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
51 solar companies in Maryland provide pricing on SolarReviews. Here are the best rated companies near you.
4.94 173 Reviews
Latest review
Michael, 5 days ago
From my first virtual meeting with Lumina (Shane Williams is great) to the assistance in turning things on post-permit, Lumina offered terrrific customer support to complement an excellent product. Strongly recommend.
Read more
Latest review
Michael, 5 days ago
From my first virtual meeting with Lumina (Shane Williams is great) to the assistance in turning things on post-permit, Lumina offered terrrific customer support to complement an excellent product. Strongly recommend.
4.88 111 Reviews
Latest review
Matt M, 3 days ago
Super satisfied with our solar panels from Celestial Solar. The whole process- from proposal through getting that first SREC check- was great. Jim and his team were a pleasure to work with. The install was smooth and clean. Can't recommend this local company highly enough.
Read more
Latest review
Matt M, 3 days ago
Super satisfied with our solar panels from Celestial Solar. The whole process- from proposal through getting that first SREC check- was great. Jim and his team were a pleasure to work with. The install was smooth and clean. Can't recommend this local company highly enough.
4.85 66 Reviews
Latest review
Great company!, 3 weeks ago
We have had our solar array up and running since late July, and I'm anxious to see our next electric bill to see how much we have saved. Nate was great to work with, and answered all our questions. He is always easy to contact if we have additional questions, and we're waiting for our final "interview" with the company.
Read more
Average cost (5kW system)
$16,000 ($3.20 per watt)
Latest review
Great company!, 3 weeks ago
We have had our solar array up and running since late July, and I'm anxious to see our next electric bill to see how much we have saved. Nate was great to work with, and answered all our questions. He is always easy to contact if we have additional questions, and we're waiting for our final "interview" with the company.
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!
4.81 159 Reviews
Latest review
Dee Kauffman, 2 weeks ago
American Solar Sentry is a reliable company I can trust. They have been in business many years, have top ratings in the solar industry, and use quality materials. On average the cost of going solar is no different than the cost of my electric bill. Once the panels are paid off the return on investment will be fantastic. What I appreciate most is that American Sentry Solar handles all the details including permits, financing, and installation. Aside from the initial consultation, all I had to do was schedule the surveying/planning, installation, and final inspection. All went off without a hitch and in just over a month I had solar and an app on my phone where I could track how much energy my panels were producing compared to how much I was consuming. It's a very cool app and I feel good about using a clean, renewable energy source which is friendly to our increasingly precious environment.
Read more
Latest review
Dee Kauffman, 2 weeks ago
American Solar Sentry is a reliable company I can trust. They have been in business many years, have top ratings in the solar industry, and use quality materials. On average the cost of going solar is no different than the cost of my electric bill. Once the panels are paid off the return on investment will be fantastic. What I appreciate most is that American Sentry Solar handles all the details including permits, financing, and installation. Aside from the initial consultation, all I had to do was schedule the surveying/planning, installation, and final inspection. All went off without a hitch and in just over a month I had solar and an app on my phone where I could track how much energy my panels were producing compared to how much I was consuming. It's a very cool app and I feel good about using a clean, renewable energy source which is friendly to our increasingly precious environment.
4.81 59 Reviews
Latest review
I picked the right solar company, over 1 month
By the time I sought out KW Solar, I had already rejected a different solar company (the system was too small for the price) and a generator installer (too noisy and costly for what I would have received). Subsequently, I did some additional research and narrowed my selection down to about three companies. Fortunately, I contacted KW Solar and Mike (a veteran) came to my house, discussed my requirements and shortly thereafter showed me his proposal. A few weeks later, the KW solar crew appeared at my house and installed my system. By the end of the second day, technician Luke showed me how to access my system's operational data on both the desk top and a phone app. Seeing the power meter running backwards was reason enough to uncork a bottle of Chocolate Yoo-Hoo. Four months later, and I have never had to call KW Solar for a technical issue. The system ran without issue, automatically, and without any generator noise. In addition, two days ago I used my utility/state rebate check to pay for KW Solar's installation of an LG battery backup. Now, if the grid goes down after sunset, I still have power. Thanks to Jackie, the KW Solar office coordinator, for talking me through the rebate paperwork. A couple of months ago, I had a chimney contractor come to my house and needed to have a couple of panels moved so they could do their work. At the predetermined time, Rob, the KW Solar manager, showed up with his men and the chimney contractor completed his work. In closing, the professionalism, attention to detail, and coordination are a testament to KW Solar owner Dale and his mother, who keeps the books. May God Bless, Mark E.
