SolarSME Maryland


National Harbor, St. George's County, Maryland

 

According to recent statistics, the average residential electricity bill in Maryland is almost 21 percent higher compared to other states. Luckily, Maryland’s solar power is 10 percent more cost-effective than the rest of the country. Also the excellent solar incentives in Maryland could help you make the switch for less. The Solar Energy Industries Association (SEIA) also shows that over the last five years, the state’s rooftop solar prices have dropped 34 percent. With state solar incentives and investment tax credit Maryland home owners are ready go solar.

Excellent Investment tax credit & state Solar incentives in Maryland

You are eligible for a federal solar tax credit and a property tax exemption from the cost of your system as a home solar owner in Maryland. 7 Maryland also provides the Residential Renewable Energy Grant Program (R-CEGP), which gives you a $1,000 rebate on the purchase of a new home solar system of up to 20 kilowatts. With state solar incentives, you can reduce the cost of your PV solar energy system by 30 percent. 
Moreover, the Solar Renewable Energy Credit (SREC) program in Maryland allows you to earn cash for every megawatt-hour generated by your device. Maryland SRECs rates are up to $65.9 So you might earn $390 annually by selling your credits on the SREC market if you install an average 6-kilowatt system that generates 6 megawatt hours per year.

Go Solar and Endorse Ambitious Clean Energy Targets for Maryland

Maryland has quadrupled its capacity for solar energy from 258 to 1,000 megawatts since 2015. Plus, by 2020 and 30 % by 2030, the state is already committed to 25 percent renewable energy. You’ll have more leverage over your power and the price you pay for it with the state’s net metering policy, which pays residential solar customers for the energy they contribute to the grid.

State Solar Incentives

Recent developments in Maryland’s generous state solar incentives and rebates have made it a lot easier for its citizens. Maryland ranks in the top 5 states in USA for residential solar. The solar rebates, state solar incentive, SRECs and beneficial policies contribute to reduced electric bills and fast return on investment.

investment tax credit

Because of Investment tax credit breaks in Maryland, you don’t have to worry about increasing tax bills as a result of going solar. Investment tax credit Exemption for Solar and Wind Energy Systems, there’s no need to pay any additional taxes on increased value of your home. In Maryland, Sales and Use Investment tax credit for Renewable Energy Equipment makes your purchase of solar completely tax free.

state solar incentives

If you go solar in Maryland, you will be paid $1000 under the MD Solar Rebate Program. The only condition is that your system has to be smaller than 20 kW and your installer has to be certified by NABCEP.

state solar incentives

Under this program, you get paid for each megawatt-hour (MWh) of clean power your that your panels produce. Maryland set renewable portfolio standard goal of 2.5% of electricity to be produces by solar resources. This means that you can get paid to help. Each SREC can be sold for upto $77. This means that a system that produces 7MWh per year, could make you around $540 annually.

state solar incentives

It is one of the strongest available incentive offered to homeowners in Maryland. With the investment tax credit, you can eliminate 30 per cent of the total cost of your solar panels from your income, which ensures significant savings on your solar installation.

Investment tax credit

With friendly net metering policies in Maryland, you can receive full credits on your electric bills for any extra power that your panels produce. When your panels generate more power than you use, you can bank that power into the grid. In case your panels don’t produce enough energy, you can use the power that you sent into the grid.

state solar incentives

For mid-sized photovoltaic (PV) systems, solar water heating systems (SWH) and geothermal heating & cooling (GHC) installed by corporations, non-profits, and local governments, the Maryland Energy Administration (MEA) provides rebates. Funding is offered on a first-come, first-serve basis and is subject to adjustment on the basis of the availability of funding. The incentive levels for each technology are based on the system’s capability.

Solar Rebates and State Solar Incentives in Maryland

Property Tax Exemptions for Energy

Maryland offers property tax exemptions for installed solar system that allow businesses and homeowners to exclude the added value of a system from the valuation of their property for taxation purposes. By choosing Solar, one can expects tens of thousands of dollars property value upgrade.  Also, the homeowners of Maryland who have solar installed won’t any need to pay any increase in tax on the increased home value. 
Moreover, when a solar is installed on a Residential location, 100% sales tax exempt on equipment. The Property Tax Exemption rebate facilitate a taxpayer to install a solar on either residential or commercial property economically. This initiative is taken to promote the Solar trend by saving money even in the state.

