Maryland Energy Administration

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Multifamily Buildings

The multifamily housing sector offers unique opportunities for decarbonization. Uptake of energy efficiency measures in multifamily housing has lagged other types of housing, leaving significant unrealized energy savings on the table. Those savings can be captured with deep energy retrofits and renewable energy upgrades, which increases affordability for residents while in the long term helping preserve affordable housing by lowering operating expenses.

Moreover, many multifamily buildings may be subject to Maryland’s Building Energy Performance Standards (BEPS), which covers buildings 35,000 square feet and larger. Owners ​of covered buildings under the regulation are required to annually report their energy use and emissions. ​

The Maryland Clean Buildings Hub (the Hub), an initiative of the Maryland Energy Administration, empowers Maryland’s building owners to make well-informed energy investments in their properties by connecting them to financial, educational, and technical assistance. Sign-up for the Hub newsletter here. Have questions? Contact [email protected].

​ Incentives​​

Maryland’s multifamily building owners and operators can tap into a range of state, federal, utility, and local incentives to help defray the costs of energy efficiency, electrification, or onsite renewable energy measures to existing or new buildings. The Maryland Clean Buildings Hub is committed to help building owners and operators understand the range of incentives for which they may qualify. 

Maryland Department of Housing & Community Development (DHCD):
Maryland’s DHCD manages a one-stop-shop of incentives for affordable multifamily buildings, including:

Multifamily Energy Efficiency & Housing Affordability Program: Promotes energy efficiency and housing affordability in affordable multifamily rental housing developments.
Weatherization Assistance Program: Assists income-eligible homeowners and renters in our state by reducing heating and cooling costs through energy-conservation measures, while also addressing health and safety issues in their homes.
Maryland Energy Assistance Program: Helps eligible Maryland households repair or replace heating, cooling, and water heating systems at no cost. The program operates year-round and is federally funded to make homes more comfortable.

Other State Programs​:
Review additional State programs, such as from the Maryland Energy Administration (MEA) and Maryland Clean Energy Center (MCEC) that help Maryland commercial buildings decarbonize.

MEA's ​Commercial & Industrial Grant Program: This program provides eligible commercial buildings funding for cost-effective energy efficiency and conservation upgrades for existing, major renovation, and new construction projects that are above minimum code and performance standards and claim at least 20% energy savings.
MEA’s Energy Efficiency Equity Grant Program: Offered to non profit organizations and local government entities and is designed to support energy efficiency projects and related activities that benefit Maryland residents experiencing low and moderate income.
MEA’s Open Energy Grant Program: This program provides grants for clean energy projects that do not fit the criteria of MEA's other grant programs.
MEA’s Geothermal Rebate Program: Provides geothermal heating and cooling system (“GHC system”) rebates for Maryland residents on Maryland residential properties. Single-family detached homes and single-family townhomes are eligible. Multi-family properties are not eligible.
MCEC’s Commercial property Assessed Clean Energy (C-PACE): MCEC administers the State of Maryland's C-PACE program, which is a means of financing energy and/or water efficiency, renewable energy, resiliency, or environmental remediation measures in commercial buildings with no up-front cost.
MCEC’s Clean Energy Advantage Loan Pilot Program: Offers Maryland residents a convenient and affordable financing option for residential energy improvements regardless of income level.

Federal Programs:
Explore federal programs that are available to help support the implementation of building decarbonization upgrades at commercial buildings.

Sec. 179D Energy Efficient Buildings Tax Deduction: New and existing commercial and multifamily buildings that demonstrate a 25% to 50% improvement from their pre-retrofit baseline EUI may be able to claim a tax deduction. Is set to expire for projects that begin construction after June 30, 2026
Sec. 48 Energy Investment Tax Credit (ITC): Federal business tax credit that reduces the tax liability for investments in renewable energy properties like solar, storage, and geothermal.
Sec. 45L Zero Energy Ready Homes Tax Credit: Builders of qualified new energy efficient homes (single-family and manufactured) may be eligible for the 45L tax credit. To earn the tax credit, homes must participate in the ENERGY STAR Single Family New Homes Program or the ENERGY STAR Manufactured New Homes Program. This tax credit will expire on July 1, 2026.
Fannie Mae Multifamily Green Financing: Provides mortgage financing to apartment buildings and cooperatives to increase efficiency and reduce utility costs for multifamily owners and renters.

​Local Programs:
Explore local programs that help support the implementation of building decarbonization upgrades at commercial buildings.

