Nathan Healy
Certified by Nathan Healy
Updated: July 2025
Quality Solar Solutions Since 2011
Palmetto has served 20,000+ customers across 31 states with an approval rating over 85%.
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Solar in Rockville

Rockville residents are discovering the benefits of solar energy as Maryland ranks 10th for residential solar installations nationwide. With electricity prices 37% higher than they were in 2020, many homeowners are exploring solar panels for their homes as a way to take control of their energy costs.

This guide covers everything you need to know about solar installation in Rockville, from local incentives to choosing the right system for your home.

MARYLAND by the Numbers

6th Most residential solar in the United States
159k Households have installed solar panels
~$8k Maryland average solar rebate savings
~$84k Rockville average savings over 25 years
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Key Takeaways

  • Rockville homeowners save an average of $84,000 over 25 years with solar panels, thanks to high local electricity rates.
  • Maryland offers excellent solar incentives including 30% federal tax credit plus property and sales tax exemptions.
  • Solar systems in Rockville produce year-round energy even during winter months, making them surprisingly effective here.
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Palmetto Reviews

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Solar Cost Calculator

Our solar cost calculator uses real installation data from Rockville neighborhoods like Twinbrook, King Farm, and West End Park. Get accurate pricing estimates based on actual local projects, not generic estimates.

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
Cost Breakdown
Your estimated investment
System Cost
$26731
Federal Tax Credit (30%)
$-8019
Final
Cost
$18712
Savings
Your total financial benefit
Monthly Savings
Average utility bill reduction
$192
Payback Period
Break-even point
7.3 years
25-Year
Savings
$84056
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Rockville Electricity Prices

Understanding electricity costs in Rockville helps homeowners make informed decisions about their energy future and monthly budgets.

Maryland electricity rates have climbed from 13.1 cents per kWh in 2021 to 17.9 cents in 2024, representing a significant 37% increase over three years.

Solar panels generate electricity at a fixed cost, helping homeowners avoid these rising utility rates while producing clean energy directly from their rooftops.

Over 25 years, solar systems can provide predictable energy costs, protecting households from future rate increases while building long-term savings and energy independence.

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

Rockville Area Utility Providers

Rockville residents receive electricity from two main utilities: BGE at 16.5¢ per kWh and Pepco at 18.2¢ per kWh, based on 2023 data.

Both utilities charge above the 2023 national average of 16.0¢ per kWh, with Pepco rates exceeding even Maryland’s state average of 16.60¢ per kWh.

These higher electricity rates mean Rockville homeowners pay more for grid power, making solar’s fixed energy costs increasingly attractive for long-term savings.

Rockville Utilities Electricity Rates

BGE
16.50¢
+3%
Pepco
18.20¢
+14%
MD Average
16.60¢
+4%
US Average
16.0¢
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Maryland Solar Incentives

Rockville homeowners can significantly reduce solar installation costs through various solar incentives in Maryland available at federal and state levels.

Maryland offers property and sales tax exemptions, plus the new Solar Access Program providing up to $7,500 for qualifying households, replacing the previous $1,000 rebate system.

These incentives change frequently and operate on first-come, first-served basis. Research current programs thoroughly to maximize your solar investment savings.

$8,019

Average savings in Maryland solar rebates

Incentive Type Description Source
Residential Clean Energy Credit Federal tax credit A federal tax credit worth 30% the cost of a solar panel system in the year it’s installed Learn More
Property Tax exemption State tax exemption Prevents property tax increases from solar installations. Savings from MD’s 1.05% property tax rates. Learn More
Sales Tax exemption State tax exemption 6% Tax exemption. No state sales tax on solar equipment and installation. Saves $1,200 on a $20k system upfront. Learn More
Solar Access Program State program Up to $7,500 ($750/kW). Income-qualified grant (=150% state median income). Replaces previous $1,000 rebate in 2025. First-come, first-served. Learn More
Solar Renewable Energy Credits (SRECs) State program Extra income from selling credits. 6kW system (~8 MWh/year) earns about $400/year. Prices vary with market. Learn More

The Residential Clean Energy Credit lets people claim a tax credit worth 30% the cost of a solar panel system in the year it’s installed. The credit can only be used against taxes you owe or have already paid that year, but any excess credit can be rolled over to future years.

The credit is broadly available, though there are a few restrictions — you must own the panels and they must be on a house you live in — so be sure to consult a tax professional about your situation.

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 approximately $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, your solar equipment must be installed on residential property and used to generate electricity for your home or provide hot water. The law covers ‘solar energy property’ broadly, including both photovoltaic systems and solar thermal equipment. There are no income restrictions or application deadlines – the exemption automatically applies once your system is installed and assessed. This benefit continues for as long as you own the solar equipment, making it a long-term financial advantage of going solar in Maryland.

Maryland’s Sales Tax Exemption for solar energy systems eliminates the state’s 6% sales tax on solar equipment purchases. This means homeowners don’t pay sales tax when buying solar panels, inverters, batteries, and other qualifying solar equipment for their home installation.

