Solar power in Maryland
Although Maryland was starting to fall to the back of the pack when it came to solar incentives due to the overabundance of solar renewable energy credits (SRECs) and a lack of utility incentives, a recent expansion of the state’s Renewable Portfolio Standard (RPS) has started to drive utilities and municipalities to extend and expand the incentives they offer.
You should be able to buy high-quality solar power systems from reputable installers in the range of $2.62 - $2.88 per watt, before incentives.
Currently, there is only one statewide upfront $1,000 rebate available. Most of the incentives offered are county-specific property tax credits, and many are starting to reach their capacity.
The payback period for solar in Maryland sits between 8 to 10 years and the emergence of cheap solar pricing may cause this payback period to shorten even more.
So even though it seems that incentives are dwindling, the new RPS standards combined with falling solar prices and the federal tax credit are setting the stage for solar to be a great investment in Maryland.
Compare solar quotes from the top solar companies in Maryland
Maryland solar power facts
$2.62 watt
Average cost: 5kW solar power system
?5 Years
Average payback time
$71,641
Average lifetime savings
?6¢ kWh
Levelized cost of solar energy
32¢ kWh
If you don't get solar
?9,890 kWh
Annual power production
Cash flow graph based on cash purchase of a 7.78kW system
This 7.78kW system would offset 100% of your energy usage if your typical monthly bill in Maryland is $150, however, your situation may vary so try our solar calculator to get a result tailored to you.
4
Solar companies in Maryland that provide pricing through the SolarEstimate marketplace.
How much can solar panels save you in Maryland
Average total cost of solar panel installation in Maryland
| System Size | Cash purchase After 26% solar tax credit |
Financed purchase After 26% solar tax credit |
|---|---|---|
| 3kw | $6,016 | $6,497 |
| 4kw | $7,903 | $8,535 |
| 5kw | $9,694 | $10,470 |
| 6kw | $11,455 | $12,372 |
| 7kw | $13,105 | $14,154 |
| 8kw | $14,741 | $15,920 |
| 9kw | $16,250 | $17,550 |
| 10kw | $17,760 | $19,181 |
How much do solar panels cost in Maryland?
$2.62 per watt
Cash purchased solar system
Before 26% solar tax credit
$2.88 per watt
Financed solar system
Before 26% solar tax credit
$17.2¢ /kWh
Lease/PPA
Ave 15 year term, 2.5% price escalator
What are the pros and cons of installing solar panels in Maryland?
The advantages of installing solar panels in Maryland are that there are state and local-based incentives that can be used with the federal tax credit. Maryland’s high electric rates combined with their net metering requirement makes the overall return on investment for solar panels one of the best in the nation. The state also recently approved the expansion of their RPS, thereby increasing the amount of energy utilities must provide from solar power.
SolarPowerRocks provides a great breakdown of solar incentives and policy for each state within the US.
The disadvantage of installing solar panels for your home in Maryland is that there is less overall solar irradiation per year, meaning a solar system in Maryland will produce less than a solar system in sunnier states.
Despite this, there is no better time to make the switch to solar while local incentives and the 26% federal tax credit are still available.
Enter your details to calculate the potential costs and savings you can receive from installing solar panels for your home.
Best solar companies in Maryland
Compare solar quotes from the top solar companies in Maryland
Best brands of solar panels
To find the best brands of solar panels you can use America's most trusted solar panel comparison and reviews website, SolarReviews.
However, reviews of solar panels can be a bit meaningless because most consumer owners have not had any issues and so while solar company reviews are very important when choosing solar installers they are of less use when choosing solar panels.
For more information to help you make an informed decision about this topic, I would recommend this article about buying solar panels.
How much electricity will solar panels produce in Maryland
Solar panels produce different amounts of energy in different locations.
Around the Baltimore area solar panels installed on a south-facing 29-degree pitch roof will typically produce:
1,150kWh
per year per 1kW of peak DC
(direct current) capacity
For more information about how your location, roof direction, and roof tilt affects solar power production use the solar panels calculator and enter your zip code.
I want to buy a solar panel kit and install it myself
What rebates, solar tax credits and other solar incentives are available in Maryland?
