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.
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Prices based on a 9.9kW system, after 30% federal tax credit
50 solar companies in Maryland provide pricing on SolarReviews. Here are the best rated companies near you.
4.92 370 Reviews
JLF, 1 week ago
Lumina installed my solar system about three weeks ago, and it is already up and running. The experience from day 1 -- sales representative, schedulers, installers, etc. -- was excellent on all counts. Installation went according to schedule with no hiccups. I chose Lumina as the first among three firms that I investigated, and received bids. In addition to be the best value for the money in terms of the quality of panels, microinverters, installation hardware, critter guards., I found them to be the most honest regarding estimating real production given shading cover on the south side of my house. Another firm suggested that their proposed system would deliver 100% of capacity, which was not the case. Still another firm wanted me to cut down some trees (a non starter). Lumina also used the Aurora solar modeling software in which the Lumina representative worked with me (interactively) to develop the best design given the tree cover, roof angle, etc. We were able to test different designs in which we varied the number of panels, their placement, etc. There was no hard sell pressure, and the sales rep. explained with detail and clarity all issues related to warranties, risks, solar bonds, Maryland grants, and federal tax credits. The price paid was the price quoted. I should state that my goal was never 100% coverage of my electricity consumption. I will be happy with 70%. Finally, as the case with all solar companies Lumina runs a financial model estimating the number of years until payback of the investment (due to savings in one's electricity bill). While Lumina's model is sound, it does not account for the cost of money (discount rate). However, this is not a criticism. I know of no other company that uses a discount rate in their modeling.
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JLF, 1 week ago
Lumina installed my solar system about three weeks ago, and it is already up and running. The experience from day 1 -- sales representative, schedulers, installers, etc. -- was excellent on all counts. Installation went according to schedule with no hiccups. I chose Lumina as the first among three firms that I investigated, and received bids. In addition to be the best value for the money in terms of the quality of panels, microinverters, installation hardware, critter guards., I found them to be the most honest regarding estimating real production given shading cover on the south side of my house. Another firm suggested that their proposed system would deliver 100% of capacity, which was not the case. Still another firm wanted me to cut down some trees (a non starter). Lumina also used the Aurora solar modeling software in which the Lumina representative worked with me (interactively) to develop the best design given the tree cover, roof angle, etc. We were able to test different designs in which we varied the number of panels, their placement, etc. There was no hard sell pressure, and the sales rep. explained with detail and clarity all issues related to warranties, risks, solar bonds, Maryland grants, and federal tax credits. The price paid was the price quoted. I should state that my goal was never 100% coverage of my electricity consumption. I will be happy with 70%. Finally, as the case with all solar companies Lumina runs a financial model estimating the number of years until payback of the investment (due to savings in one's electricity bill). While Lumina's model is sound, it does not account for the cost of money (discount rate). However, this is not a criticism. I know of no other company that uses a discount rate in their modeling.
4.91 164 Reviews
Richard Novak, 2 weeks ago
Celestial Solar was terrific in all respects. Owner Jim Reilly visited our home and explained everything clearly. The staff measuring the roof, the crew installing the panels, and the members of the crew doing the needed electrical work, were all—like Jim --- professional, knowledgeable, easy to work with, trustworthy and courteous. Jim was also helpful with navigating the needed paperwork for warranties, the state rebate (for Maryland), the federal tax credit, and SRECS (solar renewable energy credits). We recommend Celestial without reservation.
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Richard Novak, 2 weeks ago
Celestial Solar was terrific in all respects. Owner Jim Reilly visited our home and explained everything clearly. The staff measuring the roof, the crew installing the panels, and the members of the crew doing the needed electrical work, were all—like Jim --- professional, knowledgeable, easy to work with, trustworthy and courteous. Jim was also helpful with navigating the needed paperwork for warranties, the state rebate (for Maryland), the federal tax credit, and SRECS (solar renewable energy credits). We recommend Celestial without reservation.
4.86 115 Reviews
Al, 1 week ago
The crew worked well together, efficient and very concerned with safety. They took time to answer all my questions with professionalism. I am pleased with the instillation. I just wish they could make it so that it is only cloudy at night.
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Average cost (5kW system)
$16,000 ($3.20 per watt)
Al, 1 week ago
The crew worked well together, efficient and very concerned with safety. They took time to answer all my questions with professionalism. I am pleased with the instillation. I just wish they could make it so that it is only cloudy at night.
4.83 531 Reviews
Bill Witte, 17 hours ago
Crew arrived right on time and did a fine job. Everything was handled well by the support person. Looks nice.
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Bill Witte, 17 hours ago
Crew arrived right on time and did a fine job. Everything was handled well by the support person. Looks nice.
4.81 190 Reviews
JV, 1 week ago
Extremely happy and satisfied by the solar installation and very happy that American Sentry Solar, did an amazing and professional job. So happy we went solar with them. Excellent job!!!
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JV, 1 week ago
Extremely happy and satisfied by the solar installation and very happy that American Sentry Solar, did an amazing and professional job. So happy we went solar with them. Excellent job!!!
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.
4.74 580 Reviews
Warren F, 1 day ago
I never thought I would go solar but from the salesperson to follow up it was so professional, real customer service! The installation team was so efficient so instructive and so professional. So if you want to go solar strongly suggest you do go Venture Solar. I am so enjoying watching my net meter going backwards since the installation, it looks like I with Venture Solar will produce 100% of my electricity needs!
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Warren F, 1 day ago
I never thought I would go solar but from the salesperson to follow up it was so professional, real customer service! The installation team was so efficient so instructive and so professional. So if you want to go solar strongly suggest you do go Venture Solar. I am so enjoying watching my net meter going backwards since the installation, it looks like I with Venture Solar will produce 100% of my electricity needs!
4.66 48 Reviews
The Hess Family, 1 week ago
The process was very easy and quick. Almost everything was done via text or email. The workers that did the installation were superb! They were so friendly and did excellent, neat work. They made it a point to keep us informed of everything they did. We were extremely pleased.
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Average cost (5kW system)
$12,000 ($2.40 per watt)
The Hess Family, 1 week ago
The process was very easy and quick. Almost everything was done via text or email. The workers that did the installation were superb! They were so friendly and did excellent, neat work. They made it a point to keep us informed of everything they did. We were extremely pleased.