Maryland Solar Incentives, Tax Credits & Rebates 2024
Last updated: 2026-01Incentive Score
Total Savings Estimate
A typical 8kW system in Maryland costs $42,228. After the 30% federal tax credit: $29,560. Estimated annual savings: $1,500.
Federal Investment Tax Credit (ITC)
Federal Solar Investment Tax Credit (ITC)
Tax Credit30% of total system cost
The federal ITC allows you to deduct 30% of the cost of installing a solar energy system from your federal taxes. This applies to both residential and commercial systems with no cap on value.
Eligibility
Available to homeowners who own their solar system (purchased, not leased). Must have sufficient tax liability.
Expiration / Phase-Down
30% through 2032, steps down to 26% in 2033 and 22% in 2034
Maryland State Incentives
Solar Renewable Energy Certificates (SRECs)
Performance~$60-$80/SREC (1 SREC per MWh)
Maryland's RPS requires utilities to purchase SRECs. Homeowners earn one SREC for each MWh of solar production.
Residential Clean Energy Grant
GrantUp to $1,000
Maryland Energy Administration offers grants up to $1,000 for residential solar installations.
Net Metering
Net MeteringFull retail rate
Full retail net metering for systems up to 2 MW.
Tax Exemptions
property tax Exemption
Solar energy property is exempt from property tax assessment.
sales tax Exemption
Solar equipment is exempt from Maryland's 6% sales tax.
Utility Programs
BGE
- Net metering
- EmPOWER Maryland rebates
Pepco
- Net metering
- Energy efficiency programs
Potomac Edison
- Net metering
Highlights & Drawbacks
Highlights
- ✓SRECs provide ongoing revenue
- ✓MEA grant of up to $1,000
- ✓Full retail net metering
- ✓Property and sales tax exemptions
Drawbacks
- !SREC market values can fluctuate
- !Moderate sun hours
- !Above-average installation costs
Source: DSIRE (Database of State Incentives for Renewables & Efficiency), U.S. Department of Energy, state energy offices. Data reflects programs available as of 2026-01.