The Renewable Portfolio Standard and Maryland’s SRECs
In early 2019, Maryland legislators passed an act that updated the state’s Renewable Portfolio Standard (RPS), creating new renewable energy targets. By 2030, the state must generate 50% of its electricity from renewable energy, with 14.5% of that coming exclusively from solar.
Utilities can meet their required standards through collecting renewable energy credits (RECs) and solar renewable energy credits (SRECs). One SREC represents the environmental benefits that come about as a result of generating 1-megawatt-hour (MWh) of solar energy. You can register your system with the state to be a qualified SREC producer and then sell your SRECs at the current market value.
The previous RPS target only required 2.5% of the state’s energy to be derived from solar by 2030. This low target and the abundance of solar producing systems made the price of SRECs fall dramatically; as low as $12. However, thanks to the expansion, the prices of SRECs have seen significant increases, jumping to about $76 in March 2020. Updates on the prices of SRECs in Maryland can be found here.
Net metering in Maryland
Maryland’s net metering policy requires utilities to offer a net metering program for their customers. With net metering, you will receive a credit equal to the retail electricity rate for each kilowatt-hour (kWh) of energy your system exports to the grid. Net metering can drastically cut down your electric bill.
Maryland Clean Energy Grant
The Maryland Clean Energy Grant is a state-based solar incentive that provides an upfront rebate of $1,000 per solar system installed.
This grant is for residential systems between 1kW and 20 kW in size. More information about how to qualify for this grant can be found here.
Local solar tax credits
Some counties in Maryland provide solar tax credits when you install a solar system for your home.
For example, in Anne Arundel county you can apply for a tax credit that is equal to 50% of the cost of materials and installation of the solar system, or $2,500 (whichever is less). This tax credit will be applied to your property taxes.
These incentives vary between counties and may not be available everywhere. You can use the solar savings calculator to see if there is a tax credit available in your county.
Is it better to lease or purchase solar panels in Maryland?
There are several popular zero-down payment solar leases and solar power purchasing agreement (PPA) products in Maryland. Generally speaking, however, you will see far greater savings over the life of a solar system if you purchase your panels outright, rather than lease or use a PPA.
Use the solar savings calculator to see the difference in overall savings over the life of a system.
Maryland Solar Calculator
Regardless of what you want to know about the economics of installing solar panels for your home or business in Maryland, we have a solar calculator that can show you exactly the information you require.
What you can find out about installing solar panels in Maryland using our full monthly solar calculator
This solar calculator requires you to input your address, utility company, your average monthly power spend - It tells you:
- What size solar system do you need?
- Answers the question of How many solar panels do I need?
- How many square feet of roof space you need for solar panels
- Solar electricity production in annual kWh (kilowatt-hours) you can expect from your solar system in Maryland
- The value of solar tax credits and other incentives you are entitled to based on the estimated size of system you need, your location and your utility provider.
- Likely cost based on an average of prices charged for solar systems of that size in the last year in Maryland or Baltimore ;
- The likely payback period on your solar panels and your investment return.
- Your total lifetime solar savings based on each of the major solar finance options, a cash purchase, a cash purchase funded with a HELOC sol (home equity line of credit) and a zero-down PPA or third party lease product.
If you want to see all of the above but also see live pricing, the three best solar deals available in your city and get binding quotes from each of these solar companies then use this Maryland solar panels calculator. This calculator requires you to also input your name and contact details because most of our 200+ installer partners will only authorize the sharing of their live solar pricing where we have validated that you are a real homeowner with a home in their service area. We respect the privacy of your data and only share your contact details with the solar companies you ask us to get binding quotes from.
Going solar in Maryland
Check out all of the ways energy providers of Maryland can help you be more energy-efficient and save money.
The following programs are available:
| Incentive Name | Eligibility | Type |
|---|---|---|
| Residential Renewable Energy Tax Credit | Federal | Personal Tax Credit |
| Residential Clean Energy Grant Program | State | Rebate Program |
| Solar Renewable Energy Certificates (SRECs) | State | Solar Renewable Energy Credit Program |
| Property Tax Exemption for Clean Energy Systems | State | Property Tax Incentive |
| Sales and Use Tax Exemption for Solar Energy Equipment | State | Sales Tax Incentive |
| Net Metering | State | Net Metering |
Find your local rebates and incentives
Your city may have further incentives to offer. Please keep in mind that the best source of up-to-date information on incentives is the solar installers who specialize in your area.
