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:
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Learn what solar incentives are available to Maryland homeowners
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See what Maryland solar incentives you qualify for based on your utility company and city
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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
48 solar companies in Maryland provide pricing on SolarReviews. Here are the best rated companies near you.
4.91 98 Reviews
Latest review
Josh W, 4 hours ago
The team was very helpful and responsive throughout. Explained our options and took our interests to heart. Partnered throughout to make sure everything was handled."
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Latest review
Josh W, 4 hours ago
The team was very helpful and responsive throughout. Explained our options and took our interests to heart. Partnered throughout to make sure everything was handled."
4.88 101 Reviews
Latest review
Ted Maker, over 1 month
I wholeheartedly recommend Celestial Solar to anyone considering going solar. From the initial inquiry to the establishment of my SRECTrade account, Jim and his team were professional, informative, attentive to detail, and oriented towards my specific situation. They do it right. Here is some of the detail of my experience: Jim immediately differentiated Celestial Solar from the three other companies under consideration with his focus on my questions and concerns, a realistic assessment of the roof’s solar potential, and the tradeoffs regarding the number, location and quality of panels. He provided his recommendations, but made it clear that the decision was mine. Because we had to replace our roof prior to proceeding, Jim put me in touch with PJ Roofing with whom Celestial Solar frequently works. PJ Roofing not only installed the roof, it used the solar plan to relocate the attic fan, exhaust fans and plumbing stacks on the south-facing roof so the 21 panels could be optimally installed in one large block across the roof. Importantly, PJ Roofing and Celestial Solar had the lowest combined cost out of the 4 quotes. The crew installed the panels flawlessly in a day and a half. They clearly knew exactly what to do, and based on the light-hearted chatter, clearly enjoyed what they were doing. They minimized the amount of exposed conduit on the outside wall and roof – a concern of my spouse - by running it through the attic. As a testament to the quality of the installation I personally checked every roof rafter in the attic to see if any lag screws had “missed”. None had. I was particularly impressed with Travis, who did the detailed measuring of our roof and its solar potential and who waited for the County Inspector to arrive to approve the installation. While waiting Travis patiently answered my endless questions and explained the Enphase Energy System and Micro inverters to increase my comfort level. When one micro inverter seemed to have a spotty connection, he immediately climbed on the roof to resolve it and then verified the performance and serial number of the other 20. Even after I flipped the switch (literally) to turn on the system, Jim and Becky made sure I was familiar with the Enphase App, had the appropriate information for the Federal Tax Credit, Maryland’s Residential Solar Rebate Grant, and REC Certification. They also established SRECTrade account and explained how it worked. I have provided this much detail to convey the specifics of my experience was so positive. When you choose to use Celestial Solar you will not be disappointed. Jim, Becky, Travis and the Celestial Solar Crew, Thank you.
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Latest review
Ted Maker, over 1 month
I wholeheartedly recommend Celestial Solar to anyone considering going solar. From the initial inquiry to the establishment of my SRECTrade account, Jim and his team were professional, informative, attentive to detail, and oriented towards my specific situation. They do it right. Here is some of the detail of my experience: Jim immediately differentiated Celestial Solar from the three other companies under consideration with his focus on my questions and concerns, a realistic assessment of the roof’s solar potential, and the tradeoffs regarding the number, location and quality of panels. He provided his recommendations, but made it clear that the decision was mine. Because we had to replace our roof prior to proceeding, Jim put me in touch with PJ Roofing with whom Celestial Solar frequently works. PJ Roofing not only installed the roof, it used the solar plan to relocate the attic fan, exhaust fans and plumbing stacks on the south-facing roof so the 21 panels could be optimally installed in one large block across the roof. Importantly, PJ Roofing and Celestial Solar had the lowest combined cost out of the 4 quotes. The crew installed the panels flawlessly in a day and a half. They clearly knew exactly what to do, and based on the light-hearted chatter, clearly enjoyed what they were doing. They minimized the amount of exposed conduit on the outside wall and roof – a concern of my spouse - by running it through the attic. As a testament to the quality of the installation I personally checked every roof rafter in the attic to see if any lag screws had “missed”. None had. I was particularly impressed with Travis, who did the detailed measuring of our roof and its solar potential and who waited for the County Inspector to arrive to approve the installation. While waiting Travis patiently answered my endless questions and explained the Enphase Energy System and Micro inverters to increase my comfort level. When one micro inverter seemed to have a spotty connection, he immediately climbed on the roof to resolve it and then verified the performance and serial number of the other 20. Even after I flipped the switch (literally) to turn on the system, Jim and Becky made sure I was familiar with the Enphase App, had the appropriate information for the Federal Tax Credit, Maryland’s Residential Solar Rebate Grant, and REC Certification. They also established SRECTrade account and explained how it worked. I have provided this much detail to convey the specifics of my experience was so positive. When you choose to use Celestial Solar you will not be disappointed. Jim, Becky, Travis and the Celestial Solar Crew, Thank you.
4.84 150 Reviews
Latest review
Sackett, 1 day ago
Fast and efficient. Gave recommendations for changes to landscape to improve solar efficiency. Installation was quick and smooth. Only complaint was with CPS Energy and the time it took to get approval for installation of the system and final approval for connection to the grid.
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Latest review
Sackett, 1 day ago
Fast and efficient. Gave recommendations for changes to landscape to improve solar efficiency. Installation was quick and smooth. Only complaint was with CPS Energy and the time it took to get approval for installation of the system and final approval for connection to the grid.