Maryland solar incentives
Residential Clean Energy Grant Program

Residential Clean Energy Grant Program

To encourage homeowners investing in Solar, Maryland Energy Administration offers a rebate program that grants for PV Systems, Solar Water Heating, Wind Turbine Systems etc. According to this rebate, if a person invests on a Solar System which is smaller than 20 kilowatts (kW) and is located at primary residence and the Solar Installer is NABCEP certified, Maryland will award $1,000 to the homeowner as a rebate. The rebate is awarded on a first-come, first-serve basis across technologies and after the completion of the project.

SREC Program

Maryland is a state which urges its public utilities to prefer clean sources for electricity production. The state encourages to invest on Solar energy and is offering a number of rebates and incentives in this regard as well. According to this program, one will get paid for each MWh. Instead of paying huge alternative compliance fees to the state, utilities can now purchase clean energy certificates for the amount of electricity produced by large or small solar owners.
For this, Maryland has structured a Solar Renewable Energy Certificate Market (SREC), which consists on the commitment of state to obtain 14.5% of its electricity mix from the means of Solar Energy by 2030. The market prices are $75 per SREC currently. An estimate is that a 10kW solar panel system will produce an average of about 13 SRECs annually in Maryland. 
That amounts to $900 in SRECs can be sold out annually back to your utility company. This also leads to electricity bill saving. SRECtrade states that there is a possibility of oversupply in market of Maryland in 5 few years in future.

Net Metering

Maryland holds out the Solar owners with an incentive of net-metering. Net metering is a structure through which the solar panels or energy generators are connected to a power grid of public utility and the additional power which is produced by the sources is transferred into the grid. This process facilitates a customer to decrease the cost of electric power coming from the utility.
When electricity is produced from solar panel system, it draws down the amount of electric power from the utility which leads to reduction in electricity bills also. Net metering is a solar rebate provided by the state of Maryland to urge people about utilization of clean sources for producing power. 
It follows the procedure that if more energy is produced by a solar system than needed, it is sold back to the utility grid and that amount is deducted from the monthly electricity bill or also can be credited for future bill as well.

Federal Solar Investment Tax Credit

The Federal Solar Investment Tax Credit which is popular as investment tax credit is another perk offered by the federal government to those who go solar in Maryland. It directly impacts the cost of becoming solar in the state. The investment tax credit is determined 30% of the entire project cost and ever entity is eligible for it who pays taxes. This is not refundable which means that tax refund cannot be generated from it. At the end of 2020, the investment tax credit was scheduled to drop from 30% to 22%. In 2022, it got extended as 30% only for commercial installations only. So, it is very important to take advantage of this rebate instantly by becoming solar before it drops more. For instance, If you have started installing your photovoltaic system in 2022, the federal tax credit is 30% of the cost of your solar panel system. This is 30% off the entire cost of the system including equipment, labor and permitting.

Federal solar

Solar Power Performance Payments (Performance-Based Incentives)

The state of Maryland offers another incentive for motivating the utilization of Solar Energy sources in power generating process. This rebate is also known as Production Incentive.  According to this program, cash payments are granted based on the number of kilowatt-hours (kWh) or BTUs generated by a capable energy system. The payments which are based on actual performance of a system are more effective rather than the payments made on capacity rate of a system. The electricity which is produced is credited as Solar Renewable Energy Credits (SRECs).

Empower Low Income Energy Efficiency Program

The Maryland Department of Housing and Community Development (DHCD) is taking initiatives to influence the low-income residents of Maryland towards solar energy. This Program helps qualifying low-income residents increase the energy efficiency of their homes at no cost to program participants. Under this rebate program, a resident with a household income less than or equal to 200% of the federal poverty level and are customers of utilities that are the members of this empowering program is eligible to qualify for this incentive.  It is essential for a resident to prove the ownership of house for qualifying and if the home is on rent, the owner must be able to prove the ownership as well as the agreement to participate in the program.

