Solar panel cost in Maryland

The average cost for an installed residential solar system in Maryland is currently $12,157 after claiming the 26% federal solar tax credit. This is $2.74 per watt.

Solar prices near you

Cost range of local prices


Net profit (savings less system cost)


Payback period

6.1-7.5 years

Recommended size for the selected utility bill


Chart 1: Distribution curve of MD residential solar cost 2020
SolarReviews average

Note: Prices after 26% Federal Solar Tax Credit

MD solar panel cost calculator

Cash flow graph based on cash purchase of a 5.8kW system

Maryland solar power overview

Maryland had previously been a power player in the solar industry when it came to incentives. However, as the value of SRECs decreased because of an oversaturated market and utility incentives reached their capacity limits, solar in Maryland became a little less juicy a financial proposition.

However, a recent change to the state’s renewable portfolio standard may start to drive utilities to extend their incentives. The state’s net metering policy, the federal tax credit, and the remaining incentives still lead to a great return on investment on residential solar panels in Maryland.

Are solar panels worth it in Maryland

Solar panels have fallen in price by more than 80% in the last ten years. In 2020 they also remain subsidized by the 26% federal tax credit and the net metering law, making them an excellent investment. They offer a return well above the long term average return from both the share market and also property investment.

Another way to look at this question is the levelized amount you will pay for each kWh of power you will use over the next 25 years with and without solar panels. As you can see below the savings are significant.

Levelized cost of solar energy
Levelized cost per kWh is the cost of the solar system divided by the total number of kWh produced by a solar system over it’s lifetime

5¢ /kWh

If you don't get solar

32¢ /kWh

(forecast avg Maryland electric rates over the next 25 years)

Maryland solar incentives & tax credits

Federal solar tax credit

The most significant incentive to install solar panels for homes and businesses in Maryland is the federal solar tax credit. At the end of 2020, the amount of the credit will decrease from 26% to 22% of the cost of the solar installation.

Because home and business owners want to get the largest incentive amount possible, solar panel installation companies will likely be flooded with new projects before year’s end. In order to maximize your savings potential, the best time to go solar in Maryland is now.


Net metering

Investor-owned utilities in Maryland are required to offer their customers net metering. So, if your solar system produces more energy than you use in a billing period, your utility will pay you for the excess energy that your system produced - at the retail rate of electricity.

Since electricity rates are so high in Maryland, net metering can save homeowners a pretty penny on their electric bills.


Maryland SREC Program

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. Luckily for you as a solar homeowner, that is a direct benefit to you. 

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. 

Maryland Battery Backup Tax Credit

Maryland legislators have created a battery backup tax credit of 30% of your installed costs up to $5,000. When you go solar, you can combine the Federal tax credit with this one to reap big savings on your home solar energy and energy storage system here. 

Maryland Clean Energy Grant

Maryland has also crafted a Clean Energy Grant. This solar incentive provides an upfront rebate of $1,000 per solar system installed, in order to help reduce upfront installation costs. 


Sales and use tax exemption

Thanks to Maryland’s solar energy sales tax exemption, the state’s 6% sales tax cannot be added onto purchases of solar energy equipment. Sales tax can sometimes accumulate to over $1,000, so the energy savings are more than you think!


Property tax exemption

When a solar panel system is installed on a home, the value of the property goes up - and so do the property taxes. Maryland law exempts 100% of the assessed cost of a solar system from property taxes, so you won’t have to pay more when you install a system. 


Local solar tax credits

Certain Maryland counties offer solar tax credits when you install a solar system on your home. In Anne Arundel County for example, you can apply for a tax credit that is equal to 50% of the costs of solar system materials and installation up to $2,500. This tax credit is then applied to your property taxes. 

With the state’s property tax exemption, this means that not only will installing a solar system not raise your property taxes, it can also actually decrease them!

Table 2: Available incentive programs
Eligibility: Federal incentive
Type: Personal Tax Credit
Eligibility: State incentive
Type: Solar Renewable Energy Credit Program

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Top 10 solar panel brands installed in Maryland in 2020

Average cost of solar panel installation in Maryland by system size

System size*
Cash purchase

(After tax credit)

Financed purchase

(After tax credit)

4kW $11,960 $12,797
5kW $14,320 $15,322
6kW $16,428 $17,578
7kW $18,977 $20,305
8kW $22,080 $23,626
9kW $23,913 $25,587
10kW $26,300 $28,141

Best solar companies in the main cities of Maryland

Different types of solar companies

Solar company reviews

Home solar basics

Is it better to lease or buy solar panels in Maryland

You will save most money by buying your solar system rather than leasing it. Read more about the pros and cons of leasing vs buying solar.

