Annapolis, MD Heat Pump Leasing & Installation
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.
Annapolis, MD Heat Pump Load Calculator
Use our calculator below to estimate your home’s heating and cooling needs based on Annapolis’s ACCA-standard design conditions: 92°F for cooling and 5°F for heating, with a 72°F indoor target. For a precise Manual J load calculation and personalized quote, connect with Palmetto’s team. Get in touch with our team for an official quote.
Home location & size
- ZIP Code
- Number of residents
- Home Square Footage (sq ft)
- Home Ceiling Height (ft)
Home attributes
- Amount of sunlight: Low / Moderate / High
- Insulation: Poor Insulation / Standard Insulation / Good Insulation / Excellent Insulation
- Number of Windows
- Window and Door Seals: Poor fit & Seal / Typical fit & Seal / Good fit & Seal
Additional details
- Do you have a kitchen? Yes / No
- Do you have any glassed-in rooms? Yes / No
- Extra Device Wattage (W)
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
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.
| Comfort Plan | 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 |
Annapolis, 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 Annapolis homeowners.
EmPOWER Maryland Heat Pump Rebate
Up to $15,000
Maryland's EmPOWER Maryland program offers up to $10,000 - $15,000 in rebates for home energy upgrades including heat pump systems. Homeowners who switch from fossil-fuel heating systems to electric heat pumps can receive up to $15,000, covering 75% of the project cost, for full or hybrid electrification projects when replacing gas, oil, or propane systems.
Eligibility: Maryland's core rebates through the Home Performance with ENERGY STAR program are available to all homeowners, regardless of income. Any homeowner served by a participating utility is eligible, and a $100 home energy audit (normally $400) performed by a BPI-certified contractor is required.
Maryland Geothermal Rebate Program
$3,000
The Maryland Energy Administration (MEA) Geothermal Rebate Program provides geothermal heating and cooling system rebates for Maryland residents on Maryland residential properties. The program offers $3,000 for a new geothermal heating and cooling system.
Eligibility: Available to Maryland homeowners installing qualifying geothermal heating and cooling systems. Applications are first-come, first-served with limited funding. Homeowners must own the residential property in Maryland.
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.
Annapolis homeowners have access to substantial heat pump incentives in 2026. Maryland's EmPOWER program offers up to $15,000 in rebates for switching to electric heat pumps, while a $3,000 geothermal rebate is available through the Maryland Energy Administration. These state programs can be combined with the federal IRA tax credit of up to $2,000. Palmetto can help homeowners navigate these programs, complete required energy audits, and maximize available rebates and tax credits to reduce upfront costs.
Climate Zones
Annapolis 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 matters—your heat pump needs to handle both extremes efficiently. At Palmetto, we understand Annapolis's climate and help homeowners choose systems sized correctly for year-round comfort.
Climate Zone 7
Mixed climate zone with moderate winters and warm summers.
Climate Zone 7A
Avg. extreme winters: 0° to 5° F
Climate Zone 7B
Avg. extreme winters: 5° to 10° F
Annapolis Electricity Prices
Understanding electricity costs in Annapolis helps you make smarter decisions about home heating and cooling—especially as rates continue to climb.
Maryland's electricity rates have jumped 37% since 2021, rising from 13.1 to 17.9 cents per kWh. That's now higher than the national average, meaning Annapolis homeowners pay more to power their homes.
Heat pumps offer a practical response to rising rates. Because they're 2-3x more efficient than traditional HVAC systems, they use significantly less electricity to deliver the same heating and cooling comfort you expect.
Price of Energy: Maryland vs National Average
0¢ 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
Annapolis Area Utility Providers
Annapolis residents are served primarily by two utility providers: BGE and Pepco. According to 2023 data, BGE's electricity rate was 16.5¢ per kWh, while Pepco's rate was 18.2¢ per kWh.
These rates sit close to Maryland's 2023 state average of 16.60¢ per kWh and slightly above the national average of 16.0¢ per kWh. The variation reflects Maryland's energy infrastructure investments and regional transmission costs.
Annapolis Utilities Electricity Rates
| Utility Provider | Rate (¢ per kWh) | Change |
|---|---|---|
| BGE | 16.50¢ | +3% |
| Pepco | 18.20¢ | +14% |
| MD Average | 16.60¢ | +4% |
| US Average | 16.0¢ | — |
Palmetto Reviews
Everything about my experience was excellent. My new HVAC system was installed the next day; the process took less time than expected; the technicians were friendly, polite, and professional; and my home has been a comfortable temperature since with zero issues.
Palmetto Customer
MD
The overall process was very easy. The specific payment plan offered was a tremendous help when I needed to resolve my AC problem. I would recommend for convenience and service.
Palmetto Customer
VA
We have already told friends about how well we were treated during our new HVAC purchase and installation. Your service met our needs and everything was done easily and promptly.
Palmetto Customer
SC
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Speak with a Palmetto heating & cooling expert to find out exactly how much you can save.
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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.
Potential repair costs
| Potential repair | Cost range | Description |
|---|---|---|
| Capacitor Replacement | $150 - $400 | Common issue when unit struggles to start or makes a humming noise. |
| Refrigerant Recharge | $250 - $750 | Needed when the system loses cooling or heating efficiency due to low refrigerant levels. |
| Reversing Valve Replacement | $450 - $900 | Required when the unit cannot switch between heating and cooling modes. |
| Compressor Replacement | $1,500 - $3,000 | Major repair needed when the unit fails to heat or cool entirely. |
| Evaporator/Condenser Coil Replacement | $1,200 - $2,800 | Replacement needed when coils develop leaks or corrosion. |
| Control Board Replacement | $500 - $1,200 | Required when the system has electrical failures or erratic behavior. |
| Full System Replacement | $4,500 - $8,000+ | When repairs exceed the value of the unit or multiple major components fail simultaneously. |
Frequently Asked Questions
Do heat pumps make sense in Annapolis?
Yes, heat pumps make excellent sense in Annapolis. The city's Climate Zone 7 conditions—with winter design temperatures around 5°F and summer peaks near 92°F—fall well within the operating range of modern heat pumps.
How efficient are heat pumps in Annapolis's climate?
Heat pumps perform exceptionally well in Annapolis's Climate Zone 7, where design temperatures range from 5°F in winter to 92°F in summer.
Should I lease or buy a heat pump in Annapolis?
The choice between leasing and buying a heat pump in Annapolis depends on your financial priorities and homeownership plans.
How much does a heat pump cost in Annapolis?
Heat pump costs in Annapolis typically range from $5,000 to $20,000 for a complete installation, depending on your home's size, existing ductwork, and the system capacity needed.
Is a heat pump worth it financially?
Yes, heat pumps are typically worth it financially for Annapolis homeowners.
Who installs heat pumps in Annapolis?
Heat pumps in Annapolis are installed by licensed HVAC contractors who specialize in heating and cooling systems.
What is the difference between a heat pump and HVAC?
HVAC stands for Heating, Ventilation, and Air Conditioning—it's an umbrella term for any system that controls your home's temperature and air quality. A heat pump is a specific type of HVAC system that both heats and cools your home by transferring heat rather than generating it.