Going Solar Is Simple with Maryland Solar Incentives and Rebates

Going Solar Is Simple with Maryland Solar Incentives and Rebates

Maryland, known as the Free State, is making significant strides in solar energy adoption. With a variety of solar incentives, rebates, and supportive laws, Maryland is an excellent place to invest in solar energy. The state's electric rates rank among the top 25% in the country, so it makes financial sense to offset your power needs with solar panels, especially in areas with high electricity costs.

Discover how you can save money and increase your property's value by taking advantage of Maryland's solar incentives.

Maryland Solar Incentives, Rebates, and Benefits

Maryland Renewable Portfolio Standards (RPS)

Maryland's stringent Renewable Energy Portfolio Standard (RPS), first passed in 2004 and updated multiple times, requires all electric utility companies, including retail suppliers, to source a minimum portion of their electricity from renewable energy sources like solar, wind, and geothermal. The Clean Energy Jobs Act of 2019 further expanded this requirement, mandating that 50% of Maryland's electricity come from renewable sources by 2030. Utility companies that fail to meet these targets face significant fines, which incentivizes them to support property owners in adopting solar energy systems.

Maryland Net Metering Laws

Maryland offers favorable net metering laws for property owners with solar energy systems. Net metering allows you to connect your solar panels to the public utility grid, enabling you to offset your electricity costs with credits for the energy your system generates. If your solar panels produce more electricity than you use, the surplus can be sold back to the utility, earning you credits on your electric bill. Utility companies like BGE, Pepco, and Delmarva Power offer net metering, making it easier for you to maximize your solar investment.

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Maryland Interconnection Standards

Interconnection standards set the rules for connecting solar and other electricity-generating systems to the public utility grid. Maryland has implemented comprehensive interconnection standards that work hand-in-hand with its net metering laws. These standards make it easier and more cost-effective to integrate solar power systems into the existing power grid, ensuring a smooth transition to renewable energy.

Maryland Renewable Portfolio Standards (RPS) Solar Carve-Out

The RPS Solar Carve-Out, established in 2007, sets a specific goal for solar energy within the broader RPS. By 2030, 14.5% of Maryland's retail electricity sales must come from solar energy sources. This carve-out further encourages the adoption of solar energy across the state.

Maryland Solar Energy Rebates

The Maryland Solar Energy Rebates program offers property owners a $1,000 grant when they install a solar panel system. This rebate can be combined with other credits and incentives, reducing the overall cost of your solar investment and making it more affordable.

Maryland State Tax Credits for Energy

Maryland provides state tax credits for energy improvements, including solar installations. These credits allow you to reduce your tax payment directly, making it easier to afford solar energy for your home. Whether it's your primary residence or a vacation home, you can claim this credit for both existing structures and new construction.

Maryland Property Tax Exemptions for Energy

While Maryland no longer offers state tax credits specifically for solar installations, the state does provide an Energy Storage Income Tax Credit that includes solar batteries. This tax credit offers a 30% personal income tax credit on the cost of solar energy storage systems, up to $5,000.

Maryland State and Local Property Tax Exemptions for Energy

Maryland exempts state and local property taxes for installed solar systems. This means that while a solar PV system can increase your home's value, you won't have to pay additional property taxes on that increased value. You’ll continue paying the same property tax rate as before, effectively saving money on your solar investment. Additionally, Maryland property owners are exempt from the state's 6% sales tax on solar energy systems.

Maryland Performance-Based Incentives (PBIs)

Maryland offers performance-based incentives (PBIs) that reward property owners based on the actual energy their solar systems generate. These Solar Power Performance Payments are calculated based on the kilowatt-hours (kWh) or BTUs produced by your system. The electricity generated is credited as Solar Renewable Energy Credits (SRECs), providing an additional income stream and helping your system pay for itself over time.

Maryland Inflation Reduction Act (IRA)

Eligible property owners with solar panels may qualify for a 30% tax credit on the cost of their system under the Maryland Inflation Reduction Act (IRA). This incentive can significantly reduce the financial burden of going solar.

Don’t Forget About the Federal Tax Credit, Maryland!

In addition to state incentives, Maryland homeowners can also benefit from the Federal Investment Tax Credit (ITC). After applying state rebates, you can claim a 26% federal tax credit on the remaining cost of your solar system. However, this credit is scheduled to decrease in the coming years, so it's wise to invest in solar sooner rather than later.

Solar Incentives and Rebates at a Glance

Free yourself from high electricity bills and enjoy long-term savings! We recommend consulting with a trusted solar company to explore your options and take full advantage of the numerous solar incentives Maryland offers.