Nathan Healy
Certified by Nathan Healy
Updated: February 2026
Quality Solar Panels Since 2011
Palmetto has served 20,000+ customers across 31 states with an approval rating over 85%.
01

Solar Power in Baltimore

Baltimore homeowners are going solar at a record pace — and for good reason. Maryland ranks 10th in the nation for residential solar installations, and with Maryland electricity prices up 37% from 2020 to 2024, more people are looking for ways to take control of their energy costs.

If you’re exploring solar installation in Baltimore, you’ve come to the right place. Palmetto is here to walk you through everything you need to know about solar panels for your home — clearly, honestly, and without the sales pitch.

MARYLAND by the Numbers

10th Most residential solar in the United States
100 Households have installed solar panels
4.8 Avg peak sun hours per day
~$85k Baltimore average savings over 25 years
02

How Much Do Solar Panels Cost in Baltimore, MD?

Using real installation data from Baltimore and surrounding areas — including Towson, Columbia, Annapolis, and Bel Air — this calculator gives you an honest, localized estimate of what solar installation could cost for your home.

Small Home Up to 2,000 sq ft
Medium Home 2,000-3,000 sq ft
Large Home Over 3,000 sq ft
System Size
This system size is designed to offset approximately 100% of the average electricity usage for a home of this size in Maryland.
Recommended
System
9.32 kW
Your Monthly Payment
Estimated monthly cost with LightReach
$113/mo
As low as
$113/mo
Why Lease Solar?
Following the 2025 Big Beautiful Bill, the federal 30% solar tax credit is no longer available for cash purchases. With a LightReach lease, Palmetto owns the system and still qualifies for the commercial ITC — passing those savings through to you via lower monthly payments.
  • No upfront investment
  • Palmetto handles all maintenance
  • 90% Production Guarantee
  • Comprehensive protection program included
03

Palmetto Reviews

04

Key Takeaways

  • Baltimore electricity rates have risen 37% since 2020 — now above the national average — making solar a smart way to take control of your energy costs.
  • Maryland offers strong solar incentives, including sales and property tax exemptions, net metering credits, SRECs, and county-level rebates that can meaningfully reduce your costs.
  • A typical Baltimore home can save up to $85,000 over 25 years with solar — and you can get started with no upfront cost through Palmetto’s LightReach lease program.
05

Baltimore Electricity Prices

Baltimore electricity costs have climbed steadily — and they’re now above the national average. Here’s what the numbers show.

Maryland’s electricity rate rose from 13.1 cents per kilowatt-hour (kWh) in 2021 to 17.9 cents/kWh in 2024 — a 37% increase. That now exceeds the U.S. average of 16.5 cents/kWh, meaning Baltimore homeowners are paying more than most Americans for electricity.

Solar panels can help offset that cost. By generating your own electricity at home, you rely less on the grid — and less on rates you can’t control. For many Baltimore homeowners, that predictability is a key reason to explore solar.

Solar is a long-term investment. A system installed today can produce electricity for 25 years or more. As grid rates continue to rise, the value of generating your own power at home tends to grow alongside them.

Price of Energy: Maryland vs National Average

10¢
20¢
30¢
13.7¢
13.1¢
15.0¢
14.5¢
16.0¢
16.6¢
16.5¢
17.9¢
2021
2022
2023
2024
US Average
Maryland

Baltimore Area Utility Providers

Baltimore homeowners are served by two main utility providers: BGE and Potomac Edison. Based on 2023 data — the most recent available — their electricity rates tell two very different stories when compared to state and national averages.

In 2023, BGE customers paid approximately 16.5¢ per kWh, slightly above both the Maryland state average (16.6¢) and the national average (16.0¢). Potomac Edison customers paid just 11.7¢ per kWh — well below both benchmarks.

For BGE customers especially, rates near the state and national ceiling make solar worth exploring. Generating your own electricity can help reduce dependence on grid pricing — and the savings tend to grow as rates rise over time.

Baltimore Utilities Electricity Rates

BGE
16.50¢
+3%
Potomac Edison
11.70¢
-27%
MD Average
16.60¢
+4%
US Average
16.0¢
06

Maryland Solar Incentives

Baltimore homeowners can access a strong set of solar incentives in Maryland — from statewide programs to county-level credits that can meaningfully reduce installation costs.

