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 26% 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
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% at the end of 2022.
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 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.
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 26% federal tax credit
48 solar companies in Maryland provide pricing on SolarReviews. Here are the best rated companies near you.
4.93 222 Reviews
Chai, 5 hours ago
Very professional and friendly company. I went through multiple solar companies, getting quotes and out of all of them Lumina had the best cost, financing, service, knowledge and warranty. The big national brands do not have the personal relationship with the local permitting office and therefore don’t know the local codes, which limit the amount of panels they put on your roof. Lumina worked closely with the permitting office and was able to maximize the number of solar panels I could get in my roof. Furthermore their roof inspector was very detailed, not just use a drone to take photos. They were on the roof inspecting and measuring every square inch. They found some flaws which I had my roofing company make warranty repairs. Without the inspection, I would of never known and a drone wouldn’t of been able to see it. All of the staff was very detailed, and kept track of every step of the install and activation process. I did ask the county inspector how the install work was and he had commented that Lumina always does good work and he doesn’t have to “chase” them for mistakes, like he has to do with other companies. My solar install is very clean, there are not conduits running every where on my roof and the panels and micro inverted they use are the most advanced ones right now. Cost ended being about $2.76/watt which is very reasonable for the type of panels and inverters I got. I had quotes from other companies were much higher and crappier panels and poorer service. I would highly recommend lumina to anyone looking to install solar. Everyone they use is in house and not contractors.
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Chai, 5 hours ago
Very professional and friendly company. I went through multiple solar companies, getting quotes and out of all of them Lumina had the best cost, financing, service, knowledge and warranty. The big national brands do not have the personal relationship with the local permitting office and therefore don’t know the local codes, which limit the amount of panels they put on your roof. Lumina worked closely with the permitting office and was able to maximize the number of solar panels I could get in my roof. Furthermore their roof inspector was very detailed, not just use a drone to take photos. They were on the roof inspecting and measuring every square inch. They found some flaws which I had my roofing company make warranty repairs. Without the inspection, I would of never known and a drone wouldn’t of been able to see it. All of the staff was very detailed, and kept track of every step of the install and activation process. I did ask the county inspector how the install work was and he had commented that Lumina always does good work and he doesn’t have to “chase” them for mistakes, like he has to do with other companies. My solar install is very clean, there are not conduits running every where on my roof and the panels and micro inverted they use are the most advanced ones right now. Cost ended being about $2.76/watt which is very reasonable for the type of panels and inverters I got. I had quotes from other companies were much higher and crappier panels and poorer service. I would highly recommend lumina to anyone looking to install solar. Everyone they use is in house and not contractors.
4.90 126 Reviews
EA, over 1 month
This is the first time we write a public/private review. We decided to do this because our experience with Celestial Solar Innovation and Jim was just exceptional. From the first meeting with Jim, in our house, he explained everything, checked the roof and made sure everything is clear. After that, we had no second thought and decided to go with him. Jim and his team took care of everything, and he was available to meet and answer questions whenever needed. The professional team was really exceptional. Once the permit arrived, they completed the job in three days! And we have a tough roof (synthetic slate). They started Monday morning. Thursday morning the inspector came. Thursday afternoon the system was on. We cannot imagine a better, more professional, more polite, and a better team. Our experience was wonderful. Naturally, with this level of praise, we recommend Celestial Solar for anyone who is planning on going Solar.
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EA, over 1 month
This is the first time we write a public/private review. We decided to do this because our experience with Celestial Solar Innovation and Jim was just exceptional. From the first meeting with Jim, in our house, he explained everything, checked the roof and made sure everything is clear. After that, we had no second thought and decided to go with him. Jim and his team took care of everything, and he was available to meet and answer questions whenever needed. The professional team was really exceptional. Once the permit arrived, they completed the job in three days! And we have a tough roof (synthetic slate). They started Monday morning. Thursday morning the inspector came. Thursday afternoon the system was on. We cannot imagine a better, more professional, more polite, and a better team. Our experience was wonderful. Naturally, with this level of praise, we recommend Celestial Solar for anyone who is planning on going Solar.
