Nathan Healy
Certified by Nathan Healy
Updated: April 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 paying close attention to their energy bills — and for good reason. Maryland electricity prices have risen 37% since 2020, making energy costs a growing concern for many households in the area.

This guide breaks down how solar panels for your home work, what the installation process looks like in Baltimore, and how to figure out if solar is the right fit for your home.

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, Catonsville, Ellicott City, and Pikesville — 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

  • Maryland electricity prices have risen 37% since 2020, making solar a smart way for Baltimore homeowners to reduce their energy bills and protect against future rate increases.
  • Baltimore homeowners can save an average of $85,000 over 25 years with solar — and Maryland offers strong incentives like SRECs, net metering, and a sales tax exemption to reduce your costs further.
  • You don’t need to buy solar panels to start saving — Palmetto’s LightReach lease lets Baltimore homeowners go solar with no upfront cost and no maintenance responsibilities.
05

Baltimore Electricity Prices

Baltimore electricity rates have climbed steadily — and the numbers tell a clear story about what local homeowners are paying.

As the chart shows, Maryland electricity rates rose from 13.1 cents per kWh in 2021 to 17.9 cents per kWh in 2024 — a roughly 37% increase in just three years, outpacing the national average.

Solar panels allow Baltimore homeowners to generate their own electricity, reducing how much power they pull from the grid. That means less exposure to utility rate increases that have consistently trended upward year over year.

Over the life of a solar system — typically 25 years or more — locking in a lower, more predictable energy cost can represent significant savings compared to continuing to pay rising utility rates.

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 is served by two main utilities: BGE and Potomac Edison. Based on 2023 data — the most recent available — their electricity rates differ notably, and both offer useful context for understanding what local homeowners pay each month.

In 2023, BGE charged 16.5¢ per kilowatt-hour (kWh), just above the national average of 16.0¢ and nearly matching Maryland’s state average of 16.6¢. Potomac Edison came in lower at 11.7¢ per kWh — well below both benchmarks.

Your utility rate directly shapes your annual energy costs. Knowing whether you’re on BGE or Potomac Edison is a helpful starting point for understanding how solar panels might reduce what you spend on electricity 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 tap into a range of solar incentives in Maryland — at both the state and local county level — that can meaningfully reduce the cost of going solar.

Maryland offers sales tax exemptions, property tax exemptions, net metering credits, and SRECs — tradeable credits earned for electricity your system generates. Depending on your county, additional local credits may also apply, such as Baltimore County’s 50% property tax credit up to $5,000.

Homeowners who lease solar through Palmetto’s LightReach program benefit from Palmetto handling the commercial Investment Tax Credit (ITC), with those savings passed through via lower monthly payments.

Incentive Type Description Source
Maryland Solar Access Program (MSAP) Grant A state grant of $750/kW (up to $7,500) for eligible low- and moderate-income Maryland homeowners who install a new solar PV system. Learn More
Maryland Solar Renewable Energy Credits (SRECs) SREC Maryland solar system owners earn one tradeable SREC for every 1,000 kWh of electricity generated, which can be sold to utilities for additional income. Learn More
Maryland Sales and Use Tax Exemption for Solar Energy Systems Sales Tax Exemption All residential solar energy equipment purchases in Maryland are fully exempt from the state’s 6% sales and use tax, automatically reducing upfront installation costs. Learn More
Maryland Property Tax Exemption for Solar Energy Systems Property Tax Exemption Maryland ensures that the added home value from a solar installation does not increase a homeowner’s property tax bill. Learn More
Net Metering (Maryland Statewide) Net Metering Maryland offers full retail-rate 1:1 net metering, crediting solar customers for excess electricity sent to the grid with indefinite monthly rollover and an annual April true-up. Learn More
Maryland Community Solar Program Rebate Maryland’s permanent Community Solar Program allows residents and businesses to subscribe to a share of an off-site solar array and receive credits on their utility bills without installing panels on their property. Learn More
Baltimore County Solar Property Tax Credit Property Tax Exemption Baltimore County offers a one-time local property tax credit equal to 50% of solar installation costs, up to a maximum of $5,000.
Maryland Residential and Commercial Energy Storage (RCES) Grant Program Rebate A state grant program offering residential battery storage owners up to $5,000 (or 30% of installed costs) and commercial owners up to $150,000 for qualifying energy storage system installations. Learn More
Maryland Commercial and Canopy Solar Program (CCSP) – FY 2026 Rebate A state grant program offering up to $13 million for commercial, nonprofit, and small business solar installations including rooftop, ground-mounted, and canopy systems. Learn More

