Maryland Solar Incentives, Tax Credits & Rebates 2026
State-program snapshot: 2026-01 · Federal status reviewed: 2026-08-06Cost Context
An illustrative 10.8 kW system using the historical observed average cost in Maryland is $42,228. New federal residential credit for a 2026 installation: $0. Modeled annual savings before financing: $2,482.
Federal Residential Credit Status
Residential Clean Energy Credit
Ended for new 2026 systems0% for property placed in service in 2026
IRS guidance states that the 30% credit applied to qualified residential clean-energy property installed from 2022 through December 31, 2025. It is not available for property placed in service after that date.
Eligibility
No new residential credit for a system first placed in service in 2026. A previously earned unused credit may be eligible for carryforward under IRS rules.
Primary source
IRS Residential Clean Energy Credit guidance ↗Maryland State Program Snapshot
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.
State and utility programs can change between reviews. Confirm eligibility, funding and deadlines with the administering agency or utility before relying on this snapshot.
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
State-program sources: DSIRE, state energy offices and utilities; snapshot dated 2026-01. Programs, funding and eligibility can change without notice. Federal residential status reviewed against IRS guidance on August 6, 2026.