Summary of Maryland solar incentives 2021
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.
On this page, you can:
-
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
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% at the end of 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 1 kW 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 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.
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
Payback period
7.5-9.2 years
Net profit (savings less system cost)
$42,612-$52,081
Average size system installed in MD in 2021
9.9kW
Solar panel cost calculator
Best 10 solar companies in Maryland
52 solar companies in Maryland provide pricing on SolarReviews. Here are the best rated companies near you.
4.94 149 Reviews
Latest review
Tia, 4 days ago
My cousin encouraged me to go solar based on her great experience and led me to one of my own. She put me in touch with Catie Meck, who was my Solar Consultant and point person through the whole process. She explained it clearly and shared the benefits in way that just made sense. She and her team took care of everything from getting approval from my HOA (Thanks Brooke) to consulting with roofers concerning the age of my roof. It's been two weeks and we are using energy from the panels almost daily. Can't wait until I see my next bill. I highly recommend going solar and letting Lumina Solar help you get there
Read more
Latest review
Tia, 4 days ago
My cousin encouraged me to go solar based on her great experience and led me to one of my own. She put me in touch with Catie Meck, who was my Solar Consultant and point person through the whole process. She explained it clearly and shared the benefits in way that just made sense. She and her team took care of everything from getting approval from my HOA (Thanks Brooke) to consulting with roofers concerning the age of my roof. It's been two weeks and we are using energy from the panels almost daily. Can't wait until I see my next bill. I highly recommend going solar and letting Lumina Solar help you get there
4.88 107 Reviews
Latest review
Eric, 5 days ago
We had a great experience with Jim and the Celestial team. The process from beginning to end was smooth and all communications were clear and reliable. We are extremely happy with their work designing and installing the system and their assistance applying for the state tax rebate and SREC solar credits. I highly recommend contacting Celestial if you are considering solar.
Read more
Latest review
Eric, 5 days ago
We had a great experience with Jim and the Celestial team. The process from beginning to end was smooth and all communications were clear and reliable. We are extremely happy with their work designing and installing the system and their assistance applying for the state tax rebate and SREC solar credits. I highly recommend contacting Celestial if you are considering solar.
4.85 156 Reviews
Latest review
Cami, over 1 month
I looked at about a dozen different solar panel providers and finally decided to go with American Sentry Solar. They were very responsive, have great ethos and did a great job with install. They went above and beyond by removing the old electrical wires (no longer connect or used) that a pervious contractor has just left. They were positive and also pretty quiet. I worked from home while they installed the solar panels and they didn't need to shut off the power. The panels have been great thus far and my bill has significantly decreased. We are actually exporting energy and can see in the app exactly what is happening in real time.
Read more
Latest review
Cami, over 1 month
I looked at about a dozen different solar panel providers and finally decided to go with American Sentry Solar. They were very responsive, have great ethos and did a great job with install. They went above and beyond by removing the old electrical wires (no longer connect or used) that a pervious contractor has just left. They were positive and also pretty quiet. I worked from home while they installed the solar panels and they didn't need to shut off the power. The panels have been great thus far and my bill has significantly decreased. We are actually exporting energy and can see in the app exactly what is happening in real time.
4.84 60 Reviews
Latest review
Bryan M., over 1 month
Paradise was excellent from start to finish. They stood out against several other companies when we quoting our project because of their courteousness and responsiveness. Their costs were right in line with the other quotes we got, but in the end Paradise was able to secure grant funding and helped us maximize our tax incentive, so our out-of-pocket cost was lower than it would have been with other companies. The install crew was fast and professional. And now that the system is up and running they're responsive to any questions we have. Couldn't have asked for a better experience!
Read more
Average cost (5kW system)
$16,000 ($3.20 per watt)
Latest review
Bryan M., over 1 month
Paradise was excellent from start to finish. They stood out against several other companies when we quoting our project because of their courteousness and responsiveness. Their costs were right in line with the other quotes we got, but in the end Paradise was able to secure grant funding and helped us maximize our tax incentive, so our out-of-pocket cost was lower than it would have been with other companies. The install crew was fast and professional. And now that the system is up and running they're responsive to any questions we have. Couldn't have asked for a better experience!
4.83 81 Reviews
Latest review
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!
