17.9¢ per kWh, heat pumps typically cost less to operate than traditional heating systems while providing both heating and cooling year-round.

Baltimore homeowners have flexible options for heat pump installation. Palmetto's Comfort Plan offers $0 upfront with all maintenance included, eliminating surprise repair costs. Alternatively, direct purchase may qualify you for up to $2,000 in federal tax credits under the Inflation Reduction Act, plus local rebates. Both paths deliver the same energy savings and comfort benefits.

Heat pumps perform very efficiently in Baltimore's climate, even during cold winters. Modern cold-climate heat pumps maintain strong heating performance down to 5°F—Baltimore's design heating temperature—while delivering 2-3 times more heating energy than they consume in electricity. This efficiency translates to lower energy bills compared to traditional heating systems, especially important given Maryland's electricity rate of 17.9¢ per kWh.

Baltimore's moderate climate in Climate Zone 7 is well-suited for year-round heat pump operation, with both heating and cooling needs. Heat pumps handle Baltimore's 92°F summer design temperature efficiently while providing cost-effective heating during winter months. Whether you choose Palmetto's Comfort Plan with no upfront costs and included maintenance, or direct purchase to access federal tax credits up to $2,000, you'll benefit from consistent efficiency throughout the year.

The choice between leasing and buying a heat pump in Baltimore depends on your financial situation and preferences. If you have funds available and want to maximize savings, purchasing allows you to own the equipment outright and claim up to $2,000 in federal tax credits under the Inflation Reduction Act, plus local rebates. If you prefer avoiding upfront costs, Palmetto's Comfort Plan offers $0 down with predictable monthly payments and all maintenance included.

Baltimore's Climate Zone 7 winters mean your heat pump will work year-round, making long-term value an important consideration. Leasing eliminates surprise repair costs and includes warranty coverage for the system's lifetime, while purchasing gives you full ownership and potential tax benefits. Consider your budget, how long you plan to stay in your home, and whether you prefer predictable expenses or upfront investment when making your decision.

Heat pump costs in Baltimore typically range from $5,000 to $20,000 for a complete installation, depending on your home's size, existing ductwork, and the system's efficiency rating. Baltimore's Climate Zone 7 conditions—with winter temperatures dropping to 5°F—require properly sized equipment to ensure year-round comfort and optimal performance.

Palmetto offers two flexible options to fit your budget: a Comfort Plan with $0 upfront and predictable monthly payments that include all maintenance and repairs, or direct purchase where you own the system outright and may qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act plus local rebates. Both options help Baltimore homeowners transition to efficient heating and cooling.

Yes, heat pumps are typically worth it financially in Baltimore. Modern heat pumps can reduce heating and cooling costs by 30-50% compared to traditional systems, which is significant given Maryland's electricity rate of 17.9¢ per kWh. They handle both heating and cooling efficiently, even during Baltimore's cold winters with temperatures around 5°F.

Palmetto makes heat pumps accessible through two options: a Comfort Plan with $0 upfront and all maintenance included, or direct purchase with potential federal tax credits up to $2,000. Most Baltimore homeowners see the system pay for itself through energy savings within several years, while enjoying consistent comfort year-round.

Heat pumps in Baltimore are installed by licensed HVAC contractors who specialize in heating and cooling systems suited for Climate Zone 7 conditions. Palmetto partners with certified local installers who understand Baltimore's unique climate requirements, including design temperatures ranging from 5°F in winter to 92°F in summer, ensuring your system is properly sized and installed for year-round comfort.

Palmetto offers two installation options to fit different homeowner needs: a Comfort Plan with $0 upfront cost and all maintenance included, 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. Both options include professional installation by experienced technicians who ensure your heat pump operates efficiently in Baltimore's climate.

A heat pump is actually a type of HVAC system. HVAC stands for Heating, Ventilation, and Air Conditioning—it's an umbrella term for any equipment that controls your home's temperature and air quality. Heat pumps are unique because they both heat and cool your home using electricity, transferring heat rather than generating it through combustion.

In Baltimore's Climate Zone 7, where winter temperatures can drop to 5°F and summers reach 92°F, modern heat pumps handle both seasons efficiently. Unlike traditional HVAC systems that use separate furnaces and air conditioners, a single heat pump does both jobs. With Maryland's electricity rate at 17.9¢ per kWh, heat pumps typically cost less to operate than older heating systems while providing year-round comfort.