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
52 solar companies in Maryland provide pricing on SolarReviews. Here are the best rated companies near you.
4.94 170 Reviews
Latest review
PGL, 4 days ago
After doing our research, we chose Lumina Solar for our solar installation. We worked closely with Tim Cooke to get the system designed the way we wanted, and the Lumina team was always very responsive to our questions and requests. The entire process, from design to the final inspection, went pretty much flawless. We would like to specifically call out how well the team managed the whole project and kept all the key stakeholders in the loop the entire time. Often customers focus on the technical specifications and the system costs; in our experience with home projects, good project management can easily be the most critical and important "element" that we are procuring. The Lumina team gets 5/5 from us. They made this solar installation a simple, trouble-free turnkey project. We have been using the system for the past two months, and we are extremely pleased with it. We would recommend Lumina Solar without hesitation.
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Latest review
PGL, 4 days ago
After doing our research, we chose Lumina Solar for our solar installation. We worked closely with Tim Cooke to get the system designed the way we wanted, and the Lumina team was always very responsive to our questions and requests. The entire process, from design to the final inspection, went pretty much flawless. We would like to specifically call out how well the team managed the whole project and kept all the key stakeholders in the loop the entire time. Often customers focus on the technical specifications and the system costs; in our experience with home projects, good project management can easily be the most critical and important "element" that we are procuring. The Lumina team gets 5/5 from us. They made this solar installation a simple, trouble-free turnkey project. We have been using the system for the past two months, and we are extremely pleased with it. We would recommend Lumina Solar without hesitation.
4.88 110 Reviews
Latest review
Leigh Kessler, over 1 month
Celestial Solar did a phenomenal job installing solar panels on my home. Jim spent time significant time walking me through the panel options and pros and cons of each option. Once I signed the contact, the time to installation was incredibly quick - they were installed and operational a month before I expected. The installation crew was professional and friendly. Finally, the company handled all of the paperwork for me to get my credits etc. The entire experience was seamless. I have only positive things to say about Celestial Solar and would recommend them without hesitation.
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Latest review
Leigh Kessler, over 1 month
Celestial Solar did a phenomenal job installing solar panels on my home. Jim spent time significant time walking me through the panel options and pros and cons of each option. Once I signed the contact, the time to installation was incredibly quick - they were installed and operational a month before I expected. The installation crew was professional and friendly. Finally, the company handled all of the paperwork for me to get my credits etc. The entire experience was seamless. I have only positive things to say about Celestial Solar and would recommend them without hesitation.
4.85 64 Reviews
Latest review
Honeyrun Farm, over 1 month
We ran into Sheldon Stutzman at the Farm Science Review. He was open and friendly, able to answer all our questions. A few years later, I had a barn in place and we were ready for solar. So we went with Paradise.
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Average cost (5kW system)
$16,000 ($3.20 per watt)
Latest review
Honeyrun Farm, over 1 month
We ran into Sheldon Stutzman at the Farm Science Review. He was open and friendly, able to answer all our questions. A few years later, I had a barn in place and we were ready for solar. So we went with Paradise.
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!
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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!
4.82 158 Reviews
Latest review
New Lady, over 1 month
Not able to see any difference yet. Looking forward to their promise.
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Latest review
New Lady, over 1 month
Not able to see any difference yet. Looking forward to their promise.
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.
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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 50 Reviews
Latest review
Diplonot, 2 weeks ago
Nova Solar was very willing to work with our unique situation, a solar carport, and expertly navigated Fairfax County’s strict building, zoning, and environmental requirements in a Registered Protected Area (RPA) without any change orders or up-charges. Trip and Barklie were enthusiastic and professional, and I’d wholeheartedly recommend Nova Solar!
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Average cost (5kW system)
$13,250 ($2.65 per watt)
Latest review
Diplonot, 2 weeks ago
Nova Solar was very willing to work with our unique situation, a solar carport, and expertly navigated Fairfax County’s strict building, zoning, and environmental requirements in a Registered Protected Area (RPA) without any change orders or up-charges. Trip and Barklie were enthusiastic and professional, and I’d wholeheartedly recommend Nova Solar!
4.81 229 Reviews
Latest review
Lisa, over 1 month
We were very happy with the experience from beginning to end. Austin was great at explaining what to expect at every step. Everyone was helpful and friendly and installation went smoothly. We would absolutely recommend Solar Energy World to friends and family.
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Latest review
Lisa, over 1 month
We were very happy with the experience from beginning to end. Austin was great at explaining what to expect at every step. Everyone was helpful and friendly and installation went smoothly. We would absolutely recommend Solar Energy World to friends and family.
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.
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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.
4.76 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!
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