Maryland Solar Panels
In This Guide
Solar in Maryland
Considering solar panel installation in Maryland? The state has the nation’s 13th-highest utility prices per kilowatt-hour, making it worth exploring how solar may fit your home, roof, and energy use.
This guide walks through key steps, from checking roof suitability and designing a system to permits and installation. For a clear overview of how home solar works, read our guide to home solar panels.
Maryland Solar Panel Cost
Explore solar costs using Palmetto installation data from Maryland, including Baltimore, Annapolis, Frederick, and Silver Spring. This calculator shows cash purchase estimates and monthly LightReach lease payments; the lease view appears first, with no upfront cost. Palmetto owns and maintains leased systems, with a 90% Production Guarantee and comprehensive protection.
System
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Key Takeaways
- Maryland’s 2024 electricity rate was 17.9¢/kWh, compared with 16.5¢ nationally; solar may offset grid use depending on your home and utility rules.
- Maryland offers several solar incentives, including rebates, bill credits, SRECs, and tax benefits, but eligibility and value vary by program.
- A LightReach lease has no upfront cost and fixed monthly payments; Palmetto owns and maintains it, with a 90% Production Guarantee and comprehensive protection.
Looking for More Detailed Maryland City Guides?
Explore our comprehensive solar guides for major cities across Maryland to find location-specific information on incentives, installers, and solar potential.
Annapolis Solar Installation
Baltimore Solar Panels
Bethesda Solar Panels
Solar in Frederick
Solar in Gaithersburg
Hyattsville Solar Panels
Rockville Solar Installation
Silver Spring Solar Panels
Looking for information on our new Heat Pump offering?
Explore Maryland Heat PumpsMaryland Electricity Prices
Maryland electricity prices have climbed faster than the national average. See what the trend could mean for household energy costs.
Maryland’s average residential electricity price rose from 13.1 cents per kWh in 2021 to 17.9 cents in 2024, while the U.S. average reached 16.5 cents per kWh.
A home solar system can offset some electricity purchased from the grid, which may help manage exposure to utility rate increases. Its impact depends on your energy use, system size, roof, and utility billing rules.
A LightReach lease has no upfront investment and a fixed monthly payment, which may help limit exposure to rising utility rates; utility bills may remain. Palmetto owns and maintains the system with a 90% Production Guarantee and comprehensive protection program.
Price of Energy: Maryland vs National Average
Maryland Area Utility Providers
The latest figures available are from 2023: Maryland’s average electricity price was 16.60¢ per kWh, compared with 16.0¢ nationally. Listed utility rates ranged from 11.7¢ at Potomac Edison to 18.4¢ at Delmarva Power.
Delmarva Power (18.4¢) and Pepco (18.2¢) were above both averages; BGE (16.5¢) was just below the state average. SMECO (14.1¢) and Potomac Edison (11.7¢) were below both. These figures show differences, not their causes.
Comparing a household’s electricity use and bill with its utility’s rate can help assess solar’s potential value. Solar may reduce grid electricity purchases, but the effect depends on household use and how much electricity the system produces.
Maryland Utilities Electricity Rates
Maryland Solar Incentives
Maryland homeowners may find state, utility, and local incentives that can help offset solar costs. Review the solar incentives in Maryland below.
Programs include rebates for eligible solar and battery systems, utility-bill credits for community solar subscriptions or exported power, tradable SRECs, sales-tax exemptions, and county property-tax credits. Eligibility and terms vary.
