Maryland Solar Incentives Guide

Maryland's SREC market is one of the strongest financial drivers for residential solar. Every 1,000 kilowatt-hours your system produces earns an SREC that can be sold on the open market. Current prices fluctuate, but many homeowners earn several hundred dollars per year simply by operating a well-sized system.

State Energy Services registers your project with the PJM Generation Attribute Tracking System (GATS), guides you through broker selection, and configures monitoring to ensure credits are reported accurately. We also explain timing considerations so you know when to sell and how often payouts occur.

Because SREC revenue stacks on top of bill savings, we model both in your proposal. That way you can see the combined impact on payback period and understand how ongoing production turns into long-term cash flow for your household.

Solar panels add value to your home, but Maryland protects you from increased property taxes. Qualified solar energy systems are exempt from state and local property tax assessments, keeping ongoing costs low while still boosting resale appeal.

Maryland also waives the 6% sales tax on approved solar equipment. Our proposals reflect this exemption by default, so you never pay sales tax on panels, inverters, racking, batteries, or labor that is directly tied to the solar installation.

Paired together, these exemptions remove thousands of dollars from the project cost over the system's lifetime. We provide documentation for closing packets and appraisal conversations so future buyers understand the value without any tax surprises.

The Maryland Energy Administration (MEA) periodically releases grants and low-interest financing programs to accelerate residential clean energy adoption. Funding windows vary from year to year, but popular offerings include the Residential Clean Energy Rebate Program and limited-time battery storage incentives.

Our team monitors application deadlines and eligibility requirements and will flag any active programs during your proposal review. When funding is available, we help you assemble documentation, submit applications, and track approvals. Even a modest grant can shorten payback timelines by a year or more.

If you are planning ahead, we can recommend strategies to align your installation with expected funding windows. We also coordinate with lenders who understand how to bridge MEA incentives into overall project financing.

Maryland requires investor-owned utilities - including BGE, Pepco, Potomac Edison, SMECO, and Delmarva Power - to offer full retail net metering up to 200 kW of capacity. When your system produces more energy than you consume, the extra electricity flows to the grid and earns a credit equal to the retail rate you would have paid.

Those credits apply automatically to future bills, balancing seasonal usage and reducing your reliance on the grid. If you produce more than you consume over the course of a year, most utilities issue an annual true-up payment based on their avoided cost rate.

We design each system with your utility's interconnection requirements in mind, prepare the paperwork, and coordinate inspections so you achieve net metering status as quickly as possible. Our monitoring tools track production, consumption, and credit balance so you always know how the program is working in your favor.

When combined with the 30% Federal Investment Tax Credit, Maryland incentives dramatically reduce out-of-pocket cost. A typical homeowner can finance a system with little or no money down, use the tax credit to pay down principal, and rely on SREC payments plus utility savings to cover most of the remaining loan.

State Energy Services models every available program during your consultation, including optional battery rebates and community clean energy initiatives that may apply to your county. We deliver a written plan that outlines timelines, documentation requirements, and next steps so nothing is left to guesswork.

Ready to see how these programs stack for your property? Schedule a quote and we'll prepare a personalized incentive roadmap within one business day.