Read more
Latest review
I picked the right solar company, over 1 month
By the time I sought out KW Solar, I had already rejected a different solar company (the system was too small for the price) and a generator installer (too noisy and costly for what I would have received). Subsequently, I did some additional research and narrowed my selection down to about three companies. Fortunately, I contacted KW Solar and Mike (a veteran) came to my house, discussed my requirements and shortly thereafter showed me his proposal. A few weeks later, the KW solar crew appeared at my house and installed my system. By the end of the second day, technician Luke showed me how to access my system's operational data on both the desk top and a phone app. Seeing the power meter running backwards was reason enough to uncork a bottle of Chocolate Yoo-Hoo. Four months later, and I have never had to call KW Solar for a technical issue. The system ran without issue, automatically, and without any generator noise. In addition, two days ago I used my utility/state rebate check to pay for KW Solar's installation of an LG battery backup. Now, if the grid goes down after sunset, I still have power. Thanks to Jackie, the KW Solar office coordinator, for talking me through the rebate paperwork. A couple of months ago, I had a chimney contractor come to my house and needed to have a couple of panels moved so they could do their work. At the predetermined time, Rob, the KW Solar manager, showed up with his men and the chimney contractor completed his work. In closing, the professionalism, attention to detail, and coordination are a testament to KW Solar owner Dale and his mother, who keeps the books. May God Bless, Mark E.
4.81 52 Reviews
Latest review
C Simpson, 3 weeks ago
When we ran into some issues following the installation of new siding on our home, we had a terrible time finding any reputable solar installers who would work on our system. In fact, one told me that they were only interested in installing new systems. Then I found Barklie and his team at Nova Solar. They helped us right from the start -- before we knew it, our system was up and running again, issues resolved, new parts ordered and installed. They were always very professional, willing to answer questions, friendly, and extremely knowledgeable. We have a large system, and will undoubtedly have needs in the future to keep it working well. We will, without a doubt, be calling Nova Solar for all of our solar needs.
Read more
Average cost (5kW system)
$13,250 ($2.65 per watt)
Latest review
C Simpson, 3 weeks ago
When we ran into some issues following the installation of new siding on our home, we had a terrible time finding any reputable solar installers who would work on our system. In fact, one told me that they were only interested in installing new systems. Then I found Barklie and his team at Nova Solar. They helped us right from the start -- before we knew it, our system was up and running again, issues resolved, new parts ordered and installed. They were always very professional, willing to answer questions, friendly, and extremely knowledgeable. We have a large system, and will undoubtedly have needs in the future to keep it working well. We will, without a doubt, be calling Nova Solar for all of our solar needs.
4.79 86 Reviews
Latest review
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.
Read more
Latest review
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.
4.78 231 Reviews
Latest review
Briggs, 1 week ago
had the system installed without major difficulties last winter. Then a couple of weeks ago I get a message from Enphase that only about half of the microinverters are working. Took four phone calls to SEW to get someone up on the roof to check it out. I was told it was either a lighting strike or a "grid event." No other evidence of lightning strike and no grid event on record. Said they were not responsible and I should contact my insurance company. What is frustrating is the lack of a definitive answer. I KNOW they failed, but why? My insurance company is balking due to lack of details. VERY frustrating and expensive. They say I have to pay for new panels and installation. And I assume with no guarantee this won't happen again. So much for saving money going solar. Briggs
Read more
Latest review
Briggs, 1 week ago
had the system installed without major difficulties last winter. Then a couple of weeks ago I get a message from Enphase that only about half of the microinverters are working. Took four phone calls to SEW to get someone up on the roof to check it out. I was told it was either a lighting strike or a "grid event." No other evidence of lightning strike and no grid event on record. Said they were not responsible and I should contact my insurance company. What is frustrating is the lack of a definitive answer. I KNOW they failed, but why? My insurance company is balking due to lack of details. VERY frustrating and expensive. They say I have to pay for new panels and installation. And I assume with no guarantee this won't happen again. So much for saving money going solar. Briggs
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.
Zeeshan Hyder
October 19, 2021
What is a solar array and are they right for your home?
Solar arrays are collections of solar panels. We explain what they are, how they work, and whether you should get one for your home.
Ben Zientara
October 18, 2021
How SCE customers can save money with solar panels
Southern California Edison (SCE) has solar programs that can help you save money on energy bills, but they are set to expire soon.
Ana Almerini
October 15, 2021
Top 5 benefits of solar energy
Find out what the main benefits of solar energy are, from saving money to reducing your reliance on the aging utility grid.