The Maryland Solar Access Program (MSAP), established by the Brighter Tomorrow Act of 2024, provides grants of $750 per kilowatt of installed solar capacity, up to a maximum of $7,500, to help eligible low- and moderate-income Maryland homeowners go solar. Residents of Baltimore are encouraged to apply. A total of $2,000,000 is available for FY 2026 through the Strategic Energy Investment Fund (SEIF), and grants are awarded on a first-come, first-served basis. The application portal is open through 12:00 PM ET on June 5, 2026, or until funds are exhausted.

To qualify, your household income must be at or below 150% of the statewide median income, your home must be owner-occupied and your primary residence, and the system must be installed by an MEA-approved contractor. The system must also be a brand-new installation — not an expansion of an existing system.

The application process is two-step: first, submit an initial application through the MyMEA Portal to reserve funds; then, verify that your solar system is fully installed and operational within 180 days of your fund reservation. Contact MEA at [email protected] for assistance.

Maryland’s Solar Renewable Energy Credit (SREC) program lets solar system owners earn one SREC for every 1 megawatt-hour (1,000 kWh) of electricity their system produces. These credits are tracked via a revenue-grade meter and can be sold on the open SREC market to Maryland utility companies, which are required under the state’s Renewable Portfolio Standard (RPS) to source a portion of their electricity from solar energy. Credits are earned for the first 15 years of a system’s operation.

Recent SREC market prices in Maryland have ranged from $60 to $80 per SREC. The Solar Alternative Compliance Payment (SACP) — which sets a ceiling on SREC value — is $55 for 2025 and will gradually decrease to $22.50 by 2030. Thanks to the Brighter Tomorrow Act (Senate Bill 783, signed May 2024), systems that meet certification requirements — including a capacity of 5 MW or less, placed in service between July 1, 2024 and January 1, 2028, and located on a rooftop, parking canopy, or other eligible location — earn Certified SRECs worth 1.5x the standard value, boosting your earnings by 50%.

To participate, register your solar system with the state of Maryland and track production through a revenue-grade meter. SRECs can be sold through brokers such as SRECTrade or Sol Systems. This program provides a meaningful ongoing income stream on top of your utility bill savings.

Maryland’s Sales and Use Tax Exemption removes the state’s 6% sales tax from the purchase of residential solar energy systems and equipment. This exemption is applied automatically at the point of sale — you don’t need to file any paperwork or take any extra steps to claim it.

On an average Maryland solar installation costing around $33,700, this exemption saves homeowners approximately $2,000–$2,100 right off the top. The savings apply to solar panels, inverters, mounting hardware, and other qualifying solar equipment.

This exemption is available to all Maryland homeowners purchasing a residential solar energy system, regardless of income. It stacks with other state and local incentives, making it one of the simplest and most universally accessible solar benefits in the state.

Maryland’s statewide Property Tax Exemption for Solar and Wind Energy Systems ensures that any increase in your home’s assessed value resulting from the installation of solar panels is excluded from your property tax calculation. In other words, your property taxes will not go up simply because you added solar to your home — even though solar typically increases a home’s market value.

This exemption is available to all Maryland homeowners with a qualifying solar energy system and applies automatically — no special application is required beyond your normal solar installation and permitting process. It is a permanent, ongoing benefit for as long as the solar system remains on the property.