The Big Beautiful Bill ended the federal 30% residential tax credit, but state and local incentives remain. LightReach leases let Palmetto handle the commercial ITC, passing savings through as lower payments.
| Incentive | Type | Description | Source |
|---|---|---|---|
| Maryland Solar Access Program (MSAP), FY27 | Solar rebate | Eligible Maryland homeowners can receive $750 per kW of installed residential solar capacity, up to $7,500, with an approved reservation required before installation. | Learn More |
| Residential and Commercial Energy Storage (RCES) Program, FY27 | Battery storage rebate | The open FY27 state program offers rebates for eligible grid-connected battery systems, but its public page does not specify a verified per-project rebate amount. | Learn More |
| Maryland Community Solar Program | Community solar bill credits | Maryland utility customers can subscribe to an approved community solar project and receive utility-bill credits for their share of its output. | Learn More |
| Maryland Net Energy Metering (NEM) and successor export-credit program | Net metering / export bill credits | Eligible Maryland solar customers can receive utility-bill credits for exported electricity under the applicable tariff, subject to statewide capacity and transition rules. | Learn More |
| Maryland Solar Renewable Energy Credits (SRECs) and Small Solar incentive | Solar renewable energy credits (SRECs) | PSC-certified solar systems may generate tradable SRECs, while qualifying systems under the Small Solar incentive may receive enhanced compliance value for a limited program period. | Learn More |
| Maryland sales and use tax exemption for solar equipment | Sales tax exemption | Qualifying solar energy equipment is exempt from Maryland sales and use tax when used for specified solar heating, cooling, electricity-generation, or hot-water purposes. | Learn More |
| Maryland sales tax exemption for qualifying solar-generated electricity | Sales tax exemption | Maryland law provides a separate sales-tax exemption for electricity generated by solar equipment for use in eligible residential property. | Learn More |
| Baltimore County Energy Conservation Devices Property Tax Credit | County property tax credit | Baltimore County residential solar-device owners may qualify for a county property-tax credit of up to 50% of eligible costs, subject to device limits and an annual countywide cap. | Learn More |
| Harford County Solar/Geothermal Energy Tax Credit | County property tax credit | Harford County provides a property-tax credit of up to $2,500 per qualifying solar or geothermal device, limited by taxes due and the annual countywide cap. | Learn More |
| Prince George’s County Energy Conservation Real Property Tax Credit | County property tax credit | Prince George’s County offers a local property-tax credit for qualifying residential solar or geothermal systems, with award limits and funding caps depending on system type and ownership. | Learn More |
MSAP offers income-eligible Maryland homeowners a rebate of $750 per kW of installed solar capacity, up to $7,500 per household. FY27 income limits vary by household size, from $136,785 for one person to $257,910 for eight people; check the official program page for the full table and other eligibility rules.
Use a contractor on the Maryland Energy Administration’s participating-contractor list and obtain an approved rebate reservation before installation. A payment request is made after the system is installed and interconnected with the utility. The FY27 application deadline is May 31, 2027, at 3 p.m. ET, or earlier if funds are requested.
RCES provides state support for grid-connected battery storage at residential properties, as well as commercial properties and nonprofits. MEA anticipates up to $4 million in FY27 funding, but the public program page does not state a per-kWh or per-project rebate formula; check the current application portal for the actual award terms before budgeting.
An upfront reservation must be approved before installation. The FY27 deadline is May 31, 2027, at 3 p.m. ET, or earlier if funds are requested. Funding is expected to prioritize systems enrolled in utility-run virtual power plant pilots; confirm any participation requirements and compensation with the program and your utility.
Community solar lets homeowners receive bill credits without installing panels on their own property. Subscribers sign a contract with a project’s subscriber organization, and the utility applies credits based on the subscription and project output.
Review the subscription price, bill-credit calculation, contract length, and cancellation terms before enrolling; subscription charges can reduce or outweigh savings. Under program rules, most projects must allocate at least 40% of output to low- and moderate-income subscribers, who must receive at least 10% savings. The PSC does not set individual subscription prices.
Under current Maryland net metering, eligible customer-generators receive utility-bill credits for electricity sent to the grid. Credit values and treatment are determined by the applicable utility tariff; this is bill crediting, not necessarily a cash payment at the full retail rate. Check the utility’s rules for monthly credit carry-forward and any true-up election.
