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%.
01

Solar in Silver Spring

Silver Spring residents are turning to solar as Maryland ranks 10th for residential installations nationwide. With electricity prices rising 37% from 2020 to 2024, solar panels can help reduce your monthly energy costs.

Understanding your options starts with the basics. Our guide to home solar panels covers everything you need to know about solar installation in Silver Spring.

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 Silver Spring average savings over 25 years
02

Key Takeaways

  • Silver Spring residents save an average of $84,000 over 25 years with solar panels while Maryland ranks 6th nationally for residential installations.
  • Maryland electricity costs jumped 37% from 2020-2024 making solar panels an effective way to lock in stable energy costs.
  • Multiple incentives reduce solar costs significantly including 30% federal tax credits, property tax exemptions, and state rebate programs.
03

Palmetto Reviews

04

Solar Cost Calculator

Our calculator uses real installation data from Silver Spring neighborhoods like Takoma Park, Wheaton, and Kensington. Get accurate solar costs based on actual local projects, not estimates. See what your neighbors really paid for their solar systems.

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
$83813
05

Silver Spring Electricity Prices

Silver Spring residents face rising electricity costs that have increased significantly over the past few years.

Maryland electricity rates jumped from 13.1 cents per kWh in 2021 to 17.9 cents in 2024—a 37% increase that outpaced national averages.

Solar panels generate your own electricity, helping shield your household from these rising utility rates while reducing monthly energy bills naturally.

Over 20-25 years, solar systems can provide stable energy costs while traditional electricity rates continue climbing, offering long-term financial protection.

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

Silver Spring Area Utility Providers

Silver Spring residents receive electricity from two main utilities: BGE at 16.5¢ per kWh and Pepco at 18.2¢ per kWh (2023 data).

Both utilities charge above the 2023 national average of 16.0¢ per kWh, with Pepco significantly higher at 18.2¢ due to regional infrastructure costs.

Higher electricity rates mean greater potential savings from solar panels, as each kWh your system produces offsets these premium utility costs.

Silver Spring Utilities Electricity Rates

BGE
16.50¢
+3%
Pepco
18.20¢
+14%
MD Average
16.60¢
+4%
US Average
16.0¢
06

Maryland Solar Incentives

Silver Spring homeowners can significantly reduce solar costs through multiple solar incentives in Maryland at federal and state levels.

Maryland offers property and sales tax exemptions, income-qualified grants up to $7,500, and ongoing revenue through Solar Renewable Energy Credits and net metering programs.

These incentives change frequently and operate on first-come, first-served basis. Research current programs thoroughly before making solar decisions.

$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 added value that solar panels bring 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 annually 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 solar system is installed and assessed.

This exemption continues for as long as you own the solar equipment, making it a long-term financial benefit. The savings are automatic – you don’t need to file special paperwork each year, as your local tax assessor will handle the exemption when calculating your property taxes.

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 exemption helps reduce the upfront cost of going solar by eliminating hundreds or thousands of dollars in sales tax on your solar purchase.

There are no income limits, system size restrictions, or application deadlines for this exemption – it’s automatically applied at the point of sale when you purchase qualifying solar equipment. The exemption covers both the equipment itself and any installation materials needed for your solar system. However, the exemption does not apply to general construction materials, tools, or labor costs associated with installation. Your solar installer should automatically apply this exemption when calculating your system cost, but it’s worth confirming that sales tax has been removed from your solar equipment purchase.

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 through aggregators or directly to suppliers.

One important consideration: if you sell your SRECs, you can no longer claim to be using solar energy yourself – that environmental benefit transfers to the buyer. You’ll need to decide whether you prefer the financial return from selling or want to keep the environmental bragging rights of using your own clean energy.

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 (like winter months or cloudy days). However, the financial benefit varies by utility company. Most Maryland utilities, including Baltimore Gas & Electric, Pepco, and Potomac Edison, conduct an annual “true-up” in April or May where any remaining excess credits are paid out at a lower wholesale rate of approximately $0.04-$0.07 per kWh rather than the full retail rate. After this annual settlement, your credit balance resets to zero.

It’s important to note that some rate schedules may not be compatible with net metering – for example, Baltimore Gas & Electric’s time-of-use rate schedules are not eligible. The specific terms and true-up timing can vary depending on your utility company, so homeowners should verify the exact details with their local electric provider when considering solar installation.

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 Quote
07

Silver Spring 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.

Silver Spring’s humid subtropical climate brings seasonal variations in sunlight and occasional cloud cover, but modern solar systems efficiently capture energy year-round.

Solar Production in Silver Spring 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
08

Solar Installations in Silver Spring

We’ve mapped every solar installation across America to create this interactive heatmap of Silver Spring. Click any hexagon to discover how many neighbors in your community have already made the switch to clean energy!

09

Leasing Solar Panels

Silver Spring residents have access to Power Purchase Agreements (PPAs) through all major utility providers in Maryland, including BGE and Pepco. With a PPA, you pay only for the solar energy your panels produce at a fixed rate per kilowatt-hour, typically lower than your current utility rates.

Unlike paying cash upfront for a solar system, PPAs require no initial investment and include all maintenance and repairs. You start saving immediately while Palmetto handles system monitoring, cleaning, and any needed fixes throughout the agreement term.

PPAs offer predictable energy costs that protect you from rising utility rates while supporting clean energy. Learn more about solar financing options or explore our LightReach program for additional solar solutions in Silver Spring.

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
10

Frequently Asked Questions

Yes, solar makes excellent sense in Silver Spring due to favorable conditions including high electricity rates, strong state incentives, and good solar production potential.

Silver Spring residents face electricity costs of 17.9¢ per kWh—significantly above the national average—making solar savings substantial. Combined with Maryland’s 30% federal tax credit, property tax exemptions, and net metering programs, homeowners typically save around $84,000 over 25 years while reducing their carbon footprint.

Yes, Silver Spring has net metering through both major utility providers. BGE and Pepco offer 1:1 net metering, giving you full retail credit for excess solar energy sent back to the grid.

Excess credits roll over monthly throughout the year, then get paid out at wholesale rates ($0.05-$0.07/kWh) during annual true-up periods in April or May. This system helps maximize your solar savings by crediting surplus production at full retail rates.

Yes, solar panels typically increase home values in Silver Spring, MD. Research shows solar installations boost property values while Maryland’s property tax exemption protects homeowners from higher taxes on the added value.

A Zillow study found solar panels increase home values by 4.1% nationally. For Silver Spring’s median home price around $500,000, this represents approximately $20,500 in added value—often exceeding the net cost of solar installation after incentives.

Solar costs in Silver Spring range from $14,423 to $24,093 after federal tax credits, depending on your home size and energy needs.

For a typical 2,000-3,000 sq ft home, expect to pay around $18,712 after the 30% federal tax credit. This includes a 9.32 kW system that offsets approximately 100% of average electricity usage, with additional state incentives potentially reducing costs further.

Solar is financially worth it for most Silver Spring homeowners. With electricity rates at 17.9¢ per kWh and rising, solar systems typically pay for themselves in 7-8 years through monthly savings.

After payback, homeowners enjoy 15+ years of essentially free electricity, with total 25-year savings averaging $84,000. Federal tax credits, state incentives, and net metering programs further improve the financial returns on solar investments.

We’re Palmetto Solar – a national company with strong local presence in Maryland, where we’ve completed 619 installations since 2020.

We offer comprehensive financing options and work with trusted installation partners to deliver quality solar systems. Our focus is providing reliable service and transparent information to help Silver Spring homeowners make informed solar decisions.