Maryland offers some of the most generous solar incentives in the country. Find out how much you can save with state rebates, SRECs, and the federal tax credit.
Maryland has built one of the strongest state-level solar incentive programs on the East Coast, combining a generous state tax credit, a robust SREC market, a net metering mandate, and full property and sales tax exemptions. For Maryland homeowners, these state incentives make solar one of the most compelling home investments available in 2026 — even without the federal 30% tax credit, which expired December 31, 2025.
Maryland Solar Incentives at a Glance
| Incentive | Value |
|---|---|
| Federal ITC (30%) | Expired Dec 31, 2025 — no longer available for 2026 purchases |
| MD State Tax Credit | Up to $1,000 |
| MD SREC Market | $40 to $80 per SREC (market rate) |
| Net Metering | Retail-rate credits from BGE, Pepco, Delmarva |
| Property Tax Exemption | 100% exemption on added home value |
| Sales Tax Exemption | 6% MD sales tax waived on equipment |
Federal Solar Tax Credit — 2026 Update
The 30% federal residential solar tax credit (Section 25D) expired December 31, 2025. Homeowners purchasing systems in 2026 no longer qualify. Solar leases and PPAs are the exception — the installer can claim commercial credits and pass savings through in the monthly rate.
Maryland State Tax Credit
Maryland offers a state income tax credit of up to $1,000 for residential solar installations, which remains available for 2026 buyers.
Maryland SREC Market
Maryland operates a Solar Renewable Energy Certificate (SREC) market. Every 1,000 kWh your system produces earns one SREC, which you can sell to utilities that need to meet the state's Renewable Portfolio Standard. SREC prices fluctuate with market supply and demand, but have historically ranged from $40 to $80 per certificate. See the Maryland Energy Administration solar page for current program details and the Maryland Solar Access Program for low-income assistance options.
A typical 8 kW system in Maryland produces 8-10 SRECs per year, generating $320 to $800 in annual SREC income on top of electricity bill savings.
Net Metering in Maryland
Maryland requires all major utilities to offer net metering at the full retail rate. With Maryland electricity averaging $0.14/kWh, every kWh you export to the grid is credited at full retail value.
Maryland's major utilities:
- BGE (Baltimore Gas & Electric) — Serves Baltimore, Annapolis, and surrounding areas
- Pepco — Serves Rockville, Silver Spring, and the DC suburbs
- Delmarva Power — Serves the Eastern Shore
How Much Can Maryland Homeowners Save?
| Metric | Estimate |
|---|---|
| Average system cost | $20,000 to $26,000 |
| After MD credit + SREC | $15,000 to $19,200 |
| Monthly electricity savings | $100 to $160 |
| Annual SREC income | $320 to $800 |
| Payback period | 7 to 10 years |
| 25-year net savings | $30,000 to $50,000 |
SunLynk connects Maryland homeowners with pre-vetted local solar installers who are fully versed in the SREC enrollment process and Maryland utility interconnection requirements. Get your free quotes today.
Frequently Asked Questions About Maryland Solar Incentives
What solar incentives are available in Maryland in 2026?
Maryland homeowners have access to a state income tax credit of up to $1,000, a 100% property tax exemption on the added home value from solar, a full sales tax exemption on solar equipment, and the Maryland SREC market where each 1,000 kWh your system produces earns a certificate you can sell to utilities. Maryland also launched a new Solar Access Program in 2025 providing grants for low-to-moderate income households. Note: the 30% federal residential solar tax credit expired December 31, 2025.
How does the Maryland SREC market work?
Every 1,000 kWh your solar system produces earns one Solar Renewable Energy Certificate (SREC). You can sell these certificates to Maryland utilities required to meet the state's Renewable Portfolio Standard. SREC prices historically range from $40–$80 per certificate. A typical 8 kW system in Maryland earns 8–10 SRECs per year, generating $320–$800 in annual SREC income on top of electricity savings.
Does Maryland have a property tax exemption for solar?
Yes. Maryland provides a 100% property tax exemption on the added value of a solar energy system. Solar panels typically add $15,000–$20,000 to a home's assessed value, which would normally increase your property tax bill by $300–$500 per year. The exemption eliminates this entirely for the life of the system.
Is solar worth it in Maryland?
Yes — Maryland is one of the stronger solar markets in the Mid-Atlantic. High electricity rates ($0.14–$0.17/kWh), the state tax credit, SREC income, and property/sales tax exemptions combine to produce payback periods of 11–15 years and lifetime savings of $22,000–$38,000. Note: the 30% federal tax credit expired December 31, 2025. Cities like Baltimore, Rockville, Silver Spring, and Frederick all have strong installer competition.
What is the Maryland Solar Access Program?
The Maryland Solar Access Program (MSAP) provides grants to low-to-moderate income Maryland households to offset the cost of solar installation. See the Maryland Energy Administration solar page for current program details, income limits, and application windows.
Use our free solar savings calculator to see what Maryland's SREC income, tax credit, and net metering savings add up to for your home.
Find pre-vetted solar installers in your Maryland city: Baltimore, MD · Annapolis, MD · Rockville, MD · Silver Spring, MD · Frederick, MD