This statewide exemption is separate from — and stackable with — the county-level property tax credits offered in Anne Arundel, Baltimore, Harford, Howard, Montgomery, and Prince George’s counties, which can provide additional one-time savings of up to $5,000.

Maryland’s net metering policy is one of the strongest in the country. When your solar panels produce more electricity than your home uses, the excess is sent to the grid and your utility credits your account at the full retail rate — a true 1-to-1 structure. Each month, you are billed only for the net difference between what you consumed and what you generated. Homeowners in Baltimore are served by BGE, which participates in Maryland’s net metering program.

Excess credits roll over month to month indefinitely, allowing you to bank surplus generation from sunny summer months and draw on those credits during cloudier winter months. Maryland conducts an annual true-up each April, at which point any remaining excess credits can be cashed out as a payment from your utility (note: the cash-out rate may be lower than the full retail credit rate).

Maryland electric utilities and cooperatives are required to allow net metering until the total statewide capacity of net-metered systems reaches 3,000 MW. While significant capacity remains, locking in net metering now ensures you benefit from the current favorable 1:1 structure for the life of your system.

Maryland’s permanent Community Solar Program, established by House Bill 908 in 2023 and fully effective January 1, 2025, allows renters, condo owners, and homeowners with shaded or unsuitable roofs to subscribe to a share of an off-site solar array. Subscribers receive bill credits on their utility bills for the electricity generated by their share — no rooftop panels required. This makes solar accessible to virtually any Baltimore resident or business.

Starting January 1, 2026, the program implements consolidated billing, 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 must ensure that a minimum of 40% of subscribers are low- to moderate-income (LMI) households, and LMI subscribers receive guaranteed savings — their subscription rates cannot exceed 90% of the bill credit value, ensuring at least a 10% discount on their solar energy costs.

To participate, simply find a community solar project in your utility territory and sign up for a subscription. There are no installation costs, no long-term equipment commitments, and you can typically cancel or transfer your subscription if you move. Contact the Maryland Public Service Commission or visit the official program page for a list of available projects in your area.

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. This is one of the most generous county-level solar credits in Maryland.

This credit is applied to your Baltimore County property tax bill and is separate from Maryland’s statewide property tax exemption, meaning you can stack both benefits. For a typical solar installation, this credit could provide the full $5,000 maximum benefit.

Contact the Baltimore County tax authority for the application process and any documentation requirements. The credit is awarded on a one-time basis after a qualifying solar system is installed on your residential property.

The Maryland Residential and Commercial Energy Storage (RCES) Grant Program, launched by the Maryland Energy Administration (MEA) for Fiscal Year 2026, replaces the discontinued Maryland Energy Storage Income Tax Credit Program that ended in 2024. The program provides grants to support the installation of battery energy storage systems (BESS) for both residential and commercial customers. 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 from the Strategic Energy Investment Fund (SEIF) for FY 2026, awarded on a first-come, first-served basis. Applications were accepted through 3:00 PM ET on June 5, 2026, or until funds were exhausted. As of the latest update, the application portal is closed to new applications due to the program budget being fully requested — however, MEA is processing the existing queue and the portal may reopen if reserved applications do not convert to approved status.

Eligible applicants include owners of residential or commercial properties installing a qualifying BESS, as well as third-party owners who finance or own the system on behalf of the property owner. Applications are submitted through a two-step process via the MyMEA Portal. For questions, contact MEA’s Energy Storage Team at [email protected].

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. Up to $13,000,000 is available from the Strategic Energy Investment Fund (SEIF) for rooftop, ground-mounted, and solar canopy systems installed over parking areas or bodies of water. Grants are awarded on a first-come, first-served basis.

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. Eligible applicants include Maryland-based nonprofits, small businesses, veteran-owned entities, and organizations running eligible facilities.

Please note that the FY 2026 application deadline was February 11, 2026. Check the MEA website for updates on FY 2027 funding availability, as this program is expected to continue in future fiscal years.

