Hyattsville, 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 solar systems typically increase property values significantly.

The exemption applies to all solar energy equipment installed on your property, including solar panels, inverters, and related components used to generate electricity for your home or to supply power back to the electric grid. The law also covers solar thermal systems that provide hot water for your home. There are no dollar limits on this exemption – it applies to the full assessed value of your solar energy system regardless of size or cost.

To qualify, you simply need to install qualifying solar energy equipment on your residential property in Maryland. The exemption automatically applies once your system is installed and assessed – no special application is required. This tax benefit continues for as long as you own the solar system, making it a valuable long-term financial advantage that helps offset the initial investment in clean energy for your home.

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 energy system installation.

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. There are no income limits or other eligibility restrictions – all Maryland homeowners who purchase qualifying solar equipment automatically receive this exemption at the point of sale.

This exemption is permanent under current Maryland law, with no expiration date or deadline to worry about. The tax savings are applied automatically when you purchase your solar system from a qualified installer, so you don’t need to file any additional paperwork or wait for a rebate check.

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 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 solar installations must be performed by contractors on the program’s approved Participating Contractor List, and systems that have already received funding from Maryland’s Solar Energy Equity Grant Program are not eligible. The program includes consumer protection policies to ensure homeowners receive fair pricing and quality installations. Homeowners interested in this program should review the detailed guidance documents and work with approved contractors to navigate the application process successfully.

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 have real financial value because energy suppliers are required by state law to purchase them to meet Maryland’s renewable energy goals.

While the source doesn’t specify exact dollar amounts (SREC prices fluctuate based on market demand), homeowners can sell these credits for additional income beyond their electricity savings. 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 sign up with PJM’s Generator Attribute Tracking System. SRECs remain valid for 3 years, giving you flexibility to sell immediately or wait for potentially higher prices. Keep in mind that if you sell your SRECs, you can no longer claim to be using solar energy yourself – that environmental benefit transfers to the buyer.

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.

These credits accumulate on your account and can be used to offset your electricity costs during months when your solar system produces less energy, such as during winter or cloudy periods. However, the financial benefit varies by utility company across Maryland. At the end of each program year (typically in April or May), any remaining excess credits are paid out at a lower rate ranging from approximately $0.04 to $0.07 per kilowatt-hour, depending on your utility provider. After this annual settlement, your credit balance resets to zero.

All major Maryland utilities participate in this program, including Baltimore Gas & Electric, Pepco, Potomac Edison, Delmarva Power, Southern Maryland Electric Cooperative, and Choptank Electric Cooperative. It’s important to note that if you’re a Baltimore Gas & Electric customer, you cannot combine net metering with certain time-of-use rate schedules, so you’ll want to discuss your rate options with your utility company when installing solar panels.