A Review of Maryland’s Multifamily Energy Efficiency and Housing Affordability Program

by | Oct 10, 2024 | Other Incentives | 0 comments

Maryland’s Multifamily Energy Efficiency and Housing Affordability (MEEHA) program plays a vital role in reducing energy consumption while promoting housing affordability in the state. Through two key initiatives, the EmPOWER Maryland Program and the Greenhouse Gas Reduction Program (GHGRP), the state provides incentives to improve energy efficiency and reduce greenhouse gas emissions in multifamily housing. These programs offer MUD energy rebates and other incentives designed to improve MUD energy efficiency in both large and small housing developments.

This review will break down the essential aspects of the EmPOWER program and the GHGRP, and how they contribute to achieving the goals of the MEEHA initiative.

EmPOWER Maryland Program

The EmPOWER Maryland program is one of the state’s flagship energy efficiency initiatives, specifically targeting the reduction of electricity and natural gas consumption. For multifamily buildings, it provides multifamily energy rebates and other incentives aimed at reducing energy use and ensuring the affordability of housing.

Affordability and Eligibility

The EmPOWER program has clear affordability requirements to ensure that low- to moderate-income families benefit from these energy-saving efforts. To qualify, at least 20% of the households in a project must have an income that is at or below 80% of the Area Median Income (AMI). This ensures that projects funded under EmPOWER are focused on improving the energy efficiency of housing for Maryland’s most vulnerable populations.

In terms of project eligibility, EmPOWER is highly flexible. It covers a wide range of building types, from single-family units included in a group project to master-metered and individually metered multifamily buildings. This flexibility makes it easier for a variety of building owners and managers to qualify and benefit from the program.

Service Territory and Funding

EmPOWER covers a broad area of Maryland, extending to several utility territories, including Baltimore Gas and Electric (BGE), Delmarva, PEPCO, Potomac Edison, SMECO, and Washington Gas Light (WGL). This wide service territory ensures that residents across much of the state can access these important incentives.

The program is well-funded, with $134.9 million allocated for the 2024–2026 period. While the primary goal is to reduce energy consumption, EmPOWER also allows for some limited health and safety upgrades, as well as incidental repairs that may be necessary to complete the energy efficiency measures. Gas consumption reduction measures are also eligible for funding, provided the customer is in the BGE or WGL service areas.

 

Greenhouse Gas Reduction Program (GHGRP)

The Greenhouse Gas Reduction Program (GHGRP) complements EmPOWER by targeting greenhouse gas emissions, helping Maryland move towards its climate goals while improving MUD energy efficiency in larger multifamily buildings.

Affordability and Eligibility

GHGRP has stricter affordability requirements than EmPOWER, ensuring that at least 51% of households within a project must have incomes at or below 80% of AMI. This ensures that the program directly benefits low- to moderate-income residents, who often face high utility costs relative to their income.

The program specifically targets existing buildings that are at least 35,000 gross square feet in size, excluding parking garages. This means that GHGRP is particularly suited for larger multifamily housing developments, which tend to have a significant impact on both energy consumption and greenhouse gas emissions.

Service Territory and Funding

Unlike EmPOWER, GHGRP’s service territory is not tied to specific utility providers. It covers the entire state of Maryland, offering greater flexibility to multifamily property owners looking to make substantial environmental and energy-saving upgrades.

GHGRP funds are used to directly reduce greenhouse gas emissions by replacing fossil fuel-powered equipment with electric alternatives. Other eligible uses include energy conservation measures and the installation of alternative energy-generating systems like solar panels. The program is funded with $8.75 million for FY2024 and an additional $5 million for each of the following fiscal years, FY2025 and FY2026.

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The Funding Process

Both the EmPOWER and GHGRP programs offer robust funding opportunities, and their application processes are relatively straightforward. Funding applications are accepted on an ongoing basis, and projects are evaluated based on their readiness to proceed, potential energy savings, and ability to reduce greenhouse gases.

Here’s a step-by-step look at how the funding process works:

  1. Submit the application – The process begins with a formal application and the submission of required documentation.
  2. Energy audit – After the application, a certified energy auditor is commissioned to perform an energy audit of the building.
  3. Request funding – The energy auditor enters the recommended measures into the MINT software, where they are reviewed to determine the level of funding that will be provided.
  4. Funding agreement – Once the measures are approved, a funding agreement is executed between the property owner and the program administrators.
  5. Installation – With the funding secured, the approved energy-saving measures are installed.
  6. Requisition for funds – After the installation is complete, the property owner submits a requisition to receive the allocated funds.

These steps ensure that projects are not only energy-efficient but also carefully planned and executed to meet the goals of reducing energy consumption and greenhouse gas emissions in Maryland’s multifamily housing sector.

 

Multifamily Dwelling Rebates Through Incentive Rebate360

Maryland’s MEEHA initiative, through the EmPOWER and GHGRP programs, provides a comprehensive approach to improving MUD energy efficiency and ensuring housing affordability. The financial incentives available through multifamily energy rebates make it easier for property owners to implement energy-saving upgrades, benefiting both the environment and residents. As Maryland continues to prioritize sustainability and energy efficiency, these programs are critical tools in achieving the state’s ambitious energy and housing affordability goals.

Incentive Rebate360 offers expert rebate management services to help maximize your savings on energy efficient projects. If you think you qualify for the Maryland rebate programs mentioned above, contact us so we can guide you through the application process. Contact us by calling 480-653-8180, emailing [email protected], or schedule a call that fits your needs by clicking the button below!

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