Silver Spring, 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
Silver Spring, 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 Silver Spring, MD: 72°F indoor, 92°F outdoor cooling, and 5°F heating temperatures. 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.
|
|
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
Silver Spring, 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 Silver Spring homeowners.
EmPOWER Maryland HPwES
Up to $15,000Maryland's Home Performance with ENERGY STAR program provides rebates for homeowners upgrading to electric heat pumps or heat pump water heaters. Available through participating utilities including BGE, Pepco, and Potomac Edison.
Maryland Geothermal Rebate
$3,000The Maryland Energy Administration provides rebates for new geothermal heating and cooling system installations. This program is actively funded and accepting applications in 2026.
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.
Silver Spring homeowners have access to excellent 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. Combined with the federal IRA tax credit of up to $2,000, homeowners can significantly reduce their heat pump installation costs. Palmetto can help you navigate these programs, complete required energy audits, and maximize your total savings through strategic rebate stacking.
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
Silver Spring sits in IECC Climate Zone 7, which means cold winters (design temps around 5°F) and hot, humid summers (up to 92°F). This wide temperature range makes proper heat pump sizing critical—you need a system that can handle both extremes efficiently. At Palmetto, we understand Silver Spring's climate inside and out, so we can recommend the right heat pump for your home. Explore other 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
Silver Spring Electricity Prices
Understanding Silver Spring's electricity costs is essential when considering your home heating and cooling options—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, making energy efficiency more important than ever for Silver Spring homeowners.
Heat pumps offer a practical solution to these rising costs. Because they're 2-3 times more efficient than traditional HVAC systems, they use significantly less electricity to heat and cool your home—meaning lower bills even as rates increase.
As electricity costs continue rising, that efficiency gap becomes increasingly valuable. A heat pump installation today means you're better protected against future rate increases, keeping more money in your pocket year after year.
Price of Energy: Maryland vs National Average
Silver Spring Area Utility Providers
Silver Spring residents receive electricity primarily from Pepco. According to 2023 data, Pepco's average residential rate was 18.2¢ per kWh—slightly above Maryland's state average of 16.6¢ and the national average of 16.0¢.
Maryland's electricity costs run higher than the national average due to infrastructure investments in grid reliability and the state's commitment to clean energy initiatives. Pepco's rates reflect these modernization efforts and the costs of serving the densely populated Washington metro area.
While electricity rates matter, efficiency matters more. Heat pumps use significantly less energy than traditional heating systems—often cutting heating costs by 30-50%. Even with above-average electricity prices, the efficiency of a heat pump typically results in lower overall energy bills.
Silver Spring 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 Silver Spring. Located in Climate Zone 7, the area experiences cold winters (design temp: 5°F) and warm summers (design temp: 92°F), making heat pumps ideal for year-round comfort. Modern heat pumps efficiently handle both heating and cooling, and with Maryland's electricity rate of 17.9¢ per kWh, they typically cost less to operate than traditional heating systems.
Palmetto makes heat pump installation accessible through two options: a Comfort Plan with $0 upfront cost and all maintenance included, or direct purchase with potential federal tax credits up to $2,000. Both approaches help Silver Spring homeowners reduce energy costs while improving home comfort throughout the year, regardless of whether you prefer predictable monthly payments or owning your equipment outright.
Heat pumps perform exceptionally well in Silver Spring's Climate Zone 7, efficiently heating homes even when temperatures drop to the design low of 5°F. Modern cold-climate heat pumps can deliver 2-3 times more heating energy than the electricity they consume, making them far more efficient than traditional electric resistance heating—a significant advantage given Maryland's electricity rate of 17.9¢ per kWh.
During Silver Spring's cooling season, heat pumps excel even more, efficiently managing temperatures up to 92°F while using less energy than conventional air conditioners. This year-round efficiency translates to lower utility bills and reduced energy waste, whether you choose Palmetto's Comfort Plan with $0 upfront cost and included maintenance, or direct purchase to access federal tax credits up to $2,000.
The choice between leasing and buying a heat pump in Silver Spring depends on your financial priorities and homeownership plans. Leasing through Palmetto's Comfort Plan requires $0 upfront and includes all maintenance and repairs, making it ideal if you prefer predictable monthly costs. Buying outright 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.
Consider Silver Spring's Climate Zone 7 conditions, where your heat pump will work year-round in temperatures from 5°F to 92°F. With Maryland's electricity rate at 17.9¢ per kWh, a well-maintained heat pump provides significant savings either way. Leasing eliminates maintenance concerns and unexpected repair costs, while buying maximizes long-term savings and equipment ownership for homeowners planning to stay put.
Heat pump costs in Silver Spring typically range from $8,000 to $20,000 for a complete installation, depending on your home's size, existing ductwork, and the system's efficiency rating. Climate Zone 7's heating demands—with winter temperatures dropping to 5°F—mean you'll want a system properly sized for Maryland's seasonal extremes.
Palmetto offers two straightforward ways to get a heat pump: a Comfort Plan with $0 upfront and predictable monthly payments including all maintenance, or direct purchase where you own the equipment and may qualify for up to $2,000 in federal tax credits. With Maryland's electricity rate at 17.9¢ per kWh, an efficient heat pump can deliver meaningful energy savings year-round.
Yes, heat pumps are typically worth it financially in Silver Spring. 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, most homeowners see meaningful savings on their energy bills within the first few years.
The financial case becomes even stronger when you consider available incentives and flexible payment options. Direct purchase buyers may qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act, plus local rebates. Alternatively, Palmetto's Comfort Plan requires $0 upfront and includes all maintenance and repairs, making heat pumps accessible without a large initial investment while providing predictable monthly costs.
In Silver Spring, MD, licensed HVAC contractors install heat pumps, including companies like Palmetto that specialize in home energy solutions. Professional installers assess your home's heating and cooling needs for Climate Zone 7, where winter temperatures can drop to 5°F and summer highs reach 92°F, ensuring proper system sizing and efficient operation.
Palmetto offers two installation options for Silver Spring homeowners: a Comfort Plan with $0 upfront cost that includes all maintenance and repairs, 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.
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 Silver Spring'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 cost, or direct purchase options that may qualify for up to $2,000 in federal tax credits.