4.86 341 Reviews
Atul Marathe, 21 hours ago
Before going solar I got several estimates. I felt Solar Energy World did the best job of designing a system best tailored to fit my situation. Eric did a great job of explaining the details of how solar energy works and gave me the advantages and disadvantages of various options. They also offer the best warranty. The installers were all very nice and friendly and worked very hard to get the job done in a timely manner. Overall this was a great experience.
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Atul Marathe, 21 hours ago
Before going solar I got several estimates. I felt Solar Energy World did the best job of designing a system best tailored to fit my situation. Eric did a great job of explaining the details of how solar energy works and gave me the advantages and disadvantages of various options. They also offer the best warranty. The installers were all very nice and friendly and worked very hard to get the job done in a timely manner. Overall this was a great experience.
4.86 78 Reviews
Prof JSF, over 1 month
I cannot say enough good things about Paradise Energy!!!!!! I have never dealt with a company that pays more careful attention to the individual customer. We were impressed from the very first by the fact that they did not instantly try to sell us on a solar installation, but instead cautioned us that they would first ascertain whether we got enough sunlight to make it worth our while. They explained everything to us every step of the way, were meticulous in their work, and literally kept in weekly touch until the project was complete. And then they even checked up afterward to make sure that the utility company had done its part correctly, and to make sure that we were 100% satisfied with every detail including the (optional) placement on our property of a sign saying we are solar powered. They are awesome.
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Average cost (5kW system)
$16,000 ($3.20 per watt)
Prof JSF, over 1 month
I cannot say enough good things about Paradise Energy!!!!!! I have never dealt with a company that pays more careful attention to the individual customer. We were impressed from the very first by the fact that they did not instantly try to sell us on a solar installation, but instead cautioned us that they would first ascertain whether we got enough sunlight to make it worth our while. They explained everything to us every step of the way, were meticulous in their work, and literally kept in weekly touch until the project was complete. And then they even checked up afterward to make sure that the utility company had done its part correctly, and to make sure that we were 100% satisfied with every detail including the (optional) placement on our property of a sign saying we are solar powered. They are awesome.
4.83 66 Reviews
Miles L., over 1 month
Wow... I am glad I went with KW Solar. We scheduled a few quotes from other major solar installers that service the Northern Delaware area. Others were much more expensive, gave very limited data on any of the panels or the inverter they were trying to sell, and were high-pressure. The other installers planned to cover our entire roof with panels and wanted us to sign a contract immediately for a system that was poorly planned and only computer generated. KW Solar came along, and I knew we found the good one. They were on time, professional, had all the info on all the panels and inverters they install. They did preliminary measurements before any quotes were given to make sure things lined up properly. The quotes given were professionally done and they were able to fit more panels on one half of the area compared to the other plans. KW was able to get us a system that produces 103% of our annual usage and kept the panels on the back of the roof, and one side of the garage, so you can’t see anything from the front or sides of the home. The entire process was very smooth, and everyone I talked to was knowledgeable, friendly, and responsive. The process was very fast, it was installed and connected to the grid a month earlier than anticipated. If you are looking for a solar system for your house make sure you get multiple quotes, just make sure that KW is one of them!
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Miles L., over 1 month
Wow... I am glad I went with KW Solar. We scheduled a few quotes from other major solar installers that service the Northern Delaware area. Others were much more expensive, gave very limited data on any of the panels or the inverter they were trying to sell, and were high-pressure. The other installers planned to cover our entire roof with panels and wanted us to sign a contract immediately for a system that was poorly planned and only computer generated. KW Solar came along, and I knew we found the good one. They were on time, professional, had all the info on all the panels and inverters they install. They did preliminary measurements before any quotes were given to make sure things lined up properly. The quotes given were professionally done and they were able to fit more panels on one half of the area compared to the other plans. KW was able to get us a system that produces 103% of our annual usage and kept the panels on the back of the roof, and one side of the garage, so you can’t see anything from the front or sides of the home. The entire process was very smooth, and everyone I talked to was knowledgeable, friendly, and responsive. The process was very fast, it was installed and connected to the grid a month earlier than anticipated. If you are looking for a solar system for your house make sure you get multiple quotes, just make sure that KW is one of them!
