Maryland is one of the leading states in solar energy adoption, with approximately 100,000 homes already powered by the sun. It’s no surprise then, that solar panel companies in Maryland have remained busy as residential and commercial buildings make the switch to solar. If you’re hesitant because of the cost, did you know that there are many tax credits, incentives, rebates, and other financial assistance to make solar more accessible in Maryland? By understanding and taking advantage of Maryland’s solar incentives, homeowners can significantly reduce the cost of their solar installation.
Overview of Maryland Solar Incentives
Solar incentives are an essential part of the transition to green energy, and can reduce the total cost of an array installation. Many households see significant savings of 40% or more.
The exact number depends on factors such as which incentives you qualify for and where you live. Maryland hopes to increase its use of renewable energy to 50% by 2030, so solar incentive programs are poised to increase in popularity.
Types of Solar Incentives
- Tax Credits: Federal and state tax credits allow you to reduce what you owe on taxes by crediting a percentage of your solar installation costs.
- Rebates and Grants: Various organizations offer direct price reductions on installations. You don’t need to repay a rebate or grant.
- Other Financial Incentives: Selling electricity back to your utility company, earning credits based on solar performance, and more can provide additional financial assistance to offset installation costs.
Federal Solar Tax Credit (Investment Tax Credit)
The federal solar tax credit is 30% of the total cost of your solar system (including labor and equipment). To qualify, a person must have had a solar array installed at their residence, and they must either own it (paying through cash or solar loans) or own a portion of an off-site community solar project.
They must also owe taxes; a tax credit cannot reduce the amount someone owes below zero. It is important to know that the federal solar tax credit is dependent on Congress, so it’s wise for homeowners to take advantage of it now. The investment tax credit will decrease to 26% for systems installed in 2033, and down to 22% for systems installed in 2034. The tax credit will expire in 2035 unless Congress renews it.
Maryland-Specific Solar Incentives
Maryland Solar Renewable Energy Credits (SRECs)
Solar Renewable Energy Credits, or SRECs, are credits homeowners can earn based on how much energy their solar panels produce. Homeowners earn one SREC for every megawatt-hour of electricity their system generates. This benefit, meant to incentivize greater reliance on green energy, awards homeowners with a credit to sell on the SREC market to utility companies who buy them to comply with renewable energy targets.
The Maryland SREC price is currently around $50 — but most arrays generate multiple SRECs per year, earning homeowners hundreds of dollars in addition to electric bill savings. Uprise will set customers up with an SREC broker. We like Sol Systems because they’re local, trustworthy, and easy to work with.
Maryland Clean Energy Rebate Program
The Maryland Clean Energy Rebate Program offers up to $1,000 for residential solar installations. To qualify, residents must have installed their system at a primary residence within the last 12 months. Be aware that this program will end after Fiscal Year 2025 (ending June 30, 2025), so now is a great time to go solar in Maryland.
Property Tax Exemption
Maryland law exempts solar energy systems from being included in property tax assessments. This means the taxable value of your property won’t go up simply because you installed a solar system. The exemption seeks to avoid penalizing people for going green.
Utility-Specific Incentives
In addition to federal and state incentives, utility companies also benefit from people choosing solar. It reduces strain on the grid and decreases utility reliance. And utility companies can even buy back excess solar energy your panels generate.
Net Metering Programs
Net metering is perhaps the most notable utility-specific solar incentive in this area. Pepco, Potomac Edison, BGE, and Delmarva all participate in net metering, so you’ll be able to take advantage of this solar incentive if you receive electricity from one of these utility companies.
Net metering allows homeowners to earn credits if your array produces more electricity than you need. You can sell that excess power back to your utility company. To do this, you’ll need a bidirectional meter. Some houses are already equipped with these; if yours doesn’t have one, your utility company will install it. Uprise will coordinate with your utility company to set you up for net metering.
Steps to Take Advantage of Maryland Solar Incentives
With multiple Maryland solar incentives available, there is no better time to learn more about your solar options. A single house going solar in Maryland can mean the equivalent of multiple gas-powered cars taken off the road (permanently!), reducing carbon dioxide output by numerous metric tons.
If you want to take the next step toward a greener future, we can help! Uprise will assess your home and our design will estimate how much money you’ll save. We pride ourselves on transparency and will be happy to answer all your questions. Contact Uprise by calling (202) 750-5718 or scheduling a free consultation to get started on a solar quote and learn which incentives you might qualify for.