There can be solar tax credits and incentives available at the federal, state and local levels. The calculator above will show you the value of all incentives your home is eligible for.
In Maryland, solar incentives are abundant. There are solar tax credits, county property tax credits, battery backup incentives, and a mature solar energy renewable energy certificate sales program which helps homeowners further monetize the green production of their systems.
The federal government will also give you a tax credit equal to 30% of what you pay for solar. All these incentives add up to substantial savings for you who want to do the right thing for the environment and your pocketbook.
Maryland's solar success is driven by its Renewable Portfolio Standard (RPS), which ensures a commitment to growing the share of electricity generated from renewable sources.
Learn what solar incentives are available to Maryland homeowners
See what Maryland solar incentives you qualify for based on your utility company and city
Find out how much these incentives and/or Maryland solar tax credits will reduce your cost to go solar and add batteries
The federal solar investment tax credit will have the biggest impact on the cost you will face to go solar in Maryland
If you install your photovoltaic system before the end of 2032, the federal tax credit is 30% of the cost of your solar panel system. This is 30% off the entire cost of the system including equipment, labor, and permitting.
Example: If your solar energy system costs $20,000, your federal solar tax credit would be $20,000 x 30% = $6,000.
The federal tax credit falls to 26% starting in 2033.
With net metering in some states, you get full retail rate credit for the amount of electricity you send back into the grid with your solar panels.
Net metering ensures you get credits for all the energy you produce and send back to your utility company when you aren’t able to use it. Your utility will track how much solar power you produce and how much you use.
Fortunately, in Maryland, your utility company is required to credit you for all the solar power you send back to them at full retail rates. Any difference is credited to your subsequent power bill and reset annually. That’s a huge benefit to you as a solar owner, and a strong policy we’d like to see expanded throughout the country.
Maryland offers a flat $1,000 solar rebate for any solar energy system larger than 1 kW in system size. That’s a meaningful bonus!
Maryland is a state which has compelled its public utilities to derive electricity from clean sources, like solar panels on your rooftop. Instead of paying hefty alternative compliance fees to the state, utilities can purchase clean energy certificates for the amount of electricity produced by solar owners, large and small.
Maryland has created a solar renewable energy certificate market (SREC), based on the state’s commitment to derive 14.5% of its electricity mix from solar energy by 2030.
Current market prices are about $75 per SREC. An average 10-kW solar installation in Maryland will produce about 13 SRECs annually. That amounts to $900 in SRECs you can sell annually back to your utility company, in addition to your electric bill savings.
According to SRECtrade, there may be an SREC oversupply in the Maryland market coming for the next few years. Regardless, you can count on a sizable amount of value to come from your ability to sell these certificates to your power company over the next decade.
Maryland legislators have created a battery backup tax credit of 30% of your installed costs up to $5,000. The credit has a budget of $750,000 annually, and as of late 2020 there’s still over $600,000 in the pool. At that rate, you don’t have to worry about the credit exhausting itself this year, or probably next.
The battery storage tax credit can be paired with the 30% Federal Solar Investment Tax Credit to maximize your savings, even if the battery is not paired with solar.
For example, you can take 30% of the $15,500 cost of installing a Tesla Powerwall, which will earn you $4,650. You can then earn another $4,650 through the federal tax credit, resulting in $9,300 total in tax credits to reduce the cost of your battery installation!
You can expect tens of thousands of dollars of property value increases with your Maryland solar installation. Fortunately, Maryland homeowners who go solar won’t need to pay any tax increases on that home value increase.
Also, when you install a residential solar system in Maryland, you are exempt from 100% of sales taxes on your equipment. That’s a smart legislative move to help you save even more money on your solar installation upfront.
If you’re lucky enough to live in Prince George’s county, you can get a property tax credit for up to $5,000, carried forward for two years. In Harford or Anne Arundel counties you will receive a one time annual property tax credit for 100% of your property tax bill up to a maximum of $2,500. That’s a pretty sweet deal.
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Prices based on a 9.9kW system, after 30% federal tax credit
50 solar companies in Maryland provide pricing on SolarReviews. Here are the best rated companies near you.
