Residential new construction builders working within the Washington Gas service territory have historically been able to take advantage of valuable energy efficiency rebate programs in both Maryland and Virginia. Recent legislative changes in Maryland will significantly alter rebate availability for gas appliances, while Virginia programs remain unchanged.

Builders are encouraged to review the information below carefully, as incentive availability now differs substantially by state.

 

Important Maryland Update: EmPOWER Gas Rebates Ending Dec. 31, 2026

In April 2026, Maryland enacted House Bill 1532 – the Utility RELIEF Act, which makes sweeping changes to the state’s EmPOWER Maryland energy efficiency program. As part of this legislation:

  • Washington Gas’s EmPOWER participation will end on December 31, 2026
  • Rebates for high‑efficiency gas appliances will not be available in 2027 onward
  • Overall EmPOWER goals are reduced, significantly scaling back market‑rate programs for electric utilities

As a result, Washington Gas will issue rebates for eligible gas furnaces, water heaters, and gas fireplaces, but only until its departure from EmPOWER on December 31, 2026.

 

Work with a HERS Rater Early (Still Recommended)

Even with changes in Maryland, early coordination with a certified HERS Rater remains a best practice—especially for builders operating across both states. HERS Raters support:

  • Whole‑home performance verification
  • ENERGY STAR® and envelope efficiency documentation
  • Long‑term compliance and resale value, even where rebates are no longer available

Early engagement helps future‑proof projects and positions builders for evolving code and market expectations.

 

Virginia: Residential New Construction Rebates

Washington Gas Virginia energy efficiency incentives remain available and unchanged, currently approved through May 1, 2028. Rebates are primarily based on natural gas savings, paid at $2 per therm, with additional equipment incentives for a combined maximum of $1,500 per home.

 

Whole Home Performance Rebates

  • Whole Home Savings – Single Family
    • HERS ≤ 65
    • $2 per therm
  • Whole Home Savings – Multifamily
    • HERS ≤ 65
    • $2 per therm

ENERGY STAR® Certified Homes

  • ENERGY STAR v3.1 Certified Home – $100
  • ENERGY STAR v3.2 Certified Home – $200

Equipment Incentives

  • Gas Furnace
    • 97%+ AFUE
    • $150 (up to four furnaces per home)
  • Smart Thermostat
    • ENERGY STAR certified, Wi‑Fi connected
    • $50

 

Maryland: Residential New Construction Rebates

Due to the passage of HB 1532, Washington Gas Maryland will begin phasing out its currently offered EmPOWER rebates for gas equipment, which include:

  • High‑efficiency gas furnaces
    • 95.1%+ AFUE – $500
    • 97%+ AFUE – $700
  • Gas water heaters
    • Storage: ENERGY STAR certified, 0.81+ UEF – $175
    • Tankless: ENERGY STAR certified, 0.89+ UEF – $450
  • Gas fireplaces
    • 70%+ AFUE, Electric Ignition – $75

Rebates will be issued through December 31, 2026, but builders planning Maryland projects should no longer assume gas equipment incentives will be available after 2026 and are encouraged to factor this change into budget decisions.

 

Why This Matters for Builders

  • Incentive availability now differs sharply by state
  • Maryland builders must plan post-2026 without gas appliance rebates
  • Virginia builders can continue leveraging long‑term, predictable incentives
  • Early performance planning remains critical despite policy shifts
  • Changes reflect broader regulatory and market trends impacting fuel choice

 

Questions or Next Steps?

For questions about current program eligibility, Virginia incentives, or how these changes may impact future projects, builders are encouraged to contact:

Carlos Rivas
Program Manager
📧 Carlos.Rivas@icf.com
📞 301‑537‑1091