Whether you have high electricity bills in the summer to cool your home or high bills in the winter to heat it, solar panels could help.
Baltimore residents who install home solar panels can access strong national and local incentives that can bring down the cost of going solar and boost the savings they can see.
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Does Solar Make Sense in Baltimore?
Solar panels definitely can make sense in Baltimore. While Baltimore doesn’t have the most expensive electricity in the country, strong incentives, like 1-to-1 net metering, mean solar could be a money-saving investment.
Price of electricity
The average electric rate in Maryland in 2023 was 16.6 cents per kilowatt-hour, according to the US Energy Information Administration. It was 16.47 cents/kWh for Baltimore Gas & Electric Company during that same period. Both numbers were slightly higher than the national average of 16 cents/kWh.
Higher electricity prices typically mean you can save more with solar panels, which let you avoid buying some of your electricity from your utility.
Price of solar
From a dollar and cents perspective, solar panels won’t be worth it if they cost more than you’ll ever save. While the cost of solar can vary by project — roof complexity, project size, cost of permitting, and whether you’re including battery storage all play a role — the Solar Energy Industries Association’s most recent estimated national average was $3.33 per watt (4% lower than the same period a year before). At that price a five-kilowatt system would cost $16,650 before incentives.
The best way to find out what solar panels cost to install at your home is to reach out to a reputable solar installer.
Available sunlight
Solar panels need sunlight to generate electricity, so it stands to reason that solar panels installed in sunnier places will generate more. Baltimore, which receives an average of 4-4.5 daily peak sun hours according to the National Renewable Energy Laboratory, isn’t the sunniest place in the US. But, for most people, solar panels just need to save you money, not generate the most electricity possible.
The amount of sunlight your roof receives is a more important factor in determining whether your home works for solar. A heavily shaded roof won’t be a good fit.
Outages
Solar panel systems are typically designed to shut down during a power outage for safety reasons. When they’re paired with home battery storage, they can temporarily separate from the grid and keep at least parts of your home powered up through an outage.
Exactly how long batteries can provide you with electricity depends on what you choose to back up and how big of a battery bank you have. If having some power through an outage is important to you, solar and storage could be a solution.
According to the US Energy Information Administration, Maryland utility customers saw an average of 166 minutes of power outages in 2023.
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Solar Incentives in Baltimore
Baltimore residents can access a strong mix of national and state incentives when they go solar.
Federal tax credit
One of the longest-standing and most important solar incentives is the federal tax credit. The current iteration is called the Residential Clean Energy Credit, but it’s been around for over a decade.
The RCEC allows owners of qualifying solar installations and batteries to reduce their taxes by 30% of the cost of going solar. The credit only counts against taxes you owe in the year of installation but can be rolled over to future years if your tax liability is too small.
You should always consult a tax expert to ensure you qualify.
Net metering
Baltimore Gas & Electric, like all Maryland utilities, offers 1-to-1 net metering. When your solar panels produce more electricity than you can use, it’s sent to the grid and you earn credits on your electric bill. Under 1-to-1 net metering, one kilowatt-hour you send to the grid is worth one kilowatt-hour you buy from your utility.
Net metering in Maryland has an eventual cap of 3,000 megawatts of generation capacity. (In January 2023, the installed capacity was about one-third of the cap.) Systems installed before the cap is reached will earn 1-to-1 net metering credits over their lifetimes, according to the state.
Solar renewable energy credits
Maryland solar owners can also sell solar renewable energy credits (SRECs) their solar panels generate. For every 1,000 kWhs of electricity a solar installation produces, it generates one SREC, which the system owner can sell to organizations like utilities that need to meet certain renewable energy goals.
Residential solar owners typically sell SRECs with the help of SREC traders (Palmetto partners with SRECTrade) and can sell them as they are created or lock in a price for a multiyear term. SREC values fluctuate based on supply and demand.
Property tax exemption
A home typically increases in value when solar panels are installed on it. Maryland has a solar property tax exemption that will keep solar panels from increasing your property taxes.
Sales tax exemption
Solar equipment is exempt from sales tax in Maryland, a potential savings of hundreds of dollars.
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Solar Payback Period in Baltimore
A solar payback period is the time it takes for the savings solar panels generate to match their installation costs. Broad estimates for solar payback usually come in under 10 years and they can be much lower. Payback periods will vary from state to state and house to house.
You can estimate your solar payback period with a simple calculation.
( Total solar costs - Solar incentives ) / Annual savings = Payback period in years
Solar payback periods can be longer or shorter for a multitude of reasons. They could be longer if you buy a more expensive system or work with an installer who does a poor job, leading to expensive repairs and frequent downtime. They could be shorter if you get a good deal or if electricity prices go up in your area.
