Solar Guide
Solar in Bethesda
Bethesda residents are discovering solar energy benefits as Maryland ranks 10th nationally for residential installations. With Maryland electricity prices increasing 37% from 2020 to 2024, solar has become a smart financial choice.
This guide covers everything about solar panels for your home, from costs and incentives to installation timelines in Bethesda.
Key Takeaways
- Bethesda receives excellent solar conditions with systems generating 13,747 kWh annually, enough to power most homes completely.
- Maryland offers substantial solar incentives including 30% federal tax credits and sales tax exemptions, saving thousands upfront.
- Rising electricity rates make solar attractive as Maryland rates jumped 37% since 2020, while solar provides fixed energy costs.
Solar Cost Calculator
Our solar cost calculator uses real installation data from Bethesda neighborhoods like Chevy Chase, Glen Echo, and Somerset to give you accurate pricing estimates. This firsthand data from actual local installations helps you understand true solar costs in your area.
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Bethesda Electricity Prices
Understanding electricity costs helps Bethesda homeowners make informed energy decisions as rates continue climbing above national averages.
Maryland electricity rates jumped from 13.1 cents per kWh in 2021 to 17.9 cents in 2024, representing a 37% increase over three years.
Solar panels generate electricity at a fixed cost, protecting homeowners from these rising utility rates while reducing monthly energy expenses.
Over 25 years, solar systems provide predictable energy costs, potentially saving thousands as traditional electricity rates continue their upward trend.
Price of Energy: Maryland vs National Average
Bethesda Area Utility Providers
Bethesda residents receive electricity from two main utilities: BGE at 16.5¢ per kWh and Pepco at 18.2¢ per kWh (2023 data). Both rates exceed the national average of 16.0¢.
Maryland’s electricity costs reflect the state’s energy infrastructure and regulatory environment. Pepco’s rates are notably higher due to grid modernization investments and transmission costs in the Washington D.C. metropolitan area.
With electricity rates above national averages, Bethesda homeowners can benefit from solar’s predictable energy costs. Solar panels provide protection against future utility rate increases while reducing monthly energy expenses.
Bethesda Utilities Electricity Rates
Maryland Solar Incentives
Bethesda homeowners can significantly reduce solar installation costs through various solar incentives in Maryland and federal programs.
Maryland offers property and sales tax exemptions, income-qualified grants up to $7,500, and ongoing Solar Renewable Energy Credits that provide annual income from your system.
These incentives change frequently and operate on first-come, first-served basis. Research current programs thoroughly before making your solar decision.
$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 solar installations from your property tax calculations. This means that when you install solar panels or other qualifying solar equipment on your home, the added value from that equipment won’t increase your annual property tax bill. The exemption applies to both solar photovoltaic systems that generate electricity and solar thermal systems that provide hot water.
The financial benefit varies based on your home’s location and local tax rates, but it can save you hundreds of dollars annually. For example, if your solar system adds $20,000 in value to your home and your local property tax rate is 1%, you would save $200 per year in property taxes. The exemption applies to all types of solar energy property installed on residential, commercial, or industrial structures, including equipment that generates electricity for on-site use or feeds power back to the electric grid. There are no income restrictions, system size limits, or application deadlines – the exemption automatically applies once your solar system is installed and remains in effect for as long as you own the equipment.
Maryland’s Sales Tax Exemption for solar energy systems allows homeowners to purchase solar equipment without paying the state’s 6% sales tax. This means when you buy solar panels, inverters, batteries, and other qualifying solar equipment, you won’t pay any Maryland sales tax on these purchases, providing immediate savings on your solar installation costs.
The financial benefit varies based on the total cost of your solar system, but typically saves homeowners hundreds to thousands of dollars. For example, on a $20,000 solar system, you would save $1,200 in sales tax. This exemption applies to all qualifying solar energy equipment and components purchased for residential use.
To qualify, the solar equipment must be designed specifically for solar energy generation and storage. The exemption covers solar panels, inverters, mounting hardware, batteries, and other essential system components. There are no income restrictions or system size limitations for homeowners to take advantage of this benefit.
This exemption is automatic at the point of purchase – you don’t need to apply separately or wait for a rebate. Your solar installer should apply the exemption directly when you purchase your system. The savings are immediate and reduce your upfront solar investment costs, making clean energy more affordable from day one.
The Maryland Solar Access Program is a state-funded grant program that helps eligible Maryland residents install solar panels on their homes. Created through the Brighter Tomorrow Act of 2024, this program provides direct financial assistance to make solar energy more accessible and affordable for homeowners who meet specific income requirements.
The program operates on a first-come, first-served basis with a two-step application process. First, eligible homeowners reserve funding through an initial application. Then, they have 180 days to complete their solar installation with an approved contractor from the state’s participating contractor list. The exact grant amounts are not specified in the available information, but the program has a $15 million budget for fiscal year 2025.
To qualify, homeowners must meet income requirements detailed in the program’s funding announcement. Only solar systems installed by contractors on the state’s approved participating contractor list are eligible. Importantly, homes that have already received funding from Maryland’s Solar Energy Equity Grant Program cannot participate in this program.