4.83 81 Reviews
Andrea E., over 1 month
After multiple quotes, Greenstreet solar came in almost $10,000 less then their competition and made the complex process of getting permits and tax rebates really easy. They have great communication. We love having solar and love sunny days even more!
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Andrea E., over 1 month
After multiple quotes, Greenstreet solar came in almost $10,000 less then their competition and made the complex process of getting permits and tax rebates really easy. They have great communication. We love having solar and love sunny days even more!
4.82 167 Reviews
James and Myrtle Willis, over 1 month
My husband and I have debated over Solar for a while. When I saw an add for American Sentry Solar. Brad came to the house armed with all the answers to our questions. We did not want to rent panels, we wanted to purchase them. Brad was able to help us out with a new roof and critter guards as we have a ton of squirrels. The crews that came out to install the roof and solar panels were fantastic! They were respectful of my property and the clean up was beyond compare.
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James and Myrtle Willis, over 1 month
My husband and I have debated over Solar for a while. When I saw an add for American Sentry Solar. Brad came to the house armed with all the answers to our questions. We did not want to rent panels, we wanted to purchase them. Brad was able to help us out with a new roof and critter guards as we have a ton of squirrels. The crews that came out to install the roof and solar panels were fantastic! They were respectful of my property and the clean up was beyond compare.
4.79 86 Reviews
Vince Fagan, over 1 month
We've had our Solar Energy Services-installed system for about 1 1/2 years now, and it is working perfectly with zero issues - AND it is performing better than we expected. Even though our home is fairly large, we have covered our entire energy demands and generated a small net surplus each of the first two seasons. SES has been terrific throughout - from sales, installation, start up and service. We could not be more pleased.
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Vince Fagan, over 1 month
We've had our Solar Energy Services-installed system for about 1 1/2 years now, and it is working perfectly with zero issues - AND it is performing better than we expected. Even though our home is fairly large, we have covered our entire energy demands and generated a small net surplus each of the first two seasons. SES has been terrific throughout - from sales, installation, start up and service. We could not be more pleased.
4.76 77 Reviews
Jennifer , over 1 month
We had 31 panels installed 4 years ago, and they have definitely lived up to their billing. MSSI designed the system, adding 10 more panels than we thought we could fit. Their price quote was right on target, and the quality of the panels has been fantastic. We just got an email from their monitoring service & someone came out to fix our panel free of charge. Overall, I highly recommend & can’t say enough great things about MSSI!
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Jennifer , over 1 month
We had 31 panels installed 4 years ago, and they have definitely lived up to their billing. MSSI designed the system, adding 10 more panels than we thought we could fit. Their price quote was right on target, and the quality of the panels has been fantastic. We just got an email from their monitoring service & someone came out to fix our panel free of charge. Overall, I highly recommend & can’t say enough great things about MSSI!
4.68 57 Reviews
Witman , over 1 month
Made a good choice with this company. Felt very comfortable and trusting from the first phone call and meeting. Explained everything so we could understand. Did all the paper work for us when they could. Even after we were up and running helped with a problem on Delmarva's end. Truely a wonderful bunch of peope.
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Witman , over 1 month
Made a good choice with this company. Felt very comfortable and trusting from the first phone call and meeting. Explained everything so we could understand. Did all the paper work for us when they could. Even after we were up and running helped with a problem on Delmarva's end. Truely a wonderful bunch of peope.