The exemption applies to all solar energy equipment and components purchased for residential use in Maryland. While the provided documentation doesn’t specify exact eligibility requirements or time limitations for this solar-specific exemption, it appears to be an ongoing benefit available to Maryland homeowners who purchase qualifying solar equipment. This exemption can save homeowners hundreds or thousands of dollars depending on the size and cost of their solar system, making clean energy 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. Created through the Brighter Tomorrow Act of 2024, 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 with a two-step application process. First, eligible homeowners reserve funding through an initial application. Then, they have 180 days to complete their solar installation with an approved contractor from the state’s participating contractor list. The exact grant amounts are not specified in the available information, but the program has a $15 million budget for fiscal year 2025, with about 47% already reserved as of June 2025.

To qualify, homeowners must meet income requirements detailed in the program’s funding announcement. Only solar systems installed by contractors on the state’s approved participating contractor list are eligible for grants. Important note: homes that have already received funding from Maryland’s Solar Energy Equity Grant Program cannot receive additional funding through this program.

The FY25 program stopped accepting applications on June 13, 2025, but the FY26 program is expected to open in July 2025. Homeowners interested in future funding should monitor the Maryland Energy Administration website for updates and ensure their chosen contractor is on the approved list before signing any contracts.

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 can be sold to energy suppliers who need them to meet Maryland’s renewable energy requirements, providing an additional income stream beyond your electricity savings.

While the source doesn’t specify exact dollar amounts, SRECs have market value that fluctuates based on supply and demand. 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. SRECs have a 3-year lifespan, so you can hold them hoping for better prices or sell them immediately. 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. These credits can be carried over from month to month throughout the year, helping offset your electric bills during times when your panels produce less energy, like winter months or cloudy days.

The financial benefit varies by utility company, but all major Maryland utilities offer this program including Baltimore Gas & Electric, Pepco, Potomac Edison, Delmarva Power, SMECO, and Choptank Electric Cooperative. At the end of each program year (typically in April or May), any remaining excess credits are paid out at a lower wholesale rate of approximately $0.04-$0.07 per kWh, and your account resets to zero. It’s important to note that if you’re a BG&E customer, you cannot combine net metering with time-of-use rate schedules. This program helps maximize the value of your solar investment by ensuring you receive credit for every kilowatt-hour your system produces.

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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Rockville 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.

Rockville’s mid-Atlantic climate brings seasonal variations and occasional cloud cover, but modern solar systems efficiently capture sunlight year-round, making solar surprisingly effective here.

Solar Production in Rockville 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
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Solar Installations in Rockville

We’ve mapped every solar installation across America to show you something exciting: your Rockville neighbors are embracing clean energy! Click any hexagon to discover how many homes in that area have made the switch to solar.

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Leasing Solar Panels

Rockville homeowners have access to Power Purchase Agreements (PPAs) through all major local utilities, including Pepco and Baltimore Gas & Electric. With a PPA, you pay only for the solar electricity your system generates at a fixed rate, typically lower than your current utility rate.

Unlike purchasing solar panels outright, PPAs require no upfront investment and include system maintenance, monitoring, and repairs at no additional cost. This means you can start saving on electricity immediately while Palmetto handles all system performance and upkeep responsibilities.

PPAs offer predictable energy costs that protect you from rising utility rates, which have increased 37% in Maryland since 2020. Learn more about solar financing options or explore our LightReach program designed specifically for hassle-free solar adoption.

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!

Learn More
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Frequently Asked Questions

Yes, solar makes excellent sense in Rockville due to high local electricity rates and strong Maryland incentives. Rockville homeowners save an average of $84,000 over 25 years with solar panels.

Maryland’s 30% federal tax credit, plus property and sales tax exemptions, significantly reduce upfront costs. With electricity rates 37% higher than 2020 levels, solar provides predictable energy costs and protection from rising utility bills.

Yes, Rockville has net metering through both major local utilities. BGE and Pepco offer 1:1 net metering, giving you full retail credit for excess solar energy sent to the grid.

Both utilities allow monthly credit rollover throughout the year, with annual true-ups in April or May at wholesale rates of $0.05-$0.07/kWh. This helps maximize your solar savings year-round.

Yes, solar panels increase home value in Rockville, MD. Research shows solar installations typically add 4.1% to property values, according to Zillow’s study.

For Rockville’s median home price, this translates to approximately $25,000 in added value. Maryland’s property tax exemption means you won’t pay additional taxes on this increased value, maximizing your investment return.

Solar costs in Rockville range from $14,400-$24,100 after federal tax credits, depending on your home size and energy needs. A typical medium-sized home requires a 9.3 kW system costing approximately $18,700 after incentives.

Maryland’s 30% federal tax credit, property tax exemption, and sales tax exemption significantly reduce upfront costs. Most Rockville homeowners see payback periods of 7-8 years with $84,000 in 25-year savings.

Solar is financially worth it in Rockville due to high electricity rates and strong Maryland incentives. Homeowners typically save $84,000 over 25 years with payback periods of 7-8 years.

With electricity rates 37% higher than 2020 levels and the 30% federal tax credit reducing upfront costs, solar provides predictable energy expenses while protecting against future utility rate increases.

Palmetto Solar is a leading choice for Rockville homeowners seeking solar installation. We’ve completed 619 installations across Maryland since 2020, building strong expertise in local requirements and utility connections.

Our comprehensive approach includes competitive financing options, experienced installation networks, and ongoing support throughout your solar journey. We handle everything from permits to utility interconnection, making the process seamless for Rockville residents.