Read more
Latest review
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 58 Reviews
Latest review
Terry, 1 week ago
All work was performed on time and as described. The staff was friendly and informative. Highly recommend them
Read more
Latest review
Terry, 1 week ago
All work was performed on time and as described. The staff was friendly and informative. Highly recommend them
4.80 223 Reviews
Latest review
MagnanoGoneSolar, 1 week ago
We went solar in our household and thanks to Brent Cotton and his team at Solar Energy World for making this happen. It all started with a dream to install a backyard pool and a way to reduce the carbon footprint that has entangled American for years. In the end, we have The Pool, A NEW Roof and Solar Panels to help with the reduction of that same carbon footprint plaguing the country today. Make sure you contact Solar Energy World asking for COTTON and give him the "Magnano" promo code receive the best reliable and cost saving experience.
Read more
Latest review
MagnanoGoneSolar, 1 week ago
We went solar in our household and thanks to Brent Cotton and his team at Solar Energy World for making this happen. It all started with a dream to install a backyard pool and a way to reduce the carbon footprint that has entangled American for years. In the end, we have The Pool, A NEW Roof and Solar Panels to help with the reduction of that same carbon footprint plaguing the country today. Make sure you contact Solar Energy World asking for COTTON and give him the "Magnano" promo code receive the best reliable and cost saving experience.
4.79 86 Reviews
Latest review
Vince Fagan, 6 days ago
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.
Read more
Latest review
Vince Fagan, 6 days ago
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.
4.79 45 Reviews
Latest review
Blair, 1 week ago
I was connected with Nova Solar through the Energy Sage market place. They were one of several quotes that I received. What caught my eye was the inclusion of a mockup of the panels on my actual roof (curiously, no other company did this). It allowed me to see exactly what I was getting into. After reaching out over the phone, one of the co-owners of the company ran through the financials with me including the incentives and the process of a solar loan. I hadn't committed to anything at that point, so taking the time to answer my questions was a very positive experience. After selecting Nova Solar, my contact was extremely responsive via email. He provided me with heads up when he was going to be stopping by for site inspections, etc. He and his crew were always punctual, never giving me a time frame but an actual exact time of arrival! On install day, the crew was respectful and personable. The crew member that had to enter the house stayed masked (as I have small children in the house). He explained everything he was doing. He showed me the panels, boxes, etc that I was of course curious about. Overall it was a great experience and they absolutely live up to their high customer rating! I would 100% recommend them!
Read more
Average cost (5kW system)
$13,250 ($2.65 per watt)
Latest review
Blair, 1 week ago
I was connected with Nova Solar through the Energy Sage market place. They were one of several quotes that I received. What caught my eye was the inclusion of a mockup of the panels on my actual roof (curiously, no other company did this). It allowed me to see exactly what I was getting into. After reaching out over the phone, one of the co-owners of the company ran through the financials with me including the incentives and the process of a solar loan. I hadn't committed to anything at that point, so taking the time to answer my questions was a very positive experience. After selecting Nova Solar, my contact was extremely responsive via email. He provided me with heads up when he was going to be stopping by for site inspections, etc. He and his crew were always punctual, never giving me a time frame but an actual exact time of arrival! On install day, the crew was respectful and personable. The crew member that had to enter the house stayed masked (as I have small children in the house). He explained everything he was doing. He showed me the panels, boxes, etc that I was of course curious about. Overall it was a great experience and they absolutely live up to their high customer rating! I would 100% recommend them!
4.76 77 Reviews
Latest review
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!
Read more
Latest review
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!
Useful links
Related solar news
Ben Zientara
January 26, 2021
The state of net metering in the United States in 2021
This annual report ranks the states for friendliness to home solar based on their net metering programs.
Ben Zientara
January 21, 2019
What is a solar carve-out?
A solar-carve out sets a specific goal for electricity generation from solar panels in a state’s energy mix. It often includes incentives for installing solar.
Ana Almerini
June 18, 2021
The 5 best solar shed lights to buy in 2021
You can easily transform your shed into a solar shed by adding solar panels to the roof or by installing solar-powered lights.
Zeeshan Hyder
June 15, 2021
Are solar canopies and carports worth it?
Solar canopies are custom-built outdoor structures designed to hold overhanging solar panels, enabling on-site solar power generation.
Zeeshan Hyder
June 10, 2021
What is Concentrated Solar Power (CSP)?
Concentrated solar power (CSP) uses special mirrors to concentrate the sun’s energy; the collected heat is then used to generate power on the utility scale.