Maryland Energy Incentives for Businesses
As a business or property owner in Maryland, embracing energy efficiency and renewable energy initiatives is not only environmentally responsible but also financially advantageous. The state offers a comprehensive array of incentives designed to reduce costs, enhance sustainability, and increase property value. Understanding these programs can help you capitalize on financial benefits while ensuring compliance with energy regulations. To provide a thorough overview, we’ve categorized the incentives into several key areas:
Utility-Sponsored Rebate Programs
Several utility companies in Maryland offer rebates to encourage energy efficiency among commercial and industrial customers:https://programs.dsireusa.org/system/program/detail/3932
- Baltimore Gas and Electric (BGE) Commercial Energy Efficiency Program: BGE provides incentives for implementing energy-efficient measures, including lighting, HVAC systems, and building controls.
- Potomac Edison Commercial and Industrial Efficiency Rebate Program: Potomac Edison offers rebates for energy-efficient equipment such as chillers, refrigeration units, HVAC systems, and variable frequency drives. It also offers other incentives through the EmPOWER Maryland program (scroll to the bottom).
- Washington Gas Commercial Rebate Program: This program provides incentives for energy efficiency improvements, including upgrades to natural gas equipment.
- Delmarva Power Commercial and Industrial Energy Savings Program: Delmarva Power offers incentives for energy efficiency projects, including lighting upgrades and HVAC improvements.
State Grant and Financing Programs
Maryland provides various grants and financing options to support energy efficiency and renewable energy projects:
- Maryland Commercial Solar Incentive Programs: Businesses looking to install solar energy systems can benefit from various Maryland state incentives. The Maryland Energy Administration (MEA) offers grants and financing options for solar photovoltaic (PV) systems to help reduce upfront costs. Businesses investing in solar energy can lower energy bills, increase sustainability, and take advantage of tax credits and net metering benefits.
- Property Assessed Clean Energy (PACE) Financing: PACE allows property owners to finance energy efficiency and renewable energy upgrades through property tax assessments, offering benefits like 100% upfront financing and long repayment terms.
- Commercial Property Assessed Clean Energy (C-PACE) Financing: C-PACE is a state-administered program that provides commercial property owners with long-term, fixed-rate financing for energy efficiency, renewable energy, and water conservation improvements. Unlike traditional loans, C-PACE financing is repaid through a voluntary property tax assessment, which remains with the property if ownership changes. This program allows businesses to implement energy upgrades without upfront costs, preserving capital and increasing property value. Eligible property types include office buildings, retail spaces, industrial facilities, and multifamily housing with five or more units.
- EmPOWER Maryland Commercial & Industrial Grant Program: This program, managed by the Maryland Energy Administration (MEA), provides grant funding to businesses for energy efficiency projects that result in significant energy savings. Eligible projects include HVAC upgrades, lighting retrofits, refrigeration improvements, and industrial process enhancements. Grants are awarded on a competitive basis, with funding amounts determined based on projected energy savings and project feasibility.
Tax Incentives
Tax credits are available to reduce the financial burden of energy efficiency and renewable energy projects:
- Maryland Energy Storage Tax Credit Program: Businesses installing energy storage systems can receive tax credits, making energy storage more affordable and promoting energy independence. As of now, funding is currently depleted, but is expected to be renewed in the summer of 2025.
Federal Business Energy Investment Tax Credit (ITC): This federal tax credit covers a percentage of the cost for renewable energy installations, including solar and wind systems, reducing payback periods and enhancing long-term savings.
State Legislation and Initiatives
Maryland has enacted legislation to promote energy efficiency and renewable energy:
- EmPOWER Maryland Energy Efficiency Act: This act sets an annual energy savings goal of 2% of gross energy sales, encouraging utilities to establish programs that promote energy efficiency and conservation.
The Importance of Gross Floor Area (GFA) Reports
To fully leverage these energy incentive programs, businesses need accurate Gross Floor Area (GFA) reports. Many incentives and compliance programs use GFA as a key metric for determining eligibility and funding levels. Without precise GFA measurements, businesses may miss out on valuable financial opportunities.
GFA includes all enclosed spaces within a building, such as common areas, mechanical rooms, and storage spaces. Ensuring these areas are accurately measured allows for:
- Energy benchmarking compliance
- Proper assessment of energy efficiency improvements
- Eligibility for financial incentives based on building size and usage
Submitting an incorrect GFA report could lead to miscalculated energy benchmarks, disqualification from programs, or even penalties. Having a professional assessment ensures that you receive the maximum benefits available.
How Workflow Control Can Assist
At Workflow Control, we specialize in scanning common areas of buildings to provide precise GFA reports. Our expertise ensures that your business meets energy benchmarking requirements and qualifies for Maryland’s incentive programs. By working with us, you can:
- Maximize your energy savings
- Streamline compliance with state and federal regulations
- Unlock financial incentives with accurate energy reporting
Ready to capitalize on Maryland’s energy incentives? Contact Workflow Control today to discover how our GFA reporting services can help you save money while enhancing your property’s energy efficiency.
