Baltimore, MD

Maryland offers a valuable Property Tax Exemption for residential solar energy systems and wind energy equipment. Under this state tax incentive, qualifying solar energy property and residential wind energy equipment are completely exempt from real property taxes. This means the added value these renewable energy systems bring to your home won’t increase your property tax bill.

The exemption applies to solar equipment that generates electricity for use in your home or that supplies power to the electric grid, as well as solar thermal systems that provide hot water. For wind energy, the exemption covers equipment installed on residential property that generates electricity for use in the home. There are no specific dollar limits, application deadlines, or expiration dates for this incentive, making it a permanent benefit for Maryland homeowners who install qualifying renewable energy systems.

Maryland offers a valuable Sales Tax Exemption for solar energy equipment, making your renewable energy investment more affordable. When you purchase solar panels, inverters, and other solar energy equipment in Maryland, you are completely exempt from the state’s 6% sales tax. This exemption applies at the time of purchase, providing immediate savings on your solar installation costs.

This incentive is available to all Maryland homeowners and businesses with no income restrictions or caps. There are no application forms to complete – the exemption is applied automatically at the point of sale when you purchase qualifying solar equipment from a Maryland retailer. The exemption has no expiration date, as it is a permanent part of Maryland’s tax code. When combined with the federal solar tax credit, this sales tax exemption significantly reduces the upfront cost of going solar in Maryland.

The Maryland Solar Access Program is a state initiative designed to help eligible Maryland residents install solar photovoltaic (PV) systems on their homes. Established through the Brighter Tomorrow Act of 2024, this program makes clean, affordable solar energy accessible to more homeowners by providing financial assistance on a first-come, first-served basis. The program has a total budget of $15 million for fiscal year 2025.

To qualify, applicants must meet specific income requirements outlined in the program documentation. The application process involves two steps: an initial application to reserve funds and a verification after installation. Once approved, homeowners have 180 days to complete their solar installation. Important note: systems that have already received funding from the Solar Energy Equity Grant Program are not eligible for this program. Homeowners must work with contractors from the official Participating Contractor List published by the Maryland Energy Administration.

Solar Renewable Energy Credits (SRECs) are valuable financial incentives available to Maryland homeowners who install solar panels. Each SREC represents 1 megawatt-hour (MWh) of electricity generated by your solar system. These credits can be sold to utility companies, who purchase them to meet state-mandated renewable energy requirements. The Maryland Renewable Portfolio Standard requires utilities to source 14.5% of their electricity from solar by 2030, creating a steady market for SRECs.

The financial value of SRECs fluctuates based on market conditions, but they provide an additional income stream beyond your electricity savings. For example, a typical 10 kW residential solar system producing 12 MWh annually would generate 12 SRECs per year. These credits can be sold immediately, held for up to three years (their valid lifespan), or retained for environmental bragging rights. To qualify, your solar system must be registered with the Maryland Public Service Commission, and within 30 days of registration, you must complete enrollment with PJM’s Generator Attribute Tracking System (GATS). Many homeowners work with SREC aggregators who handle the selling process for a small fee.

Maryland’s Net Metering program allows homeowners with solar panels to receive full credit for the excess electricity they generate and send back to the grid. Under this 1:1 net metering arrangement, each kilowatt-hour (kWh) you produce but don’t use immediately is credited to your account at the same retail rate you would normally pay for electricity. This effectively lets your electric meter run backward when your system produces more power than you’re using.

All major Maryland utilities participate in this program, including Baltimore Gas & Electric, Pepco, Potomac Edison, Delmarva Power, Southern Maryland Electric Cooperative (SMECO), and Choptank Electric Cooperative. Excess credits accumulate month-to-month, allowing you to build up credits during sunny months to offset usage during less productive periods. However, there is an annual true-up period (typically in April or May) when any remaining excess credits are purchased by the utility at a lower rate (approximately $0.04-0.07 per kWh, depending on your utility) and your balance resets to zero.

Important considerations: BG&E customers should note that the three Time-of-Use (TOU) rate schedules are not eligible for net metering. There are no specific deadlines to enroll in net metering, but connecting your system requires proper permitting and utility approval. This program makes solar more affordable by maximizing the value of your system’s production throughout the year.