Case study

Electrify Montgomery County - Residential Electrification Incentives Program

UPDATED: 11/13/2023


Project Name: Electrify Montgomery County (MC)

Project Leader(s): Department of Environmental Protection Montgomery County, Maryland

Partner(s): Elysian Energy

Stage of Completion:  In-progress

Construction Type: Existing buildings

Building Type: Single-family homes, duplexes, townhomes, and other residential properties with in which all energy systems are contained within one unit and not shared with other residences (individually-metered for utilities)

Total Number of Units Targeted: As many units as possible within the budget. 

Total Number of Units Completed: 4

  • Incentives were first issued in June, this number will continue to grow. 

Tenant Structure: Owner-occupied or tenant with landlord approval

Target Audience:

  • Montgomery County residents with fossil-fuel-powered residential systems (gas, propane, heating oil) 

  • There is a separate program in place that will target low income residents and will provide more than just electrification. Income eligible folks who go through a state based program can take advantage of Electrify MC but must do so through the state program.

Electrification Project Scope

Full/Partial Electrification: Partial

  • Eligible installations include retrofitting or replacing a fossil-fuel-powered residential system or equipment with an electric-powered system or equipment that is efficient (no electric resistance heat). Installations that do not replace equivalent fossil-powered systems including leaving in existing fossil-fuel powered systems as back-up will not be eligible.

Existing Heating Fuel Type: Gas, Oil, Propane

End Uses Electrified:

  • Space heating, water heating, clothes drying, cooking appliances

  • Menu of electrification options people can choose from. Residents can take advantage of one incentive in each end use category. For example, a resident can only receive one incentive for space heating and one incentive for water heating.

Specific electric appliances installed:

  • Eligible installations include retrofitting or replacing a fossil-fuel-powered residential system or equipment with an electric-powered system or equipment (e.g., ENERGY STAR Certified high-efficiency heating ventilation, and air conditioning (HVAC), electric water heaters, electric dryers, induction and electric cooktops, electric convection ovens)

  • CEE Tier 1 for air source heat pumps, energy star for all other appliances (except stoves - any electric stove is acceptable), including geothermal


Total Project Funding

  • $875,000 ($775,000 reserved for direct incentives and $100,000 to support the Electrify MC Help Desk)

  • Additional funds may be added in future fiscal years

  • Project is not first come first served, project funding is allocated across Montgomery County proportionally to create more equitable opportunities.

Amount or % of Project Cost Covered per unit:

  • Fully electric air source heat pumps ($2,500 for cold-climate heat pump; $2,000 for ductless mini-split; and $1,000 for ducted)

  • Ground source/geothermal heat pump ($2,000)

  • Efficient electric water heater ($500)

  • Efficient electric clothes dryer ($150)

  • Induction cooktops and/or electric ovens/ranges/stoves ($150)

  • Whole House Surge Protector ($200)

Source of Funding: Montgomery County General Fund

More information

Motivation for electrification:

  • In 2017, the Montgomery County Council passed an Emergency Climate Mobilization resolution that set a goal to reduce greenhouse gas (GHG) emissions in the County by 80 percent by 2027 and by 100 percent by 2035. In 2021, the County released its Climate Action Plan, including strategies to reduce Greenhouse Gas (GHG) emissions and climate-related risks to County residents, businesses, and the built and natural environment.

  • Montgomery County participated in the 2022 Electrify Cohort, which the Rocky Mountain Institute (RMI) led. As a result of the cohort learnings, the County allocated funding in FY23 towards this program to reduce GHG emissions and climate-related risks to county residents. The program was primarily motivated by the climate action plan.

  • Additional motivation included improving health benefits and indoor air quality for residents. 

  • Electrify MC compliments Empower Maryland to support fuel switching. The goal is to integrate with Empower Maryland and the IRA rebates to remove financial barriers to electrification. 

Additional Measures Implemented: Energy audit.

Workforce Development/Green Jobs Component: The contract for the program is required to provide a minimum amount of work to minority, disabled, or female folks. 

Next steps:

  • Program contractor was selected and Montgomery County went under contract on June 1.

  • The program was soft launched in July and a more formal launch will occur in October 2023. 

Source: Electrify MC website

Links to additional resources:

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