Solar Guide
Solar in Baltimore
Baltimore homeowners are turning to solar panel installation as Maryland electricity prices climb 37% higher than 2020 levels. With rates at 17.88 cents per kWh—above the national average—solar offers a path to energy savings.
Ready to explore your options? Our home solar panels guide breaks down everything Baltimore residents need to know about solar installation.
Key Takeaways
- Baltimore electricity rates jumped 37% since 2020 making solar installation an increasingly smart financial choice for Maryland homeowners.
- Maryland offers excellent solar incentives including 30% federal tax credits and property tax exemptions that reduce installation costs.
- Baltimore homeowners save an average of $85,000 over 25 years with properly sized solar panel systems.
Solar Cost Calculator
Our Baltimore solar cost calculator uses real installation data from neighborhoods like Towson, Columbia, and Ellicott City. Get accurate, local pricing based on actual Palmetto installations throughout Baltimore County and surrounding areas.
System
Cost
Savings
Baltimore Electricity Prices
Baltimore electricity costs have surged dramatically, making solar installation an increasingly attractive option for Maryland homeowners seeking energy independence.
Maryland electricity rates jumped from 13.1 cents per kWh in 2021 to 17.9 cents in 2024—a 37% increase that outpaces national averages.
Solar panels allow Baltimore homeowners to generate their own electricity, reducing dependence on the grid and protecting against these rising utility costs.
Over 25 years, solar installation can provide significant savings as traditional electricity rates continue climbing, offering long-term financial protection for Maryland families.
Price of Energy: Maryland vs National Average
Baltimore Area Utility Providers
Baltimore residents served by BGE and Pepco face electricity rates above national averages, with 2023 data showing costs ranging from 16.5¢ to 18.2¢ per kilowatt-hour.
BGE’s 16.5¢ rate sits slightly below Maryland’s 16.6¢ average, while Pepco’s 18.2¢ rate exceeds both state and national benchmarks due to regional infrastructure costs.
These above-average electricity costs create opportunities for Baltimore homeowners to explore solar energy as a way to reduce monthly utility expenses over time.
Baltimore Utilities Electricity Rates
Maryland Solar Incentives
Baltimore solar installation becomes more affordable through federal tax credits and solar incentives in Maryland that reduce upfront costs significantly.
Maryland offers property tax exemptions, sales tax savings, and income-qualified grants up to $7,500. Federal tax credits cover 30% of installation costs through 2032.
Solar Renewable Energy Credits provide ongoing income while net metering eliminates most electricity bills for properly sized systems.
$8,019
Average savings in Maryland solar rebates
Incentive | Type | Description | Source |
---|---|---|---|
Residential Clean Energy Credit | Federal tax credit | A federal tax credit worth 30% the cost of a solar panel system in the year it’s installed | Learn More |
Property Tax exemption | State tax exemption | Prevents property tax increases from solar installations. Savings from MD’s 1.05% property tax rates. | Learn More |
Sales Tax exemption | State tax exemption | 6% Tax exemption. No state sales tax on solar equipment and installation. Saves $1,200 on a $20k system upfront. | Learn More |
Solar Access Program | State program | Up to $7,500 ($750/kW). Income-qualified grant (=150% state median income). Replaces previous $1,000 rebate in 2025. First-come, first-served. | Learn More |
Solar Renewable Energy Credits (SRECs) | State program | Extra income from selling credits. 6kW system (~8 MWh/year) earns about $400/year. Prices vary with market. | Learn More |
The Residential Clean Energy Credit lets people claim a tax credit worth 30% the cost of a solar panel system in the year it’s installed. The credit can only be used against taxes you owe or have already paid that year, but any excess credit can be rolled over to future years.
The credit is broadly available, though there are a few restrictions — you must own the panels and they must be on a house you live in — so be sure to consult a tax professional about your situation.
Maryland’s Property Tax Exemption for solar energy systems is a state-level incentive that removes your solar installation from your property tax assessment. 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 thermal systems that provide hot water.
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. There are no income limits or system size restrictions, making this benefit available to all Maryland homeowners who install qualifying solar equipment. The exemption continues for as long as you own the solar system, providing ongoing savings throughout the life of your installation.
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. The exemption helps reduce the upfront cost of going solar by eliminating hundreds or thousands of dollars in sales tax on your solar purchase.
The exemption is automatically applied at the point of sale when you purchase qualifying solar equipment from licensed dealers in Maryland. There are no income limits, application deadlines, or special forms to complete – the tax savings are immediate when you buy your system. This incentive works alongside federal tax credits and other local incentives to make solar more affordable for Maryland homeowners. Keep in mind that this exemption only applies to the equipment itself, not to installation labor or other services related to your solar project.
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 rather than through a competitive selection process.
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. To qualify, homeowners must meet income requirements detailed in the program’s official documentation and work with approved contractors from the state’s participating contractor list. 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 homes already receiving funding from Maryland’s Solar Energy Equity Grant Program are not eligible for this program. The FY25 program stopped accepting applications on June 13, 2025, but the FY26 program is expected to open in July 2025. Homeowners interested in this program should review the detailed guidance documents and work only with state-approved contractors to ensure eligibility.