The FY25 program stopped accepting applications on June 13, 2025, but the FY26 program will open in July 2025. Homeowners interested in future rounds should note that solar contracts executed on or after June 14, 2025, may be eligible for the upcoming FY26 program, provided their contractor is approved for participation.
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. A typical 10 kW 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 (GATS). SRECs have a 3-year lifespan, so you can hold them hoping for better prices or sell them immediately through aggregators or directly to suppliers.
Important consideration: If you sell your SRECs, you can no longer claim to be using solar energy yourself – the buyer gets those environmental bragging rights. However, the environmental benefits remain the same regardless of who owns the credits. This program supports Maryland’s ambitious goal of achieving 14.5% solar energy and 50% total renewable energy by 2030.
Net Metering in Maryland allows homeowners with solar panels to receive full retail credit for the excess electricity their system produces and sends back to the grid. When your solar panels generate more power than your home uses during sunny periods, that extra energy flows into the electrical grid and you receive a 1:1 credit on your electric bill – meaning you get the same rate you pay for electricity from your utility company.
The financial benefit works on a monthly rollover system where unused credits accumulate from month to month throughout the year. However, each utility company handles the annual settlement differently: Baltimore Gas & Electric, Pepco, and Potomac Edison cash out excess credits in May at a reduced rate of $0.05-$0.07 per kWh, while Delmarva Power and Choptank Electric Cooperative settle accounts in April at their commodity rate. Southern Maryland Electric Cooperative also uses a similar reduced rate structure of approximately $0.04-$0.05 per kWh for annual settlements.
This program is available to residential solar customers across all major Maryland utilities, though Baltimore Gas & Electric customers should note that Time-of-Use rate schedules are not compatible with net metering. The key consideration for homeowners is that while you receive full retail credit during the year, any substantial excess generation will be compensated at lower wholesale rates during the annual true-up period, making it important to size your solar system appropriately for your home’s energy needs.
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 QuoteBethesda 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.
Bethesda’s four distinct seasons and moderate Mid-Atlantic climate create varying solar conditions throughout the year, but quality panels still generate excellent energy production.
Solar Production in Bethesda 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 Bethesda
We’ve mapped every solar installation across America to show you something exciting: your Bethesda neighbors are embracing clean energy! Explore this interactive map to discover which communities have made the switch to solar.
Leasing Solar Panels
Bethesda homeowners can access solar through Power Purchase Agreements (PPAs), available from all major utilities serving the area including BGE, Pepco, Potomac Edison, Delmarva Power, SMECO, and Choptank Electric Cooperative.
With a PPA, you pay for the actual power your panels produce at a set rate per kilowatt-hour rather than a fixed monthly payment. This means your solar bill varies seasonally – higher in productive summer months, lower in winter – while Palmetto handles all maintenance and system monitoring.
PPAs eliminate upfront costs and maintenance responsibilities while providing immediate savings compared to rising utility rates. Learn more about solar financing options or explore our LightReach program 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 Bethesda. The area receives strong solar irradiance with systems generating 13,747 kWh annually, enough to power most homes completely while saving thousands on electricity bills.
Maryland’s 30% federal tax credit, sales tax exemptions, and rising utility rates (up 37% since 2020) create compelling financial benefits. Most Bethesda homeowners see 7-8 year payback periods with $80,000+ in 25-year savings.
Yes, Bethesda has net metering through all local utilities. BGE, Pepco, Potomac Edison, Delmarva Power, SMECO, and Choptank Electric all offer 1:1 net metering, giving you full retail credit for excess solar power sent to the grid.
Excess credits roll over monthly throughout the year. Each utility handles annual settlements differently – most cash out remaining credits at reduced wholesale rates ($0.04-$0.07/kWh) in April or May, making proper system sizing important for maximizing benefits.
Yes, solar panels increase home value in Bethesda. A Zillow study shows solar panels increase home value by 4.1%, meaning a $500,000 Bethesda home could gain $20,500 in value with solar installation.
Maryland’s property tax exemption ensures you won’t pay additional taxes on this increased value, maximizing your investment return. Solar homes also sell faster and attract environmentally conscious buyers in the competitive Bethesda market.
Solar costs in Bethesda range from $14,423 to $24,093 after federal tax credits, depending on your home size and energy needs. A typical medium-sized home needs a 9.32 kW system costing $18,712 after incentives.
Maryland’s 6% sales tax exemption and property tax exemptions provide additional upfront savings. Most Bethesda homeowners see 7-8 year payback periods with over $80,000 in 25-year savings from their solar investment.
Yes, solar is financially worth it in Bethesda. With Maryland electricity rates rising 37% since 2020 and excellent solar conditions, most homeowners see 7-8 year payback periods with $80,000+ in lifetime savings.
The 30% federal tax credit, Maryland’s sales tax exemption, and net metering benefits make solar a strong investment that protects against future utility rate increases while adding home value.
We believe Palmetto Solar offers the best solar installation experience in Bethesda. As a national company with local focus, we’ve completed 619 installations across Maryland since 2020, bringing proven expertise to your community.
We provide some of the industry’s best financing options and work with a trusted network of certified installers. Our comprehensive approach covers everything from initial consultation through system activation, ensuring a smooth solar journey for Bethesda homeowners.