{"id":10720,"date":"2025-12-04T22:45:15","date_gmt":"2025-12-04T22:45:15","guid":{"rendered":"https:\/\/www.solar.com\/learn\/?p=10720"},"modified":"2025-12-31T22:30:57","modified_gmt":"2025-12-31T22:30:57","slug":"what-solar-and-battery-incentives-does-maryland-offer","status":"publish","type":"post","link":"https:\/\/www.solar.com\/learn\/what-solar-and-battery-incentives-does-maryland-offer\/","title":{"rendered":"What Solar and Battery Incentives Does Maryland Offer?"},"content":{"rendered":"<p>With a healthy offering of solar incentives, Maryland is an underrated state for saving money with home solar panels.<\/p>\n<p>But with a combination of tax breaks, rebates, and solar renewable energy credits (SRECs), homeowners in Maryland can substantially reduce their energy costs and protect themselves from utility rate increases by installing a home solar system.<\/p>\n<p>In this article, we\u2019ll explore each of these incentives, how they would reduce the cost of a 5 kW system with a gross price of $25,000, and how paying for solar electricity compares to paying for grid electricity.<\/p>\n<p><a href=\"https:\/\/www.solar.com\/dashboard\" target=\"_blank\" rel=\"noopener\">Compare multiple solar quotes from trusted Maryland-based installers.<\/a><\/p>\n<h2>What solar incentives does Maryland offer?<\/h2>\n<p>There are a handful of solar incentives in Maryland that can reduce the cost of buying solar panels.<\/p>\n<ul>\n<li>Sales and property tax exemptions<\/li>\n<li>The residential clean energy grant program<\/li>\n<li>Solar renewable energy certificates (SRECs)<\/li>\n<li>Net metering<\/li>\n<\/ul>\n<p>Let\u2019s see how they reduce the cost of a $25,000 solar system.<\/p>\n<h3>Solar sales and property tax exemptions in Maryland<\/h3>\n<p>The first incentive to kick in is a sales tax exemption on solar energy equipment. Given Maryland\u2019s 6% sales tax rate, this amounts to $1,500 on a $25,000 system.<\/p>\n<p>Maryland also has a property tax exemption that applies to the additional home value created by a solar system. So, you can expect your solar system to <a href=\"https:\/\/www.solar.com\/learn\/do-solar-panels-increase-home-value\/\" target=\"_blank\" rel=\"noopener\">increase the resale value of your home<\/a>, but you won\u2019t have to pay state or local property tax on that value.<\/p>\n<h3><strong data-start=\"4\" data-end=\"44\">Maryland Solar Access Program (MSAP)<\/strong><\/h3>\n<p>The Maryland Solar Access Program (MSAP) helps income-qualified homeowners reduce the cost of residential solar by offering state grants of up to $750 per kilowatt, capped at $7,500. For example, a homeowner installing a 5\u00a0kW solar system could receive approximately $3,750 in upfront incentives, significantly lowering out-of-pocket costs.<\/p>\n<p>Eligibility generally requires the home to be owner-occupied, used as a primary residence, and household income to be at or below 150% of the Area Median Income. Systems must be installed by approved contractors, and funding is first-come, first-served through the Maryland Energy Administration.<\/p>\n<table style=\"width: 44.4231%;\" width=\"624\">\n<tbody>\n<tr>\n<td style=\"width: 308px;\" width=\"208\">Line item<\/td>\n<td style=\"width: 308px;\" width=\"208\">Cost<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 308px;\" width=\"208\">Gross cost<\/td>\n<td style=\"width: 308px;\" width=\"208\">$25,000<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 308px;\" width=\"208\">MSAP rebate<\/td>\n<td style=\"width: 308px;\" width=\"208\">-$3,750<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 308px;\" width=\"208\">Net cost<\/td>\n<td style=\"width: 308px;\" width=\"208\">$21,250<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<h3>Maryland Solar Renewable Energy Certificates (SRECs)<\/h3>\n<p>The second biggest solar incentive in Maryland is the opportunity to earn and sell <a href=\"https:\/\/www.solar.com\/learn\/what-are-solar-srecs\/\" target=\"_blank\" rel=\"noopener\">solar renewable energy certificates (SRECs)<\/a>. Registered solar systems earn one SREC for every 1,000 kW (1 MW) of electricity they produce. These certificates are sold to utility providers through brokers like <a href=\"https:\/\/www.srectrade.com\/markets\/rps\/srec\/maryland\" target=\"_blank\" rel=\"noopener\">SRECTrade<\/a> and <a href=\"https:\/\/www.solsystems.com\/environmental-commodity-management\/srecs\/#pricing-tables%7C3\" target=\"_blank\" rel=\"noopener\">Sol Systems<\/a>.<\/p>\n<p>Like stocks on the New York Stock Exchange, the value of SRECs fluctuates based on the market. The certificates can be held for up to three years and, once registered, solar systems are eligible to produce SRECs as long as they produce electricity. As of December 2025, SRECs were valued at $50 each.<\/p>\n<p>So, if our 5 kW system produces 6,400 kWh of electricity in a year, that would translate into 6 SRECs worth a combined total of $300.<\/p>\n<p>It\u2019s impossible to say where SREC prices will go. But, for easy math, let\u2019s say the price averages $50 over the next seven years and our 5 kWh solar system produces 42,500 kWh of electricity.<\/p>\n<p>Here\u2019s how that impacts the net cost of our 5 kW system.