Maryland, located in the Mid-Atlantic region, has been taking steps to promote renewable energy and reduce its carbon footprint.
Quick Read:
- Maryland offers several financial incentives for solar installation, including tax credits, rebates, and grants.
- The average cost of electricity in Maryland is higher than the national average, making solar energy an attractive option for homeowners.
Tax Credits, Rebates, and Grants:
- State Tax Credit:
Maryland offers a state tax credit for residential and commercial solar installations. The tax credit is worth 26% of the total cost of the solar system, up to a maximum of $5,000 for residential systems and $250,000 for commercial systems. - SREC Program:
Maryland’s Renewable Portfolio Standard (RPS) requires utilities to generate a certain percentage of their electricity from renewable sources, including solar. To meet this requirement, utilities can purchase Solar Renewable Energy Credits (SRECs) from solar system owners. SRECs represent the environmental benefits of the electricity generated by a solar system and can be sold on the open market. The price of SRECs varies depending on market demand. - Property Tax Exemption:
Maryland offers a property tax exemption for residential and commercial solar installations. This exemption allows homeowners and businesses to avoid paying additional property taxes on the added value of their solar systems. - Sales Tax Exemption:
Maryland also offers a sales tax exemption for solar systems. This exemption applies to the purchase and installation of solar panels and related equipment. - Utility Rebates:
Some Maryland utilities offer rebates for residential and commercial solar installations. These rebates can help offset the upfront cost of installing a solar system. - Maryland Energy Administration (MEA) Grants:
The MEA offers grants for residential and commercial solar installations. The grants are available on a first-come, first-served basis and are designed to help offset the cost of installing a solar system. - Commercial Property Assessed Clean Energy (PACE) Financing:
PACE financing allows commercial property owners to finance energy efficiency and renewable energy upgrades, including solar systems, through a special assessment on their property tax bill. The financing is repaid over a period of up to 20 years and is tied to the property, not the property owner. - Community Solar:
Maryland’s Community Solar Pilot Program allows residents and businesses to subscribe to a local solar project and receive credit on their utility bill for the electricity generated by the project. This program is designed to help renters, low-income households, and others who are unable to install solar systems on their own properties.
Average Cost of Electricity:
The average cost of electricity in Maryland is higher than the national average, making solar energy an attractive option for homeowners. According to the U.S. Energy Information Administration, the average retail price of electricity in Maryland was 14.80 cents per kilowatt-hour in 2020, compared to the national average of 10.54 cents per kilowatt-hour.