Maryland offers sales and property tax exemptions, net metering credits, SRECs, and rebate programs. Some counties in the Baltimore area — like Baltimore County — also offer their own property tax credits on top of state programs, so your location matters.

Note: the federal 30% residential tax credit has been eliminated by the Big Beautiful Bill. State and local incentives still apply. With Palmetto’s LightReach lease, Palmetto handles the commercial investment tax credit (ITC) and passes savings through lower monthly payments.

Incentive Type Description Source
Maryland Solar Access Program (MSAP) Rebate Grants of $750 per kW (up to $7,500) for low- and moderate-income Maryland homeowners who install solar PV systems. Learn More
Maryland Residential and Commercial Energy Storage (RCES) Grant Program Rebate Grants of up to $5,000 for residential and up to $150,000 for commercial battery energy storage system installations in Maryland. Learn More
Maryland Solar Renewable Energy Credits (SRECs) SREC Maryland solar system owners earn one tradeable SREC for every megawatt-hour of electricity their system generates, which can be sold to utilities for additional income. Learn More
Maryland Net Metering Net Metering Maryland requires utilities to credit solar owners at the full retail rate for excess electricity exported to the grid, with credits that roll over indefinitely. Learn More
Maryland Solar Sales Tax Exemption Sales Tax Exemption Maryland exempts all solar energy equipment from the state’s 6% sales tax, automatically reducing the upfront cost of a solar installation. Learn More
Maryland Solar Property Tax Exemption Property Tax Exemption Maryland offers a 100% real property tax exemption for solar energy systems, ensuring that adding solar panels does not increase your property tax bill. Learn More
Baltimore County Solar Property Tax Credit Tax Credit Baltimore County offers a property tax credit worth 50% of solar installation costs, up to $5,000, for residential solar energy systems.
Commercial and Canopy Solar Program (CCSP) – FY 2026 Rebate Maryland’s MEA offers grants of up to $500,000 for commercial, nonprofit, and agricultural solar installations, including rooftop, ground-mounted, and canopy systems. Learn More
Maryland Community Solar Program Net Metering Maryland’s permanent Community Solar Program allows residents and businesses to subscribe to off-site solar arrays and receive bill credits, with at least 10% guaranteed savings for low- to moderate-income subscribers.
Maryland Clean Energy Bank (MCGB) Solar Financing Rebate The Maryland Clean Energy Bank offers low-cost solar financing loans with no dealer fees or prepayment penalties, including options to bundle solar with battery storage or electrical upgrades. Learn More

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 Baltimore.

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 Baltimore 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 for homeowners in Baltimore.

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 Baltimore 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, which serves Baltimore.

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 Baltimore 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 Baltimore 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.

Residential property owners in Baltimore County can receive a local property tax credit equal to 50% of the cost of a qualifying solar energy installation, up to a maximum of $5,000. Qualifying systems include solar panels, solar water heaters, and solar HVAC units installed on single-family and multi-family dwellings.

This credit is applied to your Baltimore County property tax bill and is one of the more generous county-level solar incentives in Maryland. It stacks on top of Maryland’s statewide 100% property tax exemption, meaning you benefit from both a reduction in your tax bill and protection against any increase in assessed value due to your solar installation.

Contact the Baltimore County Office of Budget and Finance for application forms and specific eligibility requirements. Keeping detailed records of your installation costs will be important when applying for this 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 Baltimore 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 Baltimore 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 Baltimore 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.

Ready to start saving with solar?

Speak with a Palmetto solar expert to find out exactly how much you can save with Maryland incentives.

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07

Baltimore 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.

Baltimore gets four distinct seasons, with snowy winters and humid summers. Despite some cloudy days, the city receives enough annual sunlight to make solar a smart, productive investment for most homes.

Solar Production in Baltimore by Month

Daylight Hours
Energy Production (kWh/day)

What Can Your Solar System Power?

Summer Production (July)

[SummerProduction] kWh/day

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)

[WinterProduction] kWh/day

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

[AnnualProduction] kWh/year

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 Estimate
08

Solar Panel Systems in Baltimore

We’ve mapped thousands of solar installations across Baltimore so you can see just how many of your neighbors have made the switch. Explore the heatmap below to discover which communities and neighborhoods are leading the way in clean energy adoption across the city.

