Solar Panels in Maryland
High Electricity Rates + Strong State Incentives
$1,500/yr
Avg. Annual Savings
4.7 peak hrs/day
Peak Sun Hours
9–12 years
Payback Period
$14,000–$22,000
Avg. System Cost
Overview
Is Solar Worth It in Maryland?
Maryland homeowners are in an excellent position to go solar. The state has some of the highest electricity rates on the East Coast, averaging $0.14–$0.18/kWh, which means every kilowatt-hour your panels produce translates to real savings. Maryland also offers a robust set of state incentives that stack on top of each other to reduce your net cost significantly. Note: the federal 30% ITC expired December 31, 2025 and is no longer available for 2026 purchases.
The Maryland Clean Energy Incentive Act and the state's Residential Clean Energy Grant Program make Maryland one of the most financially attractive states in the Mid-Atlantic for residential solar. With strong net metering laws and a property tax exemption, the case for going solar in Maryland has never been stronger.
Benefits
Why Go Solar in Maryland
Reduce Your Electric Bill
Maryland homeowners save an average of $1,500/yr after going solar.
State & Local Incentives
Maryland offers property tax exemptions, net metering credits, and other state-level incentives that reduce your net cost. The federal 30% ITC expired Dec 31, 2025.
Increase Home Value
Solar panels increase your home's resale value — and are excluded from property tax in most states.
Energy Independence
Lock in your electricity rate and protect against rising utility costs for 25+ years.
Available Incentives
Maryland Solar Incentives & Tax Credits
Maryland Clean Energy Grant
RebateThe Maryland Energy Administration offers grants for residential solar installations through the Residential Clean Energy Grant Program, providing direct upfront cash incentives.
Maryland SREC Program
State ProgramMaryland's Solar Renewable Energy Certificate (SREC) program lets you earn certificates for every megawatt-hour your system produces and sell them to utilities that need to meet the state's Renewable Portfolio Standard.
Net Metering
Net MeteringMaryland law requires all investor-owned utilities to offer net metering at the full retail rate. BGE, Pepco, Delmarva Power, and Potomac Edison all participate.
Property Tax Exemption
Tax ExemptionMaryland exempts the added value of solar energy systems from residential property tax assessments, so your property taxes won't increase when you go solar.
Sales Tax Exemption
Tax ExemptionMaryland exempts solar energy equipment from the state's 6% sales tax, reducing your upfront system cost.
Federal Solar Tax Credit (Expired)
Tax CreditNote: The federal 30% residential solar tax credit (Section 25D) expired December 31, 2025 and is no longer available for new purchases in 2026. Maryland homeowners should focus on the state's Clean Energy Incentive Act, the Residential Clean Energy Grant Program, and net metering.
What Changed in 2026 for Maryland Solar
The federal solar tax credit expired December 31, 2025 — here's what that means for Maryland homeowners and what options remain.
Federal ITC Gone — Maryland SREC Market Remains Active
The 30% federal residential solar tax credit expired December 31, 2025. Maryland's Solar Renewable Energy Credit (SREC) market remains active — homeowners earn one SREC per 1,000 kWh generated, which can be sold to utilities obligated to meet Maryland's Renewable Portfolio Standard. SREC prices in Maryland have historically ranged from $60–$90 per credit, providing meaningful ongoing income for solar owners.
Clean Energy Grant Still Available
The Maryland Energy Administration's Clean Energy Grant program offers rebates for residential solar installations. Grant amounts vary by year and funding availability — check MEA's website for current rates. Maryland also exempts solar equipment from the 6% state sales tax and provides a property tax exemption for the added home value from solar panels.
BGE, Pepco, and Delmarva Net Metering Intact
Net metering remains available through all Maryland utilities — BGE (Baltimore Gas & Electric), Pepco, Delmarva Power, and Potomac Edison — at the full retail rate. Maryland's electricity rates average $0.17/kWh, and with 4.5 peak sun hours per day, a typical 8 kW system generates $1,400–$1,600 in annual savings. The payback period in 2026 is approximately 9–12 years.
Common Questions
Maryland Solar FAQ
Local Solar Companies
Solar Companies by City in Maryland
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Deep Dive
Read our complete Maryland solar incentives guide
Every rebate, tax credit, and net metering rule explained in detail.
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