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 30% 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 the end of 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% starting in 2033.
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 30% Federal Solar Investment Tax Credit to maximize your savings, even if the battery is not paired with solar.
For example, you can take 30% of the $15,500 cost of installing a Tesla Powerwall, which will earn you $4,650. You can then earn another $4,650 through the federal tax credit, resulting in $9,300 total in tax credits to reduce 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
49 solar companies in Maryland provide pricing on SolarReviews. Here are the best rated companies near you.
4.92 388 Reviews
Jonathan Camaioni, 2 days ago
“I highly recommend Lumina Solar. Our sales person Peter was very knowledgeable and very professional in updating us on the project status from start to finish. Peter was always available via text/phone to answer any questions at any time throughout the process. Lumina Solar installers were very professional and meticulous in the project installation. The day of installation was extremely frigid and windy but the installers took their time to make sure the job was done neatly and 100% to our standards. Their customer service and support is excellent. We were hesitant at first about whether solar was right for us, but the experience was fantastic and definitely the right move. I would highly recommend Lumina Solar to those who may be skeptical or those who just need the best in solar out there.”
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Jonathan Camaioni, 2 days ago
“I highly recommend Lumina Solar. Our sales person Peter was very knowledgeable and very professional in updating us on the project status from start to finish. Peter was always available via text/phone to answer any questions at any time throughout the process. Lumina Solar installers were very professional and meticulous in the project installation. The day of installation was extremely frigid and windy but the installers took their time to make sure the job was done neatly and 100% to our standards. Their customer service and support is excellent. We were hesitant at first about whether solar was right for us, but the experience was fantastic and definitely the right move. I would highly recommend Lumina Solar to those who may be skeptical or those who just need the best in solar out there.”
4.91 169 Reviews
John V, 4 days ago
Jim and his team from Celestial Solar did a great job installing my solar system. Jim made the entire process very clear, along with the costs. There were no surprises and the system is performing great. Jim has been very responsive to any questions I have had - before, during, and after installation. Highly recommended!
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John V, 4 days ago
Jim and his team from Celestial Solar did a great job installing my solar system. Jim made the entire process very clear, along with the costs. There were no surprises and the system is performing great. Jim has been very responsive to any questions I have had - before, during, and after installation. Highly recommended!
4.85 116 Reviews
Dave Robinson, 2 days ago
Outstanding!! A very professional installation from first estimate through to swich on. Excellent communication throughout and explanation of details for the technical and financial aspects. In particular the project manager Michael Oliver, his site crew and office support. A pleasant and educational experience dealing with this company
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Average cost (5kW system)
$16,000 ($3.20 per watt)
Dave Robinson, 2 days ago
Outstanding!! A very professional installation from first estimate through to swich on. Excellent communication throughout and explanation of details for the technical and financial aspects. In particular the project manager Michael Oliver, his site crew and office support. A pleasant and educational experience dealing with this company
4.83 562 Reviews
New, 2 weeks ago
I am very pleased with the service and professionalism exhibited by all of the people at Solar Energy World. I chose this company over two other bids. One was lower, one was higher. Neither offered one phone number to call, for any reason, during the 30-year warranty. The 4.0kW, Q-Cell panels and number of panels used were a positive middle range with better performance, than the other bids. Although I am waiting for the final inspections and am anxious to see how well this array will provide me with better energy for myself, my neighbors, and our neighborhood.
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New, 2 weeks ago
I am very pleased with the service and professionalism exhibited by all of the people at Solar Energy World. I chose this company over two other bids. One was lower, one was higher. Neither offered one phone number to call, for any reason, during the 30-year warranty. The 4.0kW, Q-Cell panels and number of panels used were a positive middle range with better performance, than the other bids. Although I am waiting for the final inspections and am anxious to see how well this array will provide me with better energy for myself, my neighbors, and our neighborhood.
4.82 196 Reviews
Tyler Krug, 1 week ago
I cannot express how good of a job American Sentry Solar did. The crew that they sent out today was super friendly and knowledgeable. I’m glad the money that I would be putting towards my energy bill is now going towards something that I can profit from along with bringing my home value up.
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Tyler Krug, 1 week ago
I cannot express how good of a job American Sentry Solar did. The crew that they sent out today was super friendly and knowledgeable. I’m glad the money that I would be putting towards my energy bill is now going towards something that I can profit from along with bringing my home value up.
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.
4.77 70 Reviews
Dan, over 1 month
Rob, Jackie, and everyone at KW Solar were great. Knowledgeable, responsive, and friendly. We were up and running much sooner than I expected (and sooner than anyone else I know who’s gone thru the process). Delaware has a great program that covers 70% of the cost for median income families. Plus the federal incentive. So, it’ll pay for itself in about 5 years. The Enphase app monitors production and usage in real time, which is fun to watch. We’re producing at about the levels KW estimated. Overall - loved our experience. Thank you, KW Solar!
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Dan, over 1 month
Rob, Jackie, and everyone at KW Solar were great. Knowledgeable, responsive, and friendly. We were up and running much sooner than I expected (and sooner than anyone else I know who’s gone thru the process). Delaware has a great program that covers 70% of the cost for median income families. Plus the federal incentive. So, it’ll pay for itself in about 5 years. The Enphase app monitors production and usage in real time, which is fun to watch. We’re producing at about the levels KW estimated. Overall - loved our experience. Thank you, KW Solar!
4.76 83 Reviews
Rich Connor, over 1 month
Very professional and efficient installation. 12 panels on the garage, 14 more above the attic. All work completed in one day - started at 9 AM, completed by 4:15 PM. We couldn’t be happier with Green Street.
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Rich Connor, over 1 month
Very professional and efficient installation. 12 panels on the garage, 14 more above the attic. All work completed in one day - started at 9 AM, completed by 4:15 PM. We couldn’t be happier with Green Street.
4.73 595 Reviews
Monica D., 1 day ago
From A-Z everyone in the process at Venture Solar provided an excellent service. Starting with sales representative Jessy to the installation team that finished the job in one (1) day. Now with the net metering we are delivering power back to Eversource Grid. It is worth it to us to have this system installed, and we are doing our share to save the environment.
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Monica D., 1 day ago
From A-Z everyone in the process at Venture Solar provided an excellent service. Starting with sales representative Jessy to the installation team that finished the job in one (1) day. Now with the net metering we are delivering power back to Eversource Grid. It is worth it to us to have this system installed, and we are doing our share to save the environment.
4.67 49 Reviews
Steve Thorne, 6 days ago
From the initial sales contact to monitoring after completion, the task was completed quickly and professionally. Any questions were answered as soon as I expected. The installers were friendly yet professional and followed up on questions I had. I have experience with installation in another state so I expected some differences in procedures, but Bright Eye exceeded my expectations in every respect. The monitoring of the system used greatly enabled me to use the system effectively to increase efficiency.
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Average cost (5kW system)
$12,000 ($2.40 per watt)
Steve Thorne, 6 days ago
From the initial sales contact to monitoring after completion, the task was completed quickly and professionally. Any questions were answered as soon as I expected. The installers were friendly yet professional and followed up on questions I had. I have experience with installation in another state so I expected some differences in procedures, but Bright Eye exceeded my expectations in every respect. The monitoring of the system used greatly enabled me to use the system effectively to increase efficiency.