Quick Answer
Maryland offers one of the strongest solar incentive packages on the East Coast. Valuable SRECs provide ongoing income ($400-$800+/year), plus state grants, full 1:1 net metering, and property/sales tax exemptions. With high electricity rates, payback periods of 5-8 years are achievable. Excellent for high-bill homeowners.
Maryland Solar Overview
From my experience:
Maryland is one of the hidden gems of the East Coast solar market. The SRECs here are valuable, the state grant stacks on top, and BGE and Pepco rates keep climbing. If you are in Montgomery County or Baltimore County, the economics can be excellent. I have seen 5-6 year paybacks here when everything lines up. Do not overlook Maryland—it consistently surprises people.
Maryland has aggressive renewable energy goals and backs them with substantial solar incentives. The combination of SRECs, state grants, property tax exemptions, and high electricity rates makes Maryland one of the best East Coast states for going solar.
[Editor's Note, Jan 2026]:Maryland SREC market values fluctuate. The Residential Clean Energy Grant Program has had funding cycles—verify current availability. Check with the Maryland Energy Administration for the latest program status.
Maryland Solar Snapshot
Average system cost: $26,000-$36,000 (8 kW system)
Payback period: 5-8 years
SRECs: Significant ongoing income
Net metering: Full retail rate (1:1) (Source: EnergySage Marketplace Data, 2025)
Payback period: 5-8 years
SRECs: Significant ongoing income
Net metering: Full retail rate (1:1) (Source: EnergySage Marketplace Data, 2025)
Why Maryland Is Excellent for Solar
- Strong SRECs: Ongoing income from solar production
- State grant: Residential Clean Energy Grant Program
- Full net metering: 1:1 retail credit for excess
- High electricity rates: ~$0.14-$0.18/kWh = bigger savings
- Property tax exemption: Solar doesn't increase taxes
- Sales tax exemption: No tax on solar equipment
Challenges in Maryland
- Higher installation costs: Northeast pricing
- SREC market complexity: Requires understanding
- Moderate sunshine: Less than Sun Belt states
- Dense development: Some shading challenges
Solar Costs in Maryland
Average Installation Costs
| System Size | Cost Range | After Incentives |
|---|---|---|
| 6 kW | $19,500-$26,000 | $14,000-$20,000 |
| 8 kW | $26,000-$34,000 | $18,000-$26,000 |
| 10 kW | $32,500-$42,000 | $22,000-$32,000 |
| 12 kW | $39,000-$50,000 | $27,000-$38,000 |
Cost Per Watt
- Maryland average: $3.25-$4.00 per watt
- Baltimore/DC suburbs: $3.40-$4.20 per watt
- National average: $2.75-$3.50 per watt
Maryland Solar Incentives
Federal Tax Credit (2026)
- Purchased systems: The 30% residential credit (Section 25D) ended December 31, 2025
- PPA/Lease: Section 48E still provides 30% through 2027—passed to you as lower payments
- Already installed: Systems installed before 2026 still qualify
Maryland State Incentives
- Maryland SRECs: Ongoing income—see detailed section below
- Residential Clean Energy Grant: Up to $1,000 for solar
- Property tax exemption: 100% of added value exempt
- Sales tax exemption: 6% state sales tax waived
Maryland Clean Energy Grant
Maryland's Residential Clean Energy Grant Program provides up to $1,000 for solar PV systems. While modest, it stacks with SRECs and other benefits to significantly improve economics. (Source: SRECTrade and state program data)
Maryland SRECs
Maryland's Solar Renewable Energy Credits (SRECs) are a major incentive that provides ongoing income for the electricity your system produces.
