Bethesda, 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
Bethesda, MD Heat Pump Load Calculator
Use this calculator to estimate your home’s heating and cooling needs based on square footage. It’s calibrated to ACCA-standard design conditions for Bethesda, MD: 72°F indoor, 92°F outdoor cooling, and 5°F heating. For a detailed 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.
|
|
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 |
Cash
Loan
Local Incentives
Bethesda, 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 Bethesda homeowners.
EmPOWER Maryland Heat Pump Rebate
Up to $15,000Maryland's Home Performance with ENERGY STAR program provides up to $15,000 in rebates for homeowners switching from fossil-fuel heating systems to electric heat pumps or heat pump water heaters. Requires a home energy audit to qualify.
Maryland Geothermal Rebate Program
$3,000The Maryland Energy Administration provides rebates for qualifying geothermal heating and cooling system installations. First-come, first-served program with limited funding.
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.
Bethesda 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 the federal IRA tax credit of up to $2,000 can be stacked on top. Palmetto can help you navigate these programs, complete required energy audits, and maximize your total savings through careful planning and coordination of state and federal incentives.
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
Bethesda 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 directly impacts which heat pump system will keep your home comfortable year-round. At Palmetto, we factor in Bethesda's specific climate when sizing and recommending heat pumps for local homes. Explore the climate zones below or enter your ZIP code to confirm yours.
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
Bethesda Electricity Prices
Understanding electricity costs in Bethesda helps you make smarter decisions about home heating and cooling—especially as rates continue climbing.
Maryland electricity rates have jumped 37% since 2021, rising from 13.1 to 17.9 cents per kWh in 2024. That's now higher than the national average, making energy efficiency more important than ever for Bethesda homeowners.
Heat pumps address this challenge directly by using 2-3 times less electricity than traditional HVAC systems for the same heating and cooling output. This efficiency means lower bills even as rates increase.
As electricity costs continue their upward trend, heat pump efficiency becomes increasingly valuable. What saves you money today will save you even more tomorrow, protecting your household budget for years to come.
Price of Energy: Maryland vs National Average
Bethesda Area Utility Providers
Bethesda residents receive electricity primarily from Pepco. According to 2023 data, Pepco's average rate was 18.2¢ per kWh—slightly above Maryland's state average of 16.60¢ and the national average of 16.0¢.
Pepco's rates reflect the costs of maintaining reliable infrastructure in a densely populated region, plus Maryland's investments in grid modernization and renewable energy integration. These factors contribute to rates moderately higher than national benchmarks.
Even with above-average electricity costs, heat pumps offer meaningful savings. Their exceptional efficiency means they use significantly less energy than traditional heating systems, helping offset higher per-kWh rates and reducing your overall energy spending.
Bethesda Utilities Electricity Rates
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
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 Bethesda. As a Climate Zone 7 area with winter temperatures reaching 5°F and summers hitting 92°F, modern heat pumps efficiently handle both heating and cooling needs year-round. With Maryland's electricity rate at 17.9¢ per kWh, heat pumps typically cost less to operate than traditional heating systems while providing consistent comfort.
Bethesda homeowners can access heat pumps through Palmetto's Comfort Plan with $0 upfront and all maintenance included, or through direct purchase to take advantage of federal tax credits up to $2,000. Either option provides an efficient solution for Bethesda's climate, reducing energy costs while keeping your home comfortable through cold winters and warm summers.
Heat pumps perform exceptionally well in Bethesda's Climate Zone 7, efficiently heating homes even when temperatures drop to the 5°F design threshold. Modern heat pumps can achieve 200-300% efficiency, meaning they deliver 2-3 times more heating or cooling energy than the electricity they consume—a significant advantage given Maryland's current electricity rate of 17.9¢ per kWh.
During Bethesda's moderate winters and warm summers (with cooling design temperatures around 92°F), heat pumps provide year-round comfort while reducing energy costs compared to traditional heating systems. Palmetto makes installation accessible through our Comfort Plan with $0 upfront cost and included maintenance, or through direct purchase which may qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act.
The decision between leasing and buying a heat pump in Bethesda depends on your financial priorities and homeownership plans. Palmetto's Comfort Plan offers $0 upfront with predictable monthly payments and included maintenance, while direct purchase means you own the equipment and may qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act plus local Maryland rebates.
For Bethesda's Climate Zone 7 conditions, where heating and cooling demands are significant, leasing eliminates surprise repair costs and includes lifetime warranty coverage. Buying makes sense if you want to maximize long-term savings through incentives and ownership, especially given Maryland's 17.9¢ per kWh electricity rates where heat pump efficiency really matters. Consider how long you'll stay in your home and whether upfront savings or long-term ownership better fits your situation.
Heat pump installation costs in Bethesda typically range from $8,000 to $20,000 depending on your home's size, existing ductwork, and the system's efficiency rating. Climate Zone 7 conditions—with winter temperatures dropping to 5°F—may require a more robust system, which can influence the final price.
Palmetto offers two payment options to fit your budget: a Comfort Plan with $0 upfront and predictable monthly payments including all maintenance, 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 Maryland rebates.
Yes, heat pumps are typically worth it financially in Bethesda, especially 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. With federal tax credits up to $2,000 available for direct purchases, the payback period often ranges from 5-10 years.
Palmetto makes heat pumps even more financially accessible through two options: a Comfort Plan with $0 upfront cost and predictable monthly payments including all maintenance, or direct purchase to own the equipment outright. The Comfort Plan eliminates unexpected repair costs, while direct purchase maximizes long-term savings and qualifies for immediate tax incentives under the Inflation Reduction Act.
In Bethesda, MD, licensed HVAC contractors install heat pumps, including companies like Palmetto that specialize in home energy solutions. Professional installers ensure your system is properly sized for Climate Zone 7 conditions, where winter temperatures can drop to 5°F and summer highs reach 92°F, maximizing efficiency and comfort year-round.
Palmetto offers two installation options for Bethesda homeowners: a Comfort Plan with $0 upfront cost and included maintenance, or direct purchase where you own the equipment and may qualify for up to $2,000 in federal tax credits. Both options include professional installation by certified technicians who understand Maryland's climate requirements and local building codes.
A heat pump is actually a type of HVAC system. HVAC stands for Heating, Ventilation, and Air Conditioning—it's an umbrella term for all systems that heat and cool your home. Heat pumps are unique because they provide both heating and cooling in one efficient unit, transferring heat rather than generating it through combustion.
In Bethesda's Climate Zone 7, where winter temperatures can drop to 5°F and summers reach 92°F, modern heat pumps handle both seasons effectively while using less electricity than traditional furnaces and air conditioners. With Maryland's electricity rate at 17.9¢ per kWh, this efficiency translates to meaningful savings on your energy bills throughout the year.