Summary of Maryland solar incentives 2020
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 in 2020. 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% in 2021. Unless new legislation is introduced in Washington D.C., this program will be gone in 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 1kW 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 10kW 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 2020
9.9kW
Solar panel cost calculator
Best 10 solar companies in Maryland
32 solar companies in Maryland provide pricing on SolarReviews. Here are the best rated companies near you.
4.89 74 Reviews
Latest review
Eric, 23 hours ago
I spent months researching Solar companies before deciding on Lumina and I couldn't be more pleased. They were honest, efficient and the installation is excellent, both in how it works and the aesthetics. I own a historic home and Lumina took great care to hide every conduit and wire from sight. They have been equally helpful with the process to file for all the grants and tax incentives coming my way. Everyone was friendly, respectful and eager to answer my many questions. Shane was our sales and point person, and is more responsive over text and email than many of my colleagues at work. Everyone else from the engineers to the installers and the electricians were top notch. I am happy to recommend Lumina for anyone starting their solar journey.
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Latest review
Eric, 23 hours ago
I spent months researching Solar companies before deciding on Lumina and I couldn't be more pleased. They were honest, efficient and the installation is excellent, both in how it works and the aesthetics. I own a historic home and Lumina took great care to hide every conduit and wire from sight. They have been equally helpful with the process to file for all the grants and tax incentives coming my way. Everyone was friendly, respectful and eager to answer my many questions. Shane was our sales and point person, and is more responsive over text and email than many of my colleagues at work. Everyone else from the engineers to the installers and the electricians were top notch. I am happy to recommend Lumina for anyone starting their solar journey.
4.83 147 Reviews
Latest review
Hope Johnson, over 1 month
Tim Cammer, Jonathan D'Antonio, and the installation crew went above and beyond what was necessary to give us an excellent product at an exceptional value, with excellent customer service. The product is already paying for itself with no net loss to our family's budget. They were willing to travel an exceptionally long distance to our home in Yoakum with no complaints. Jonathan D'Antonio completed difficult negotiations with the City of Yoakum so that the city fees were minimal. The installation crews installed the panels safely with no hiccups, and Jonathan D'Antonio (the operations manager) personally inspected the installation before we turned it on. I highly recommend this company.
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Latest review
Hope Johnson, over 1 month
Tim Cammer, Jonathan D'Antonio, and the installation crew went above and beyond what was necessary to give us an excellent product at an exceptional value, with excellent customer service. The product is already paying for itself with no net loss to our family's budget. They were willing to travel an exceptionally long distance to our home in Yoakum with no complaints. Jonathan D'Antonio completed difficult negotiations with the City of Yoakum so that the city fees were minimal. The installation crews installed the panels safely with no hiccups, and Jonathan D'Antonio (the operations manager) personally inspected the installation before we turned it on. I highly recommend this company.
4.82 76 Reviews
Latest review
Randi, over 1 month
The Green Street representative took the time to sit down with me and explain the whole (and somewhat complicated) aspects of solar, especially the rebates and other economic programs. Their installers completed the job in only a morning and the representative was highly responsive to my questions and needs throughout the process. I now happily generating all the electricity my house needs; and more.
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Latest review
Randi, over 1 month
The Green Street representative took the time to sit down with me and explain the whole (and somewhat complicated) aspects of solar, especially the rebates and other economic programs. Their installers completed the job in only a morning and the representative was highly responsive to my questions and needs throughout the process. I now happily generating all the electricity my house needs; and more.
4.81 84 Reviews
Latest review
Leslie, over 1 month
Shopped around for a solar solution for my new home. My husband and I settled on Solar Energy Services. Seth Blankensop was very professional and knowledgeable. The system he proposed was perfect for our energy needs with the best cost. I'd definitely recommend giving them a look. Seth, along with the office and support staff were extremely responsive and helpful. Ask them for the best price they can give you and they will take care of you.
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Latest review
Leslie, over 1 month
Shopped around for a solar solution for my new home. My husband and I settled on Solar Energy Services. Seth Blankensop was very professional and knowledgeable. The system he proposed was perfect for our energy needs with the best cost. I'd definitely recommend giving them a look. Seth, along with the office and support staff were extremely responsive and helpful. Ask them for the best price they can give you and they will take care of you.
4.79 45 Reviews
Latest review
Zach Thurston, over 1 month
Overall, I was very impressed by the level of customer support and efficiency of the installation crew. From beginning to end, I felt very involved and informed on the process. I spoke with other companies before going with KW and each one wasted my time with advertising. KW was straight forward about the cost and answered every one of my questions. Installation only took one day and the final product looks just as promised, sleek and professional. I hope that others reading this will consider KW over their competitors because companies that prioritize keeping prices low instead of passing advertising costs to the customer, deserve respect and recognition for the work that they do.