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 the cloudy days, Baltimore still receives enough sunlight year-round 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 map below to discover which communities in Baltimore are leading the way in clean energy adoption!

09

Leasing Solar Panels

If you’d like to go solar without a large upfront payment, Palmetto offers a Power Purchase Agreement (PPA) for Baltimore homeowners through its LightReach program. A PPA is available to customers served by Baltimore Gas & Electric (BG&E), Potomac Edison, Pepco, Delmarva Power, SMECO, and Choptank Electric Cooperative across Maryland.

With a solar PPA, you pay for the electricity your panels produce at a set rate per kilowatt-hour (kWh) — rather than a fixed monthly amount. Because solar panels generate more power in summer, your solar bill may be slightly higher in sunny months and lower in winter. Over the course of a year, the total cost typically equals what a fixed lease payment would be. You can learn more about how these options compare at palmetto.com/solar-buy-or-lease.

Compared to purchasing a system outright, a PPA means no large upfront investment, no loan to manage, and no maintenance responsibilities. Palmetto owns the system and handles all upkeep — so you simply enjoy the savings from day one. It’s a straightforward way for Baltimore homeowners to lock in a more predictable energy cost as local utility rates continue to rise.

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 Leasing
10

Frequently Asked Questions

Yes, solar makes strong sense for Baltimore homeowners. Maryland electricity rates have risen 37% since 2020, reaching 17.9¢/kWh, and the average Baltimore homeowner can save around $85,000 over 25 years with solar. Maryland also offers valuable incentives including SRECs, net metering, and a sales tax exemption.

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, with no maintenance responsibilities.

Yes, Baltimore has 1:1 net metering. Most Baltimore homeowners are served by Baltimore Gas & Electric (BGE), which credits solar customers at the full retail rate for excess electricity sent to the grid. Unused credits roll over month to month indefinitely.

Each year in May, BGE conducts an annual true-up, cashing out any remaining credits at a variable rate of approximately $0.05–$0.07/kWh. Note that BGE’s three Time-of-Use (TOU) rate schedules are not eligible for net metering.

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 home in Baltimore, that could mean over $14,000 in added value.

Maryland also makes this even more attractive with a statewide property tax exemption for solar energy systems, meaning the added home value from your installation won’t raise your property tax bill — a significant benefit for Baltimore homeowners.

With Palmetto’s LightReach lease, Baltimore homeowners can go solar for a low fixed monthly payment starting around $84–$148/month depending on home size — with no upfront cost. Palmetto owns and maintains the system, and passes savings from the commercial tax credit through to you via lower payments.

If you prefer to purchase outright, cash system costs in Baltimore typically range from $20,600 to $34,400. Note that the federal 30% residential tax credit is no longer available following the Big Beautiful Bill. Use the calculator above for a personalized estimate.

For many Baltimore homeowners, solar is worth it financially — especially with rising Maryland electricity rates. With Palmetto’s LightReach lease, there’s no upfront investment required. Your monthly lease payment is typically less than your current electricity bill, meaning most homeowners start saving from day one.

For those who purchase outright, the average Baltimore homeowner can save around $85,000 over 25 years. Either way, locking in a predictable energy cost protects you against continued utility rate increases.

Palmetto is a top choice for solar installation in Baltimore, MD. As a national company with a strong local presence, we’ve 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 trusted installer network ensures a smooth, professional experience from design to activation. Baltimore homeowners choose us for our transparency, responsive support, and commitment to long-term customer relationships — not just a one-time install.

Palmetto’s LightReach is an all-inclusive solar lease — one monthly payment covers the system, 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 payment is approximately $113/month.

Because Palmetto owns the system, it claims the commercial Investment Tax Credit (ITC) and passes those savings to you through lower payments — a meaningful advantage. Most Baltimore homeowners find the lease payment is less than their current electricity bill, so savings begin from day one.