What compressed air projects may qualify for incentives in Maryland?

Program rules vary by utility territory, but incentives often apply to projects that reduce demand and wasted load, such as leak detection and repair initiatives, pressure optimization, controls and sequencing improvements, right sizing, and efficiency upgrades with verified savings.

Are incentives only for buying new equipment?

Not always. Many programs support efficiency improvements like leak repair and controls when savings can be verified. Equipment upgrades may also qualify depending on the program.

Do I need pre approval before purchasing equipment?

Some programs require pre approval before purchase and installation. Confirm requirements for your specific utility territory before moving forward.

What information should I have ready to check eligibility?

If available, share facility ZIP, utility territory, compressor count, approximate horsepower, operating hours, known issues such as pressure drops or leaks, and your target timeline. If you do not have all details, start with ZIP and basic goals.

How do I start the process?

Start by confirming your utility territory and running an eligibility screen. Then identify the measure type, complete any required calculators or documentation, and follow program submission steps for prescriptive or custom incentives.

Maryland Air Compressor Energy Rebates - Compressor Maintenance Co

Maryland Compressed Air Incentives and Rebates for Manufactures

February 19, 2026

If you are running compressed air in a Maryland facility, there is a good chance you can reduce operating cost and capture utility incentives at the same time. Many Maryland utility programs, funded through EmPOWER Maryland, offer financial incentives that can help offset the cost of energy saving upgrades and verified efficiency projects.

This page is designed to help medium to large industrial and manufacturing facilities understand:

What incentive programs exist in Maryland
What types of compressed air projects often qualify
How to get started and avoid common pitfalls
Where to find the official program resources by utility territory

If you want help confirming eligibility and building a clean justification package for leadership, contact us and we will point you to the best next step for your facility.

What is EmPOWER Maryland?

EmPOWER is Maryland’s utility customer funded initiative that supports energy efficiency, conservation, greenhouse gas reductions, and demand response. It is administered by major utilities and overseen by the Maryland Public Service Commission. Industrial programs are available.

In practice, that means many Maryland facilities can access incentives for projects that reduce energy use and demand, including compressed air improvements, depending on the utility territory and program rules.

Why compressed air rebates matter for plants

Compressed air is often a top energy user in manufacturing. The fastest savings usually come from reducing wasted demand, then right sizing and optimizing. Incentives can make it easier to get projects approved internally because they can:

Improve payback
Reduce out of pocket project cost
Help offset capital cost for upgrades
Support measured and documented savings

Programs and eligibility vary by utility territory, but the opportunity is common across Maryland.

What compressed air projects may qualify

Eligibility depends on the specific utility program, but these are typical categories where incentives are often available through custom or prescriptive pathways:

Leak detection and repair initiatives that produce measurable reductions
Pressure optimization when the system can operate reliably at lower setpoints
Controls, sequencing, and automation improvements that reduce run time
System right sizing to reduce unnecessary capacity and nonproductive load
High efficiency compressor upgrades where energy reduction can be verified

The cleanest way to determine fit is a quick eligibility screen tied to your facility ZIP and electric account territory.

Maryland utility programs to check

BGE Smart Energy Savers Program for Business

BGE offers Energy Solutions for Business with both predetermined incentives and custom measures. All commercial and industrial customers in BGE’s territory are eligible to participate, regardless of electricity supplier.

For custom measures and projects, incentives can cover up to 50% of total cost for custom retrofit projects and up to 75% of the incremental cost for certain new construction or replacement scenarios. Custom incentives are capped at $0.28 per kWh saved.

Compressed air improvements that are not listed under standard applications may be handled as custom measures when savings are verifiable and the project meets program criteria.

Download BGEO’s Technical Sheet

Pepco Energy Savings for Business

Pepco’s business program can cover a portion of total project cost, with different paths based on demand.

For medium and large business customers, Pepco notes incentives can cover up to 50% of project cost and eligibility is tied to having monthly demand greater than 100 kW.

Pepco also provides enhanced incentives for small businesses in its small business pathway, with program details summarized on its overview page.

Delmarva Power Energy Savings for Business

Delmarva Power’s Maryland business program similarly outlines incentives that may cover a portion of total project cost, with a medium and large business pathway covering up to 50% for customers over 100 kW demand, and a small business pathway that can be higher.

Discover all of Delmarva Power’s incentives

Potomac Edison Energy Solutions for Business

Potomac Edison’s program highlights enhanced incentives available through a stated time window and notes low interest financing options that can work alongside incentives.

Potomac Edison also notes that applications require pre-approval before purchase and installation, and that effective dates and requirements apply.

Discover Potomac Edison Energy’s tools

A practical way to approach a compressed air rebate project

Step 1: Confirm your utility territory and eligibility

Start with the facility ZIP and electric account utility. This determines which program applies.

Step 2: Identify the project category

Leak repair initiative, pressure optimization, controls, or equipment upgrade. The category drives whether the path is prescriptive or custom.

Step 3: Get pre-approval when required

Some programs require approval before purchase and installation. Potomac Edison explicitly states pre-approval is required before purchase and installation of materials.

Step 4: Implement and document

Track what changed, capture baseline versus post conditions where required, and keep invoices and equipment specs organized.

Step 5: Submit and verify

Most programs require a defined set of documentation. Custom projects may require additional calculation support or verification.

Common mistakes to avoid

Buying equipment before program approval when pre-approval is required
Treating rebates as guaranteed without confirming the utility territory
Skipping baseline documentation, which can weaken a custom incentive application
Focusing only on equipment upgrades and missing the demand reduction wins that improve the savings story