There can be solar tax credits and incentives available at the federal, state and local levels. The calculator above will show you the value of all incentives your home is eligible for.
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.
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
The federal solar investment tax credit will have the biggest impact on the cost you will face to go solar in Maryland
If you install your photovoltaic system before 2032, the federal tax credit is 30% of the cost of your solar panel system. This is 30% 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 30% = $6,000.
The federal tax credit falls to 26% at the end of 2032.
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 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 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.
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.
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.
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.
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Prices based on a 9.9kW system, after 30% federal tax credit
45 solar companies in Maryland provide pricing on SolarReviews. Here are the best rated companies near you.
4.91 254 Reviews
Dan M, 2 days ago
We had a great experience from sale through installation. Our representative, Philip, was very professional and easy to work with. He allowed us to move at our own pace with no pressure. Answered all our questions as they came up. Installation went very smooth, the workers were quick, professional and did a wonderful job. Very good experience with Lumina!
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Dan M, 2 days ago
We had a great experience from sale through installation. Our representative, Philip, was very professional and easy to work with. He allowed us to move at our own pace with no pressure. Answered all our questions as they came up. Installation went very smooth, the workers were quick, professional and did a wonderful job. Very good experience with Lumina!
4.89 130 Reviews
Dave King, 1 month ago
We recently completed a major remodel of our 1950's home with the last step being the design and installation of a solar panel array. We contacted several providers and, based in part on the recommendation of a neighbor, decided to work with Jim Reilly and Celestial. We couldn't be happier with the entire experience. Jim discussed our objectives with us and developed a preliminary design. We have a multi-story roof and had specific ideas on where to place panels for aesthetics. Jim and his engineering team worked with us to maximize our production while staying true to our design objectives. Installation was completed right on schedule and the system has been in production for several months. Our generation has met or exceeded the design specs to date. Jim also helped us to apply for the MD state Clean Energy Rebate, which has already been approved. He also provided the necessary information for setting up our SREC trading account and we have already received our first reimbursement. Our entire experience with Jim and Celestial Solar Innovations has been wonderful and I highly recommend you consider them if you are contemplating the addition of solar to your home or business.
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Dave King, 1 month ago
We recently completed a major remodel of our 1950's home with the last step being the design and installation of a solar panel array. We contacted several providers and, based in part on the recommendation of a neighbor, decided to work with Jim Reilly and Celestial. We couldn't be happier with the entire experience. Jim discussed our objectives with us and developed a preliminary design. We have a multi-story roof and had specific ideas on where to place panels for aesthetics. Jim and his engineering team worked with us to maximize our production while staying true to our design objectives. Installation was completed right on schedule and the system has been in production for several months. Our generation has met or exceeded the design specs to date. Jim also helped us to apply for the MD state Clean Energy Rebate, which has already been approved. He also provided the necessary information for setting up our SREC trading account and we have already received our first reimbursement. Our entire experience with Jim and Celestial Solar Innovations has been wonderful and I highly recommend you consider them if you are contemplating the addition of solar to your home or business.
4.87 405 Reviews
Kelley Reynolds, 1 week ago
Our experience to date with Solar Energy World has been excellent. They have helped arrange for the entire process of putting solar on our roof--purchase, installation, inspection, and financing. They have responded punctually, transparently, and clearly to all our queries and have deftly stewarded the entire process. We are excited to have solar in our house and reduce our carbon footprint!
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Kelley Reynolds, 1 week ago
Our experience to date with Solar Energy World has been excellent. They have helped arrange for the entire process of putting solar on our roof--purchase, installation, inspection, and financing. They have responded punctually, transparently, and clearly to all our queries and have deftly stewarded the entire process. We are excited to have solar in our house and reduce our carbon footprint!
4.84 85 Reviews
Jim, 1 week ago
We just had a solar system installed at our home by Paradise and are completely satisfied. Everyone we worked with was excellent and extremely helpful. Sheldon gave us all the information we needed to make an informed decision without even a hint of pressure. Matt guided us thru the actual installation process and never seemed to mind my numerous questions. Eric and his crew did a great job on the install despite the excessive heat wave. They were very neat and kept me informed during the process. Permitting was handled by Paradise and I just needed to sign the paperwork. I would recommend them to anyone looking to have solar installed. Thank you all.
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Average cost (5kW system)
$16,000 ($3.20 per watt)
Jim, 1 week ago
We just had a solar system installed at our home by Paradise and are completely satisfied. Everyone we worked with was excellent and extremely helpful. Sheldon gave us all the information we needed to make an informed decision without even a hint of pressure. Matt guided us thru the actual installation process and never seemed to mind my numerous questions. Eric and his crew did a great job on the install despite the excessive heat wave. They were very neat and kept me informed during the process. Permitting was handled by Paradise and I just needed to sign the paperwork. I would recommend them to anyone looking to have solar installed. Thank you all.
4.83 174 Reviews
Kendra Raab, 1 week ago
I am very thankful American Design and Build and especially to Adam for answering my questions, to Brad and his team for the installation of my solar panels onto my roof. I was hesitate to install solar panels until an American Design and Build representative came to my home and showed me all aspects of solar panels, the incentives, costs, installation, etc. They did any outstanding job with the installation, they were thoughtful, courtesy and told me everything they were doing. In addition, they arrived at my home right on time and I was shocked they were done so quick. Thank You again to Brad and his teams.
