Annapolis, MD Solar Panels

The Maryland Solar Access Program (MSAP), established under the Brighter Tomorrow Act of 2024, provides grants of $750 per kilowatt (kW) of installed DC solar capacity, up to a maximum of $7,500. For a typical 6–10 kW residential system, this translates to $4,500–$7,500 in direct grant funding. A total of $2,000,000 is available for FY 2026 through the Strategic Energy Investment Fund (SEIF), awarded on a first-come, first-served basis.

To be eligible, your home must be owner-occupied and used as your primary residence, and your household income must be at or below 150% of the Area Median Income (AMI). Installations must be performed by an MEA-approved contractor from the program’s participating contractor list. The application process is two-step: first submit an initial application to reserve funds, then confirm your system is fully installed and operational within 180 days of fund reservation.

Important status note: As of April 15, 2026, approximately 99% of MSAP funding has already been reserved. The application window closes on June 5, 2026, or when funds are exhausted — whichever comes first. Prospective applicants in Annapolis should check the MEA website immediately for current availability and watch for the FY 2027 program launch.

The Maryland Solar Access Bridge Fund was created in 2026 to address the financial gap left by the early phase-out of the federal Residential Clean Energy Credit (Section 25D). With the federal solar tax credit no longer available for residential systems placed in service in 2026, this state grant approximates the value of that expired credit, helping to keep residential solar financially viable for Annapolis homeowners. Up to $7,800,000 in total funding is anticipated to be available through the Strategic Energy Investment Fund (SEIF).

Only households may apply directly — contractors may not apply on behalf of a household. This ensures the benefit flows directly to the homeowner. Applications are accepted on a first-come, first-served basis, and the deadline is May 31, 2026, or until budgeted funding is exhausted, whichever comes first.

Given the program’s limited funding and high demand for solar incentives in Maryland, homeowners in Annapolis interested in this grant should act quickly and check the Maryland Energy Administration website for the most current application status and eligibility details before applying.

Launched in Fiscal Year 2026, the Maryland Residential and Commercial Energy Storage (RCES) Grant Program replaces the now-ended Maryland Energy Storage Income Tax Credit Program. It provides grants to support the installation of grid-connected battery energy storage systems (BESS) for both residential and commercial property owners. Residential applicants can receive the lesser of 30% of installed costs or $5,000, while commercial applicants may receive up to $150,000. A total of $2,000,000 is available for FY 2026 through the Strategic Energy Investment Fund (SEIF).

Eligible applicants include owners of residential or commercial properties installing a qualifying BESS, as well as third-party system owners who finance or own the system on behalf of the property owner. Systems must meet safety standards such as UL certification and must be installed by licensed professionals. The application process is two-step via the MyMEA Portal, and the system must be fully installed within 180 days of the Reservation Certificate effective date.

Important status note: As of mid-2026, total funding requests have exceeded the full FY 2026 program budget of $2,000,000, and the application portal is currently closed to new applicants. However, the FY 2027 program is anticipated to launch in summer 2026. Homeowners in Annapolis interested in this grant should monitor the MEA website for updates or contact the Energy Storage Team at [email protected].

Maryland law exempts solar energy equipment from the state’s 6% sales and use tax. This exemption applies to solar panels, inverters, racking, monitoring systems, and all associated hardware purchased for a residential solar installation. For the average Maryland solar system priced around $33,700, this exemption saves homeowners approximately $2,000–$2,100 right off the top.

One of the best features of this exemption is its simplicity: no application or paperwork is required. The savings are applied automatically at the point of sale by your solar installer or equipment supplier. There is no income limit, no program deadline, and no cap on the system size that qualifies.

This is a permanent, statewide exemption that applies to all Maryland residents purchasing solar equipment, including those in Annapolis, making it one of the most universally accessible solar incentives in the state. It effectively lowers the baseline cost of going solar for every Maryland homeowner, regardless of income or location.

