
Baltimore · MD
Baltimore homeowners pay $14,000–$21,000 for a typical 8 kW solar system in 2026. The federal 30% residential tax credit expired December 31, 2025; Maryland's property tax and sales tax exemptions remain active. At BGE (Baltimore Gas and Electric)'s rate of $0.168/kWh, most systems pay back in 10–15 years.
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4.5 hrs/day
Peak Sun Hours
$1,380/yr
Avg. Annual Savings
10–15 yrs
Payback Period
$14,000–$21,000
Avg. System Cost
2026 update: The 30% federal residential solar tax credit (Section 25D) expired December 31, 2025. Homeowners purchasing systems in 2026 cannot claim it. Solar leases and PPAs are the exception — the installer can still claim commercial credits and pass savings through in the monthly rate. Full 2026 ITC guide →
About Solar in Baltimore
BGE rates are among the highest in the mid-Atlantic. Maryland's 30% state tax credit (up to $5,000) is the strongest state-level incentive in the region and significantly improves Baltimore's solar economics. Baltimore's 4.5 peak sun hours per day is solid for the mid-Atlantic.
Key solar facts for Baltimore
Active Incentives
Maryland offers a 30% state income tax credit on solar installations, capped at $5,000 per residential system. This is one of the strongest state-level solar credits in the country and partially offsets the loss of the federal ITC.
Value: 30% state tax credit, up to $5,000
BGE credits excess solar generation at the retail rate under Maryland net metering law. Residential systems up to 20 kW qualify. Annual true-up: unused credits roll forward but do not pay out as cash.
Value: Retail rate credit
Solar installations are exempt from Maryland state and local property tax assessments. Adding panels does not increase your annual property tax bill.
Value: 100% exemption on added value
Residential solar equipment is exempt from Maryland's 6% state sales tax, saving $840–$1,260 on a typical installation.
Value: 6% sales tax savings
Net Metering in Baltimore
BGE credits excess solar at the retail rate. Credits roll forward monthly; unused annual credits do not pay out as cash. Systems must be 20 kW or smaller to qualify.
Solar Leases & PPAs in Baltimore
Solar leases and PPAs are available in Baltimore through national installers. Note: Maryland's 30% state tax credit is only available for purchased systems — lease/PPA customers do not receive the state credit.
How much does solar cost in Baltimore?
Detailed cost breakdown, financing options, and payback analysis for Baltimore homeowners.
Want national solar cost data? How Much Do Solar Panels Cost in 2026? →
Common Questions
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Baltimore Solar at a Glance
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