The current program has a 3,000 MW statewide limit and is scheduled to end for new intake at the earlier of reaching that limit or July 1, 2027. The 2026 RELIEF Act directs the PSC to establish a successor framework for July 1, 2027; its final export-credit rates and tariff details were not yet established in the supplied information. Consult the PSC and your utility before sizing a system.
Official references: Maryland net-metering statute and 2026 Utility RELIEF Act.
A qualifying, PSC-certified solar system can generate SRECs based on its electricity production, generally one credit per MWh. Owners may sell credits, but prices vary with the market and are not guaranteed. Certification and eligibility requirements apply.
Some qualifying systems may participate in Maryland’s Small Solar Energy Generating System incentive and generate credits with 1.5 times the compliance value for the program period. That multiplier is not a promise of 1.5 times the cash price. Under SB 669, the placement-in-service deadline was extended to January 1, 2031, and the capacity allocation for qualifying 20 kW–5 MW systems increased from 270 MW to 540 MW. Review current PSC requirements before relying on SREC revenue.
Official references: 2026 SB 669 and the Small Solar statute.
Maryland exempts qualifying solar energy equipment from state sales and use tax when it is used to heat or cool a structure, generate electricity for use in a structure or supply to the grid, or provide hot water. The exemption can reduce the upfront cost of eligible solar equipment.
Do not assume that every separately purchased battery automatically qualifies: the statute’s treatment depends on how the equipment is classified and used. Ask the seller or Maryland tax authorities how the exemption applies to a particular solar-plus-storage purchase.
Maryland law separately exempts qualifying electricity generated by solar equipment for use in eligible residential property from sales tax. This is distinct from the sales and use tax exemption for qualifying solar equipment itself.
The exemption concerns qualifying solar-generated electricity; it is not a battery rebate or a general exemption for all electricity purchases. Check the statute and applicable billing or tax treatment to determine how it applies to your property.
Baltimore County offers a residential property-tax credit for qualifying energy-conservation devices, including solar devices. For a device generating electricity, the credit is the lesser of 50% of eligible costs or $5,000; a distinct solar hot-water system has a separate limit of up to $1,500. The countywide annual program cap is $250,000.
Applications are due by June 1 before the first tax year for which the credit is sought. Credits are subject to the county’s regulations and available funding; confirm current application requirements with the county. The official application is also available online.
Harford County’s credit applies to qualifying solar or geothermal energy devices. The credit is up to $2,500 per device, limited to one year of property taxes and the amount of tax due; total credits are subject to a $500,000 annual countywide cap.
The application deadline is October 1 before the tax year for which the credit is sought. That deadline for the next tax year had passed as of October 2, 2026, so contact the county about a future application cycle and confirm that your particular solar installation qualifies. See the county code for governing terms.
Prince George’s County provides a credit against the county portion of the property-tax bill for qualifying residential solar or geothermal systems. The published program describes credits based on eligible costs and applicable category limits, with separate rules for purchased systems and leased or power-purchase-agreement systems. It also lists annual funding caps of $500,000 for purchased systems and $100,000 for leased/PPA systems, and allows eligible unused credit to carry forward for up to two tax years.
The county page lists category limits for heating and hot-water systems, but the applicable limit for a PV electricity-generating installation should be confirmed with the county before you estimate a benefit. Applications are subject to current county requirements and available funding.
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Get a Free QuoteMaryland Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Maryland’s production varies with seasonal daylight, cloud cover, and coastal weather; even cloudy stretches don’t rule out solar—properly designed systems can generate useful power year-round.
What Can the Average Maryland Solar System Power?
Summer Production (July)
In July, your 10 kW system could power:
- 3.6 average Maryland homes (15 kWh/day per home)
- or Run central AC for 18 hours AND power all other appliances
- or Fully charge 5.4 Tesla Model 3 electric vehicles
Winter Production (December)
In December, your 10 kW system could power:
- 2 average Maryland homes (15 kWh/day per home)
- or Keep your home heating system running for 15 hours
- or Fully charge 3 Tesla Model 3 electric vehicles
Annual Production
Over a year, your 10 kW system could:
- Offset 10 tons of carbon dioxide emissions
- or Equal the environmental benefit of planting 175 trees
- or Save approximately $4,234 in electricity costs
See how affordable solar leasing can be for your home
Get a personalized LightReach quote based on your home, energy usage, and roof — no upfront cost required.
