The following rebates are available to Pepco commercial customers. They are not loans and do not need to be repaid.

The Pepco Energy Savings for Business program helps businesses of all sizes save both energy and money. These programs offer rebates that cover a portion of new energy-efficient equipment costs, tune-ups to existing equipment so that it operates more efficiently, and staff training to ensure the ongoing operational efficiency of your buildings. Last year, Pepco paid more than $4,600 in incentives to more than 1,000 businesses.

The Prescriptive and Custom programs help medium- and large‑sized businesses make energy efficiency upgrades by covering a portion of the total project costs. The programs are designed for any business with a monthly energy use of 100 kW or more. Popular equipment upgrades include commercial kitchen appliances, heating and cooling, lighting, specialized controls, variable frequency drives, commercial clothes washers, and dehumidifiers.

The Small Business program covers up to 80% of a business’s upgrades to more energy‑efficient equipment. Designed for businesses with a monthly energy use of 100 kW or less, this program offers incentives on lighting, heating and cooling, variable frequency drives, specialized controls, commercial kitchen equipment, and more.

The Building Tune‑up program helps optimize a facility’s existing equipment and systematically manage energy use with incentives of $0.25 per kWh saved, up to 85% of the cost. Also known as retro‑commissioning, these tune‑ups can reduce energy waste in a commercial building by up to 30%.*

The Business Instant Discounts program helps businesses get instant, point‑of‑sale discounts on select lighting and HVAC upgrades without waiting or filling out paperwork. These discounts are available only to eligible Maryland customers in the Pepco service area.

Operations and Maintenance Training offers nationally recognized building and energy management training for your building operations personnel. Our incentives cover 100% of the course costs (up to $1,000).

The MEA manages grants, loans, rebates, and tax incentives to help meet the state’s sustainability goals. Through the following programs, as well as others for clean energy production and use, MEA helps finance the energy efficiency upgrades of Maryland businesses, nonprofits, and municipal governments.

• The Mechanical Insulation Grant program provides subsidies to eligible nonprofits and businesses that install mechanical insulation in buildings and industrial processes
• The MEA's Commercial, Industrial, and Agriculture grants provide funding for energy retrofit projects in commercial, industrial, agricultural, and nonprofit facilities
• The OPEN Energy Grant program funds projects that are outside of the MEA’s suite of established energy programs

USDA’s Rural Energy for America Program (REAP) offers no-cost technical and application support from the Maryland Clean Energy Center. This program is designed to reimburse businesses in rural areas for up to 50% of the costs of clean energy and energy efficiency projects.

Pepco’s Small Business Energy Advance allows businesses to pay a portion of their project costs at 0% interest for up to 24 months.^† The corresponding repayment installment is added to the standard monthly electric bill.

Maryland’s Jane E. Lawton Conservation Loan program provides funds to help cover cost‑effective energy efficiency and conservation improvements for existing or to‑be‑constructed facilities. The program offers:

• A 2% interest rate for all commercial, nonprofit, or non‑public facilities in the state of Maryland requesting a traditional loan
• A 3% interest rate or all commercial, nonprofit, or non‑public facilities in the state of Maryland requesting a micro loan
• A 0% interest rate for all Maryland state and local governments and their instrumentalities

Maryland Clean Energy Center’s Capital Program (MCAP) gives governments, institutions, and nonprofits access to lower‑cost capital and an advantageous finance structure.

Maryland Climate Catalytic Capital (C3) Fund helps finance the implementation of clean energy measures and technologies intended to reduce greenhouse gas emissions and mitigate the impact of climate change.

Commercial Property Assessed Clean Energy (C-PACE) is a state and county policy-enabled program that allows private lenders to finance building upgrades and new construction of high‑performance buildings through a mechanism that allows property owners to make loan repayments through the county’s property assessment. This allocates the payments and benefits as the property changes ownership.

• State of Maryland PACE (administered by the Maryland Clean Energy Center)

Your county may have its own C‑PACE program.

• C-PACE status in Maryland counties

Fannie Mae and Freddie Mac provide different incentives for multifamily properties with green building certifications. Borrowers may receive a lower interest rate, which varies according to the type of certification obtained. Generally, the bigger the certification’s impact, the better the rate.

Please note that Pepco is not a qualified tax consultant. This information is not intended as personal tax advice. Please contact a tax professional or certified public accountant to confirm details specific to your qualifications and eligibility or visit irs.gov to learn more.

The Section 179D tax deduction, enhanced by the Inflation Reduction Act (IRA) of 2022, is designed to encourage energy‑efficient upgrades in commercial buildings. The deduction amount is based on the energy savings achieved. For properties placed in service after 2022, the deduction can be up to $5 per square foot. The amount increases with higher levels of building efficiency. Helpful IRA information for Maryland businesses can be found here.

Energy Service Companies (ESCOs), including Energy as a Service (EaaS), assuming 100% of the cost and risk.

National Energy Improvement Fund for short‑term bridge loans to be paid back once incentives are received.

Sustainable and green bonds for large nonprofit and government projects, via a bond service company.

Traditional lenders, such as Bank of America and Citi, with goals for efficiency-, equity-, and sustainability‑related loans for all customer types.

Specialized lenders such as Nuveen Green Capital.

Fannie Mae Multifamily Green MBS (mortgage-backed securities), which is a fixed‑income single‑asset security backed by one loan and one property.