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 credits can be sold to energy suppliers who need them to meet Maryland’s renewable energy requirements, providing an additional income stream beyond your electricity savings.
While the source doesn’t specify exact dollar amounts, SRECs have market value that fluctuates based on supply and demand. For example, a typical 10kW home solar system producing 12,000 kilowatt-hours annually would generate 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 have a 3-year lifespan, so you can hold them hoping for better prices or sell them immediately. 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 credit for excess electricity they generate and send back to the grid. When your solar system produces more power than your home uses, the extra electricity flows to the grid and you receive a 1:1 credit on your electric bill – meaning you get full retail rate credit for every kilowatt-hour (kWh) you contribute. This credit system is available through all major Maryland utilities including Baltimore Gas & Electric, Pepco, Potomac Edison, Delmarva Power, SMECO, and Choptank Electric Cooperative.
The financial benefit works by allowing you to bank excess credits month to month throughout the year, effectively using the grid as a battery for your solar energy. However, each utility handles annual reconciliation differently – most utilities cash out remaining credits in April or May at a lower rate of approximately $0.04-$0.07 per kWh rather than the full retail rate. This means it’s most beneficial to size your solar system to closely match your annual electricity usage. Note that Baltimore Gas & Electric customers on time-of-use rate schedules are not eligible for net metering, so standard rate plans work best with solar installations.
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 QuoteBaltimore 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’s humid subtropical climate brings seasonal variations in solar production. Despite occasional cloudy days, proper system design maximizes year-round energy generation effectively.
Solar Production in Baltimore 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 Installations in Baltimore
We’ve mapped every solar installation across America to help you discover which Baltimore neighborhoods have embraced clean energy. Explore this interactive map to see how many of your neighbors have already made the switch to solar power!
Leasing Solar Panels
Baltimore homeowners have access to Power Purchase Agreements (PPAs) through all major utility providers, including BGE, Pepco, Potomac Edison, Delmarva Power, SMECO, and Choptank Electric Cooperative. With a PPA, you pay only for the solar power your system generates at a fixed rate per kilowatt-hour, typically lower than your current utility rate.
PPAs offer significant advantages over purchasing solar panels outright. You avoid the large upfront investment while still enjoying immediate electricity savings. Palmetto handles all system maintenance, monitoring, and repairs at no cost to you, eliminating the responsibility and expense of upkeep that comes with ownership.
This financing option provides predictable energy costs and immediate savings without the complexity of loans or maintenance concerns. Learn more about solar financing options or explore our LightReach program designed specifically for hassle-free solar access.
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 MoreFrequently Asked Questions
Yes, solar makes excellent sense in Baltimore. Maryland electricity rates have jumped 37% since 2020 to 17.9¢/kWh, making solar installation increasingly attractive for homeowners seeking energy independence.
Baltimore residents can save an average of $85,000 over 25 years while benefiting from Maryland’s strong solar incentives, including 30% federal tax credits, property tax exemptions, and net metering programs through BGE and Pepco.
Yes, Baltimore has excellent net metering programs. All major utilities serving Baltimore—including BGE and Pepco—offer 1:1 net metering, meaning you receive full retail rate credit for excess solar electricity sent to the grid.
Monthly excess credits carry over throughout the year, with annual true-ups in April or May at reduced rates of $0.05-$0.07/kWh. This system effectively uses the grid as your battery, maximizing solar savings for Baltimore homeowners.
Yes, solar panels increase home value in Baltimore. Research by Zillow shows solar panels increase home value by 4.1%, meaning a $300,000 Baltimore home could gain $12,300 in value from solar installation.
Maryland’s property tax exemption ensures you won’t pay additional taxes on this increased value, while the added appeal of lower electricity bills makes solar-equipped homes more attractive to buyers in Baltimore’s competitive market.
Solar installation costs in Baltimore range from $14,423-$24,093 after federal tax credits, depending on your home size and energy needs. A typical medium-sized home (2,000-3,000 sq ft) requires a 9.32 kW system costing $18,712 after the 30% federal tax credit.
Maryland’s sales tax exemption and property tax exemptions further reduce costs, while net metering through BGE and Pepco maximizes long-term savings for Baltimore homeowners.
Yes, solar is financially worth it in Baltimore. With Maryland electricity rates at 17.9¢/kWh and rising 37% since 2020, solar provides long-term protection against increasing utility costs.
Baltimore homeowners typically save $85,000 over 25 years with payback periods around 7.2 years. Federal tax credits, Maryland’s property tax exemptions, and net metering through BGE and Pepco maximize financial benefits for solar installations.
We’re proud to serve Baltimore residents with high-quality solar installations and excellent customer service. With 619 installations completed across Maryland since 2020, we understand the unique needs of Baltimore homeowners.
Our comprehensive approach includes some of the best financing options in the industry, a trusted installer network, and personalized support throughout your solar journey. We focus on delivering quality installations that maximize your energy savings in Baltimore’s climate.