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 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 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.
Showing data for:
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.
4.91 367 Reviews
Terry Mauser, over 1 month
I would like to thank Bethany Fuller for helping me out. I couldn’t under stand why my production rates were not adding up properly. I was told I don’t have a consumption meter and the energy that my house was was in accurate She is a very intelligent lady and very nice to talk with. Thanks Bethany again for Your help.
Read more
Terry Mauser, over 1 month
I would like to thank Bethany Fuller for helping me out. I couldn’t under stand why my production rates were not adding up properly. I was told I don’t have a consumption meter and the energy that my house was was in accurate She is a very intelligent lady and very nice to talk with. Thanks Bethany again for Your help.
4.91 162 Reviews
Joe, over 1 month
Jim and Celestial Solar were great to work with. I had numerous questions that Jim answered quickly and efficiently as well as providing supporting documentation for most of my questions. He was much more responsive than other vendors I got quotes from and provided the pros and cons of some of the items I was looking at. Helping me to make an informed decision on items even if it impacted the final order. We ended up putting a rather large installation of 71 panels on our roof which took a while to get approval through the county and the utility, but Jim kept me informed through the process. Once the installation was approved the crew came out and got everything installed in about a week. I appreciated that the guys showed up on time, they were all very friendly and considerate of my property. The system has been live for about 2 months now and so far, I have not had any issues. I would highly recommend them.
Read more
Joe, over 1 month
Jim and Celestial Solar were great to work with. I had numerous questions that Jim answered quickly and efficiently as well as providing supporting documentation for most of my questions. He was much more responsive than other vendors I got quotes from and provided the pros and cons of some of the items I was looking at. Helping me to make an informed decision on items even if it impacted the final order. We ended up putting a rather large installation of 71 panels on our roof which took a while to get approval through the county and the utility, but Jim kept me informed through the process. Once the installation was approved the crew came out and got everything installed in about a week. I appreciated that the guys showed up on time, they were all very friendly and considerate of my property. The system has been live for about 2 months now and so far, I have not had any issues. I would highly recommend them.
4.85 112 Reviews
Glen Denlinger, over 1 month
Our solar system was put in place by expert craftsmen. Paradise Energy Solutions provide excellent service. I can highly recommend them.
Read more
Average cost (5kW system)
$16,000 ($3.20 per watt)
Glen Denlinger, over 1 month
Our solar system was put in place by expert craftsmen. Paradise Energy Solutions provide excellent service. I can highly recommend them.
4.85 524 Reviews
Jacky Ang, over 1 month
If you want the best solar deal in town and great customer service, look for Fonzie (Alfonzo Rodriguez). He is the BEST!!! He was very informative, helpful, and friendly. I can tell that he is detailed oriented, committed and hard-working. He even helped us find a good home insurance. The whole process was stress free because he thrives to provide the best customer service experience. Thank you so much Fonzie.
Read more
Jacky Ang, over 1 month
If you want the best solar deal in town and great customer service, look for Fonzie (Alfonzo Rodriguez). He is the BEST!!! He was very informative, helpful, and friendly. I can tell that he is detailed oriented, committed and hard-working. He even helped us find a good home insurance. The whole process was stress free because he thrives to provide the best customer service experience. Thank you so much Fonzie.
4.79 188 Reviews
Cbh14799, over 1 month
Bel Air, Maryland - So, I have gotten 5 estimates for solar panels for my home. I decided to go with American sentry solar because the estimate process was straight forward, they answered all my questions and did a good job at explaining the County/State/Federal Solar incentives that would apply to my project (plus they are local to me). The project was quick and again straight forward. This is the timeline of my project: 09/22/23- Started the paperwork- contract/permit/Loan etc. 10/04/23- Site planning visit- (electric panel and roofing system inspection) 10/25/23- System Install – Took about 4 hours – (The crew was outstanding) 10/31/23- Local Government (County Permit Inspection) 11/15/23- Power Company updated power meter to be compatible with the system. 11/16/23- System in full Operation I like being able to see what the system is producing to include the system status and what each solar panel is producing with the Enphase enlighten App. Now the wait to see the effects to my energy bill begins and I will update in the future. Overall, I’m very happy with the whole project and would recommend the American sentry solar team.
Read more
Cbh14799, over 1 month
Bel Air, Maryland - So, I have gotten 5 estimates for solar panels for my home. I decided to go with American sentry solar because the estimate process was straight forward, they answered all my questions and did a good job at explaining the County/State/Federal Solar incentives that would apply to my project (plus they are local to me). The project was quick and again straight forward. This is the timeline of my project: 09/22/23- Started the paperwork- contract/permit/Loan etc. 10/04/23- Site planning visit- (electric panel and roofing system inspection) 10/25/23- System Install – Took about 4 hours – (The crew was outstanding) 10/31/23- Local Government (County Permit Inspection) 11/15/23- Power Company updated power meter to be compatible with the system. 11/16/23- System in full Operation I like being able to see what the system is producing to include the system status and what each solar panel is producing with the Enphase enlighten App. Now the wait to see the effects to my energy bill begins and I will update in the future. Overall, I’m very happy with the whole project and would recommend the American sentry solar team.
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.
Read more
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!
Read more
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.
Read more
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.
4.73 564 Reviews
Shay, over 1 month
Crew was quick and efficient uninstalling the panels.
Read more
Shay, over 1 month
Crew was quick and efficient uninstalling the panels.
4.65 46 Reviews
phyllis, over 1 month
Bright Eye Solar was a great company to work with. We had been looking into solar for a couple of years but the solar tax credits made it worthwhile to pursue. All of the people we met from Bright Eye were pleasant and able to answer our questions in layman's language. They were prompt in their design and permit applications and installation was a breeze. Our follow-up questions were also answered quickly. We highly recommend Bright Eye Solar.
Read more
Average cost (5kW system)
$12,000 ($2.40 per watt)
phyllis, over 1 month
Bright Eye Solar was a great company to work with. We had been looking into solar for a couple of years but the solar tax credits made it worthwhile to pursue. All of the people we met from Bright Eye were pleasant and able to answer our questions in layman's language. They were prompt in their design and permit applications and installation was a breeze. Our follow-up questions were also answered quickly. We highly recommend Bright Eye Solar.