Maryland

Maryland’s Property Tax Exemption for solar energy systems is a state-level incentive that removes solar installations from your property tax calculations. This means that when you install solar panels or other qualifying solar equipment on your home, the added value from that equipment won’t increase your annual property taxes. For example, if your solar system adds $20,000 to your home’s value, you won’t pay property taxes on that additional $20,000.

To qualify for this exemption, your equipment must be classified as ‘solar energy property’ – which includes equipment installed to use solar energy to generate electricity for use in your home or to supply power back to the electric grid, as well as solar systems that provide hot water. The exemption applies to both residential and commercial solar installations. There are no specific deadlines mentioned in the statute, and the exemption appears to remain in effect as long as the solar equipment is installed and operational on your property. This incentive works automatically once your solar system is installed and assessed, providing ongoing annual savings on your property tax bill.

Maryland’s Sales Tax Exemption for solar energy systems allows homeowners to purchase solar equipment without paying the state’s 6% sales tax. This exemption applies to solar panels, inverters, batteries, and other components that are part of a residential solar energy system. The exemption helps reduce the upfront cost of going solar by eliminating hundreds or thousands of dollars in sales tax on your solar purchase.

There are no income limits, system size restrictions, or application deadlines for this exemption – it’s automatically applied at the point of sale when you purchase qualifying solar equipment. The exemption covers both the equipment itself and any installation materials needed for your solar system. However, the exemption does not apply to general construction materials, tools, or labor costs associated with installation. Your solar installer should automatically apply this exemption when calculating your system cost, but it’s worth confirming that sales tax has been removed from your solar equipment purchase.

The Maryland Solar Access Program is a state-funded grant program that helps eligible Maryland residents install solar panels on their homes. Created through the Brighter Tomorrow Act of 2024, this program provides direct financial assistance to make solar energy more accessible and affordable for homeowners who meet specific income requirements.

The program operates on a first-come, first-served basis with a two-step application process. First, eligible homeowners reserve funding through an initial application. Then, they have 180 days to complete their solar installation with an approved contractor from the state’s participating contractor list. The exact grant amounts are not specified in the available information, but the program has a $15 million budget for fiscal year 2025, with about 47% already reserved as of June 2025.

To qualify, homeowners must meet income requirements detailed in the program’s funding announcement. Only solar systems installed by contractors on the state’s approved participating contractor list are eligible. Important note: homes that have already received funding from Maryland’s Solar Energy Equity Grant Program cannot receive this grant. The FY25 program stopped accepting applications on June 13, 2025, and the FY26 program is expected to open in July 2025.

Solar Renewable Energy Credits (SRECs) are special certificates that Maryland homeowners earn for every 1,000 kilowatt-hours (1 megawatt-hour) of solar energy their system produces. Think of SRECs as a bonus reward on top of the electricity savings you already get from your solar panels. These credits were created to help Maryland reach its clean energy goals, which include getting 14.5% of the state’s power from solar by 2030.

While the source doesn’t specify exact dollar amounts, SRECs have monetary value that homeowners can capture by selling them to energy suppliers or SREC aggregators. For example, a typical 10kW home solar system producing 12,000 kilowatt-hours per year would generate 12 SRECs annually. You have flexibility in how to use your SRECs – you can sell them for income, hold them for up to 3 years hoping prices increase, or keep them to maintain your bragging rights as a true solar energy user.

To participate, you must register your solar system with the Maryland Public Service Commission within 30 days of installation, then complete additional registration through PJM’s Generator Attribute Tracking System (GATS). Keep in mind that if you sell your SRECs, the buyer gets to claim they’re using solar energy – not you. This program helps both your wallet and Maryland’s environment, regardless of whether you sell or keep your credits.

Net Metering in Maryland allows homeowners with solar panels to receive full retail credit for the excess electricity their system produces and sends back to the grid. When your solar panels generate more power than your home uses during sunny periods, that extra energy flows into the electrical grid and you receive a 1:1 credit on your electric bill – meaning you get the same rate you pay for electricity from your utility company.

The financial benefit works on a monthly rollover system where unused credits carry forward from month to month throughout the year. However, each utility company handles the annual settlement differently: Baltimore Gas & Electric, Pepco, and Potomac Edison cash out remaining credits in May at a reduced rate of $0.05-$0.07 per kWh and reset your account to zero. Delmarva Power and Choptank Electric Cooperative settle accounts each April at their commodity rate, while Southern Maryland Electric Cooperative pays out at approximately $0.04-$0.05 per kWh. It’s important to note that Baltimore Gas & Electric customers on Time-of-Use rate schedules are not eligible for net metering, so you’ll need to be on a standard rate plan to participate in this program.