MD Grant Program

Local Government Energy Modernization Program (L-GEM)

Administered by Maryland Energy Administration

AI summary · 7/12/2026

This program is now closed and was designed for local governments only, not individual homeowners. Homeowners interested in clean energy incentives should contact the Maryland Energy Administration or check their local city or county government's energy programs.

This program is now closed and only served local government entities. Contractors should work with Maryland municipalities and counties on their clean energy projects funded through this program, which covered solar, geothermal, heat pumps, envelope improvements, and electrification work.

L-GEM was a one-time $64 million Maryland state grant program closed as of the application deadline (December 5, 2025), structured as four areas of interest: AOI1 (non-competitive formula block grants for counties and Baltimore); AOI2 (competitive planning grants for municipalities); AOI3 (competitive implementation grants for renewables and efficiency, excluding electrification); and AOI4 (competitive electrification implementation grants, available to both counties and municipalities). The FY2026 budget allocation was $50 million for planning and renewables, $10 million for efficiency, and $4 million for electrification.

Program details

Program ID
22796
Expires
12/5/2025Expired
Last updated
3/23/2026

Eligibility

Sectors
local government
Technologies
solar photovoltaics geothermal heat pumps energy mgmt. systems/building controls windows doors insulation general air sealing heat pump water heater electrical panel electrical wiring

Incentive amount

$64 million (one-time, FY2026 only)

Program summary

Note: The L-GEM Program is now closed.

Description: The Local Government Energy Modernization (L-GEM) program is designed to support local governments in planning long-term energy efficiency and clean energy projects that reduce greenhouse gas emissions and reduce energy usage. The program is offering a one-time FY2026 budget of $64 million, broken down into $50 million anticipated for planning activities and renewable energy projects, $10 million anticipated for energy efficiency projects and $4 million anticipated for electrification projects.

The program includes four major areas of interest (AOIs). Please see each AOI’s linked funding opportunity announcement for more information:

  • AOI1 is a non-competitive formula block grant to support planning and implementation of clean energy related projects. Municipalities are not eligible.
  • AOI2 is a competitive planning grant for feasibility studies, energy audits, energy planning, and strategy development. Counties may not apply for both AOI1 and AOI2. Municipalities are eligible.
  • AOI3 projects may include installation of renewables, building envelope measures, and efficiency equipment and appliance upgrades. Counties may not apply for both AOI1 and AOI3. Municipalities are eligible.
  • AOI4 is a competitive implementation program grant (only electrification). Projects may include electrification upgrades in conjunction with pre-electrification upgrades. Counties may apply for both AOI1 and AOI4. Municipalities are eligible.

Contact & resources

Please verify current program details with the administering agency before making any financial decisions.

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