Rockville, 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 panels that generate electricity for your home and solar thermal systems that heat water.

To qualify, you must install solar energy equipment on your residential property in Maryland. The law covers equipment that uses solar energy to generate electricity for use in your home or to supply power back to the electric grid, as well as solar systems that provide hot water. There are no income restrictions or application deadlines – the exemption automatically applies once your system is installed and assessed.

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. The savings can be significant – for example, on a $20,000 solar system, you would save $1,200 in sales tax.

This exemption is automatically applied at the point of purchase when you buy qualifying solar equipment from licensed dealers in Maryland. There are no income limits, application deadlines, or special forms to complete. The exemption covers both the equipment itself and any installation services provided by your solar contractor. This state-level benefit works alongside federal tax credits and other incentives to make solar more affordable for Maryland homeowners.

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 funding announcement and can only work with approved contractors from the participating contractor list. 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 systems previously funded through Maryland’s Solar Energy Equity Grant Program are not eligible for this program. Homeowners should also be aware that approved contractors must follow specific consumer protection policies, including minimum benefit requirements to ensure customers receive fair value from their solar installations.

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 certificates 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, SRECs can be sold for additional income beyond your electricity savings. For example, a typical 10kW home solar system producing 12,000 kilowatt-hours annually would generate 12 SRECs per year. You have several options: keep the SRECs to maintain bragging rights about using solar energy, sell them directly to energy suppliers, or work with an SREC aggregator to sell them as part of a group. 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. Keep in mind that SRECs expire after 3 years, so you’ll need to sell or use them within that timeframe.

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 utility 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 month to month throughout the year, effectively using the grid as a battery for your solar energy. However, each utility handles annual reconciliation differently – most utilities cash out remaining credits in April or May at a lower wholesale rate of approximately $0.04-$0.07 per kWh rather than the full retail rate. This means it’s most beneficial to size your solar system to closely match your annual electricity usage. One important consideration for BG&E customers is that time-of-use rate schedules are not compatible with net metering, so you’ll need to remain on a standard rate structure to participate in the program.