Annapolis, MD Solar Panels

The Maryland Solar Access Program (MSAP), established by the Brighter Tomorrow Act of 2024, provides grants of $750 per kW of installed solar capacity, up to a maximum of $7,500, to help eligible low- and moderate-income Maryland homeowners go solar. A total of $2,000,000 is available for FY 2026, funded through the Strategic Energy Investment Fund (SEIF), and awards are made on a first-come, first-served basis.

To qualify, your home must be owner-occupied and used as your primary residence, and your household income must be at or below 150% of the statewide median income. Installations must be completed by MEA-approved contractors. The FY 2026 program window runs from July 21, 2025 through June 5, 2026 (or until funds are exhausted).

The application process is two-step: first, submit an initial application to reserve funds; then, verify that your solar system is fully installed and operational within 180 days of your fund reservation. As of late 2025, approximately 23% of the program budget had been reserved, meaning funds are still available for eligible applicants in Annapolis.

The Maryland Residential and Commercial Energy Storage (RCES) Grant Program, launched in FY 2026 by the Maryland Energy Administration (MEA), replaces the now-expired Maryland Energy Storage Income Tax Credit Program (which ended December 31, 2024). It is designed to support the deployment of battery energy storage systems (BESS) for both residential and commercial property owners across Maryland. A total of $2,000,000 is available from the Strategic Energy Investment Fund (SEIF).

For residential applicants, grants are calculated as the lesser of 30% of installed costs or $5,000. Commercial applicants may receive up to $150,000. Funds are awarded on a first-come, first-served basis, and partial awards are possible if funds are running low. Applications are open until June 5, 2026 at 3:00 PM ET, or until all funds are exhausted.

Both residential and commercial property owners in Annapolis seeking to install qualifying grid-connected battery energy storage systems are eligible to apply. For questions or assistance, contact MEA’s Energy Storage Team at [email protected].

Maryland’s Solar Renewable Energy Credit (SREC) program allows solar system owners to earn one SREC for every 1,000 kWh (1 MWh) of electricity their system produces. These certificates are registered and tracked through a revenue-grade meter, and can be sold to Maryland utility companies — which are required under the state’s Renewable Portfolio Standard (RPS) to source a percentage of their electricity from solar — through brokers such as SRECTrade and Sol Systems.

The Solar Alternative Compliance Payment (SACP), which effectively sets a ceiling on SREC prices, is $55 for 2025 and will gradually decrease each year through 2030, settling at $22.50. Recent market prices have been approximately $50–$55 per SREC. As an example, a 5 kW solar array generating roughly 6 MWh annually could earn an additional $300–$330 per year through SREC sales.

To participate, you must register your solar energy system with the state of Maryland. SRECs are earned for the first 15 years of your system’s operation, making this a valuable long-term income stream that complements other Maryland solar incentives available to Annapolis homeowners.

Maryland has one of the strongest net metering policies in the country. When your solar panels produce more electricity than your home uses, the excess is exported to the grid and your utility credits your account at the full retail rate of electricity — a true 1-to-1 credit structure. This means the value of electricity you send to the grid equals the value of electricity you pull from it, allowing solar owners in Annapolis to significantly offset or eliminate their electricity bills.

Net metering credits in Maryland roll over indefinitely, so you can bank surplus production from sunny months and draw on those credits during cloudier periods or winter months. Maryland’s annual “true-up” reconciliation date is in April: any remaining excess credits at that point can be cashed out as a credit to your utility account, though the cash-out rate is lower than the retail rate. Net metering is available across all major Maryland utilities, including BGE, Pepco, Potomac Edison, and Delmarva Power.

It’s worth noting that Maryland has a statewide 3,000 MW capacity limit for net-metered solar systems. While significant capacity remains available, net metering at these favorable terms won’t last forever — locking in the policy now ensures you benefit from the current 1-to-1 structure. Additionally, starting in 2026, a consolidated billing mechanism is being implemented for community solar subscribers, offering a similar net crediting approach with a small 1% administrative fee.

Maryland provides a full sales tax exemption on the purchase of solar energy equipment, including solar panels, inverters, and other eligible components used to generate electricity or hot water. With Maryland’s standard sales tax rate at 6%, this exemption can save homeowners in Annapolis approximately $2,000 or more on an average-sized solar installation — with no application or paperwork required.

The exemption is automatically applied at the point of sale for all qualifying solar equipment purchases in Maryland, so you don’t need to take any extra steps to claim it. It applies to both solar photovoltaic (PV) systems and solar water heating systems, covering residential, commercial, and industrial installations.