<\/p>\n<table style=\"width: 44.4231%;\" width=\"624\">\n<tbody>\n<tr>\n<td style=\"width: 49.429%;\" width=\"208\">Line item<\/td>\n<td style=\"width: 49.429%;\" width=\"208\">Cost<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 49.429%;\" width=\"208\">Gross cost<\/td>\n<td style=\"width: 49.429%;\" width=\"208\">$25,000<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 49.429%;\" width=\"208\">Clean Energy Rebate<\/td>\n<td style=\"width: 49.429%;\" width=\"208\">-$3,750<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 49.429%;\" width=\"208\">Price paid<\/td>\n<td style=\"width: 49.429%;\" width=\"208\">$21,250<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 49.429%;\" width=\"208\">7 years of SRECs<\/td>\n<td style=\"width: 49.429%;\" width=\"208\">-$2,100<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 49.429%;\" width=\"208\">Net cost<\/td>\n<td style=\"width: 49.429%;\" width=\"208\">$19,150<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Of course, the system will produce electricity and SRECs much longer than 7 years, but Maryland&#8217;s solar carve-out is currently scheduled through 2030, and it&#8217;s hard to say what will happen after that.<\/p>\n<h4>How to earn and sell SRECs in Maryland<\/h4>\n<ol>\n<li>Register your system with the <a href=\"https:\/\/www.psc.state.md.us\/homepage\/\" target=\"_blank\" rel=\"noopener\">Maryland Public Service Commission<\/a> (PSC) to become an eligible SREC generator<\/li>\n<li>Register your system in PJM\u2019s <a href=\"https:\/\/www.pjm-eis.com\/getting-started.aspx\" target=\"_blank\" rel=\"noopener\">Generator Attribute Tracking System<\/a> (GATS) to track your generation and earn SRECs<\/li>\n<li>Sell your SRECs on aggregators like SRECTrade and Sol Systems<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<gs-injectable background = 'true' border='true' primary_color = '#8b72d3' secondary_color='#f98d7e' utm_campaign = 'get_started_injectable' utm_medium='Maryland incentives' content_texts = 'true' upper_text='Take advantage of Maryland's SREC market' upper_text_span = 'while it's strong' lower_text='See how much solar could lower your' lower_text_span = 'energy costs' get_started_text='Get started' only_community_solar='false'><\/gs-injectable>\n<p>&nbsp;<\/p>\n<h3>Net metering in Maryland<\/h3>\n<p><a href=\"https:\/\/www.solar.com\/learn\/what-is-net-energy-metering\/\" target=\"_blank\" rel=\"noopener\">Net metering is a billing structure<\/a> that allows solar owners to earn credit for the excess electricity that they push onto the grid. This credit can be used to offset the cost of electricity they pull from the grid when their solar panels aren\u2019t producing.<\/p>\n<p>Maryland has a strong net metering policy that requires utilities to credit solar owners for the full retail rate of electricity for solar exports. In other words, the value of electricity pushed onto the grid is equal to the value of electricity pulled off the grid. This 1-to-1 net metering structure is one of Maryland\u2019s strongest solar incentives because it allows homeowners to completely replace their electricity bills with lower payments on their solar panels.<\/p>\n<p>It\u2019s worth noting that Maryland has a 3,000 MW capacity limit for net-metered solar systems, and 932 MW of that capacity was <a href=\"https:\/\/www.psc.state.md.us\/wp-content\/uploads\/2021-Net-Metering-Report-FINAL.pdf\" target=\"_blank\" rel=\"noopener\">operational by October 2021<\/a>. So, net metering won\u2019t be available forever in Maryland, and it\u2019s worth locking in this strong policy while it\u2019s available.<\/p>\n<h2>Maryland battery storage incentives<\/h2>\n<p>More and more homeowners are adding battery storage to their solar systems to provide backup power during outages and further distance themselves from their utility provider.\u00a0Maryland has a state incentive called the Energy Storage Grant Program. The state tax credit is worth 30% of the installed cost of the battery or $5,000, whichever is less.<\/p>\n<p>This program&#8217;s funding was quickly reserved for Fiscal Year 2026 and is currently closed to new applications.<\/p>\n<p>Let\u2019s say you wanted to add 10 kWh of battery storage at an installed cost of $10,000. Here\u2019s how the tax credits would combine to reduce the cost.<\/p>\n<table width=\"624\">\n<tbody>\n<tr>\n<td width=\"312\"><\/td>\n<td width=\"312\"><\/td>\n<\/tr>\n<tr>\n<td width=\"312\">Installed cost<\/td>\n<td width=\"312\">$10,000<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">MD tax credit (30%)<\/td>\n<td width=\"312\">-$3,000<\/td>\n<\/tr>\n<tr>\n<td width=\"312\">Net cost<\/td>\n<td width=\"312\">$7,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<h2>Are solar panels worth it in Maryland?<\/h2>\n<p>With rebates, tax breaks, and SRECs, Maryland has more solar incentives than most states. Between these incentives and the rising cost of electricity, homeowners in the Old Line State stand to save tens of thousands of dollars by paying for solar panels instead of grid electricity.<\/p>\n<p>By paying cash, a homeowner can maximize their lifetime savings potential. Taking out a 20-year solar loan reduces the overall savings, but can provide bill savings within the first few years.