BeSmart
low income

BeSMART Energy Efficiency Loan for Homeowners

BeSMART Loan Program is for Maryland’s homeowners. This loan aims to facilitate a homeowner to improve the home power efficiency and comfort. Through this program, homeowners can upgrade various power appliances like heating and cooling systems, ventilation devices, etc., and save on the electricity bills.

Eligibility Criteria for BeSMART Energy Efficiency Loan 

The BeSMART Loan is unsecured. It depends upon the paying power and credit verification of a homeowner. You are eligible for this program if

  • You are a Maryland homeowner.
  • Your Credit score is 640 or greater.
  • The debt-income ratio is not more than 50%
  • Your energy audit shows at least a 15% cost saving opportunity

With this loan program, you can get a loan of up to $30,000 for ten years with a 4.99% APR.

To apply for this Energy Loan Program, you have to apply to all financial documents. After completion of all requirements and procedures, the homeowner can get the loan.

buurning stove

Clean-Burning Wood Stove Grant Program

The Clean Burning Wood Stove Program is a part of the Residential Clean Energy Grant Program. It is also offered by Maryland Energy Administration (MEA). This program refers to a grant reward of $500 if you are using wood-burning stoves at homes. And if you have pallet burning stoves, the grant is $700 if you meet the criteria. 

The basic requirements for this grant eligibility include:

  • The stoves must have EPA-Published efficiency of 70% or higher as of February 1, 2020
  • The property must be the primary residence
  •  Not receiving more than 1 grant from MEA per technology in a fiscal year
  • Trust is not eligible for this grant
  • Applications must be submitted to MEA within a year of installation

This grant is provided on the basis of First Come First Serve.

Solar Incentives By State

Frequently Asked Questions
Are Solar Panels Worth it in Pennsylvania?

The solar industry is having an increasing impact in Maryland, from large-scale projects to residential solar, thanks to the state's solar-friendly renewable energy portfolio standard. For Marylanders who wish to fully benefit from the state's net metering regulation, the federal tax credit, and the various other incentives for solar, Solar SME is the solar company of choice.

In fact, over the next five years, Maryland is expected to increase its solar portfolio by 1,161 MW. Even better, the cost of solar in Maryland has decreased by 4%, making this the ideal moment to think about making the transition.

 

Quick Facts About Solar in Maryland:

There’s enough solar installed in Maryland to power 175,708 homes

Maryland has invested $3.8 billion in solar energy

Maryland is in the top 20 at #18 for solar energy in the United States

Are Solar Panels Worth it in Maryland?

Decreasing Costs – The costs of solar panel installations have come down significantly. Solar panels have fallen in price by more than 80% in the last ten years, and the 30% federal tax credit and net metering laws in Maryland make solar an excellent investment.

Solar Technology Improvements – Solar technology has made huge strides in efficiency and longevity too! More efficient solar panels mean that each square foot of solar panel can produce even more solar power. This is extremely important for rooftop installations with limited space for solar panels.

Improved Home Value – A solar panel system does more than lower or eliminate your electric bill, it is also an asset that increases your home’s value!

Tax Credits – The federal government gives out a significant tax credit for those who install solar panels to their home. The rate is locked in at 30% until the end of 2032.  After that, it will drop to 26% in 2033, and then 22% in 2034.

Solar Powered Battery Storage – If you’re concerned about power outages, now is a great time to consider a solar battery backup as an add on to your solar energy system. Solar energy batteries, like the Tesla Powerwall, will take any extra solar power your panels produce and store it for you to use later. So even when the sun goes down, your home can run on clean, green energy.

Environmental Concerns – As concern about the environment grows, people are looking for ways to reduce their impact on their surroundings. You can decrease your carbon footprint while increasing self-sufficiency by installing solar panels on your home.

Which Counties Offer Solar Tax Credits in Maryland?

 

How to Choose a Solar Company in Maryland?

It can be difficult to choose a solar contractor in your area, so it's helpful to keep in mind the three most important suggestions when selecting a solar panel firm.

Make sure the company you choose has warranties in place. Not just on the labor, but also the goods. In this manner, you can be sure that both you and your investment are secured going forward.


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