How Maryland SRECs Work
- 1 SREC = 1 MWh: Earn one credit per 1,000 kWh produced
- Sellable: Sell to utilities needing to meet RPS requirements
- Ongoing income: Earn SRECs as long as system produces
- Market-based: Prices fluctuate with supply/demand
SREC Value
- Current range: Varies—check current market rates
- Historical: $50-$80+ per SREC in recent years
- Annual earnings: An 8 kW system produces ~8-10 SRECs/year
- Potential income: $400-$800+ annually (varies with market)
Selling Your SRECs
- Aggregators: Companies that buy and sell SRECs for you
- Long-term contracts: Lock in price for multiple years
- Spot market: Sell at current market price
- Installer may help: Some handle SREC sales for you
SRECs Are Significant
Over 20+ years, Maryland SRECs can add $10,000-$20,000+ to your solar savings (at current rates). This ongoing income significantly improves payback and makes Maryland one of the best solar states. (Source: EnergySage market analysis)
Net Metering
Maryland has excellent net metering rules that benefit solar homeowners.
How Maryland Net Metering Works
- 1:1 credit: Full retail rate for excess energy
- Monthly rollover: Unused credits carry forward
- Annual settlement: April true-up for remaining credits
- System size: Up to 200% of annual usage
Net Metering + SRECs
In Maryland, you get BOTH benefits:
- Net metering: Credits your bill for excess energy
- SRECs: Additional income for energy generated
- Combined value: Makes Maryland economics very strong
Major Utilities
BGE (Baltimore Gas & Electric)
- Coverage: Baltimore metro, Central Maryland
- Customers: ~1.3 million electric customers
- Net metering: Standard Maryland rules
- Part of Exelon: Large utility company
Pepco
- Coverage: Montgomery and Prince George's Counties
- DC suburbs: Serves Maryland DC suburbs
- Net metering: Standard Maryland rules
- Part of Exelon: Same parent as BGE
Delmarva Power
- Coverage: Eastern Shore of Maryland
- Net metering: Standard Maryland rules
- Part of Exelon: Same corporate family
Potomac Edison (FirstEnergy)
- Coverage: Western Maryland
- Net metering: Available
- Different parent: FirstEnergy (not Exelon)
SMECO (Southern Maryland Electric Cooperative)
- Coverage: Southern Maryland
- Type: Electric cooperative
- Net metering: Available—check specific terms
MD-Specific Considerations
Weather and Production
- Annual production: ~1,150-1,250 kWh per kW installed
- Four seasons: Expect seasonal variation
- Snow: Occasional—panels typically self-clear
- Humidity: Some haze but minimal impact
Regional Differences
Baltimore Metro
- Strong market: Many installer options
- Row homes: May have orientation challenges
- BGE territory: Good utility support
DC Suburbs (Montgomery/PG Counties)
- High incomes: Good solar adoption
- Pepco territory: Well-established process
- Suburban homes: Often good solar candidates
Eastern Shore
- More rural: Fewer shading issues
- Good sun: Coastal areas get good exposure
- Fewer installers: May have fewer options
HOA Considerations
- Maryland Solar Rights: HOAs cannot unreasonably restrict
- Reasonable guidelines: Can have aesthetic rules
- Cannot prohibit: Must allow solar installation
The Bottom Line
Is Maryland Good for Solar?
Maryland is excellent for solar—one of the best East Coast states:
- Strong SRECs: Significant ongoing income
- Full net metering: Maximum value for your solar
- State grant: Additional upfront incentive
- Tax exemptions: Property and sales tax benefits
- High electricity rates: Larger savings potential
Best Candidates for Maryland Solar
- High electricity bills: $150+/month
- Good roof: South-facing, minimal shading
- Single-family home: Easier than townhomes
- Long-term homeowner: 5+ years to capture SREC value
Challenges to Consider
- No federal credit for purchases: As of 2026
- Higher installation costs: Northeast pricing
- SREC market knowledge: Understand before committing
Questions to Ask Installers
- How do you handle SREC registration and sales?
- What's the current SREC market price?
- Do you offer long-term SREC contracts?
- What's my expected payback with all incentives?
- How does a PPA compare to purchasing now?
Questions About Going Solar in Maryland?
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