Get My Custom EstimateSolar Installations in Maryland
We’ve organized solar installation data from across the United States to create this interactive map of Maryland. Explore the hexagons to see how many solar installations are in each area and discover the neighborhoods and communities whose residents have made the switch to solar.
How to Choose a Solar Installer in Maryland
Verify the license
Solar panels installed for a Maryland homeowner must be mounted by an MHIC-licensed home-improvement contractor. Only an MHIC-licensed contractor may contract directly with homeowners for home-improvement work; a subcontractor working for one may not need a separate MHIC license. The person connecting the panels to your home’s electrical system or the grid must also hold an electrician’s license issued by the local jurisdiction. An MHIC license does not authorize electrical work.
Ask which contractor will sign your agreement and who will perform the electrical work. Look up the contractor through the Maryland MHIC license search, and confirm the electrician’s license with the relevant local jurisdiction.
Look for certified installers
Ask whether the people designing or installing your system hold a current NABCEP certification, and what the credential covers. Manufacturer certifications may indicate product-specific training or authorization, but the meaning can vary: ask which manufacturer issued the certification, who holds it, and whether it applies to your proposed equipment. Certifications can help you assess experience, but they do not replace Maryland contractor and electrician licensing.
Compare quotes the same way
Request written proposals with the same assumptions wherever possible. A lower monthly payment alone may not mean a lower overall cost. Compare:
- System size in kilowatts (kW), and the price per watt or total system price.
- Panel and inverter brands and models.
- Estimated production in kilowatt-hours per year (kWh/year), plus the assumptions behind the estimate.
- Panel product and performance warranties, inverter warranty, workmanship coverage, and coverage for roof penetrations.
- Who is responsible for building and electrical permits and the utility interconnection request.
- Total cost, monthly payment, financing terms, and whether there is an escalator that changes payments over time.
Ask each installer to explain differences in equipment, production estimates, warranty terms, and project scope before comparing prices.
Permits, interconnection and your HOA
Building and electrical permits are handled by your local jurisdiction, typically the county and sometimes a municipality; confirm local requirements. The homeowner or installer submits the interconnection request to the electric utility that owns the distribution system. Depending on your service area, that may be Baltimore Gas & Electric, Potomac Electric Power (Pepco), The Potomac Edison Company, or Delmarva Power. Local or municipal electrical-code approval is part of the utility approval process. Ask who will manage each step and provide copies of approvals.
Maryland Real Property § 2-119 limits unreasonable restrictions on solar collectors on a roof or exterior wall you own or exclusively use. A restriction is unreasonable if it raises proposed installation cost by at least 5% or cuts projected generation by at least 10%; documentation from a qualifying independent solar-panel design specialist is required. The rule does not cover every situation, including common areas and specified historic properties. A solar easement can be negotiated in writing and must be recorded in county land records; it is not automatic. Read the statute and check how it applies to your property.
Red flags
- Pressure to sign the same day or claims that an offer will disappear unless you decide immediately.
- Unlicensed crews, or out-of-state crews without a clearly identified Maryland-licensed contractor responsible for the work. Out-of-state status alone does not establish a licensing problem; verify who is doing each job.
- Vague production estimates with no written annual kWh figure or explanation of assumptions.
- A large upfront deposit without clear written terms for what it covers and when work will occur.
- Promises of federal homeowner tax credits for 2026 purchases: homeowner credits ended December 31, 2025.
Go Solar with LightReach — No Upfront Cost
In Maryland, LightReach Power Purchase Agreements (PPAs) are available through Baltimore Gas & Electric (BGE), Pepco-MD, Potomac Edison, Delmarva Power-MD, SMECO, and Choptank Electric Cooperative. A PPA charges a set price per kilowatt-hour (kWh) produced, so payments can vary with seasonal output; a lease instead has a fixed monthly payment. Learn more about buying versus leasing solar.
