How to Maximize Savings with Maryland’s Solar Incentives (2025)
Maryland Solar Savings Guide
When investing in solar energy in Maryland, understanding available incentives can significantly reduce costs. Below are key programs designed to make solar energy more affordable.
1. Maryland Solar Access Program (MSAP)
Purpose: Reduces upfront solar costs through state grants.
Benefit: Homeowners receive $750 per kilowatt (kW) installed, with a cap of $7,500.
2. Federal Solar Tax Credit (30%)
Purpose: Provides substantial tax relief for solar installations.
Benefit: The Federal Government offers a tax credit that covers 30% of a solar system’s overall cost. The credit is a dollar-for-dollar credit against your personal income taxes. The entire amount can be claimed in one year and it will come back on the following tax return.
3. Solar Renewable Energy Certificates (SRECs)
Purpose: Creates an additional revenue stream for solar system owners.
Benefit: Homeowners earn SRECs for each megawatt-hour (MWh) produced and can sell them to utilities.
4. Property Tax Exemption for Solar
Purpose: Prevents an increase in property taxes due to solar installation.
Benefit: The added home value from solar panels will not increase property tax assessments.
5. Sales Tax Exemption
Purpose: Lowers the upfront cost of solar equipment.
Benefit: Maryland waives sales tax on solar panels and related components.
6. Net Metering
Purpose: Offsets electricity costs for homeowners generating excess solar power.
Benefit: Utilities provide bill credits for surplus electricity sent to the grid, reducing future energy expenses.
7. Battery Storage Tax Credit (Expected in 2025)
Purpose: Encourages homeowners to add battery storage for solar energy.
Benefit: A new tax credit program launching in summer 2025 will support solar battery adoption.
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