Maryland offers some of the most generous solar incentives in the country. Find out how much you can save with state rebates, SRECs, and the federal tax credit.
Maryland has built one of the strongest state-level solar incentive programs on the East Coast, combining a generous state tax credit, a robust SREC market, a net metering mandate, and full property and sales tax exemptions. For Maryland homeowners, the combination of these incentives with the federal 30% Investment Tax Credit makes solar one of the most compelling home investments available in 2025.
Maryland Solar Incentives at a Glance
| Incentive | Value |
|---|---|
| Federal ITC (30%) | $6,000 to $9,000 on a typical system |
| MD State Tax Credit | Up to $1,000 |
| MD SREC Market | $40 to $80 per SREC (market rate) |
| Net Metering | Retail-rate credits from BGE, Pepco, Delmarva |
| Property Tax Exemption | 100% exemption on added home value |
| Sales Tax Exemption | 6% MD sales tax waived on equipment |
Federal Investment Tax Credit (ITC)
The federal ITC allows you to deduct 30% of your total solar installation cost directly from your federal income taxes. On a $25,000 system, that is a $7,500 credit applied dollar-for-dollar against your tax bill. The credit is available through 2032 at the full 30% rate.
Maryland State Tax Credit
Maryland offers a state income tax credit of up to $1,000 for residential solar installations. While modest compared to the federal ITC, it stacks directly on top of it with no additional paperwork beyond your state tax return.
Maryland SREC Market
Maryland operates a Solar Renewable Energy Certificate (SREC) market. Every 1,000 kWh your system produces earns one SREC, which you can sell to utilities that need to meet the state's Renewable Portfolio Standard. SREC prices fluctuate with market supply and demand, but have historically ranged from $40 to $80 per certificate. See the [Maryland Energy Administration solar page](https://energy.maryland.gov/pages/info/renewable/solar.aspx) for current program details and the [Maryland Solar Access Program](https://energy.maryland.gov/residential/Pages/incentives/Maryland-Solar-Access-Program.aspx) for low-income assistance options.
A typical 8 kW system in Maryland produces 8-10 SRECs per year, generating $320 to $800 in annual SREC income on top of electricity bill savings.
Net Metering in Maryland
Maryland requires all major utilities to offer net metering at the full retail rate. With Maryland electricity averaging $0.14/kWh, every kWh you export to the grid is credited at full retail value.
Maryland's major utilities:
- BGE (Baltimore Gas & Electric) — Serves [Baltimore](/solar-company-baltimore-md), [Annapolis](/solar-company-annapolis-md), and surrounding areas
- Pepco — Serves [Rockville](/solar-company-rockville-md), [Silver Spring](/solar-company-silver-spring-md), and the DC suburbs
- Delmarva Power — Serves the Eastern Shore
How Much Can Maryland Homeowners Save?
| Metric | Estimate |
|---|---|
| Average system cost | $20,000 to $26,000 |
| After ITC + MD credit | $13,000 to $17,200 |
| Monthly electricity savings | $100 to $160 |
| Annual SREC income | $320 to $800 |
| Payback period | 7 to 10 years |
| 25-year net savings | $30,000 to $50,000 |
SunLynk connects Maryland homeowners with pre-vetted local solar installers who are fully versed in the SREC enrollment process and Maryland utility interconnection requirements. Get your free quotes today.
Frequently Asked Questions About Maryland Solar Incentives
What solar incentives are available in Maryland in 2025?
Maryland homeowners have access to the federal 30% Investment Tax Credit (ITC), a state income tax credit of up to $1,000, a 100% property tax exemption on the added home value from solar, a full sales tax exemption on solar equipment, and the Maryland SREC market where each 1,000 kWh your system produces earns a certificate you can sell to utilities. Maryland also launched a new Solar Access Program in 2025 providing grants for low-to-moderate income households.
How does the Maryland SREC market work?
Every 1,000 kWh your solar system produces earns one Solar Renewable Energy Certificate (SREC). You can sell these certificates to Maryland utilities required to meet the state's Renewable Portfolio Standard. SREC prices historically range from $40–$80 per certificate. A typical 8 kW system in Maryland earns 8–10 SRECs per year, generating $320–$800 in annual SREC income on top of electricity savings.
Does Maryland have a property tax exemption for solar?
Yes. Maryland provides a 100% property tax exemption on the added value of a solar energy system. Solar panels typically add $15,000–$20,000 to a home's assessed value, which would normally increase your property tax bill by $300–$500 per year. The exemption eliminates this entirely for the life of the system.
Is solar worth it in Maryland?
Yes — Maryland is one of the stronger solar markets in the Mid-Atlantic. High electricity rates ($0.14–$0.17/kWh), the federal 30% tax credit, state tax credit, SREC income, and property/sales tax exemptions combine to produce payback periods of 7–10 years and lifetime savings of $25,000–$40,000. Cities like [Baltimore](/solar-company-baltimore-md), [Rockville](/solar-company-rockville-md), [Silver Spring](/solar-company-silver-spring-md), and [Frederick](/solar-company-frederick-md) all have strong installer competition.
What is the Maryland Solar Access Program?
The Maryland Solar Access Program (MSAP) provides grants to low-to-moderate income Maryland households to offset the cost of solar installation. See the [Maryland Energy Administration solar page](https://energy.maryland.gov/pages/info/renewable/solar.aspx) for current program details, income limits, and application windows.
Find pre-vetted solar installers in your Maryland city: [Baltimore, MD](/solar-company-baltimore-md) · [Annapolis, MD](/solar-company-annapolis-md) · [Rockville, MD](/solar-company-rockville-md) · [Silver Spring, MD](/solar-company-silver-spring-md) · [Frederick, MD](/solar-company-frederick-md)
