Maryland possesses one of the clearest and most concise solar incentives in the country. If you set up solar panels or solar shingles with a capacity of at least 1 kW, the state will reimburse you a one-time payment of $1,000. That’s all there is to it. However, there are some restrictions.

Initially, the solar undertaking should be fitted at your main home by a North American Board of Certified Energy Practitioners-certified installer (NABCEP). Before any solar incentives, the average solar project in Maryland tends to cost $27,700, which is significantly greater than the national median of $23,940.

This is premised on the belief that Maryland inhabitants are fixing more solar panels — typically a 10 kilowatt (kW) system — than the national median in order to satisfy their rising energy requirements. A 9 kW system is used by the average American household.

Maryland’s solar costs are astronomical, but because energy prices in Maryland are above the national average, shifting to solar results in significantly larger savings. Furthermore, with the federal solar tax credit, state solar rebate program, tax exemptions, and other incentives, Maryland residents can reduce their total solar installation expenses by 30 to 40%.

Maryland’s residential clean energy grant scheme is a fantastic encouragement that few states provide. It’s primarily a $1,000 state “thank you” for shifting to solar energy. Theoretically, you would only have to set up 1 kW of solar to qualify for the $1,000, which costs only $2,770 in Maryland. Keep in mind that if you rent your solar panels, you will not qualify for these rewards.

Eligibility Requirements for Maryland Solar Energy Grant

According to the Maryland Energy Administration (MEA), the following is the comprehensive list of entry requirements:

  • The MEA should receive the request within 12 months of setup.
  • The setup property would have to be a private residence and the applicant’s main home at the time of applying.
  • Project size should surpass the:
    • 1 kW solar photovoltaic
    • Geothermal: 1 ton
    • Solar Water Heating Area: 10 sq. ft.
    • An irrevocable trust cannot be used to hold the house.

The main disadvantage would be that, as per the application procedure, your solar project should be completely funded before you can claim compensation.

How to Apply for the Maryland Residential Clean Energy Rebate

To demand your $1,000 rebate, you should first complete an application on the MEA homepage, and it is granted on a first-come, first-served core principle. Here’s what you’ll be required to do once you’ve arrived at the interface of the system:

  • Give details about yourself, the setup (house, framework, technician), and any permits needed.
  • Share pictures of any of the modules of the mounted clean energy system. If somehow the device is a roof-mounted PV or SWH system, the picture should obviously demonstrate where the device was fitted, including both panels and collectors.
  • Send concrete evidence that the task has been fully paid for (a copy of the final invoice showing a zero balance).
  • Send duplicates of all approved inspection and permit documents (a ‘Passed Final Inspection’ report, sticker, or picture) as supplied by the local council with authority.
  • Please provide evidence that the installation address is your main home. MEA acknowledges a Real Property Data Search printout from the State Department of Assessments and Taxation (SDAT) that shows the R-CERP candidate as the owner and primary resident of the residence where the infrastructure has been installed.

Additional Solar Incentives and Rebate Programs in Maryland

Maryland, being one of the best solar reward states, has numerous extra benefits and rebate schemes that have already enabled the Free State to more than double its solar power since 2015. Below is a rundown of the existing solar incentive schemes in Maryland:

  1. Federal Solar Tax Credit

Truth be told, the federal solar investment tax credit (ITC) seems to be the ideal monetary incentive obtainable in Maryland, valued at $8,310 for the median solar panel system. If you possess solar panels but want to insert a solar power storage system, you could indeed utilize the ITC to get 30% back beginning in 2023.

It is essential to note that the tax credit will not be paid in cash. Rather, it is a deduction from your current federal taxes. If you do not owe 30% of the expense of your solar device in the tax year that you fitted the screens, the credit is carried forward for a maximum of five years.

  1. Energy Storage Income Tax Credit

Maryland implemented a state-wide energy storage tax incentive to assist occupants in affording solar storage systems. On their tax forms, residents could claim close to 30% of the expense of an energy storage device. For existing homes, the state sealed this credit at $5,000 (for the frame of reference, many of the best solar battery packs cost approximately $10,000).

Commercial solar installations, on the other hand, may be eligible for a credit of close to $150,000, based on the magnitude of the solar energy system. Apparently, every one of the money earmarked for the storage technology tax rebate has indeed been claimed as of September 2022. The state is unlikely to reauthorize the incentive.

  1. Maryland Solar Sales Tax Exemption

The 6% Maryland sales tax does not apply to home solar devices. Although it might not appear to be a significant benefit, the sales tax exemption results in a $1,660 savings for the median $27,700 solar panel installation in Maryland.

The Maryland sales tax-exempt status is instantly implemented in every solar equipment acquisition, as such you do not need to take any additional actions to claim it.

  1. Maryland Solar Property Tax Exemption

Solar panels had already been demonstrated to boost the value of a house in Maryland; however, your real estate taxes will remain unchanged.

This is because of Maryland’s solar property tax exemption. Although most home enhancement undertakings, such as a hot tub pool, would increase your yearly real estate taxes, kudos to these rules, your solar panels would not be included in your property value evaluation.

  1. Net Metering in Maryland

Net metering is a significant opportunity that compensates solar users for surplus electricity produced by their modules throughout the day. Whenever the sun is shining, many solar panels generate more power than a single home could indeed consume.

Consider net metering to be a backup energy storage system; it is a method of storing excess energy produced by your structure so that none is wasted. If you route surplus power back into the local power infrastructure in Maryland, you could indeed receive payment at the comprehensive market price, recouping a significant portion of your energy bills.


Maryland’s electricity costs more than the national median. That in itself is reason enough to take into account setting up solar panels inside the Free State. With expansive state as well as local incentives, including the federal solar tax credit, solar in Maryland has a quick payback time. A flourishing SREC economy is among Maryland’s most significant perks for home solar.

This enables property owners to save roughly $800 annually on real estate taxes while also attempting to claim revenue tax credits.

Overall, with an average price of $14,000 for solar installations in Maryland, these very same panels might pay for themselves within only about five years, leaving you with yet another 20 years or more to take advantage of free energy as well as annual revenue!