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 Frederick

If you’re a homeowner in Frederick, MD considering solar, you’re in the right place. Maryland electricity prices rose 37% from 2020 to 2024, and at 17.88 cents per kWh, rates here are already above the national average — making it a good time to understand your options.

This guide from Palmetto’s solar experts offers clear, honest answers about home solar panels — from how the technology works to what installation actually looks like in Frederick. No jargon, no pressure — just the information you need.

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
~$82k Frederick average savings over 25 years
02

How Much Do Solar Panels Cost in Frederick, MD?

Using real installation data from Frederick and surrounding communities like Urbana, Middletown, and New Market, this calculator gives you an honest, localized estimate of what solar panels would cost for your home — no guesswork, no gimmicks.

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 rates rose 37% from 2020 to 2024, making Frederick a strong candidate for solar — and giving homeowners more reason to lock in predictable energy costs.
  • Frederick homeowners can save up to $82,000 over 25 years with solar, with a typical payback period of around 10 years on a cash purchase.
  • Maryland offers meaningful solar incentives — including grants, SREC income, a sales tax exemption, a property tax exemption, and full retail-rate net metering.
05

Frederick Electricity Prices

Electricity in Maryland has gotten more expensive — and Frederick homeowners are feeling it.

Maryland’s average electricity rate climbed from 13.1 cents per kWh in 2021 to 17.9 cents in 2024 — a 37% increase in just three years, now above the national average of 16.5 cents per kWh.

Solar installation in Frederick can help offset that cost. By generating your own electricity at home, you rely less on the grid — and less on utility rates that have consistently trended upward.

Over a 25-year system lifespan, even modest protection against rate increases can add up meaningfully — giving Frederick homeowners more predictability over one of their largest recurring household expenses.

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

Frederick Area Utility Providers

In Frederick, MD, the primary electricity provider is Potomac Edison. Based on 2023 data — the most recent available — Potomac Edison’s rate is 11.70¢ per kWh.

That rate is actually below both the 2023 Maryland state average (16.60¢/kWh) and the national average (16.0¢/kWh). Potomac Edison benefits from a diverse generation mix, helping keep local rates comparatively low.

Even so, utility rates change over time. Solar can help Frederick homeowners lock in more predictable energy costs — reducing exposure to future rate increases, regardless of where rates start today.

Frederick Utilities Electricity Rates

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

Maryland Solar Incentives

Frederick homeowners have access to several solar incentives in Maryland — including state grants, tax exemptions, and net metering — that can meaningfully reduce the cost of going solar.

Maryland offers statewide programs like the Solar Access Grant, SREC income, a full sales tax exemption, a property tax exemption, and retail-rate net metering. Frederick residents should verify directly with Frederick County whether any local property tax credits apply, as the county-level credits listed here cover other Maryland counties.

Recent federal legislation eliminated the residential solar tax credit, so state programs are now the primary incentives available. If you lease through Palmetto’s LightReach program, Palmetto applies the commercial tax credit and passes savings through 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 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 Frederick may qualify for this program. 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, including homeowners in Frederick, 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, including those in Frederick, 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. Net metering is available across all major Maryland utilities, including BGE, Pepco, Potomac Edison, and Delmarva Power.

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.

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

Frederick 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.

Frederick, MD enjoys four distinct seasons, with long summer days boosting solar output. Even cloudy winters produce meaningful energy. Most homes here are well-suited for solar year-round.

Solar Production in Frederick 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 Frederick

We’ve mapped every solar installation across the U.S. — and Frederick, MD is lighting up! Explore the heatmap below to see which neighborhoods in your community have already made the switch to solar. Click any hexagon to see how many of your neighbors have gone solar!

09

Leasing Solar Panels

If you’d rather not pay the full cost of solar upfront, Palmetto offers an alternative through its LightReach program. In Maryland — including Frederick — a Power Purchase Agreement (PPA) is available. With a PPA, you pay only for the electricity your panels produce, at a fixed rate per kilowatt-hour (kWh), rather than a large upfront sum. Because solar panels generate more energy in summer than winter, your monthly solar bill will naturally fluctuate with the seasons — but your annual savings remain consistent.

Compared to a cash purchase, a PPA has a few meaningful advantages. There’s no upfront investment to recoup, no loan to manage, and — importantly — Palmetto owns and maintains the system. That means if something needs repair or servicing, it’s on us, not you. You simply use the energy and pay for what’s produced. Learn more about how buying compares to leasing solar.

For Frederick homeowners served by Potomac Edison — the area’s primary utility — a PPA through LightReach can be a practical way to start saving on electricity without the complexity of ownership. It’s a straightforward arrangement: clean energy on your roof, predictable costs, and no maintenance headaches.

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 sense for many Frederick homeowners. Maryland electricity rates have risen 37% since 2020, and at 17.9¢/kWh, they’re above the national average. Frederick receives an average of 4.8 peak sun hours per day, and homeowners can save an estimated $82,000 over 25 years with a typical payback period around 10 years.

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

Yes, Frederick, MD has net metering. Frederick is primarily served by Potomac Edison, which offers 1:1 net metering — meaning you receive a full retail-rate credit for every kilowatt-hour of excess solar energy you send back to the grid. Unused credits roll over month to month, so summer surplus can offset your winter bills.

Each May, Potomac Edison conducts an annual true-up, paying out any remaining excess credits at the generation portion of the rate (approximately $0.05–$0.07/kWh), after which your account resets to zero. This is one of the stronger net metering policies in the country.

Yes, solar panels can increase your home value in Frederick, MD. According to a Zillow study, homes with solar panels sell for approximately 4.1% more than comparable homes without them. For a $400,000 home in Frederick, that could mean roughly $16,400 in added value.

Maryland also offers a statewide property tax exemption for solar installations, meaning the added home value from your solar system won’t increase your property tax bill — giving Frederick homeowners both a market value boost and ongoing tax protection.

With Palmetto’s LightReach lease, Frederick homeowners can go solar for a low fixed monthly payment starting around $84–$148/mo — 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 own your system outright, a cash purchase for a typical Frederick home runs approximately $20,600–$34,400 depending on system size. 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 Frederick homeowners, solar can be worth it financially — especially with a lease option that requires no upfront investment. With Palmetto’s LightReach program, your monthly lease payment is typically less than your current electricity bill, meaning you can start saving from day one.

With Maryland electricity rates up 37% since 2020, locking in a predictable solar payment makes financial sense. Frederick homeowners who purchase outright can save an estimated $82,000 over 25 years, with a payback period of around 10 years.

Palmetto Solar is a strong choice for Frederick, MD homeowners. We’re a national company with a local focus — having completed 619 installations across Maryland since 2020. We offer some of the industry’s best financing options, including our LightReach lease program with no upfront cost, plus a vetted install network that handles everything from permitting to activation.

With an approval rating above 85% and 20,000+ customers served across 31 states, we bring both experience and accountability to every installation in Frederick and the surrounding communities.

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. Because Palmetto owns the system, it claims the commercial Investment Tax Credit and passes those savings to you through lower monthly payments.

For a typical 9.32 kW system in Frederick, MD, the estimated monthly lease payment is approximately $113/month — often less than your current electricity bill, so many homeowners start saving from day one.