Annapolis, MD

Maryland’s Property Tax Exemption for solar energy systems removes your solar installation from your property tax calculations. This means that while your solar panels may increase your home’s actual value, you won’t pay any additional property taxes on that increased value. The exemption applies to all equipment installed to use solar energy to generate electricity for your home or to supply power back to the electric grid, as well as solar hot water systems.

The financial benefit varies based on your local property tax rate and the value of your solar system, but it can save you hundreds of dollars annually. For example, if your solar system adds $20,000 to your home’s value and your local property tax rate is 1%, you would save $200 per year in property taxes. The exemption is automatic once your solar system is installed and assessed – there’s no application process required. This benefit continues for as long as you own the solar equipment, making it a long-term savings opportunity that complements the energy savings from your solar panels.

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. By eliminating this tax, homeowners can save hundreds or even thousands of dollars on their solar installation costs.

The exemption is automatic and applies at the point of purchase – you don’t need to apply for it or file any special paperwork. Your solar installer will simply not charge you Maryland sales tax on the qualifying equipment. This benefit is available for both new installations and system expansions, and there are no income limits or other eligibility restrictions for homeowners. The exemption has no expiration date, making it a reliable long-term benefit for Maryland residents considering solar energy.

The Maryland Solar Access Program is a state-funded grant program that helps eligible Maryland residents install solar panels on their homes. This program was created through the Brighter Tomorrow Act of 2024 to make clean energy more accessible to homeowners who meet specific income requirements. The program operates on a first-come, first-served basis, meaning applications are processed in the order they’re received.

While the exact grant amounts aren’t specified in the available information, the program has a total budget of $15 million for fiscal year 2025, with nearly half already reserved for eligible projects. To qualify, homeowners must meet income requirements detailed in the program’s funding announcement. The application process involves two steps: first reserving funds through an initial application, then completing installation verification within 180 days of fund reservation.

Important considerations include that only approved contractors from the program’s participating contractor list can install systems eligible for grants. Additionally, homes that have already received funding from Maryland’s Solar Energy Equity Grant Program are not eligible for this program. Homeowners should review the consumer protection policies and work with approved contractors to ensure compliance with all program requirements.

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 them as rewards for generating clean energy – you get one SREC for each megawatt-hour your solar panels create. These certificates have real value and can be sold to energy suppliers who need them to meet Maryland’s renewable energy requirements.

While the source doesn’t specify exact dollar amounts, SRECs do provide ongoing financial benefits that can help offset your solar investment costs. For example, a typical 10kW home solar system producing 12,000 kilowatt-hours annually would earn 12 SRECs per year. To participate, you must register your solar system with the Maryland Public Service Commission within 30 days of installation, then register with PJM’s Generator Attribute Tracking System. SRECs remain valid for 3 years, giving you flexibility to sell immediately or wait for potentially better prices. Keep in mind that if you sell your SRECs, you can no longer claim to be using solar energy yourself – that environmental benefit transfers to the buyer.

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 normally pay for electricity.

These credits accumulate month to month throughout the year, helping offset your electric bills during times when your solar system produces less energy, such as winter months or cloudy days. However, the financial benefit varies by utility company. Most Maryland utilities, including Baltimore Gas & Electric, Pepco, and Potomac Edison, conduct an annual “true-up” in April or May where any remaining excess credits are paid out at a lower wholesale rate of approximately $0.04-$0.07 per kilowatt-hour, rather than the full retail rate. After this annual settlement, your credit balance resets to zero.

It’s important to note that Baltimore Gas & Electric customers on Time-of-Use rate schedules are not eligible for net metering. The program is available to all other residential solar customers across Maryland’s major utilities, making it an essential component of solar savings that helps maximize the financial return on your solar investment.