A Guide to Maryland Solar Incentives 2024
Are you looking to go solar and reduce your high energy bills with a low upfront installation cost in Maryland? By taking advantage of Maryland solar incentives, you can switch to solar within your budget and also reduce the initial expenses of installing solar panels.
In the past few years, the solar energy trend has been booming in Maryland. As of 2023, the Solar Energy Industries Association ranks it 19th in the US for solar power. The state completed about 81,000 solar installations. Maryland is committed to making solar energy investments. By 2030, the state wants to generate half of its electricity from renewable sources, according to the Renewable Portfolio Standard (RPS). Also, by 2028, 14.5% of the total must come from solar resources. As per the U.S. Energy Information Administration, the state has likewise planned to achieve zero emissions by 2045.
In this guide, we will explain in detail all the available Maryland solar incentives to help you go solar affordably and save for your future.
What are the best Maryland solar incentives for homeowners?
If you are considering solar energy in Maryland, there are some best solar incentives for homeowners to save more, get high ROI, and low cost of solar panel installation.
Maryland Solar Renewable Energy Credits (SREC) Program
Your clean energy generated with a solar panel system has an environmental value that is represented by a solar renewable energy certificate (SREC). For every 1,000 kWh (one megawatt-hour) that solar panels in Maryland produce, you can earn one SREC. Through this initiative, owners of solar systems can sell SRECs to power companies in the SREC market. SRECs are acquired by electricity providers to contribute to the state’s renewable portfolio standards (RPS) or objectives. In Maryland, an SREC’s value depends upon the market’s state. On average, the value of SRECs in Maryland is $50 in 2023.
Maryland Residential Clean Energy Rebate Program
If a homeowner in Maryland installs solar panels, the Maryland Energy Administration will compensate them with $1,000. However, the home solar system must be installed by a NABCEP-certified solar installer. The application deadline is June 30, 2024. Furthermore, if the pool of funds runs out, rebates will be awarded on a first-come, first-served basis. Throughout the state, around 4,600 houses will get the rebate by this year’s allocation.
Maryland Renewable Energy System Property Tax Exemption
Maryland approved a property tax exemption for residential solar energy systems. According to this, Residents of Maryland are exempt from paying taxes on the value that a solar or wind renewable energy system adds to their home.
What are the local residential solar incentives available in Maryland?
Homeowners may be able to save more money at the local level in addition to the state-wide incentives and rebates. Exclusive to residents, these programs come with different requirements and benefits. Maryland homeowners can take advantage of the local incentives listed below.
Anne Arundel County Solar Tax Credits
Homeowners that use solar energy systems for water heating, electricity generating, or heating and cooling, are eligible for a property tax credit of up to $2,500.
Baltimore County Solar Tax Credits
You can get a property tax credit of up to $5,000 for installing a solar energy-powered system on your residential property. Qualifying systems include solar panels, water heaters, and HVAC units.
Harford County Solar Tax Credits
Residents of Harford are eligible for a property tax credit of up to $2,500 for water heating systems, energy production, and solar heating and cooling.
Prince George’s County Solar Tax Credits
For solar energy equipment installed in dwellings, homeowners are eligible for alternative energy tax credits worth up to $5,000.
What are the commercial solar incentives in Maryland?
Apart from the Maryland solar incentives for homeowners, there are exclusive incentives to support local businesses in the transition to clean energy. The commercial solar incentives in Maryland include:
The Commercial Clean Energy Rebate Program
The commercial clean energy rebate program is a statewide, non-competitive (first-come, first-served) incentive for businesses, non-profits, and government buildings in the state that install solar energy systems. The Strategic Energy Investment Fund will make a total of $1,000,000 available to support this initiative. However, the rebate amount will vary according to the size of the commercial solar system. Systems that don’t meet the minimum or maximum size requirements aren’t eligible for Clean Energy Rebates.
High-Performance Building Property Tax Credits
High-Performance Building Property Tax Credits are available in many Maryland counties for newly built or completely renovated commercial and multi-family properties. Buildings need to receive certification as High Energy Performance buildings.
Maryland Solar Property & Use Tax Exemption
Solar energy systems that works for water heating or cool a building are no longer liable to real property taxes at the local or state levels. Both residential and commercial properties are eligible for the Maryland Property Tax Exemption for Solar and Wind Energy Systems.
Does the federal solar tax credit work in Maryland?
Yes, Maryland residents are eligible for the federal solar investment tax credit (ITC) if they install solar panels. The solar expenses can be reduced by thousands of dollars with 30% ITC. This credit lowers your federal tax liability; however, you can roll over the remaining balance for a maximum of five years if your tax liability is less than the credit’s value.
Is net metering available in Maryland?
In Maryland, you can earn compensation for extra electricity at the full retail rate if you route it back to the local power system. This may significantly lower your electric expenses.
Maryland has a good net metering program. It requires utility companies to pay customers dollar-for-dollar for any excess electricity they return. The best-case scenario for homes thinking about solar energy is this. There are now additional ways for you to save money depending on how much electricity you use thanks to recent regulation changes that allow you to keep earning credits or receive a refund at the end of the year.
Do Maryland solar incentives make it affordable to go solar?
In Maryland, solar energy is not just a passing trend; it is the way of the future. With Maryland’s solar incentives, more people will be able to switch to solar energy and the state’s grid will become less reliant on non-renewable energy sources. Programs like Solar Renewable Energy Credits (SRECs), state tax credits, and the federal tax credit help cut down the initial costs. Net metering lets you earn credits for extra energy your panels produce, further lowering your bills. Plus, there are various grants, rebates, and financing options available. Overall, Maryland’s incentives make switching to solar energy a smart and cost-effective choice for many people.
If you’re ready to switch to solar in Maryland, get a FREE estimate from a top-rated solar installer near you.
