Annapolis, MD Solar Panels
In This Guide
Solar Power in Annapolis
Thinking about solar panel installation in Annapolis? A home’s roof shape, age, and shade can affect whether solar is a fit, so options may differ from one property to another across the city and Anne Arundel County.
Understanding your electricity use and local utility requirements can help you compare options and know what to expect from installation. Start with our guide to home solar panels for a clear overview of how systems work.
How Much Do Solar Panels Cost in Annapolis, MD?
See what solar installation may cost in Annapolis using Palmetto’s data from real Maryland installations—not a generic estimate. Our calculator reflects projects in and around Annapolis, including Eastport, Parole, Arnold, and Severna Park, to help you explore a locally grounded price range for your home.
System
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Key Takeaways
- Solar can work in Annapolis, but every home is different—roof age, shape, shade, energy use, and utility rules all affect system fit.
- Compare buying and leasing with local estimates—the calculator shows about $29,165 upfront or $124 monthly for a typical medium home.
- Maryland offers several solar incentives, including eligible solar rebates; production also changes by season, with longer summer days bringing more output.
Annapolis Electricity Prices
Electricity rates affect household budgets in Annapolis; Maryland’s recent trend offers useful context for considering how solar may fit.
Maryland’s average residential rate rose from 13.1¢ per kWh in 2021 to 17.9¢ in 2024—about 37%. The 2024 statewide figure was above the U.S. average of 16.5¢; these are not Annapolis-specific rates.
A rooftop solar system can produce electricity at home, potentially reducing how much a household buys from the grid. The amount offset depends on system design, roof conditions, weather, and household energy use.
Over time, generating some of your own power may provide more predictable costs for that portion of electricity and lessen exposure to utility-rate increases. Actual savings vary, and grid charges and rates can still change.
Price of Energy: Maryland vs National Average
Annapolis Area Utility Providers
For Annapolis, the supplied utility price is BGE’s 2023 electricity rate: 16.5¢ per kilowatt-hour (kWh). The figures are from 2023 because 2024 data is not yet available.
BGE’s rate was 0.10¢/kWh below Maryland’s 2023 average of 16.60¢ and 0.5¢ above the national average of 16.0¢. These figures show the differences, but do not identify what caused them.
For Annapolis households, electricity prices affect the cost of power purchased from the grid. Solar panels can generate electricity at home and may reduce how much a household needs to buy, depending on its usage and system output.
Annapolis Utilities Electricity Rates
Maryland Solar Incentives
Annapolis homeowners may find Maryland programs that help offset solar or battery costs. Review the solar incentives in Maryland listed below.
Options include FY27 MSAP solar rebates ($750 per installed kW, up to $7,500; approved reservation required before installation), FY27 RCES battery rebates (no verified amount stated), community-solar bill credits, and tax exemptions for qualifying solar equipment and solar-generated electricity.
For leases through LightReach, Palmetto handles the commercial ITC and passes savings through lower monthly payments, simplifying how incentives are handled.
| 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 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 |
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.
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.
Ready to start saving with solar?
Speak with a Palmetto solar expert to find out exactly how much you can save with Maryland incentives.
Get a Free QuoteAnnapolis Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Understanding how seasons affect your solar system helps set realistic expectations for your investment.
Annapolis’s coastal clouds and seasonal sun angles shape monthly solar output, but long summer days help; with a properly designed system, Maryland’s varied weather can still support effective solar.
Solar Production in Annapolis by Month
What Can Your Solar System Power?
Summer Production (July)
In July, your 10 kW system could power:
- 3.6 average 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 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
Want to know exactly how much solar can power your home?
Get a personalized solar analysis based on your actual home, energy usage, and roof characteristics.
Get My Custom EstimateSolar Panel Systems in Annapolis
We’ve organized solar installation data from across the country to create this interactive map of Annapolis. Explore the hexagons to see how many nearby homes have gone solar, and discover the neighborhoods and communities where your neighbors are making the switch.
How to Choose a Solar Installer in Annapolis
Verify the license
In Maryland, solar panels installed for a homeowner must be mounted by an MHIC-licensed home-improvement contractor. Only an MHIC-licensed contractor may contract directly with a homeowner 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 have an electrician’s license issued by the local jurisdiction. An MHIC license does not authorize electrical work. Look up a contractor through the Maryland license search, and ask which locally licensed electrician will do the connection.
Look for certified installers
Ask whether the people designing and installing your system hold a relevant credential from the North American Board of Certified Energy Practitioners (NABCEP), and confirm what the credential covers. NABCEP certification is a professional credential, not a substitute for Maryland contractor or local electrician licensing. Manufacturer certifications may indicate that an installer has training or approval related to particular equipment; ask which brands and models the certification covers, and whether it affects your equipment warranty. Compare qualifications, but don’t treat a certification alone as proof that a proposal is right for your home.
Compare quotes the same way
Request written proposals with the same details so you can compare the system, expected output, and full payment obligation—not just the headline price.
- System size in kilowatts (kW) and price per watt.
- Panel and inverter brands and models, plus estimated production in kilowatt-hours per year (kWh/year).
