Maryland State Solar Power Rebates, Tax Credits, and Incentives

Solar Legislator Score:

Maryland, home of the Star-Spangled Banner, the Orioles, the Appalachian Mountains, Chesapeake Bay, and the warm friendly beaches of the Eastern Shore. Whether you want to go hiking, head for the ballpark, take in some of our nation’s great historical sites, or relax on the beach, you’ll want to do that in a clean safe environment. To keep the Maryland environment looking good, renewable energy like solar power is the word. Here’s what the Maryland legislature has been cookin’ up…

STATE LEGISLATION
Back in 2001, Maryland got an early start on using renewable energy. Six percent of the power used by state government buildings must come from renewable sources. Also, by 2010, state buildings must reduce their energy usage by 15%.
Renewable Energy Portfolio
In 2004 the Maryland legislature established a renewable energy standard. This set up a framework for ensuring that 9.5% of the power used in the state comes from renewable sources by 2022. The best part of this law came with the 2007 amendment. The amendment forces utilities to get another 2% of their electricity from good, clean solar power by 2022. The state hopes that means 1,500 MW of solar power by 2022.
NET-METERING

Maryland’s net-metering rules, established in 1997 and most recently amended in 2007, let you connect a renewable energy generation system of up to 2MW to the grid. Even better, net-metering is available to all customers and the regulation covers all types of utilities as well. If you generate more power than you use in a given month, you get a credit on your next bill at the retail rate! The only down-side to this rule is that if at the end of a 12-month billing cycle, you have still generated electricity more than you use, you grant any credit to your power company. But then, it’s all for a good cause, so think of it as giving the planet a little gift of sunshine if your solar electricity system provides you with more than you need.

STATE INCENTIVE PROGRAMS, UTILITY REBATES, UTILITY LOANS, AND UTILITY INCENTIVES

In 2007, the legislature voted to give you a property tax exemption for your solar electricity generation equipment. That means that making your house more valuable by installing a solar system won’t cost you a penny when tax time rolls around.
In 2004, Maryland also passed a bill to give you a rebate for installing your solar power system. That means the state will pay you back for 20% of the cost of your system or $3,000, whichever is less. Residential solar photovoltaic systems must be at least 500 watts, but you’ll probably need more than that for your home anyway!

Maryland also joined the federal Million Solar Roofs program in 2007.

Check out the full list of rebates and incentives for solar power in Maryland:

Corporate Tax Credit

* Clean Energy Production Tax Credit (Corporate)

* Corporate Income Tax Credit for Green Buildings

Local Rebate Program

* Montgomery County - Clean Energy Rewards Program

Personal Tax Credit

* Clean Energy Production Tax Credit (Personal)

* Personal Income Tax Credit for Green Buildings

Property Tax Exemption

* Local Option - Corporate Property Tax Credit

* Local Option - Property Tax Exemption for High Performance Buildings

* Property Tax Exemption for Residential Solar Energy Systems

* Special Property Assessment for Solar Heating & Cooling

State Loan Program

* Community Energy Loan Program

* State Agency Loan Program
State Rebate Program

* Solar Energy Grant Program
EXAMPLE 3KW SYSTEM – HOME INSTALLATION COST

Here you are on the cutting edge of clean solar power in Baltimore; you’ve decided to install a 3kW solar electricity system in your home. Initially, it will run you about $10/watt, so $30,000.  This is for a no-frills system… there may be adders or there may not be. Don’t forget though that you get a $3,000 rebate from the state and you can take a $2,000 federal tax credit too. Because Maryland’s solar rating is Good, you’ll have no trouble generating enough power for the system to pay for itself in about 10-27 years (assuming you use about 1,300 kWh each month at a rate of $0.0836/kWh). All that time you’ll be saving $947 to $1,839 on your utility bills every year. Your savings will keep rising too, since electricity prices are estimated to jump to $0.096/kWh in 5 years and to $0.145/kWh in 25 years. Here’s some more important information about your site.

• 250 square feet of roof area required
• $11,280 to $21,914 estimated increase in property value – tax exempt!
• $23,666 to $45,977 estimated utility bill savings over 25 years
• 207 tons of CO₂ kept out of the atmosphere; that’s like taking 36 cars off the road or planting 609 trees!

CONSENSUS

Maryland has been making some good progress on building up the solar energy market in the state. The legislature has begun to pass some important rebates and incentives for both commercial and residential customers. With as much coastline as Maryland has, combatting global climate change with nice clean solar power is a must. Even Governor Martin O’Malley has jumped on the bandwagon and is promoting solar energy, so Maryland is off to a good start! Just don’t stop now; there’s always more work to be done.

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