MarylandSolar Incentives 2026: Tax Credits, Rebates & Net Metering
Maryland homeowners can reduce solar installation costs by up to 30% through state and federal incentives. With average monthly bills of $165 and 4.5 peak sun hours per day, the average MD homeowner saves $44,100 over 25 years.
State Solar Tax Credit
Maryland does not offer a state income tax credit specifically for residential solar. Most homeowners rely on the 30% federal Residential Clean Energy Credit as the primary up-front incentive.
Even without a state income credit, Maryland's property tax exemption and sales tax exemption on solar equipment significantly reduce effective lifetime cost.
Net Metering in Maryland
Maryland requires investor-owned utilities to offer net metering on residential solar systems. The credit rate is the full retail electricity rate.
In practice, this means a properly sized Maryland system can drive net annual electricity costs to within tens of dollars of zero. Top utilities operating under MD net metering rules include BGE, Pepco, Delmarva.
Utility Rebate Programs
3 major utilities operate in Maryland: BGE, Pepco, Delmarva. Specific rebate availability varies year to year and is typically distributed first-come, first-served until annual budget caps are reached.
Before scheduling any installation, verify current rebate status directly with your utility — programs open and close throughout the year. Most Maryland installers will pull up-to-date rebate data during a site assessment.
Property & Sales Tax Exemptions
Maryland excludes the added value of a residential solar system from property tax assessments. A homeowner whose property gains $15,000 in assessed value from a solar install pays no additional property tax on that increase, saving roughly $250 to $400 annually depending on local mill rates.
Maryland also exempts solar equipment from state sales tax, removing roughly 4% to 7% from the up-front cost of panels, inverters, and racking depending on local rate.
MD SREC Market
Maryland has an active Solar Renewable Energy Certificate (SREC) market. Homeowners earn one SREC for every megawatt-hour produced and sell them on the MD compliance market.
At current clearing prices, the average MD homeowner earns approximately $9,800 in SREC income over the first five years of operation. SREC values are volatile and depend on the state's Renewable Portfolio Standard compliance demand each year.
How Maryland Compares to Neighboring States
Compare Maryland's solar incentive package side-by-side with adjacent states to see whether you live in a relatively high- or low-incentive market.