<\/p>\n<p>&nbsp;<\/p>\n<gs-injectable background = 'true' border='true' primary_color = '#8b72d3' secondary_color='#f98d7e' utm_campaign = 'get_started_injectable' utm_medium='Maryland incentives' content_texts = 'true' upper_text='Compare solar quotes from trusted' upper_text_span = 'Maryland installers' lower_text='See how much solar could lower your' lower_text_span = 'energy costs' get_started_text='Get started' only_community_solar='false'><\/gs-injectable>\n<p>&nbsp;<\/p>\n<h2>Frequently asked questions<\/h2>\n<h3>Can I get free solar panels in Maryland?<\/h3>\n<p>No, you cannot get free solar panels in Maryland, or any other state, for that matter. Ads for \u201cfree solar panels\u201d are usually scams that mislead homeowners into signing long-term solar leases with escalating monthly fees.<\/p>\n<p>While solar panels may not be free in Maryland, the state does have a handful of incentives that can substantially reduce the cost of solar equipment and battery storage.<\/p>\n<h3>Does Maryland buy back solar energy?<\/h3>\n<p>Maryland\u2019s clean energy goals require utilities to buy a certain amount of solar renewable energy certificates (SRECs) per year. Solar owners in Maryland can earn SRECs with their solar production and sell them back to their utility provider. In December 2023, SRECs were valued at $57 each.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>With a healthy offering of solar incentives, Maryland is an underrated state for saving money with home solar panels. But with a combination of tax breaks, rebates, and solar renewable&#8230;<\/p>\n","protected":false},"author":51,"featured_media":10722,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":""},"categories":[90,6],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.5 (Yoast SEO v19.10) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What Solar and Battery Incentives Does Maryland Offer? | Solar.com<\/title>\n<meta name=\"description\" content=\"Maryland has a number of solar and battery incentives that can help homeowners reduce their energy costs with clean solar electricity.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.solar.com\/learn\/what-solar-and-battery-incentives-does-maryland-offer\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What Solar and Battery Incentives Does Maryland Offer?\" \/>\n<meta property=\"og:description\" content=\"Maryland has a number of solar and battery incentives that can help homeowners reduce their energy costs with clean solar electricity.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.solar.com\/learn\/what-solar-and-battery-incentives-does-maryland-offer\/\" \/>\n<meta property=\"og:site_name\" content=\"Solar.com\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Solar.comOfficial\/\" \/>\n<meta property=\"article:published_time\" content=\"2025-12-04T22:45:15+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-12-31T22:30:57+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/assets.solar.com\/wp-content\/uploads\/2023\/04\/MARYLAND-SOLAR-INCENTIVES.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"700\" \/>\n\t<meta property=\"og:image:height\" content=\"364\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Sam Wigness\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@SamuelWigness\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Sam Wigness\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.solar.com\/learn\/what-solar-and-battery-incentives-does-maryland-offer\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.solar.com\/learn\/what-solar-and-battery-incentives-does-maryland-offer\/\"},\"author\":{\"name\":\"Sam Wigness\",\"@id\":\"https:\/\/www.solar.com\/learn\/#\/schema\/person\/b594f06d4c2b5e6a0e85af02b90fb883\"},\"headline\":\"What Solar and Battery Incentives Does Maryland Offer?\",\"datePublished\":\"2025-12-04T22:45:15+00:00\",\"dateModified\":\"2025-12-31T22:30:57+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.solar.com\/learn\/what-solar-and-battery-incentives-does-maryland-offer\/\"},\"wordCount\":1229,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.solar.com\/learn\/#organization\"},\"articleSection\":[\"Solar Incentives by State\",\"Solar Rebates &amp; Incentives\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.solar.com\/learn\/what-solar-and-battery-incentives-does-maryland-offer\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.solar.com\/learn\/what-solar-and-battery-incentives-does-maryland-offer\/\",\"url\":\"https:\/\/www.solar.com\/learn\/what-solar-and-battery-incentives-does-maryland-offer\/\",\"name\":\"What Solar and Battery Incentives Does Maryland Offer? 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He's been published by the Associated Press, Yahoo! Finance, MarketWatch, Home.com, Emeraldology.com and many other digital and print outlets. He's also been cited as a solar expert in The Mortage Reports Sam has a BA in Communication with an Emphasis in Journalism from the University of North Dakota and was named 425 Magazine's \\\"Top 30 Under 30 Professionals\\\" in 2020 while running an sustainable e-commerce startup. 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