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!
4.81 76 Reviews
Latest review
Anonymous, over 1 month
I did not submit a review when my 12 KW install was complete because, although my experience with Colette in purchasing and installing the system was incredibly professional and well executed, I did not feel that an assessment of MSSI was valid until I'd spent some time with the system operating. Well, it's been more than two years since my Solar installation was completed, and I can tell you that MSSI has been wonderful to deal with as the system was set up, the system registered for SRECS, and their performance in monitoring the system operation. They've recently identified the second issue with the system operations-and in both cases caught the problem before I could identify it. They then contacted the equipment manufacturer and arranged for warranty replacement-and conducted the functional repair in a timely manner. My system continues to operate well-and I could not be happier with the entire experience of having purchased my solar array from MSSI.
Read more
Latest review
Anonymous, over 1 month
I did not submit a review when my 12 KW install was complete because, although my experience with Colette in purchasing and installing the system was incredibly professional and well executed, I did not feel that an assessment of MSSI was valid until I'd spent some time with the system operating. Well, it's been more than two years since my Solar installation was completed, and I can tell you that MSSI has been wonderful to deal with as the system was set up, the system registered for SRECS, and their performance in monitoring the system operation. They've recently identified the second issue with the system operations-and in both cases caught the problem before I could identify it. They then contacted the equipment manufacturer and arranged for warranty replacement-and conducted the functional repair in a timely manner. My system continues to operate well-and I could not be happier with the entire experience of having purchased my solar array from MSSI.
4.81 85 Reviews
Latest review
Tom, over 1 month
Solar Energy Services was willing to try to service a 9 year old Schuco system they didn't sell. Hard to find good people do that. Reliable scheduling and transparent, understandable and fair pricing. Knowledgable service tech arrived on schedule and changed glycol and fully recharged system - he was very diligent/thorough. They earned by trust and future business!
Read more
Latest review
Tom, over 1 month
Solar Energy Services was willing to try to service a 9 year old Schuco system they didn't sell. Hard to find good people do that. Reliable scheduling and transparent, understandable and fair pricing. Knowledgable service tech arrived on schedule and changed glycol and fully recharged system - he was very diligent/thorough. They earned by trust and future business!
4.81 49 Reviews
Latest review
Extremely satisfied. Everyone wa, 1 week ago
Extremely satisfied. Everyone was extremely professional and personable. Quick responses whenever I had questions.
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Average cost (5kW system)
$16,000 ($3.20 per watt)
Latest review
Extremely satisfied. Everyone wa, 1 week ago
Extremely satisfied. Everyone was extremely professional and personable. Quick responses whenever I had questions.
4.80 50 Reviews
Latest review
Mariame, over 1 month
I wanted to have my solar system installed by professionals who can avoid me to go through all the burden by myself, and also explain me all the steps.
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Latest review
Mariame, over 1 month
I wanted to have my solar system installed by professionals who can avoid me to go through all the burden by myself, and also explain me all the steps.
4.77 201 Reviews
Latest review
Carolyn S., 5 hours ago
Paul was very knowledgeable and patiently answered all of my questions even though the initial consultation ended up running nearly two hours with additional questions via email afterwards. The project is still ongoing but he and his team have stayed on top of things the whole time. Solar Energy World's partnership with other companies also enabled me to complete all of prerequisite work at cost (deinstallation of an old solar system and roof replacement).
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Latest review
Carolyn S., 5 hours ago
Paul was very knowledgeable and patiently answered all of my questions even though the initial consultation ended up running nearly two hours with additional questions via email afterwards. The project is still ongoing but he and his team have stayed on top of things the whole time. Solar Energy World's partnership with other companies also enabled me to complete all of prerequisite work at cost (deinstallation of an old solar system and roof replacement).
4.61 35 Reviews
Latest review
Satisfied Bel Air family, over 1 month
In addition to great performance, my wife and I wanted our solar system to look attractive. Chris worked closely with us as we considered different layouts, and he climbed our roof to personally measure and ensure our layout would fit between a number of existing roof penetrations. Chris’s microinverter installs are state-of-the art and, for us, provided the best long term return on investment. Chris led the installation crew. He and his team were on time and professional, including cleaning up the job site thoroughly. He has also been easily accessible as I’ve had follow up questions during my first year with the system. We considered other vendors, but Chris was most receptive to our wish list and some of the vendors rely on satellite photos rather than in-person measurements. One of the national vendors was very pushy, which was a turn off. Overall we would highly recommend Chris and EcoSolar Solutions if you are considering a solar install.
Read more
Latest review
Satisfied Bel Air family, over 1 month
In addition to great performance, my wife and I wanted our solar system to look attractive. Chris worked closely with us as we considered different layouts, and he climbed our roof to personally measure and ensure our layout would fit between a number of existing roof penetrations. Chris’s microinverter installs are state-of-the art and, for us, provided the best long term return on investment. Chris led the installation crew. He and his team were on time and professional, including cleaning up the job site thoroughly. He has also been easily accessible as I’ve had follow up questions during my first year with the system. We considered other vendors, but Chris was most receptive to our wish list and some of the vendors rely on satellite photos rather than in-person measurements. One of the national vendors was very pushy, which was a turn off. Overall we would highly recommend Chris and EcoSolar Solutions if you are considering a solar install.
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