A PPA can help you avoid paying the full system cost upfront and taking on maintenance. Palmetto Finance owns the LightReach system, and Palmetto designs, installs, maintains, and services it at no cost to you. Plans include comprehensive protection and a 90% Production Guarantee, with a credit if production falls short.
With a LightReach lease, where available, Palmetto also owns and maintains the system, with a fixed monthly payment and those same protections. Cash purchase is another option, but owners take responsibility for system maintenance. See LightReach plan details.
Go solar without the investment
With LightReach, there are no investment costs to recoup, loan payments to manage, or maintenance needs to take on. As soon as your panels are active, your solar savings are too!
Explore LightReach LeasingFrequently Asked Questions
Yes. Maryland has net metering for eligible solar customers, who receive utility-bill credits for electricity they send to the grid. The credit value and how credits are handled depend on the utility’s tariff; they are not necessarily cash payments at the full retail rate. Check your utility’s rules for credit carry-forward and any annual true-up.
The current program has a 3,000 MW statewide cap and is scheduled to close to new applicants when that limit is reached or on July 1, 2027, whichever comes first. Maryland’s successor export-credit framework is planned for July 1, 2027; final rates and tariff details were not yet established. Confirm current rules with the state statute and your utility before sizing a solar system.
Yes, an owned solar panel system may increase a Maryland home’s value. A Zillow study found homes with solar panels sold for approximately 4.1% more, though this is not a guaranteed increase for every home.
That potential value applies to purchased or otherwise homeowner-owned systems, not leased or other third-party-owned (TPO) systems. A leased system may affect resale differently because the buyer may need to assume the lease agreement; review its transfer terms.
In Maryland, a LightReach solar lease can start with no upfront cost and a fixed monthly payment. The article’s calculator estimates $124 per month for a typical 10.25 kW system; actual pricing depends on your home and energy use. Palmetto owns and maintains the leased system, which includes a 90% Production Guarantee and comprehensive protection.
As an alternative, the calculator estimates a cash purchase at about $29,165 for that system. The federal 30% residential solar tax credit is no longer available for cash purchases following the 2025 federal law change. See the calculator section above for estimates and assumptions.
Maryland solar leases have no upfront cost and fixed monthly payments. A typical 10.25 kW LightReach system costs about $124/month, based on 1,160 kWh/kW annual production and $0.125/kWh; actual terms vary.
Payment covers panels, installation, monitoring, maintenance, comprehensive protection, and Palmetto’s 90% Production Guarantee; Palmetto owns and maintains the system. Palmetto claims the 30% commercial ITC and passes savings into lower payments, unlike cash purchases, which lost the residential credit. Payments are typically below electric bills, so savings can start day one.
A typical 10-kW solar system in Maryland can produce about 13,930 kWh per year. A 10.25-kW system, the article’s typical-home example, would generate roughly 14,300 kWh annually under similar conditions.
Production changes with roof direction and pitch, shading, weather, and season. For example, the article estimates about 48 kWh per day in July versus 25 kWh per day in December for a 10-kW system.
Solar panels in Maryland are generally low maintenance. Rain often washes away everyday dust, though it’s sensible to check for visible debris or damage after severe weather and have any issues assessed by a qualified professional.
With a LightReach lease or PPA, Palmetto owns the system and handles maintenance, monitoring, and repairs at no extra cost. The plan also includes a 90% Production Guarantee.
Solar can be financially worthwhile for Maryland homeowners. With a LightReach lease, there is no upfront investment, and the monthly payment is typically less than your current electricity bill, so savings may start as soon as the system is producing power.
Actual savings depend on your energy use, system production, utility rates, and any remaining utility charges. Palmetto owns and maintains the leased system, with a 90% Production Guarantee and comprehensive protection program.