Incentives, Rebates, & Tax Credits Available in Maryland
Produce your own clean energy in Maryland and help save the environment. Solar energy is a great alternative for anyone who values independence and efficiency. Start using flexible, lightweight solar now.
Federal Solar Tax Credit
The ITC is a driving force behind increased solar adoption in the United States. Since its implementation in 2006, solar installation has grown by over 1600% with an average annual growth rate of 76%.
The tax credit is available for purchased solar systems and is worth 26% of the cost of the system, which is paid back to the homeowner and determined by the amount of the individual’s taxable income that year.
Solar Renewable Energy Certificate
While not as strong of a market as other states, SRECs are still an added perk for switching to cleaner energy in Maryland. One SREC (solar renewable energy certificate) is earned for every 1,000 kilowatt-hours (kWh) of solar energy that your system produces, incentivizing carbon-neutral energy in the form of credits that can be sold back to Maryland.
Net metering is a utility billing system that will credit homeowners for any excess electricity that their solar system produces. The excess power is sent back into the grid for community use through a bidirectional meter. The credits provided are meant to supplement the homeowner’s energy use at night or when it’s cloudy when the system isn’t producing as much.
Maryland Solar Rebate Program
While state’s SREC value leaves something to be desired (and still better than zero), Maryland’s Energy Administration (MEA) implemented what they refer to as the “Residential Clean Energy Grant Program” or R-CEGP, for homeowners that have completed clean energy systems on their homes or property. The program naturally includes solar panel systems, but also offers grants for solar hot water and geothermal heating and cooling. The application can be found online. For a standard solar panel system installation, you could receive up to $1,000 from MEA.
Property & Sales Tax Breaks
The Property Tax Exemption for Solar and Wind Energy Systems does not allow extra taxes on the increased value of your home as a result of the installation, and the Sales and Use Tax Exemption for Renewable Equipment is 100% tax-free.
Property tax incentives ensure 100% tax exemptions from property tax payments if you purchase a solar power system.
*Apply to lease and PPA customers only.
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