Maryland Solar Incentives 2026: Rebates, Tax Credits & What Ended | SunLynk

Maryland Solar Incentives, Rebates & Tax Credits (2026)

Maryland replaced its old $1,000 rebate with a grant worth up to $7,500 — but it's income-capped, and most households don't qualify.

Every figure on this page verified against a primary source on August 5, 2026.

The 30% federal tax credit is gone for systems you buy

Section 25D — the Residential Clean Energy Credit — was terminated for expenditures made after December 31, 2025. The IRS treats an expenditure as made when the original installation is completed, not when you paid. That means a system you put a deposit on in 2025 but that was switched on in 2026 gets no federal credit at all. Systems installed under a lease or power purchase agreement are owned by a third party, and that owner claims business-side credits instead — ask any installer quoting you a lease exactly how that value is passed through in your rate.

IRS — OBBB FAQ on section 25D

What Maryland offers in 2026

Maryland Solar Access Program (MSAP)

Limited funding
$750/kW, up to $7,500

Maryland's flagship residential grant pays $750 per kW DC installed, capped at $7,500 per household. The catch is income: your household must be at or below 150% of the Maryland state median income — roughly $195,375 for a family of four. Partial grants are not awarded. The FY27 application window opened July 29, 2026 with a $10 million budget, and funding runs out early — FY26 stopped taking new applications in April, months before the fiscal year ended.

Source: Maryland Energy Administration — MSAP

Maryland SREC Market

Available now
Roughly $40 per SREC

Your system earns one Solar Renewable Energy Certificate per megawatt-hour, which you sell into Maryland's compliance market. Recent broker pricing has been around $40 for current vintages. This is a traded market price, not a rate the state sets — it moves, and nobody can guarantee you a figure for the life of your system.

Source: Maryland PSC — Solar in Maryland

Property Tax Exemption

Available now
100% exempt

Under Tax-Property Article §7-242, solar equipment used to generate electricity for the structure or supplied to the grid via net metering is not subject to real property tax. Your land and buildings are assessed normally.

Source: Maryland SDAT — Assessment Procedure Manual

Net metering in Maryland

Monthly netting, but the annual payout is not retail

Month to month, Maryland nets your generation against your usage kilowatt-hour for kilowatt-hour. The part most sites get wrong is the annual true-up each April: leftover excess is paid out at the generation portion of the rate only, not the full retail rate. You can elect the cash payment or roll credits forward indefinitely. The statewide 3,000 MW cap is about half used, so there is room.

Source: Maryland PSC — 2025 Net Metering Report

Sales tax

100% exempt (6% saved)

Property tax

100% exempt — Tax-Property Article §7-242

See what these incentives are worth on your roof

Compare free quotes from vetted Maryland installers. No obligation, no cost.

Maryland incentives that no longer exist

These still appear on installer sites and even on some government pages. If a quote depends on one of them, the numbers are wrong.

Residential Clean Energy Rebate — the $1,000 solar grant

Dead. Phased out by the Brighter Tomorrow Act of 2024 and replaced by the Maryland Solar Access Program. The old application portal is still live on a maryland.gov subdomain, which is why so many pages still advertise it. This is Maryland's most-searched incentive that no longer exists.

Source: Maryland Energy Administration — all incentives

Maryland Energy Storage Income Tax Credit

Inactive as of the end of calendar year 2024 and no longer accepting applications, per state law. It was replaced by the RCES grant program.

Source: MEA — Energy Storage

The FY26 battery storage grant

The Residential & Commercial Energy Storage grant (30% of cost up to $5,000) was oversubscribed and closed early in FY26. A FY27 round was anticipated for summer 2026 — check the MEA page before counting on it.

Source: MEA — Energy Storage Grant Program

Frequently asked questions

No. The Residential Clean Energy Rebate was phased out under the Brighter Tomorrow Act of 2024. It was replaced by the Maryland Solar Access Program, which pays up to $7,500 but only to households at or below 150% of the state median income.

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