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Latest review
Zach Thurston, over 1 month
Overall, I was very impressed by the level of customer support and efficiency of the installation crew. From beginning to end, I felt very involved and informed on the process. I spoke with other companies before going with KW and each one wasted my time with advertising. KW was straight forward about the cost and answered every one of my questions. Installation only took one day and the final product looks just as promised, sleek and professional. I hope that others reading this will consider KW over their competitors because companies that prioritize keeping prices low instead of passing advertising costs to the customer, deserve respect and recognition for the work that they do.
4.77 34 Reviews
Latest review
Lou Huzella, 2 weeks ago
This is my second Paradise Energy Solutions solar project over the past 3 years. I have been very satisfied with Brian's expertise in sales and Charlie, my project manager's expertise in creating solutions. The installation teams were very professional and efficent. They worked hard getting the job done, and surmounting obstacles, including antiquated electrical panels. I think it is a great long term investment, and production thus far has exceeded estimates. I am glad I went with Paradise Energy Solutions for both projects. If you are interested in solar energy and want to work with a good company give them a call.
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Average cost (5kW system)
$16,000 ($3.20 per watt)
Latest review
Lou Huzella, 2 weeks ago
This is my second Paradise Energy Solutions solar project over the past 3 years. I have been very satisfied with Brian's expertise in sales and Charlie, my project manager's expertise in creating solutions. The installation teams were very professional and efficent. They worked hard getting the job done, and surmounting obstacles, including antiquated electrical panels. I think it is a great long term investment, and production thus far has exceeded estimates. I am glad I went with Paradise Energy Solutions for both projects. If you are interested in solar energy and want to work with a good company give them a call.
4.61 60 Reviews
Latest review
Henry, 3 weeks ago
Late adding the review, but want to make sure to give Solar Gaines 5 stars. We had a system installed in April 2019 and it's been fantastic. They made a great first impression in that when we called for a quote, they treated this like any other home improvement project. They didn't send a salesman, they sent someone who would spec out what needed to be done and give us an estimate, not a hard sell. Through-out the process they were great to work with and had someone on staff who worked all the paperwork on our behalf to get the tax credits and even followed up with the county months afterward to fully confirm we were on the property tax credit wait list. Between the cost avoidance and the SRECs, we're basically cash flow neutral with a 100% financed system... eventually we pay off the loan and it's just free electricity. Great local company, professional and easy to work with, stop reading reviews and just go get your solar system installed!
Read more
Latest review
Henry, 3 weeks ago
Late adding the review, but want to make sure to give Solar Gaines 5 stars. We had a system installed in April 2019 and it's been fantastic. They made a great first impression in that when we called for a quote, they treated this like any other home improvement project. They didn't send a salesman, they sent someone who would spec out what needed to be done and give us an estimate, not a hard sell. Through-out the process they were great to work with and had someone on staff who worked all the paperwork on our behalf to get the tax credits and even followed up with the county months afterward to fully confirm we were on the property tax credit wait list. Between the cost avoidance and the SRECs, we're basically cash flow neutral with a 100% financed system... eventually we pay off the loan and it's just free electricity. Great local company, professional and easy to work with, stop reading reviews and just go get your solar system installed!
4.56 149 Reviews
Latest review
TerryT, over 1 month
After seeing an advertisement in instagram and doing a little research, they seemed liked the best company to go with.
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Latest review
TerryT, over 1 month
After seeing an advertisement in instagram and doing a little research, they seemed liked the best company to go with.
4.44 68 Reviews
Latest review
Anonymous, over 1 month
My PV array was installed three years ago and so far I had no single problem with it. I have made my research before I have selected Aurora. Their offer had competitive price and best panels well matched to microinverters. The work was performed on time as promised, including permits, inspections, and registrations. The array production is spot on averaging so far about 1% over the promised level. Over the last three years there is no observable deterioration of the energy producing power of the PVs.
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Latest review
Anonymous, over 1 month
My PV array was installed three years ago and so far I had no single problem with it. I have made my research before I have selected Aurora. Their offer had competitive price and best panels well matched to microinverters. The work was performed on time as promised, including permits, inspections, and registrations. The array production is spot on averaging so far about 1% over the promised level. Over the last three years there is no observable deterioration of the energy producing power of the PVs.
4.35 8 Reviews
Latest review
Anonymous, over 1 month
Easy to work with and very knowledgable.
Read more
Latest review
Anonymous, over 1 month
Easy to work with and very knowledgable.
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