09

Leasing Solar Panels

If you’re not ready to purchase solar panels outright, Palmetto offers a Power Purchase Agreement (PPA) through its LightReach program — available to Baltimore homeowners served by Baltimore Gas & Electric (BGE), Potomac Edison, Pepco, Delmarva Power, SMECO, and Choptank Electric Cooperative.

With a PPA, you pay only for the electricity your panels produce — at a set rate per kilowatt-hour — rather than a fixed monthly amount. Because solar systems produce more in summer than winter, your PPA bill will naturally fluctuate with the seasons, but your annual savings tend to be comparable to a lease. The biggest advantage over a cash purchase: no upfront cost, no maintenance responsibilities, and Palmetto handles everything from installation to system monitoring. Learn more about the differences between buying and leasing solar.

For many Baltimore homeowners, a PPA is a practical way to start saving on electricity costs without the commitment of ownership — Palmetto owns the system, manages upkeep, and backs production with a 90% output guarantee.

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!

Learn More
10

Frequently Asked Questions

Yes, solar makes strong sense for Baltimore homeowners. Maryland electricity rates have risen 37% since 2020 — now above the national average at 17.9¢/kWh — and Baltimore receives an average of 4.8 peak sun hours per day. A typical home can save up to $85,000 over 25 years. Maryland also offers solid incentives including net metering, SRECs, and property tax exemptions.

If upfront cost is a concern, Palmetto’s LightReach lease program removes that barrier entirely — Baltimore homeowners can go solar with no money down and start saving from day one.

Yes, Baltimore has net metering. Maryland requires utilities to credit solar owners at the full retail rate (1:1) for excess electricity sent to the grid. Credits roll over month to month, so surplus production from sunny months can offset usage during cloudier periods.

Baltimore’s primary utility, Baltimore Gas & Electric (BGE), participates in Maryland’s net metering program. Excess credits are reconciled annually each May, with any remaining balance paid out at a variable rate ($0.05–$0.07/kWh). Potomac Edison, which also serves parts of the Baltimore area, follows the same structure.

Yes, solar panels can increase your home value in Baltimore. According to a Zillow study, homes with solar panels sell for approximately 4.1% more than comparable homes without them. For a $350,000 Baltimore home, that’s roughly $14,000 in added value.

Maryland’s 100% solar property tax exemption means that added value won’t raise your property tax bill — making solar one of the few home improvements that increases resale value without increasing your taxes.

For Baltimore homeowners, the most accessible way to go solar is through Palmetto’s LightReach lease — starting as low as $84/month for a small home and $113/month for a medium-sized home, with no upfront cost. Palmetto owns and maintains the system, so there’s nothing out of pocket to get started.

If you prefer a cash purchase, a typical Baltimore system runs $20,600–$34,400 depending on home size. Note that the federal 30% residential solar tax credit was eliminated by the Big Beautiful Bill. Use the solar cost calculator above for a personalized estimate.

For many Baltimore homeowners, solar is worth it financially — especially with rising electricity rates now at 17.9¢/kWh. With Palmetto’s LightReach lease, there’s no upfront investment required. Your monthly lease payment is typically less than your current BGE bill, meaning you can start saving from day one.

A typical Baltimore home can save up to $85,000 over 25 years. Leasing removes the financial risk — Palmetto owns the system, handles all maintenance, and backs production with a 90% output guarantee.

Palmetto Solar is a top choice for Baltimore homeowners. We’re a national company with deep local experience — having completed 619 installations across Maryland since 2020. We offer some of the most flexible financing options in the industry, including our LightReach lease with no upfront cost.

Our vetted local install network ensures quality workmanship, and every system is backed by a 90% production guarantee. From your first quote to system monitoring, we’re with you every step of the way.

With Palmetto’s LightReach lease, Baltimore homeowners pay one simple monthly payment that covers everything — panels, installation, monitoring, maintenance, and a 90% Production Guarantee. There is no upfront cost. For a typical 9.32 kW system in Baltimore, the estimated monthly lease payment is approximately $113/month, calculated using Maryland’s production ratio of 1,160 kWh/kW/year at $0.125/kWh.

Because Palmetto owns the system, it claims the commercial Investment Tax Credit (ITC) and passes those savings to you through lower monthly payments — an advantage not available with cash purchases since the residential ITC was eliminated. Most Baltimore homeowners find the lease payment is less than their current BGE bill, meaning savings start immediately.