Frederick, MD

Maryland’s Property Tax Exemption for solar energy systems removes your solar installation from your property tax assessment. This means you won’t pay additional property taxes on the value that your solar panels add to your home, even though they typically increase your property’s market value.

The financial benefit varies based on your local property tax rate and the value of your solar system. For example, if your solar installation 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. This exemption applies to both solar photovoltaic systems that generate electricity and solar thermal systems that heat water.

The law covers ‘solar energy property’ which includes equipment installed to use solar energy to generate electricity for your home or to supply the electric grid, as well as systems that provide solar-heated water. There are no specific deadlines mentioned in the statute, and the exemption appears to apply as long as the solar equipment remains on your property. Homeowners should verify with their local tax assessor that the exemption is being properly applied to their property tax bill after 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 installation, helping reduce the upfront cost of going solar.

The financial benefit varies based on your system size, but homeowners typically save hundreds to thousands of dollars. For example, on a $20,000 solar system, you would save $1,200 in sales tax. This exemption is automatic at the point of purchase – you don’t need to apply for it or file any paperwork. The exemption applies to both the equipment and any installation services provided by your solar contractor.

All Maryland homeowners who purchase qualifying solar energy equipment are eligible for this exemption. There are no income limits, system size restrictions, or application deadlines. The exemption is available as long as Maryland’s solar sales tax exemption law remains in effect. This benefit works alongside other solar incentives like the federal tax credit, helping make solar more affordable for Maryland families.

The Maryland Solar Access Program is a state-funded grant program that helps eligible Maryland residents install solar panels on their homes. 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, meaning applications are processed in the order they are received.

While the exact grant amount is not specified in the available information, the program has a total budget of $15 million for fiscal year 2025, with nearly half of those funds already reserved for eligible projects. To qualify, homeowners must meet income requirements detailed in the program’s official documentation. 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 only approved contractors from the program’s participating contractor list can install systems eligible for grants. Additionally, homes that have already received funding from Maryland’s Solar Energy Equity Grant Program are not eligible for this program. Homeowners should review the consumer protection policies and work with approved contractors to ensure compliance with all program requirements.

Solar Renewable Energy Credits (SRECs) are special certificates that Maryland homeowners earn for every 1,000 kilowatt-hours (1 megawatt-hour) of electricity their solar panels produce. Think of them as rewards for generating clean energy – you get one SREC for each megawatt-hour your system creates. These credits have real monetary value and can be sold to energy suppliers who need them to meet Maryland’s renewable energy requirements.

While the source doesn’t specify exact dollar amounts (SREC prices fluctuate based on market demand), homeowners can either sell their SRECs for income or keep them to maintain bragging rights about using solar energy. 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 (GATS). SRECs have a 3-year lifespan, giving you flexibility in when to sell them. Keep in mind that if you sell your SRECs, the buyer can claim to be using solar energy – not you.

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 solar credits from month to month throughout the year. However, each utility handles annual reconciliation differently. Most utilities, including BG&E, Pepco, and Potomac Edison, settle remaining credits in May at a reduced rate of $0.05-$0.07 per kWh before resetting your account to zero. Delmarva Power and Choptank Electric reconcile credits each April at their commodity rate, while SMECO pays out at approximately $0.04-$0.05 per kWh. It’s important to note that BG&E customers on time-of-use rate schedules are not eligible for net metering, so you’ll want to confirm your rate structure with your utility before installing solar panels.