Maryland Solar Incentives & Rebates (2025)
Maryland homeowners can save $15,000-25,000 on solar installation through federal tax credits, state programs, and utility rebates. Here's everything available in 2025.
💰 Total Savings Potential in Maryland
Federal Solar Tax Credit (30% ITC)
The federal Investment Tax Credit (ITC) allows you to deduct 30% of your total solar system cost from your federal taxes. For a typical Maryland solar installation costing $30,000, this means a tax credit of $9,000.
Expiration: The 30% rate is available through 2032. It drops to 26% in 2033 and 22% in 2034 before expiring entirely.
How to Claim
- 1Install your solar system and keep all receipts/documentation
- 2File IRS Form 5695 with your tax return
- 3Claim the credit on your Form 1040
Maryland State-Level Incentives
Property Tax Exemption
Maryland exempts the added value of a solar energy system from property tax assessments. This means your property taxes won't increase even though your home's value goes up with solar panels installed.
[VERIFY] Estimated Savings: $1,000+ over the life of the system, depending on your home's assessed value and local tax rates.
Solar Renewable Energy Credits (SRECs)
Maryland has one of the strongest SREC markets in the country. For every 1,000 kWh (1 MWh) your system generates, you earn one SREC that you can sell to utilities that need to meet renewable energy requirements.
[VERIFY] Current SREC Prices: $70-90 per SREC (as of 2025). A typical 8kW residential system generates 10,000-12,000 kWh per year = 10-12 SRECs annually.
5-Year Earnings: $5,000-7,000 in passive income from selling your SRECs.
Sales Tax Exemption
[VERIFY] Maryland exempts solar energy equipment from the state's 6% sales tax, saving you approximately $1,800 on a $30,000 system.
Utility Company Rebates in Maryland
[VERIFY] Several Maryland utilities offer solar rebates and incentive programs:
BGE (Baltimore Gas and Electric)
Net metering at retail rate, interconnection support
Coverage: Baltimore metro area
Pepco
Net metering program, solar rebates (subject to availability)
Coverage: Montgomery and Prince George's Counties
Delmarva Power
Net metering available for residential solar systems
Coverage: Eastern Shore
Note: Utility rebates change frequently. Contact your utility for current programs.
How Much Can You Save in Maryland?
Example: 8kW Solar System in Baltimore
How to Claim Maryland Solar Incentives
Find a Certified Installer
Work with a Maryland-licensed solar installer who understands local requirements and can help you maximize incentives.
Complete Installation
Your installer will handle permits and interconnection with your utility. Keep all receipts and documentation.
Register for SREC Program
[VERIFY] Register your system with the Maryland SREC program through a broker or aggregator to start earning credits.
File Your Taxes
Claim the federal tax credit using IRS Form 5695 when you file your taxes.
Frequently Asked Questions
Do Maryland solar incentives apply to battery storage?
[VERIFY] The federal 30% tax credit applies to battery storage if it's charged by solar panels. Maryland's property tax exemption also covers battery systems paired with solar.
Can I combine multiple incentives?
Yes! You can stack the federal tax credit with Maryland state incentives, SREC earnings, and utility rebates for maximum savings.
How long do Maryland SREC contracts last?
[VERIFY] Systems can earn SRECs for 15 years, though prices may vary based on market conditions. Most brokers offer 5-10 year contracts with fixed or floor prices.
What happens if my tax liability is less than the credit?
The federal solar tax credit can be carried forward to future tax years. If you owe less than $9,000 in taxes this year, you can apply the remaining credit next year.
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