Gaithersburg, 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
Gaithersburg, MD Heat Pump Load Calculator
Use our calculator below to estimate your home’s heating and cooling needs based on square footage. It’s calibrated to ACCA-standard design conditions for Gaithersburg, 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
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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Cash |
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
Gaithersburg, 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 Gaithersburg homeowners.
Home Performance with ENERGY STAR
Up to $15,000Maryland homeowners who switch from fossil-fuel heating systems to electric heat pumps can receive substantial rebates through the Home Performance with ENERGY STAR (HPwES) program, offering up to $15,000 covering 75% of the project cost for full or hybrid electrification projects. This incentive applies to homeowners replacing fossil-fuel heating systems (such as gas, oil, or propane) with electric heat pumps or heat pump water heaters.
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.
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.
Gaithersburg homeowners have access to strong heat pump incentives in 2026. Maryland's Home Performance with ENERGY STAR program offers up to $15,000 in rebates for switching to electric heat pumps, plus a $3,000 geothermal rebate option. Combined with the federal IRA tax credit of up to $2,000, homeowners can significantly reduce their upfront costs. Palmetto can help you navigate these programs, coordinate applications, and maximize your total savings across 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
Gaithersburg sits in IECC Climate Zone 7, which means cold winters (design temps around 5°F) and hot summers (reaching 92°F). This wide temperature swing requires a heat pump that can handle both extremes efficiently. At Palmetto, we understand Gaithersburg's climate and help homeowners choose systems sized and selected for year-round comfort. Explore other climate zones below or enter your ZIP code to confirm your zone.
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
Gaithersburg Electricity Prices
Understanding electricity costs in Gaithersburg helps you make smarter decisions about your home's heating and cooling system.
Maryland residents have seen electricity rates climb significantly in recent years. From 13.1 cents per kWh in 2021 to 17.9 cents in 2024, that's a 37% increase—now exceeding the national average.
Heat pumps offer a practical response to rising rates. Because they're 2-3x more efficient than traditional HVAC systems, they use less electricity to deliver the same heating and cooling, reducing your monthly energy bills.
As electricity costs continue rising, that efficiency gap becomes increasingly valuable. A heat pump's lower energy consumption means you're better insulated from future rate increases, saving more money over the system's lifetime.
Price of Energy: Maryland vs National Average
Gaithersburg Area Utility Providers
Gaithersburg residents receive electricity primarily through PEPCO, which charged 18.2¢ per kWh in 2023. This rate sits above both the national average of 16.0¢ and Maryland's state average of 16.6¢ per kWh.
PEPCO's slightly higher rates reflect Maryland's investment in grid modernization and renewable energy infrastructure. The utility serves the densely populated Washington D.C. metropolitan area, where maintenance and distribution costs tend to run higher than less urban regions.
While electricity costs matter, heat pumps can help manage your energy bills through superior efficiency. They move heat rather than generate it, using significantly less electricity than traditional heating systems—often offsetting higher per-kWh rates with lower overall consumption.
Gaithersburg 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.
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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 Gaithersburg. Located in Climate Zone 7, the area experiences cold winters (down to 5°F) and warm summers (up to 92°F)—conditions where modern heat pumps excel at both heating and cooling efficiently. With Maryland's electricity rate at 17.9¢ per kWh, heat pumps typically cost less to operate than traditional heating systems while providing year-round comfort.
Gaithersburg homeowners have flexible options to go electric. Palmetto's Comfort Plan offers $0 upfront with maintenance included, making it easy to start without a large investment. Alternatively, purchasing outright may qualify you for up to $2,000 in federal tax credits under the Inflation Reduction Act, plus local rebates—helping offset initial costs while you enjoy lower monthly energy bills.
Heat pumps perform very efficiently in Gaithersburg's Climate Zone 7, where winter temperatures typically bottom out around 5°F and summers reach 92°F. Modern heat pumps can deliver 2-3 times more heating or cooling energy than the electricity they consume, making them cost-effective even with Maryland's current electricity rate of 17.9¢ per kWh.
Today's cold-climate heat pumps are specifically designed to handle Gaithersburg's winter conditions while providing excellent air conditioning during humid summers. Most homeowners see significant energy savings compared to traditional heating systems, and with options like Palmetto's Comfort Plan (no upfront cost) or direct purchase (eligible for up to $2,000 in federal tax credits), you can choose the path that fits your budget.
The choice between leasing and buying a heat pump in Gaithersburg depends on your financial priorities and homeownership plans. Buying means paying upfront but owning the equipment outright, plus you may qualify for federal tax credits up to $2,000 under the Inflation Reduction Act. Leasing through Palmetto's Comfort Plan requires $0 upfront and includes all maintenance, repairs, and warranty coverage with a predictable monthly payment.
Consider your situation: if you want to avoid a large upfront investment and prefer worry-free maintenance in Gaithersburg's climate (where temperatures range from 5°F in winter to 92°F in summer), leasing may suit you best. If you plan to stay in your home long-term and want to maximize tax incentives while building equity in your equipment, purchasing could offer better value despite higher initial costs.
Heat pump installation costs in Gaithersburg 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's cold winters (design temp: 5°F) may require a more robust system, which influences the final price.
Palmetto offers two approaches to fit your budget: a Comfort Plan lease 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 for Gaithersburg homeowners. Modern heat pumps can reduce heating and cooling costs by 30-50% compared to traditional systems, and with Maryland's electricity rate of 17.9¢ per kWh, the savings add up quickly. Direct purchases may qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act, plus local rebates.
Palmetto makes heat pumps accessible through two options: our Comfort Plan with $0 upfront cost and predictable monthly payments, or direct purchase for those who want to own outright. Both paths deliver long-term savings, and the Comfort Plan includes all maintenance and repairs, eliminating unexpected costs while you enjoy lower energy bills from day one.
In Gaithersburg, 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 peaks reach 92°F, making correct installation critical for year-round comfort and efficiency.
Palmetto offers heat pump installation through two flexible options: 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 Gaithersburg's specific climate needs and Maryland's 17.9¢ per kWh electricity rates.
HVAC is an umbrella term that stands for Heating, Ventilation, and Air Conditioning—it describes 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 through combustion, making it highly efficient in Gaithersburg's Climate Zone 7 conditions.
Unlike traditional HVAC systems that use separate furnaces and air conditioners, a heat pump handles both jobs with one unit. This efficiency matters in Maryland, where electricity costs 17.9¢ per kWh—heat pumps typically use less energy than conventional systems. Palmetto makes installation accessible through our Comfort Plan with $0 upfront or direct purchase options that may qualify for federal tax credits up to $2,000.