4.91 177 Reviews
Jeff Ladner, 5 days ago
Our experience with Jim and the Celestial Solar Team was exceptional. Jim covered all the details during our evaluation of solar systems and tailored the proposed system to our needs. The Celestial team then did an outstanding job with the installation. Notably, they spent time of the details providing a very clean install that was delivered on-schedule and with no problems. The power generation has met our targets. We're really pleased with the overall experience
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Jeff Ladner, 5 days ago
Our experience with Jim and the Celestial Solar Team was exceptional. Jim covered all the details during our evaluation of solar systems and tailored the proposed system to our needs. The Celestial team then did an outstanding job with the installation. Notably, they spent time of the details providing a very clean install that was delivered on-schedule and with no problems. The power generation has met our targets. We're really pleased with the overall experience
4.90 429 Reviews
paul casciotta, 4 weeks ago
I am very happy with Jack and the Lumina Solar team with my Solar installation. A stellar company and staff. They went a above my expectations.
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paul casciotta, 4 weeks ago
I am very happy with Jack and the Lumina Solar team with my Solar installation. A stellar company and staff. They went a above my expectations.
4.86 121 Reviews
Burkholder Mfg. Inc., over 1 month
This is my 3rd solar system. I totaly trust Paradise Energy with the whole project. Pretty much signed the papers and let them run with it. The whole project was well managed and I was well informed. We enjoy working with Paradise.
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Average cost (5kW system)
$16,000 ($3.20 per watt)
Burkholder Mfg. Inc., over 1 month
This is my 3rd solar system. I totaly trust Paradise Energy with the whole project. Pretty much signed the papers and let them run with it. The whole project was well managed and I was well informed. We enjoy working with Paradise.
4.81 594 Reviews
Hsiang Wei Tsao, 1 day ago
My experience with the sales, Steven Fulginiti, was great, who answered all my questions and followed up with me on installation.
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Hsiang Wei Tsao, 1 day ago
My experience with the sales, Steven Fulginiti, was great, who answered all my questions and followed up with me on installation.
4.78 87 Reviews
Ruben B, over 1 month
I have recently (finally) gone solar, after a long period (years, actually) of going back and forth doing research and trying to cut through the maddening cacophony of "expert" advise online. At the end of the day, serendipitously and fortunately, I went with Solar Energy Services: I can't recommend SES strongly enough. Erin was our project coordinator, she was amazing, but the entire team was truly outstanding, remarkably professional, educating me and guiding me throughout the process. I am sure most people (like me) can find this process a bit intimidating (so many details and options to consider; companies sound all alike; prices are all over the place) but having found SES was a turning point. I have read so many horror stories that I consider myself very lucky, it is obvious that SES cares about its reputation. Should any of you readers out there decide to go solar, I have no doubt Erin and her people will be happy to educate you and help you get there, just like they did for me. Ruben B.
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Ruben B, over 1 month
I have recently (finally) gone solar, after a long period (years, actually) of going back and forth doing research and trying to cut through the maddening cacophony of "expert" advise online. At the end of the day, serendipitously and fortunately, I went with Solar Energy Services: I can't recommend SES strongly enough. Erin was our project coordinator, she was amazing, but the entire team was truly outstanding, remarkably professional, educating me and guiding me throughout the process. I am sure most people (like me) can find this process a bit intimidating (so many details and options to consider; companies sound all alike; prices are all over the place) but having found SES was a turning point. I have read so many horror stories that I consider myself very lucky, it is obvious that SES cares about its reputation. Should any of you readers out there decide to go solar, I have no doubt Erin and her people will be happy to educate you and help you get there, just like they did for me. Ruben B.
4.77 200 Reviews
Marc and Debi Stewart, over 1 month
Working with American Sentry Solar was easy process start to finish. Two of our neighbor has previously purchased solar panels from American Sentry. After speaking with them and seeing how the panels were producing electricity, this made a decision to proceed. Starting with Stan Kovachki (sales) explaining the system and process to purchase, to the electric installation crew explaining their process, to the panel installation crew explaining what they would be doing. And finally Brett who completed the process by scheduling the county inspector and BGE meter switch. Very satisfied with the whole American Sentry Solar team. Panels started producing before they install crew has left the property.
