Maryland

Maryland offers a valuable Property Tax Exemption for solar energy systems and residential wind energy equipment. Under this state tax incentive, qualifying solar energy property and residential wind energy equipment are completely exempt from real property taxes. This means the added value these systems bring to your property won’t increase your property tax bill.

Solar energy property includes any equipment that uses solar energy to generate electricity for use in a structure or for supplying to the electric grid, as well as equipment that provides hot water. Residential wind energy equipment covers systems installed on residential property that use wind to generate electricity for use in the home. The exemption applies automatically to qualifying systems with no application process required, and there are no expiration dates or caps on the exemption amount. This incentive helps reduce the overall cost of owning renewable energy systems by eliminating the property tax burden that would otherwise apply to these improvements.

Maryland offers a valuable Sales Tax Exemption for solar energy equipment, making your renewable energy investment more affordable. This state tax incentive means you won’t pay Maryland’s 6% sales tax when purchasing solar panels, inverters, and other qualifying solar energy equipment for your home.

To qualify, you simply need to purchase solar energy equipment that will be used to generate clean electricity for your Maryland property. There is no application process – the exemption is applied at the point of sale when you purchase from a registered Maryland vendor. This incentive has no expiration date and can be combined with other solar incentives like the federal tax credit, potentially saving you thousands of dollars on your solar installation.

The Maryland Solar Access Program (MSAP) is a state-funded initiative designed to help eligible Maryland residents install solar photovoltaic (PV) systems on their homes. Established by the Brighter Tomorrow Act of 2024, this program aims to make clean, affordable solar energy accessible to more Maryland homeowners, ensuring no resident is left behind in the clean energy transition.

The program operates on a first-come, first-served basis with a total budget of $15 million for fiscal year 2025. While the exact grant amount per household isn’t specified, applicants must meet income requirements to qualify. The application process involves two steps: an initial application to reserve funds and a verification after installation. Importantly, homeowners must complete their solar installation within 180 days of receiving confirmation of reserved funds.

Key considerations for homeowners include: only contractors on the MSAP Participating Contractor List can be used for installation; systems that have received funding from the Solar Energy Equity Grant Program are not eligible; and consumer protection policies are in place to ensure homeowners receive minimum benefits from their solar systems. For more information or to apply, eligible residents can visit the program portal or contact [email protected].

Solar Renewable Energy Credits (SRECs) are valuable financial incentives available to Maryland homeowners who install solar panels. Each SREC represents 1 megawatt-hour (MWh) of electricity generated by your solar system. These credits can be sold to utility companies, who need them to meet state-mandated renewable energy requirements, providing you with additional income beyond your electricity savings.

To qualify, you must register your solar system with the Maryland Public Service Commission (PSC) and then register with PJM’s Generator Attribute Tracking System (GATS) within 30 days. SRECs have a lifespan of 3 years, giving you flexibility to sell them immediately or hold them for potentially higher future prices. You can sell SRECs directly to energy suppliers or through an SREC aggregator who handles group transactions. Keep in mind that if you sell your SRECs, you technically transfer the environmental attributes of your solar production to the buyer.

Maryland’s Net Metering program allows solar homeowners to receive full credit for the excess electricity their systems generate. When your solar panels produce more electricity than you’re using, that excess power flows back to the grid, and your utility company credits your account at a 1:1 ratio—meaning you get credited at the same retail rate you pay for electricity. This effectively allows you to use the grid as a battery, storing the value of your daytime solar production for use when your system isn’t generating power.

Each major utility in Maryland—including BG&E, Pepco, Potomac Edison, Delmarva Power, SMECO, and Choptank Electric Cooperative—offers this program with similar terms. Excess credits accumulate on your bill month-to-month, but there is an annual true-up period (typically in April or May) when any remaining credits are paid out at a lower rate, generally between $0.04-$0.07 per kWh, and your credit balance resets to zero. It’s worth noting that if you’re a BG&E customer, the three Time-of-Use rate schedules are not eligible for Net Metering.