Under Maryland Tax-Property Article § 7-240, the added value that a solar energy system contributes to your home is fully exempt from state and local property tax assessments. This means that even though solar panels can increase your home’s market value by tens of thousands of dollars, your annual property tax bill will not increase as a result. The exemption covers solar panels, inverters, racking, monitoring systems, and all associated hardware.

This is a mandatory, statewide exemption — it applies in every Maryland county and municipality, including Annapolis, and you do not need to file a separate application to claim it. The exemption is built into state law and is automatically applied by the Maryland Department of Assessments and Taxation. Eligible technologies include solar PV panels, solar water heaters, and solar thermal electric systems.

For a typical Maryland solar installation, this exemption saves homeowners an estimated $160–$240 per year in property taxes, depending on your county’s effective tax rate. Over a 25-year system lifespan, that adds up to $4,000–$6,000 in cumulative savings — making this one of the most valuable long-term solar incentives in the state.

Maryland’s net metering policy requires all major electric utilities — including BGE, Pepco, Potomac Edison, and Delmarva Power — to credit residential solar customers at the full retail rate of electricity for any excess power their system sends to the grid. This true 1-to-1 structure means the value of electricity you export equals the value of electricity you import, effectively allowing your solar panels to completely offset your utility bill. Systems up to 2 MW (or 200% of the owner’s annual baseline usage) are eligible, and the statewide program cap is 3,000 MW of total net-metered capacity.

Excess credits roll over month to month, allowing you to bank surplus generation from sunny summer months and draw on those credits during cloudier winter periods. Maryland also gives you the right to opt out of the annual April true-up and instead choose indefinite rollover — meaning your excess kWh credits stay in your account permanently at full retail value, rather than being cashed out at a lower commodity rate.

Important future change: The current net metering program is scheduled to end on July 1, 2027, unless the 3,000 MW statewide cap is reached sooner. After that date, the Public Service Commission will implement the successor SUNRISE Program, which will compensate solar owners based on the value distributed solar provides to the grid — likely at a lower rate than the current full retail credit. Homeowners in Annapolis who install solar before the transition may be grandfathered under existing terms; check with the Maryland PSC for the latest details.

Maryland’s Renewable Portfolio Standard (RPS) requires electric utilities to source a portion of their power from solar energy. To comply, utilities purchase Solar Renewable Energy Certificates (SRECs) from solar system owners. You earn one SREC for every 1,000 kWh (1 MWh) your solar system produces, and those credits can be sold on the open SREC market. Maryland solar owners are credited with SRECs for all energy their system produces for the first 15 years of operation.

Current Maryland SREC prices are trading in the $50–$90 per SREC range. For a typical 10 kW system producing roughly 11,000–13,000 kWh per year, that’s 11–13 SRECs annually — generating approximately $660–$1,170 in additional income per year. Over the 15-year SREC eligibility period, total lifetime SREC value can reach $3,000–$4,000 or more depending on system size and market conditions. To participate, your system must be certified by the state and registered in PJM’s Generation Attribute Tracking System (GATS).

Note that SREC market prices fluctuate based on supply and demand. Maryland’s SREC values have generally declined since 2015 as more solar installations have entered the market. Many homeowners work with an SREC aggregator or broker to simplify the selling process. The Solar Alternative Compliance Payment (SACP) — the ceiling price utilities pay — is set at $55 for 2025 and will decrease gradually through 2030, where it settles at $22.50, which may put downward pressure on future SREC prices.

Homeowners in Annapolis, located in Anne Arundel County, may be eligible for a one-time local property tax credit of up to $2,500 for the installation of a qualifying solar energy system. This credit is applied against your county property tax bill and is separate from — and in addition to — the statewide property tax exemption that prevents your assessment from increasing due to solar.

This local credit stacks on top of state-level incentives, providing Annapolis and Anne Arundel County residents with an additional layer of financial benefit when going solar. To apply, contact the Anne Arundel County tax authority directly for current application requirements, eligibility criteria, and any documentation needed to claim the credit.

Local tax credits like this one can vary in availability and terms from year to year based on county budget decisions. We recommend verifying current program status and application deadlines directly with the Anne Arundel County Office of Finance before making installation decisions based on this incentive.