Baltimore County Energy Conservation Devices Tax Credit: Offers assistance to single and multi-family residential property owners who utilize solar or geothermal devices that meet national safety and performance standards to heat, cool and supply electricity and to provide hot water for use in the structure. This credit applies only to the Baltimore County Real Property Tax obligation.
Frederick County Power Saver Retrofits Program: Provides low to moderate-income households with a free assessment of a home's energy use and what improvements might be made to conserve energy- and lower energy bills.
Montgomery County Green Bank C-PACE Program: Authorizes private capital providers to provide commercial property owners with financing for qualifying projects and to collect the repayment through annual or semi-annual surcharges on the property’s tax bill.
Montgomery County Green Bank Tailored Structured Finance: Offers financing for commercial building energy performance improvements resulting in significant energy savings and GHG reduction. Only applies to buildings in Montgomery County.
Montgomery County Energy Efficient Buildings Property Tax Credit: A two-tiered incentive of property tax credits for new and existing energy-efficient commercial and multi-family buildings.
Montgomery County Electrify MC: A pilot project created to help residents transition from fossil fuels (oil, gas, and propane) in their homes. Electrify MC will provide residents with a one-stop option to help them electrify their homes.
Montgomery County Healthy, Efficient, Electrified, Climate-Adapted Pilot Homes Grant Program: Provides gap funding for health and safety repairs, and offers climate adaptations for low- and moderate-income homes in Montgomery County.
Prince George’s County C-PACE Program: Assists commercial property owners in accessing financing up to 20% of the appraised value to make qualifying energy efficiency and clean energy improvements to commercial properties with loans that are repaid through an annual surcharge on the owner’s property tax bill.

Utility Programs:
EmPOWER Maryland: Ratepayers located in the following service territories can access energy efficiency-related incentives through their utility:

Baltimore Gas & Electric (BGE): EmPOWER Maryland Incentives
Potomac Edison Company (PE): EmPOWER Maryland Incentives
Delmarva Power & Light (Delmarva): EmPOWER Maryland Incentives
Potomac Electric Power Company (PEPCO): EmPOWER Maryland Incentives
Southern Maryland Electric Cooperative, Inc. (SMECO): EmPOWER Maryland Incentives
Washington Gas Light Company (WGL): EmPOWER Maryland Incentives
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​ Technical Assistance

Looking for technical assistance for your multifamily building upgrades? The Hub​ offers guidance and support to help Marylanders take the next step toward cleaner, more efficient energy solutions.​​​

Maryland Clean Energy Center (MCEC) Procurement & Technical Assistance: MCEC provides procurement and technical assistance services for clean energy and decarbonization projects.
Montgomery County Green Bank Technical Assistance Program: Supports studies for commercial sector owners to reduce greenhouse gas emissions, including ASHRAE Level I, Level II, Level III/ Investment Grade audits and/or targeted analyses into benchmarking, energy efficiency, renewable energy (e.g., solar PV), electrification, EV charging infrastructure, and resiliency measures. Eligible property types include multifamily rental (market rate and affordable) buildings.
Montgomery County Benchmarking Ambassadors: Montgomery County’s Department of Environmental Protection curates this list of stakeholders, volunteers, and energy service companies who have received an orientation to the County’s Benchmarking Law on how to properly benchmark in Portfolio Manager. Please note that inclusion in this list does not confer certification, an official endorsement, or approval from the Montgomery County Government or any of its agencies.

Building Decarbonization Resources

​The Hub​ invites you to explore the materials below to help guide your next steps. Use these resources to help move your building decarbonization project forward with greater confidence.​ Suggestions for additional resources can be directed to [email protected].

Benchmarking: Energy benchmarking is the process of tracking a building's annual energy use and using a standard metric to compare the building's performance against past performance and to similar building types. Benchmarking improves understanding of energy consumption patterns; helps identify energy saving opportunities within a portfolio of buildings; and manages business bottom line through consistent data collection and tracking.
Energy Audits: Conducting an energy audit is a recommended first step in a building’s electrification and decarbonization journey.
ENERGY STAR Tax Credit and Rebate Finder Tool​: This tool helps building owners find incentives for efficient appliances, such as heat pumps, heat pump water heaters, insulation, windows, and electric upgrades.
High-Efficiency Heat Pumps For Multifamily Resource Guide: This resource guide helps stakeholders overcome barriers to deploying high-efficiency technologies - such as heat pump HVAC and water heaters - in multifamily buildings.
Condominium & Coops BEPS Toolkit: This resource provides condo and co-op owners, managers, and boards with actionable steps to help buildings meet BEPS requirements.While the resource was created with the Washington, DC BEPS in mind, many lessons are transferable to Maryland.
Better Buildings Initiative: The Department of Energy's Better Buildings Initiative helps building owners identify cost-effective energy and water efficiency solutions by barrier, building type, sector, technology, and more.
Combination Heat Pump Washer Dryers in Multifamily Buildings Webinar: This webinar hosted by the New Buildings Institute explores combination clothes washers and heat pump dryers, and their space- and energy- savings in multifamily design and building.
Retrofit Playbook for Large Buildings: A living library of case studies, technical resources, and best practices to support high quality, low carbon retrofits. By using the solutions and strategic planning tools presented here, building owners and their teams can develop decarbonization roadmaps that create asset value, reduce emissions, and enhance the resilience of their assets.

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Maryland Energy Administration
1800 Washington Blvd.
Suite 425, Baltimore, MD 21230
(410) 537-4000 | 1-800-72-ENERGY