Gaithersburg, MD Solar Panels
In This Guide
Solar Power in Gaithersburg
If you’re a Gaithersburg homeowner thinking about solar, you’re not alone. Maryland electricity prices have increased 37% from 2020 to 2024, and more residents are turning to home solar panels as a practical way to manage their energy costs.
This guide walks you through everything you need to know about solar installation in Gaithersburg, MD — from how the process works to what local incentives are available in Montgomery County. We’ll keep it simple and straightforward.
How Much Do Solar Panels Cost in Gaithersburg, MD?
Curious what solar actually costs in Gaithersburg? We built this calculator using real installation data from homes across Gaithersburg, Rockville, North Potomac, and Germantown. Get a local, honest estimate based on what your neighbors are actually paying.
System
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Key Takeaways
- Maryland electricity prices have risen 37% since 2020, making solar an increasingly practical way for Gaithersburg homeowners to manage monthly energy costs.
- Gaithersburg homeowners can save an average of ~$84,000 over 25 years with solar, with a typical payback period of around 10 years.
- Maryland offers strong solar incentives — including SRECs, a full sales tax exemption, property tax protections, and a Montgomery County property tax credit.
Gaithersburg Electricity Prices
Electricity in Gaithersburg has gotten more expensive. Here’s what the data shows — and what some homeowners are doing about it.
Maryland’s electricity rate climbed from 13.1 cents per kWh in 2021 to 17.9 cents per kWh in 2024 — a rise of over 36%. That’s a faster increase than the national average over the same period.
Solar panels allow homeowners to generate their own electricity, reducing how much they draw from the grid. As utility rates rise, producing your own power becomes an increasingly practical way to manage monthly energy costs.
A solar system typically comes with a 25-year panel warranty. Over that time, locking in a portion of your energy supply can provide meaningful insulation against continued rate increases — a long-term benefit that compounds as electricity prices grow.
Price of Energy: Maryland vs National Average
Gaithersburg Area Utility Providers
In Gaithersburg, MD, the primary electricity provider is Pepco. Based on the most recent 2023 data available, Pepco’s rate is 18.2¢ per kWh — above both the Maryland state average of 16.60¢ and the national average of 16.0¢.
Pepco’s higher rate reflects the costs of maintaining transmission infrastructure across a dense, high-demand region. Serving the greater Washington, D.C. metro area means significant grid upkeep, which contributes to rates above state and national averages.
When your local rate exceeds the national average, each kilowatt-hour your solar panels produce offsets a higher cost. For Gaithersburg homeowners, that math makes understanding your electricity rate an important starting point.
Gaithersburg Utilities Electricity Rates
Maryland Solar Incentives
Gaithersburg homeowners can take advantage of several solar incentives in Maryland — including state programs and a Montgomery County property tax credit — to help lower the cost of solar installation.
Maryland offers statewide incentives like SRECs, a full sales tax exemption on solar equipment, a property tax exemption, and net metering at full retail rates. Eligible low- and moderate-income homeowners may also qualify for the Maryland Solar Access Program grant.
Note: Recent federal legislation eliminated the residential solar tax credit. State and local incentives still apply. With a Palmetto LightReach solar lease, Palmetto handles 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 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 |
| Montgomery County Solar Property Tax Credit | Property Tax Exemption | Montgomery County offers a local property tax credit for residential solar energy system installations. | |
| 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 Gaithersburg 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, 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. 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.
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 Maryland resident or business, including those in Gaithersburg.
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.
Montgomery County offers a county-level property tax credit for residential homeowners who install a qualifying solar energy system. Homeowners in Gaithersburg, located within Montgomery County, are eligible for this credit. It is applied directly to your Montgomery County property tax bill and is separate from Maryland’s statewide property tax exemption.
The credit is stackable with the statewide exemption, providing Montgomery County homeowners with multiple layers of property tax protection when going solar. Montgomery County residents may also have access to specialized low-interest solar financing through the Montgomery County Green Bank, which offers a 30-year solar loan program with 0% interest for the first 10 years for homes in Equity Emphasis Areas.
Contact the Montgomery County tax authority for specific credit amounts, application forms, and submission requirements. As with other county credits, this benefit is awarded on a one-time basis following a qualifying solar installation.
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.
Get a Free QuoteGaithersburg 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.
Gaithersburg gets four distinct seasons, with snowy winters and humid summers. Despite some cloudy days, the area receives enough sunlight year-round to make solar a smart, productive investment.
