Solar In Maryland

When you install a solar system in Maryland, there are several state-level incentives that can significantly reduce your upfront costs and increase your long-term savings. One of the most important is the Residential Clean Energy Grant, which offers a $1,000 rebate for homeowners who install a solar system of at least 1 kilowatt. On top of that, Maryland offers full exemptions from both state sales tax and property tax for solar energy systems—meaning you save more upfront and don’t pay extra for the increased value solar adds to your home.

Another major incentive is Maryland’s Solar Renewable Energy Certificate (SREC) program. You earn one SREC for every megawatt-hour (MWh) of electricity your system produces, and those certificates can be sold for extra income each year. While the market price varies based on supply and demand, Maryland SRECs have recently ranged from about $57 to $80 each. For example, if your solar system generates 10 MWh per year, you could earn an additional $570 to $800 annually just by selling your SRECs.

Income-qualified homeowners may also be eligible for the Maryland Solar Access Program, which provides up to $7,500 in grant funding for systems up to 10 kilowatts. These incentives make Maryland one of the most solar-friendly states in the country—helping homeowners cut energy costs while investing in a cleaner future.

Having a residential solar energy system on your property is known as a capital improvement that adds to your property’s value. This means that you can potentially sell your home faster and for more than homes without solar. Your investment in efficient, clean solar power also adds to the tax basis of your home. If you sell the home, this tax-based investment can be deducted from the sale’s price, reducing the amount of the price that is counted as profit. This reduces the taxes taken from the sale and may be able to help you avoid capital gains taxes on the appreciation.