Silver Spring, 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 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.

This exemption is permanent and continues for as long as you own the solar equipment. Unlike some incentives that expire, this property tax benefit provides ongoing savings year after year, making it a valuable long-term financial advantage of going solar in Maryland.

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. By eliminating this tax, Maryland makes solar installations more affordable for homeowners looking to reduce their energy costs and environmental impact.

The financial benefit varies based on the total cost of your solar system. For example, on a $20,000 solar installation, you would save $1,200 in sales tax. On a $30,000 system, the savings would be $1,800. There are no income limits or other eligibility restrictions – all Maryland homeowners who purchase qualifying solar equipment automatically receive this exemption. The exemption applies at the time of purchase, so you’ll see the savings immediately rather than waiting for a rebate or tax credit.

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 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 credits have real monetary value and can be sold to energy suppliers who need them to meet Maryland’s renewable energy requirements.

While the source doesn’t specify exact dollar amounts, SRECs can be sold for cash or held for up to 3 years in hopes of better prices. For example, a typical 10kW home solar system producing 12,000 kilowatt-hours annually would earn 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 (GATS). 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. However, your solar panels still reduce your electricity bills regardless of whether you keep or sell the credits.

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 normally pay for electricity.

These credits accumulate month to month throughout the year, helping offset your electric bills during times when your solar system produces less energy, such as winter months or cloudy days. However, the financial benefit varies by utility company. Most Maryland utilities, including Baltimore Gas & Electric, Pepco, and Potomac Edison, cash out any remaining credits in May at a reduced rate of approximately $0.05-$0.07 per kilowatt-hour, which is significantly lower than the retail rate. Delmarva Power and Choptank Electric Cooperative true-up credits in April, while Southern Maryland Electric Cooperative pays around $0.04-$0.05 per kilowatt-hour for excess credits.

It’s important to note that Baltimore Gas & Electric customers on Time-of-Use rate schedules are not eligible for net metering. The program is designed to maximize savings when your solar system is properly sized to match your annual energy consumption, as excess credits are compensated at much lower rates than the retail electricity price you avoid by using your own solar power.