Solar Production in Gaithersburg 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 Panel Systems in Gaithersburg
We’ve mapped solar installations across Gaithersburg to show just how many of your neighbors have already made the switch. Explore the map below to see which communities and neighborhoods are leading the way on solar — your street might surprise you!
Leasing Solar Panels
In Maryland, Palmetto offers a Power Purchase Agreement (PPA) through its LightReach program. This option is available to Gaithersburg homeowners served by Pepco, BGE, Potomac Edison, Delmarva Power, SMECO, and Choptank Electric Cooperative.
With a PPA, you pay for the solar energy your system produces at a fixed rate per kilowatt-hour (kWh) — rather than paying full price for a system upfront. Because solar panels produce more electricity in summer than winter, your monthly solar bill will naturally vary with the seasons. Over the course of a year, the total cost averages out. There’s no large upfront investment, and Palmetto owns and maintains the system throughout the agreement. Learn more about how a PPA compares to buying solar outright.
Compared to a cash purchase, a PPA means no out-of-pocket installation costs, no loan to manage, and no maintenance responsibilities. If something needs repair, Palmetto handles it. For many Gaithersburg homeowners, this is a straightforward way to start reducing electricity bills without the complexity of owning and servicing the equipment yourself.
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 LeasingFrequently Asked Questions
Yes, solar makes strong financial sense for Gaithersburg homeowners. Maryland electricity rates have risen 37% since 2020, and Pepco’s local rate of 18.2¢/kWh sits above both state and national averages. With 4.8 peak sun hours daily, a typical system can save around $84,000 over 25 years with a ~10-year payback. Maryland also offers SRECs, a sales tax exemption, and a Montgomery County property tax credit.
If upfront cost is a concern, Palmetto’s LightReach lease program removes that barrier entirely — Gaithersburg homeowners can go solar with no money down and start saving from day one.
Yes, Gaithersburg homeowners have access to 1:1 net metering through Pepco, the primary utility serving the area. When your solar panels produce more electricity than your home uses, the excess is sent to the grid and credited to your account at the full retail rate. Unused credits roll over month to month indefinitely.
Each year in May, Pepco conducts an annual true-up, cashing out any remaining excess credits at a variable rate of approximately $0.05–$0.07 per kWh, after which your credit balance resets to zero.
Yes. Research from Zillow found that homes with solar panels sell for about 4.1% more than comparable homes without them. For a Gaithersburg home at the median price, that could mean tens of thousands of dollars in added value.
Maryland also protects homeowners from higher property taxes due to solar — the state’s property tax exemption ensures your assessment won’t increase simply because you added solar panels. Montgomery County offers an additional local property tax credit, making solar a financially sound improvement for Gaithersburg homeowners.
With Palmetto’s LightReach lease, Gaithersburg 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, so there’s nothing out of pocket to get started.
For homeowners who prefer to own their system outright, a cash purchase for an average-sized Gaithersburg home runs approximately $20,600–$34,400 depending on system size. Note that the federal 30% residential solar tax credit is no longer available following the Big Beautiful Bill. Use the solar cost calculator above for a more specific estimate.
For Gaithersburg homeowners, solar can make strong financial sense — especially with a lease option. With Palmetto’s LightReach program, there’s no upfront cost. Your monthly lease payment is typically less than your current Pepco bill, meaning most homeowners start saving immediately on day one.
For those who purchase outright, a typical Gaithersburg system saves an estimated ~$84,000 over 25 years with a ~10-year payback. Maryland’s rising electricity rates — up 37% since 2020 — make locking in a fixed energy cost increasingly valuable over time.
Palmetto Solar is a strong choice for Gaithersburg homeowners. We’ve completed 619 installations across Maryland since 2020, bringing national expertise with a local focus. Our install network is vetted, and we offer some of the most flexible financing options available — including our LightReach lease with no upfront cost.
For homeowners who prefer to own, we also offer competitive cash purchase pricing. Either way, we handle the process from design through installation and beyond, so Gaithersburg residents have a reliable partner for the life of their system.
With Palmetto’s LightReach lease, Gaithersburg homeowners can go solar with no upfront cost. One simple monthly payment covers everything — the system, installation, monitoring, maintenance, and a 90% Production Guarantee. For a typical 9.32 kW system in Gaithersburg, 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 monthly payments — an advantage cash buyers no longer have. Most Gaithersburg homeowners find their lease payment is less than their current Pepco bill, so savings start from day one.