Maryland solar rebates and tax credits calculator

Solar incentive

Federal ITC 26% (tax credit)

State tax credit: No

Net metering (by utility)

Calculate for your homes location

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.

Summary of Maryland solar incentives 2020

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 26% of what you pay for solar in 2020. 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.

On this page, you can:

  1. Learn what solar incentives are available to Maryland homeowners

  2. See what Maryland solar incentives you qualify for based on your utility company and city

  3. Find out how much these incentives and/or Maryland solar tax credits will reduce your cost to go solar and add batteries

Federal solar investment tax credit

The federal solar investment tax credit will have the biggest impact on the cost you will face to go solar in Maryland

This perk is commonly known as the ITC, short for “Investment Tax Credit”. If you install your photovoltaic system in 2020, the federal tax credit is 26% of the cost of your solar panel system. This is 26% 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 26% = $5,200.

The federal tax credit falls to 22% in 2021. Unless new legislation is introduced in Washington D.C., this program will be gone in 2022.

Net energy metering in Maryland

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 solar rebates

Maryland offers a flat $1,000 solar rebate for any solar energy system larger than 1kW in system size. That’s a meaningful bonus!

Maryland's SREC program

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 10kW 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.

Solar battery incentive

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 26% Federal Solar Investment Tax Credit to maximize your savings, as long as your new battery backup system is tied to a new or existing solar installation.

For example, you can take 30% of the quoted installation cost of $17,000 for two Tesla Powerwalls (this equals $5,100 of which you can take the maximum of $5,000), and 26% of that same $17,000 ($4,420) for a total of $9,420 you can take as tax credits off the cost of your battery installation.

Sales and property tax exemptions

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.

Prince George’s, Harford, and Anne Arundel county solar property tax credits

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.

Cost of solar panels in your part of Maryland after all applicable solar incentives

Showing data for:

Prices based on a 9.9kW system, after 26% federal tax credit

Solar prices near you

Cost range of local prices

$16,238-$19,846

Payback period

7.5-9.2 years

Net profit (savings less system cost)

$42,612-$52,081

Average size system installed in MD in 2020

9.9kW

Solar panel cost calculator

Best 10 solar companies in Maryland

32 solar companies in Maryland provide pricing on SolarReviews. Here are the best rated companies near you.

Related solar news