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Kendra Raab, 1 week ago
I am very thankful American Design and Build and especially to Adam for answering my questions, to Brad and his team for the installation of my solar panels onto my roof. I was hesitate to install solar panels until an American Design and Build representative came to my home and showed me all aspects of solar panels, the incentives, costs, installation, etc. They did any outstanding job with the installation, they were thoughtful, courtesy and told me everything they were doing. In addition, they arrived at my home right on time and I was shocked they were done so quick. Thank You again to Brad and his teams.
4.83 66 Reviews
Miles L., over 1 month
Wow... I am glad I went with KW Solar. We scheduled a few quotes from other major solar installers that service the Northern Delaware area. Others were much more expensive, gave very limited data on any of the panels or the inverter they were trying to sell, and were high-pressure. The other installers planned to cover our entire roof with panels and wanted us to sign a contract immediately for a system that was poorly planned and only computer generated. KW Solar came along, and I knew we found the good one. They were on time, professional, had all the info on all the panels and inverters they install. They did preliminary measurements before any quotes were given to make sure things lined up properly. The quotes given were professionally done and they were able to fit more panels on one half of the area compared to the other plans. KW was able to get us a system that produces 103% of our annual usage and kept the panels on the back of the roof, and one side of the garage, so you can’t see anything from the front or sides of the home. The entire process was very smooth, and everyone I talked to was knowledgeable, friendly, and responsive. The process was very fast, it was installed and connected to the grid a month earlier than anticipated. If you are looking for a solar system for your house make sure you get multiple quotes, just make sure that KW is one of them!
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Miles L., over 1 month
Wow... I am glad I went with KW Solar. We scheduled a few quotes from other major solar installers that service the Northern Delaware area. Others were much more expensive, gave very limited data on any of the panels or the inverter they were trying to sell, and were high-pressure. The other installers planned to cover our entire roof with panels and wanted us to sign a contract immediately for a system that was poorly planned and only computer generated. KW Solar came along, and I knew we found the good one. They were on time, professional, had all the info on all the panels and inverters they install. They did preliminary measurements before any quotes were given to make sure things lined up properly. The quotes given were professionally done and they were able to fit more panels on one half of the area compared to the other plans. KW was able to get us a system that produces 103% of our annual usage and kept the panels on the back of the roof, and one side of the garage, so you can’t see anything from the front or sides of the home. The entire process was very smooth, and everyone I talked to was knowledgeable, friendly, and responsive. The process was very fast, it was installed and connected to the grid a month earlier than anticipated. If you are looking for a solar system for your house make sure you get multiple quotes, just make sure that KW is one of them!
4.78 87 Reviews
Ruben B, over 1 month
I have recently (finally) gone solar, after a long period (years, actually) of going back and forth doing research and trying to cut through the maddening cacophony of "expert" advise online. At the end of the day, serendipitously and fortunately, I went with Solar Energy Services: I can't recommend SES strongly enough. Erin was our project coordinator, she was amazing, but the entire team was truly outstanding, remarkably professional, educating me and guiding me throughout the process. I am sure most people (like me) can find this process a bit intimidating (so many details and options to consider; companies sound all alike; prices are all over the place) but having found SES was a turning point. I have read so many horror stories that I consider myself very lucky, it is obvious that SES cares about its reputation. Should any of you readers out there decide to go solar, I have no doubt Erin and her people will be happy to educate you and help you get there, just like they did for me. Ruben B.
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Ruben B, over 1 month
I have recently (finally) gone solar, after a long period (years, actually) of going back and forth doing research and trying to cut through the maddening cacophony of "expert" advise online. At the end of the day, serendipitously and fortunately, I went with Solar Energy Services: I can't recommend SES strongly enough. Erin was our project coordinator, she was amazing, but the entire team was truly outstanding, remarkably professional, educating me and guiding me throughout the process. I am sure most people (like me) can find this process a bit intimidating (so many details and options to consider; companies sound all alike; prices are all over the place) but having found SES was a turning point. I have read so many horror stories that I consider myself very lucky, it is obvious that SES cares about its reputation. Should any of you readers out there decide to go solar, I have no doubt Erin and her people will be happy to educate you and help you get there, just like they did for me. Ruben B.
4.76 77 Reviews
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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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!
4.61 60 Reviews
Henry, over 1 month
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!
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Henry, over 1 month
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!
4.60 41 Reviews
C Anderson, over 1 month
We had our original solar system installed prior to the pandemic and were completely satisfied with the entire experience. The installation went smoothly, the people were lovely to deal with, and the system worked great. The installation team was incredibly respectful and well-mannered in our home, which we all appreciated! After the pandemic hit, we needed additional panels and contacted Edge to install more since we had such a great first experience. It was NOT a fluke! We had a fantastic second experience as well from the sales person (Tony) to his installation crew. We cannot recommend them enough. They look nice on our home and are feeding energy to us and back to the grid like a champ. Those $0 energy bills are incredibly rewarding!
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C Anderson, over 1 month
We had our original solar system installed prior to the pandemic and were completely satisfied with the entire experience. The installation went smoothly, the people were lovely to deal with, and the system worked great. The installation team was incredibly respectful and well-mannered in our home, which we all appreciated! After the pandemic hit, we needed additional panels and contacted Edge to install more since we had such a great first experience. It was NOT a fluke! We had a fantastic second experience as well from the sales person (Tony) to his installation crew. We cannot recommend them enough. They look nice on our home and are feeding energy to us and back to the grid like a champ. Those $0 energy bills are incredibly rewarding!