Maryland solar incentives are some of the strongest available for financially savvy homeowners. Not only does the state have plenty of financial incentives to install solar, but it also has excellent sun exposure and high electricity rates.
This makes Maryland an ideal place to install a rooftop solar panel system!
This guide will discuss all the financial incentives available to Maryland homeowners who install solar panels. We will also provide information on how to get started with your rooftop solar system.
Check out the Maxed Out Solar Buyer’s Guide while you’re here!
SRECs provide financial incentives for Maryland homeowners to install solar panels
The Maryland Solar Renewable Energy Credit (SREC) is the most significant incentive. Every time your rooftop solar system produces 1000 kWh, you will earn one SREC. This credit allows you to sell your excess solar energy back to the grid, earning money from your investment. The price of the SREC market in Maryland varies, but you can check current prices here.
Maryland has strong net metering solar energy incentives
Net energy metering (NEM) means when your generation exceeds your usage for a given month, you will receive a credit for each excess kilowatt hour, to be applied in later months when you generate less electricity than you consume.
Maryland is one of the few states with strong net metering policies, making it a great state for solar.
However, utility approval is required before installation.
All utilities in Maryland must follow an application process for a renewable energy generation facility.
- Level 1 – solar installation of 20.0 kilowatts (kW) or less
- Level 2 – solar installation greater than 20.0kW
In order to be eligible for net metering, solar panel systems must be less than two megawatts (MW) in capacity. Or up to 200% of the homeowner’s annual baseline electricity usage. Your utility must allow all eligible subscribers to net meter until the total capacity of net metered systems reaches 1,500MW.
Maryland solar tax credit and exemptions
There is no sales tax for rooftop solar panel installation in the state of Maryland.
In addition to the SREC, Maryland offers solar property tax exemptions. If the value of your home increases after installing solar panels, you will not pay a tax penalty.
To fully understand tax incentives for going solar in the state of Maryland, you should talk to a tax advisor.
Maryland Energy Storage Income Tax Credit
The Maryland Energy Storage Income tax credit is designed to encourage the deployment of energy storage systems in Maryland. The tax credit is available to residential taxpayers who have installed an energy storage system in Maryland.
Maryland’s Residential Clean Energy Grant Program
The Maryland Residential Clean Energy Rebate Program provides grants of up to $1,000 for purchasing and installing a rooftop solar system. The minimum system size is 1 kW, and the maximum is 20 kW.
Local solar panel rebates are also available in some Maryland counties
Several county-level programs offer rebates to purchase and install rooftop solar systems. These programs vary by county, so be sure to check with your local government to see what is available in your area.
You may be eligible for federal rooftop solar tax credits as well
In addition to state and local incentives, you may also be eligible for the federal Investment Tax Credit (ITC).
Previously, the federal solar tax credit was lower. However, due to the passage of the Inflation Reduction Act on August 16th, 20222, the ITC now allows you to deduct 30% of the cost of your solar installation from your federal taxes.
So, if you’re considering installing a rooftop solar system in Maryland, many financial incentives are available to help offset the cost. These incentives make Maryland an excellent place to go solar!
Get started with a free solar consultation
Now that you know all about the financial incentives available for rooftop solar in Maryland, it’s time to start planning your system! To start your Maryland rooftop solar project, the first step is to fill out the form so we can give you a free and quick consultation call.
Maxed Out Solar will help you evaluate your options and find the best financial incentives for your Maryland rooftop solar installation. We will also provide you with a free quote for your rooftop solar system.