Maryland Solar Incentives, Grants, Rebates, and Tax Credits

A solar energy system creates usable power from sunshine. There are two basic kinds of systems: Photovoltaic or PV uses sunlight to generate electricity. It’s the same technology found on pocket calculators, just on a larger scale. PV systems can be designed to generate the majority of the electricity used in your home, or just a portion of it.

A typical solar energy system is built to be durable and long-lasting. Most solar panels come with a warranty of 25 to 30 years, but they can continue to produce electricity at a slightly reduced efficiency after that period. With proper maintenance, the entire system, including inverters and batteries if used, can last well beyond the warranty period, providing decades of renewable energy.

The cost of a solar energy system varies based on factors like location, size of the installation, and additional features like battery storage. On average, residential solar systems can range from $15,000 to $25,000 before tax credits and incentives. Many states offer subsidies, and federal tax credits can reduce the cost by up to 30%—but act soon, because the federal tax credit is going away at the end of 2025. Financing and leasing options are also available to make solar more accessible.

Our installation process is designed for simplicity and efficiency. It starts with a free solar analysis to evaluate costs and benefits, including potential rebates and incentives. Once you’re ready, a certified technician conducts a site assessment to finalize the design and begin permitting. Installation typically takes 2-3 days, after which we handle all inspections and grid connections. We also manage the paperwork for all solar incentives to ensure you get the maximum financial benefit. Continuous remote monitoring of your system ensures optimal performance and quick resolution of any issues.

Maryland homeowners can qualify for both state and local solar tax credits. Many counties, including Prince George’s, Anne Arundel, and Baltimore County, offer property tax credits of up to $5,000 for residential solar installations.

The Residential Clean Energy Rebate Program offers Maryland homeowners a $1,000 grant for installing eligible solar energy systems. To qualify, the installation must be completed by a NABCEP-certified installer, and the application must be submitted within 12 months of installation.

No. Maryland’s Property Tax Exemption for Solar and Wind Energy Systems ensures that the value solar panels add to your home does not increase your property tax bill.

Yes. Maryland’s Sales and Use Tax Exemption removes state and local sales taxes from the purchase of residential solar energy systems, helping reduce upfront installation costs.

Yes. Leasing is a popular option for homeowners who want to go solar with no upfront cost. With a solar lease, you pay a lower monthly rate for electricity while Solar Energy World maintains and monitors your system for optimal performance.

Maryland’s net metering program allows you to earn credits on your utility bill for any excess electricity your solar panels produce. Those credits can roll over month to month, offsetting higher bills during lower-production seasons.