Credit US EIA
Baltimore Gas & Electric and Rooftop Solar Panels
When you go solar, you still get an electric bill (unless you take your home off grid, which typically isn’t worth it). Even during months when your solar panels produce more electricity than you use, you’ll still get a bill, if only to track your net metering credits.
| Fixed fee | Average utility rate | Net metering type | Maximum system size | Maximum offset |
|---|---|---|---|---|
| $9.07/month | 16.47 cents/kWh | 1-to-1 net metering | No max | 200% |
Gas utilities and home electrification
If you have natural gas service at home, you could save even more over the long term with home electrification and solar panels. While solar panels can’t offset the gas use of a furnace or stove, they can help supply the electricity that runs a heat pump or induction cooktop. When you electrify your home, solar panels can cover more of your total energy costs.
See how much you can save with home energy changes
Leasing Solar Panels in Baltimore
Third-party ownership of solar panels — via a lease or power purchase agreement — lets you go solar without the upfront cost. Instead of buying solar panels, you get panels owned by a leasing company installed on your roof. With a solar lease, you trade the upfront cost of purchase for predictable payments that could save you money on your electric bill.
Because you don’t own the solar panels on your roof, the leasing company is responsible for maintenance and monitoring. With Palmetto’s LightReach Energy Plan, for example, you get proactive system monitoring, maintenance and repair, a production guarantee, and options to buy your solar panels starting in year six.
Solar Panel Maintenance in Baltimore
Solar panels can be low-maintenance equipment. Over a system’s expected 25-year lifespan, you may need to replace an inverter (depending on the type) and a battery (if you have one). Still, if something goes wrong, what are your options?
Solar equipment comes with warranties, typically 25 years for solar panels, 10 or 25 years for inverters (string and microinverters, respectively), and about 10 years for many batteries. Solar installers may also offer warranties against roof leaks caused by their installations and coverage for their work.
Some solar companies also offer additional plans that cover maintenance and system protection. For example, Palmetto Protect offers monitoring, access to a vetted service network, and a production guarantee, depending on the level of coverage.
Most issues that could arise are best handled by licensed solar technicians. One bit of maintenance you can do yourself is cleaning your solar panels. Washing away dust can improve your system’s performance. Baltimore is likely to get enough precipitation to wash your panels naturally, but after a dry period, rinsing them off may be beneficial.
Snow
Snow can temporarily block light from reaching your solar panels and halt electricity generation, but a typical Baltimore winter isn’t likely to significantly depress your panels’ overall performance.
Compared to the surrounding roof, snow melts and slides off of solar panels faster. When it does, you get the bonus of a free solar panel cleaning. Snow on the ground reflects light back to the solar panels, potentially boosting generation. Regardless, summer will be your panels’ most productive season.
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Finding the Best Solar Companies in Baltimore
One of the most important decisions you will make when shopping for and installing solar panels is who you work with. But how do you know which is the best solar company in Baltimore? You can do a few things to help narrow your search.
- Read reviews to get a balanced view of the company.
- Work with someone who provides clear answers to your questions.
- Choose a company that doesn’t pressure you to decide before you’re ready.
- Talk with your neighbors and family about their experience getting solar panels installed.
Palmetto Reviews
“Excellent work and the best thing, apart from the generation of electricity, is the generation of savings that Palmetto gives us.” Nelson D. 10/5/2024 Google Review
“This was a good choice for us. Everything was explained in advance. Installation happened on time. Palmetto responds quickly when we have questions. We are enjoying the savings every month.” Linda P. 10/9/2024 Google Review
“Great experience with Palmetto solar. Solar is really helping my electric bill since my house is all electric. Nice people to deal with and reliable. Would recommend them highly.” Linda C. 10/18/2024 Google Review
“Had a great experience with Palmetto Solar when switching to solar. My utility company was not easy to work with and delayed several steps in the process. Palmetto [kept] working tirelessly to help move everything forward and kept communicating so I knew what was going on. Even now that everything is hooked up and working, any questions I have a[re] quickly answered and customer service is always helpful and friendly.
Plus my panels are working wonderfully!” Lindsay M. 10/23/2024 Google Review
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Frequently Asked Questions
Can solar panels save you money in Baltimore?
Yes, solar panels can save you money in Baltimore. Your actual level of savings depends on how much you pay for electricity now and how much it will cost to have solar panels installed at your home. Access to 1-to-1 net metering and SREC markets can improve your savings.
Does Baltimore have net metering?
Yes. Baltimore Gas & Electric still offers 1-to-1 net metering. Every kilowatt-hour you send to the grid earns you a bill credit worth the retail value of that electricity.
How much does it cost to go solar in Baltimore?
The cost of going solar in Baltimore can vary by project. The size of your solar system, the construction of your roof, whether you’re getting a battery installed, and more can all affect the ultimate cost of going solar. The best way to find the cost of going solar at your home is to reach out to reputable solar companies for a quote.
Disclaimer: This content is for educational purposes only. Palmetto does not provide tax, legal, or accounting advice. Please consult your own tax, legal, and accounting advisors.
Andrew BlokWriter and EditorAndrew has worked as a journalist and writer for four years, over half of those dedicated to covering solar. He currently lives in Tucson, AZ, where you might run into him walking his dog and birding while dodging the heat. He has degrees in English education and journalism.