- Warranty terms for panel product and performance, inverter, workmanship, and roof penetrations.
- Who obtains permits and submits the utility interconnection request.
- Total cost or monthly payment, any escalator, and what that payment covers.
Ask each installer to explain its production estimate and point out assumptions or differences between proposals. Read the payment terms and warranty documents rather than relying only on a sales summary.
Permits, interconnection and your HOA
Building and electrical permits are handled by the local jurisdiction, typically the county and sometimes a municipality. County permits are usually required, but confirm local requirements. You or your installer submits the interconnection request to the utility that owns the distribution system. Annapolis-area homeowners may need to check with Baltimore Gas & Electric Co, Potomac Electric Power Co, The Potomac Edison Company, or Delmarva Power to identify their utility. Local or municipal electrical-code approval is part of the utility approval process.
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 considered unreasonable if it raises proposed installation cost by at least 5% or reduces projected generation by at least 10%; documentation from a qualifying independent solar-panel design specialist is required. The rule allows restrictions for common areas and specified historic properties. A written solar easement can be negotiated and must be recorded in county land records; it is not automatic. Review your community documents and ask the local jurisdiction or a qualified professional about your situation.
Red flags
- Pressure to sign the same day or claims that an offer disappears unless you commit immediately.
- A contractor who cannot provide a verifiable MHIC license, or crews who cannot identify who holds the required local electrical license. Out-of-state crews are not automatically a problem, but verify the responsible licensed contractor and electrician.
- Vague production estimates, unclear equipment or warranty terms, or reluctance to explain the proposal.
- A large upfront deposit without a clear written payment schedule and contract terms.
- Promises that you can claim federal homeowner tax credits for a 2026 purchase; homeowner credits ended December 31, 2025.
Leasing Solar Panels
For Annapolis-area homes served by Baltimore Gas & Electric (BGE), a solar power purchase agreement (PPA) is available. With a PPA, you pay for the electricity the panels produce at an agreed price per kilowatt-hour, so payments can vary with seasonal production. Availability depends on your utility and home.
A PPA differs from a lease, which generally charges a fixed monthly amount. Both can avoid the large upfront payment of buying a system outright. In a PPA arrangement, the provider typically owns and maintains the panels, so homeowners may not need to arrange system maintenance themselves; review the agreement for coverage and terms.
Compare the trade-offs in our solar buying and leasing guide, and learn about LightReach.
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. Annapolis homes served by Baltimore Gas & Electric (BGE) can use Maryland’s 1:1 net metering program. When your solar panels send extra electricity to the grid, eligible customers receive credits on a kilowatt-hour basis.
Unused credits carry over month to month. BGE reconciles excess credits in May at a variable rate (about 5–7 cents per kWh) and resets the account balance to zero. BGE’s three time-of-use rate schedules are not eligible for net metering; confirm current terms with your utility.
Yes, an owned solar panel system may increase a home’s value in Annapolis. A Zillow study found homes with solar panels sold for approximately 4.1% more on average, but that national finding is not a guarantee or an Annapolis-specific estimate.
This potential value increase applies to systems the homeowner owns, not leased or third-party-owned (TPO) systems. With a lease or PPA, resale may work differently because the buyer may need to assume the agreement. Roof condition, system performance, and buyer demand can also affect a home’s value.
In Annapolis, a LightReach solar lease has no upfront cost and a low fixed monthly payment. The calculator above estimates $90 per month for a small home, $124 for a medium home, and $168 for a large home.
Cash purchase estimates range from $21,929 to $38,744; a typical medium-home system is about $29,165. The federal 30% tax credit is no longer available for residential cash purchases following the 2025 federal law change. Actual pricing depends on your home and system needs; see the calculator above for details.
In a solar lease, the provider owns the panels and you pay a monthly fee to use the system. For a typical 10.25 kW system in Annapolis, the estimated payment is about $124 per month, based on Maryland’s 1,160 kWh/kW annual production ratio and a $0.125/kWh rate.
With LightReach, there is no upfront cost; one payment covers the system, installation, monitoring, maintenance, and comprehensive protection, including a 90% production guarantee. Payments are typically below the current electricity bill, so savings may begin once the system operates, though utility charges may remain.
Palmetto Solar is a solar installation option for Annapolis homeowners, though the best fit depends on your roof, shade, electricity use, and budget.
We’ve completed 2,377 installations in Maryland since 2020 and work with an installation network. When reviewing a proposal, consider system design, total cost and financing terms, warranty coverage, and utility interconnection requirements.
A typical 10 kW solar system in Annapolis can produce about 13,956 kWh per year. A 10.25 kW system, similar to the article’s typical home system, would generate roughly 14,300 kWh annually under comparable conditions.
Output is seasonal: longer summer days bring more power than winter’s shorter days. Actual production depends on roof direction and pitch, shade from trees or buildings, weather, and system design.
Solar panels in Annapolis are generally low maintenance. Rain usually clears away light dust and pollen, but it’s sensible to check for debris or visible damage from time to time.
With LightReach, Palmetto owns the system and handles monitoring, maintenance, and repairs at no extra cost. The plan also includes a 90% Production Guarantee.