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Marc and Debi Stewart, over 1 month
Working with American Sentry Solar was easy process start to finish. Two of our neighbor has previously purchased solar panels from American Sentry. After speaking with them and seeing how the panels were producing electricity, this made a decision to proceed. Starting with Stan Kovachki (sales) explaining the system and process to purchase, to the electric installation crew explaining their process, to the panel installation crew explaining what they would be doing. And finally Brett who completed the process by scheduling the county inspector and BGE meter switch. Very satisfied with the whole American Sentry Solar team. Panels started producing before they install crew has left the property.
4.76 83 Reviews
Rich Connor, over 1 month
Very professional and efficient installation. 12 panels on the garage, 14 more above the attic. All work completed in one day - started at 9 AM, completed by 4:15 PM. We couldn’t be happier with Green Street.
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Rich Connor, over 1 month
Very professional and efficient installation. 12 panels on the garage, 14 more above the attic. All work completed in one day - started at 9 AM, completed by 4:15 PM. We couldn’t be happier with Green Street.
4.76 71 Reviews
Geeksmith, over 1 month
I did a lot of homework between personal research and evaluating 5 different area solar installers and their quotes. KW Solar stood out because of its detailed and straightforward approach. They were informative, providing upfront information on sizing, mounting options, grants, loans, power company applications, permitting, and everything that goes into the process. I did not feel like they were a company selling to me but rather a consultant providing guidance. I could tell their goal was to provide the information I needed to make the most informed decision and would be happy with the result. The process and communication were painless and every person we interacted with from KW Solar was friendly, informative, and appreciated us as a customer. When it came to installation we knew exactly what to expect and the team did an excellent job minimizing the impact to our home, landscaping, and driveway. When a county inspector threw a curve ball with an uncommon interpretation of a code, they could have challenged it and won. Still, they were most concerned with not delaying so they absorbed the additional time and cost to satisfy the inspector. I didn't even know about the small hiccup until it was already being addressed. It has been 3.5 years since our installation and that system has performed without issue and the system production and savings have aligned with estimates and our expectations.
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Geeksmith, over 1 month
I did a lot of homework between personal research and evaluating 5 different area solar installers and their quotes. KW Solar stood out because of its detailed and straightforward approach. They were informative, providing upfront information on sizing, mounting options, grants, loans, power company applications, permitting, and everything that goes into the process. I did not feel like they were a company selling to me but rather a consultant providing guidance. I could tell their goal was to provide the information I needed to make the most informed decision and would be happy with the result. The process and communication were painless and every person we interacted with from KW Solar was friendly, informative, and appreciated us as a customer. When it came to installation we knew exactly what to expect and the team did an excellent job minimizing the impact to our home, landscaping, and driveway. When a county inspector threw a curve ball with an uncommon interpretation of a code, they could have challenged it and won. Still, they were most concerned with not delaying so they absorbed the additional time and cost to satisfy the inspector. I didn't even know about the small hiccup until it was already being addressed. It has been 3.5 years since our installation and that system has performed without issue and the system production and savings have aligned with estimates and our expectations.
4.73 55 Reviews
Luke, 1 week ago
From the initial consultation to the installation, everything was seamless. The team was professional, knowledgeable, and efficient. They walked me through the process and answered all my questions. My solar panels are working great. Highly recommend them for anyone looking to go solar!"
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Average cost (5kW system)
$12,000 ($2.40 per watt)
Luke, 1 week ago
From the initial consultation to the installation, everything was seamless. The team was professional, knowledgeable, and efficient. They walked me through the process and answered all my questions. My solar panels are working great. Highly recommend them for anyone looking to go solar!"
4.69 613 Reviews
Kevin E, 1 week ago
call was clear and covered all my concerns
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Kevin E, 1 week ago
call was clear and covered all my concerns