How much does it cost to heat and cool a 2,000 sq ft home in Maryland?

In Maryland (21¢/kWh via BGE / Pepco Maryland), a 2,000 sq ft home averages $874/year ($73/month) with a high-efficiency heat pump, $808/year with a natural gas furnace and central AC, and $2,570/year with electric baseboards.

Are heat pumps cheaper to run than gas furnaces in Maryland?

At Maryland's natural gas rate of $1.62/therm, the economic break-even electricity price for a COP 3.1 heat pump is 18.6¢/kWh. Comparing this against Maryland's residential electricity rate of 21¢/kWh determines annual operating savings.

Maryland Heating & Cooling Cost Calculator (2026)

2,000 Sq Ft Heat Pump Bill

$73/mo

MD Electricity / Gas Rate

21¢ / $1.62

15-Yr Savings vs Baseboard

+$21,840

Maryland Annual Heating & Cooling Bills by Home Size

In Maryland, a 2,000 sq ft home averages $874/year ($73/mo) using a cold-climate heat pump ($767/yr winter heating + $106/yr summer cooling), compared to $808/year with a natural gas furnace and $2,570/year with electric baseboards.

Home Size	Heat Pump (COP 3.1)	Gas Furnace + AC	Baseboard + Window AC	15-Yr Heat Pump Savings
1,000 Sq Ft	$437/yr ($36/mo)	$404/yr ($34/mo)	$1,285/yr ($107/mo)	+$9,120
1,500 Sq Ft	$655/yr ($55/mo)	$606/yr ($51/mo)	$1,927/yr ($161/mo)	+$15,480
2,000 Sq Ft	$874/yr ($73/mo)	$808/yr ($67/mo)	$2,570/yr ($214/mo)	+$21,840
2,500 Sq Ft	$1,092/yr ($91/mo)	$1,010/yr ($84/mo)	$3,212/yr ($268/mo)	+$28,200
3,000 Sq Ft	$1,310/yr ($109/mo)	$1,212/yr ($101/mo)	$3,855/yr ($321/mo)	+$34,575
3,500 Sq Ft	$1,529/yr ($127/mo)	$1,414/yr ($118/mo)	$4,497/yr ($375/mo)	+$40,920

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Verify 2026 Federal 25C Tax Credit & BGE / Pepco Maryland rebate eligibility and compare turnkey contractor pricing for a 3.0-Ton system (2,000 sq ft).

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