Federal Solar Investment Tax Credit (30%) Buy a new home solar system, and you will be eligible for the 30% federal tax credit. A tax credit is a dollar-for-dollar reduction in the amount of income tax you would otherwise owe. This credit also applies to energy storage systems that are charged by your solar system.

Maryland Residential Clean Energy Rebate Program (R-CERP) The Maryland rebate program could not be simpler. If you live in Maryland and purchase a new residential solar system, Maryland will pay you $1,000. The system cannot be larger than 20 kW and needs to be installed in your primary residence to qualify.

Maryland Solar Renewable Energy Credits Maryland created a solar renewable energy certificate market (SREC) to help achieve its commitment to derive 14.5% of its electricity mix from solar energy by 2030. For every kilowatt-hour, your solar system produces, you will get paid a rate based on the current market value.

Local Tax Credits Certain counties in Maryland offer additional tax credits when you install solar on your home. Anne Arundel County, for example, provides a property tax credit equal to 50% of the cost of the solar system, up to a maximum credit of $2,500. Prince George’s County has a similar property tax credit with a maximum credit of $5,000.

Net Metering Net metering is a program that requires your electric company to purchase excess electricity your solar panels produce. For example, your system may produce more electricity on a typical sunny day than your home consumes. When solar production exceeds usage, the utility meter will “spin” backward and provide you with credits. These credits can then be used when the solar system is not producing electricity, such as at night. In Maryland, when your solar system produces more electricity than you use, investor-owned utilities are required to compensate you at the full retail value of the electricity.

Maryland Property Tax Exclusion The addition of a solar energy system to your home will not increase your property taxes.

Maryland Sales Tax Exemption Adding a solar energy system to your home will not increase your property taxes.

This guide provides an overview of the different federal, state, and local incentives available to those interested in residential solar. It does not constitute professional tax advice or other professional financial guidance. This overview should not be used as your only source of information. Other sources should be consulted when making purchasing, investment, and tax decisions; or while executing other binding agreements.