Looking to Power Profits? Learn How Maryland Businesses Are Financing Energy Efficiency

By Maxwell Sparks

Energy costs can be a big operating expense on your business’s bottom line. But what if you could cut those costs significantly and finance equipment upgrades without straining your cash flow? Across Maryland, more businesses are discovering that energy efficiency isn’t just eco-friendly; it’s financially smart.

Click the tabs below to explore incentives, low- to no-cost financing options, and stackable benefits that make upgrades more affordable than ever.

How Utility Incentives Are Fueling Efficiency

Delmarva Power’s Energy Savings for Business program incentives cover on average between 30% and 80% of the cost for energy efficiency upgrades, including lighting, HVAC, refrigeration, and more. Through programs like our Small Business offering, a vetted contractor (known as a Service Provider) does the work, and you only pay your share, with no repayment required for the incentive portion. It’s an easy way to modernize your building and cut monthly energy costs.

Looking to optimize your existing equipment and save energy? The Building Tune-up program ensures your equipment is operating at peak performance, helping you conserve energy, save money, and extend the life of existing equipment. We offer financial incentives that can cover up to 85% of the project cost for several building tune-up services.

Financing That Works for Business

Rebates can cover a big portion of your upgrade costs, but what about the rest? That’s where Maryland's flexible financing options help close the gap.

Delmarva Power’s Small Business Energy Advance offers zero percent financing and on-bill repayment to make equipment upgrades even more affordable. You can finance the remaining project cost directly through your electric bill—no separate loan, no added interest. Monthly payments are offset by your energy savings, keeping improvements budget-friendly over time.

Also, the National Energy Improvement Fund (NEIF) offers financing to qualified commercial, nonprofit, municipal, and multifamily customers.

For larger or more complex projects, the Maryland Energy Administration (MEA) offers below-market loans through programs like the Jane E. Lawton Conservation Loan program. Interest rates can be as low as 2%, with terms up to 12 years. These are ideal for businesses with internal support or access to consultants, though any business can take advantage with some pre-planning.

Another option is Commercial Property Assessed Clean Energy (C-PACE) financing, which can cover up to 100% of the cost for upgrades like HVAC, solar, or weatherproofing. You can repay the loan through a special property tax or utility bill assessment, which stays with the building if you sell. Your loan’s terms can extend up to 25 years, based on the equipment’s lifespan.

Delmarva Power also offers local technical support and on-bill financing options tailored to small and mid-sized businesses.

Stack the Deck in Your Favor

What makes our approach especially powerful is how stackable the benefits are. You can combine:

Delmarva Power rebates
State loans or on-bill financing
Federal tax incentives, like the 179D deduction (available through June 30, 2026)

The 179D incentive provides up to $5.81 per square foot for projects meeting energy and labor standards. Due to the complexity of this incentive, consult a tax professional to determine eligibility.

Example

A small office spends $40,000 on lighting upgrades. A 50% rebate (due to eligibility) from Delmarva Power’s Prescriptive and Custom program covers $32,000, leaving an $8,000 balance. With 0% financing over two years, the business pays just $333 per month. If the building is over 10,000 square feet, the 179D tax deduction could be worth $5,800, almost eliminating the out-of-pocket cost.

Why It All Adds Up

Energy efficiency creates room for growth, not just savings. Lower energy use can free up your budget for hiring, marketing, or expansion. And with Maryland’s financing tools, you can upgrade without slowing down your business.

If you’re considering a project, the key is matching your building type and goals to the right mix of rebates and financing.

Ready to see what’s possible for your business? Contact us at Energy Savings for Business today.