How long do solar panels last?

Minimum of 25 years but generally 30 or more

How do solar panels work on a home?

Solar panels power your house when they can but your home uses the utility company for power at other times. In 2020 "solar systems with battery storage" are becoming more popular. These are known as hybrid systems.

How do solar panels work?

Grid-tied solar system

Solar panels are mounted on your roof and wired together in groups called solar arrays. The power they generate flows into a solar inverter where the direct current (DC) electricity is converted into alternating current (AC) electricity that can be used by your home or exported to the electric grid.

Off-grid solar system

Off-grid solar power involves meeting all your energy needs from the power of the sun. There’s no utility to fall back on. This means the solar installation needs to power the home not just during the day, when the sun is shining, but after dark as well.

Read more about types of home solar systems.

Do solar panels require regular maintenance?

No, but cleaning them can improve power generation if they are dirty.

Will residential solar power system cost fall in Maryland in 2020?

Given this environment, and the effect of import tariffs placed on solar panels by the Trump administration during 2018, it is hard to see that solar power system prices in Maryland will fall during 2020.

Can you buy DIY Solar Panel Kits and install them yourself in Maryland?

Yes you can! In some cases, you can save $3,000 or more when you install solar yourself, even after receiving the federal tax credit. Despite the potential for savings, data from Lawrence Berkeley Labs shows that only about 3% of homeowners choose DIY solar. 

Reasons for this include:

  • The permitting and inspection process for the utility, the state, and municipalities can be quite complex.
  • The installation work is both dangerous and difficult, with electrical work having to be performed at heights.
  • Often times, solar electricity customers will be charged a premium for DIY installations, which can limit savings.
  • In some states, a solar system needs to be installed by a qualified solar contractor in order to take advantage of incentives. In Maryland, a solar installer must hold a Master Electrician's License and MHIC contractor license to be considered qualified. Utilities and incentive programs may have additional requirements.


SolarReviews does not recommend DIY solar installations unless you have suitable skills. However, for those who do, SolarReviews published a comparison table displaying solar panel kit prices from the top 10 leading solar kit websites in the US.

Buy DIY solar panel kits online

Prices don’t include installation, permits or inspections

How much electricity do solar panel systems generate in Maryland?

Depending on the location, solar panels will generate different amounts of electricity.

A solar system that is installed on a south-facing 29-degree pitch roof Maryland will generate 1,150kWh of peak DC (direct current) capacity per year per 1kW in Maryland.

Enter your details into the solar panel calculator to see how your location, roof tilt, and roof direction impacts solar panel production.

What are the pros and cons of installing solar panels in Maryland?

The advantages of installing solar panels in Maryland are that there are state and local-based incentives that can be used with the federal tax credit. Maryland’s high electric rates combined with their net metering requirement makes the overall return on investment for solar panels one of the best in the nation. The state also recently approved the expansion of their RPS, thereby increasing the amount of energy utilities must provide from solar power.

The disadvantage of installing solar panels for your home in Maryland is that there is less overall solar irradiation per year, meaning a solar system in Maryland will produce less than a solar system in sunnier states.

Despite this, there is no better time to make the switch to solar while local incentives and the 26% federal tax credit are still available.

Enter your details to calculate the cost and savings you are likely to get from installing solar panels for your home.

What you can learn from our state solar panel calculator

This solar calculator requires you to input your address, utility company, your average monthly power spend - it tells you:

If you want to see all of the above but also see live pricing, the three best solar deals available in your city and get binding quotes from each of these solar companies then use this Maryland solar panels calculator. This calculator requires you to also input your name and contact details because most of our 200+ installer partners will only authorize the sharing of their live solar pricing where we have validated that you are a real homeowner with a home in their service area. We respect the privacy of your data and only share your contact details with the solar companies you ask us to get binding quotes from.

Note: Please keep in mind that the best source of up-to-date information on incentives are the solar installers who specialize in your area.

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