Silver Spring, MD Solar Panels

Maryland’s Property Tax Exemption for solar energy systems means that when you install solar panels on your home, the added value they bring to your property won’t increase your property taxes. Normally, home improvements that increase your property’s value result in higher property taxes, but Maryland law specifically exempts solar energy equipment from this assessment. This exemption applies to equipment installed to generate electricity for use in your home or to supply power to the electric grid, as well as solar thermal systems that provide hot water.

The financial benefit of this exemption can be substantial over time. Since solar installations typically add significant value to a home—often tens of thousands of dollars—this exemption protects you from the ongoing property tax increases that would normally result from such an improvement. The exemption continues for as long as you own the solar system, providing savings year after year. There are no income requirements or application deadlines to worry about, and the exemption applies automatically to qualifying residential solar installations. This makes going solar more affordable by ensuring that your investment in clean energy doesn’t result in a higher annual tax bill from your local government.

Maryland’s sales tax exemption removes the state’s 6% sales tax from the purchase of solar energy equipment and systems. This means when you buy solar panels, inverters, batteries, and other qualifying solar equipment in Maryland, you won’t pay the sales tax that would normally apply to these purchases. For a typical residential solar system costing $25,000, this exemption saves you approximately $1,500 at the time of purchase.

This exemption is available to all Maryland homeowners and businesses purchasing qualifying solar energy equipment. There are no income restrictions, system size limitations, or application processes required. The exemption is automatically applied at the point of sale by your solar installer or equipment vendor. Unlike some incentives with expiration dates, Maryland’s sales tax exemption for solar equipment is an ongoing benefit under current state law, making it a reliable way to reduce your upfront costs when going solar.

The Maryland Solar Access Program (MSAP) is a state-funded grant program that helps income-qualified Maryland homeowners install solar panels on their homes. Established through the Brighter Tomorrow Act of 2024, this program provides direct financial assistance to eligible residents who want to generate their own clean energy. The program operates on a first-come, first-served basis and uses a two-step application process: first, you reserve your funding, then you verify your solar installation is complete.

The program has a total budget of $12 million for fiscal year 2026. The exact grant amount you may receive depends on your household income and system size, which you can calculate using the program’s Maximum Offer Calculator tool. To qualify, you must meet specific income requirements detailed in the program’s Funding Opportunity Announcement. Your solar system must be installed by a contractor from the approved Participating Contractor List, and you can only receive funding from either this program or the Solar Energy Equity Program—not both.

Applications are being accepted from July 21, 2025 through June 5, 2026 at 12:00 PM ET. Solar contracts signed on or after June 13, 2025 are eligible for the program. As of the latest update, 52% of the program budget has been requested and 23% has been reserved, so funding is still available but may run out before the deadline. You’ll need to work with an approved contractor who can help you through the application process and ensure your system meets all program requirements.

Solar Renewable Energy Credits (SRECs) are tradable certificates that represent the environmental benefits of your solar energy production. For every 1,000 kilowatt-hours (1 megawatt-hour) your solar system generates, you earn one SREC. These credits have real monetary value because Maryland requires energy suppliers to obtain a certain percentage of their power from solar sources—14.5% by 2030. Suppliers purchase SRECs from solar system owners like you to meet this requirement, creating a market where you can sell your credits for income.

The financial value of SRECs fluctuates based on market demand, and you have several options for what to do with them. You can sell them directly to energy suppliers, work with an SREC aggregator who sells them on your behalf as part of a group, or hold onto them for up to 3 years in hopes of higher future prices. For example, a typical 10-kilowatt residential 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 Interconnection’s Generator Attribute Tracking System (GATS) to start tracking and selling your credits.

One important consideration: if you sell your SRECs, you’re transferring the environmental claim to the buyer—meaning they can say they’re using solar energy, not you. If maintaining the environmental bragging rights matters to you, you can choose to keep your SRECs rather than sell them. Either way, your solar system benefits Maryland’s environment and helps the state reach its clean energy goals.

Net metering in Maryland allows you to earn credits on your electricity bill for the excess solar energy your system produces. When your solar panels generate more electricity than your home uses, that surplus power flows back to the grid, and your utility company credits your account at a 1:1 rate. This means you receive the full retail electricity rate for every kilowatt-hour (kWh) you send to the grid, which you can then use to offset future electricity charges when your panels aren’t producing enough power, like at night or on cloudy days.

All major Maryland utilities participate in net metering, including Baltimore Gas & Electric (BG&E), Pepco, Potomac Edison, Delmarva Power, Southern Maryland Electric Cooperative (SMECO), and Choptank Electric Cooperative. Your excess credits roll over from month to month throughout the year, giving you flexibility to build up credits during sunny summer months and use them during winter. However, each utility conducts an annual “true-up” period between April and May, depending on your provider. During this true-up, any remaining excess credits are paid out at a lower rate—typically between $0.04 and $0.07 per kWh (the wholesale generation rate)—and your account resets to zero. It’s worth noting that if you’re a BG&E customer, time-of-use rate schedules are not compatible with net metering, so you’ll need to remain on a standard rate plan to participate.