This incentive works seamlessly alongside other Maryland solar programs such as the MSAP grant, SRECs, and the property tax exemption, helping to reduce the total out-of-pocket cost of going solar from day one.

Installing solar panels typically increases the assessed value of your home — but in Maryland, that added value is completely exempt from state and local real property taxes. The Maryland Department of Assessments and Taxation provides a 100% property tax exemption for solar energy systems used to heat or cool a structure, provide hot water, or generate electricity.

This exemption applies to residential, commercial, and industrial properties across Maryland, meaning both homeowners and businesses in Annapolis can benefit. The exemption covers solar photovoltaic (PV) systems as well as solar thermal systems, and it applies to both state and local property taxes — so you won’t see your tax bill go up just because your home’s value increased due to solar.

Given that solar installations can add tens of thousands of dollars in home value, this exemption can represent significant ongoing savings over the life of your system. Combined with Maryland’s county-level property tax credits (available in Anne Arundel, Baltimore, Harford, Howard, Montgomery, and Prince George’s counties), Maryland homeowners enjoy some of the most comprehensive property tax protections for solar in the region.

Homeowners in Anne Arundel County — including residents of Annapolis — can receive a one-time local property tax credit of up to $2,500 for installing a solar energy system on their residential dwelling. Qualifying systems include those used for heating and cooling, water heating, and electricity generation via solar photovoltaic panels.

This credit is applied directly to your county property tax bill and is separate from — and stackable with — Maryland’s statewide property tax exemption. It provides an additional layer of local financial relief on top of state and federal incentives, further reducing the net cost of going solar.

Homeowners should contact the Anne Arundel County Office of Finance or the Maryland Department of Assessments and Taxation for specific application requirements and deadlines. Be sure to apply promptly after installation to ensure you capture the full credit.

The Maryland Energy Administration’s FY 2026 Commercial and Canopy Solar Program (CCSP) combines the former Commercial Solar Grant Program and the Solar Canopy and Dual Use Technology Program into a single funding opportunity. A total of up to $13,000,000 is available from the Strategic Energy Investment Fund (SEIF) for rooftop, ground-mounted, and solar canopy systems over parking areas or bodies of water.

Grant amounts vary by applicant type: for-profit businesses and agricultural producers may receive the lesser of $1,700/kW or 75% of total project costs (up to $2,125/kW for canopy systems); nonprofits, small businesses, and veteran-owned businesses may receive the lesser of $2,000–$2,500/kW or 90% of total project costs. The maximum award per entity is $500,000, and awards are made on a first-come, first-served basis.

The program has two areas of interest: Area 1 targets equitable solar access for nonprofits, small businesses, and veteran-owned organizations; Area 2 supports commercial solar for sustainability among Maryland businesses and organizations. The application deadline was February 9–11, 2026. For future funding opportunities, contact [email protected] or visit the MEA website.

Maryland’s permanent Community Solar Program, established by House Bill 908 in 2023 and effective January 1, 2025, allows residents and businesses to subscribe to a share of an off-site solar array and receive credits on their utility bills for the electricity generated by their share — without needing to install panels on their own property. This is an excellent option for renters, condo owners, or homeowners in Annapolis with shaded or unsuitable roofs.

Starting January 1, 2026, the program implements consolidated billing, offering a streamlined net crediting mechanism similar to programs in New York and New Jersey. Utilities charge a small administrative fee of 1% of the total bill credit value per month for this service. All community solar projects are required to ensure that a minimum of 40% of subscribers are low- to moderate-income (LMI) households.

LMI subscribers receive guaranteed savings: subscription rates cannot exceed 90% of the monetary value of the bill credit, ensuring at least a 10% discount on their solar energy costs. This makes community solar one of the most accessible pathways to solar savings for Annapolis residents who cannot install rooftop solar.

The Maryland Clean Energy Bank (MCGB) provides accessible, low-cost financing for residential and commercial solar installations across Maryland. Borrowers can bundle solar panels, battery storage systems, roof replacements, and electrical upgrades into a single loan — simplifying the financing process and making comprehensive clean energy upgrades more affordable.

MCGB loans come with no dealer fees and no prepayment penalties, giving borrowers the flexibility to pay off their loans early or apply tax credits and rebates directly to their loan balance without incurring additional costs. This is particularly valuable for homeowners in Annapolis looking to maximize the benefit of Maryland’s MSAP grants or RCES battery storage grants.

For more information or to apply, contact the Maryland Clean Energy Bank at [email protected] or call 240-453-9000.