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Solar Incentives and Rebates in Maryland

Peak Sun Hours (PSH): 4.2 - 4.5
Cost of Grid Power: $0.13/kWh
Number Of Installations: 70,378

What’s the Cost of Solar in Maryland?

Cost of Grid Power

Maryland's electricity prices average $0.13/kWh, just below the national average of $0.14/kWh.

In 2018 solar accounted for nearly 3% in-state power generation, up from just above 1% in 2016. Currently about a third of the state's solar power comes from small-scale PV installs.

Cost of a Solar Install

Cost of a typical 10kW PV install in Maryland from 2008-2018

A graph of falling prices for a typical 10kW PV install in Maryland from 2008-2018.
Figures include design costs. Data from Berkeley Lab, courtesy of the Maryland Energy Administration (MEA).

The average cost of a 10kW (equivalent to saving almost 200 trees a year) solar power system starts around $28,000 in Maryland. Before any incentives, in the first year you’d save about $1,800, compared to if you had been paying the normal rates for the energy you used. These savings can continue for well over 25 years, improving with inflation.




Just How Much Can I Save With Solar in Maryland?

This depends on may factors such as your system size, power output, and financing. Here are the main ways you can finance your home solar power system, and the kinds of returns you may expect to see:

Out-of-Pocket

From our example above, the homeowner purchased a 10kW system to offset their energy bill. Overhead cost was $28,000, with a significant proportion returned in the first year through incentives, rebates, and savings, then paying itself in full over 9 years.

Most solar power systems have a warranty lifetime of 25 years. In that time, between incentives and paying lower rates you could make a profit of around $46,000 - over 50% more than the up-front cost of the system!

Even with occasional maintenance or part replacement, that is a massive savings. Solar panel power output falls on average 0.8% per year, so with a little TLC and load management you can extend the life of your system well beyond the warranty’s expiration date, continuing to save indefinitely.

Solar Loan

Whether or not you can afford the up-front cost of the install, you may want to consider a Home Equity Line of Credit (HELOC). With equity in your home, or good credit, you may qualify for a 15-year solar HELOC with fixed rate of 4% or lower.

Starting with that same 10kW system costing $28,000 but with zero up-front cost, accounting for incentives, credits, rebates, and annual energy savings starting around $1,800, you could see a revenue surplus of about $7,100 at the end of the first year.

Save some of that money though. Your loan payments will likely exceed your power savings by about $20/month for the 15-year term. Once the loan is paid off, you can expect to save about $3,000 a year. Over 25 years you could expect to make about $35,500.

Power Purchase Agreement

With a Power-Purchase Agreement (PPA) the homeowner leases their roof to an outside party, usually a power company. Generally PPAs feature a fixed price per kWh, with either a fixed term or an annual escalator.

With a PPA, the cost of installation, repair, and maintenance to the homeowner is usually $0.00. For that 10kW system, with a PPA you could expect to save about $15/month on energy. Over 25 years, you could see over $9,900 in revenue - without accounting for inflation. That’s technically an infinite return!

PPA’s can be complicated, as you are effectively ceding at least some control of your home to the third party, but they are an excellent way to get into solar because they have no overhead.



What Incentives are Available in Maryland?

Data from DSIRE. For more info visit: https://www.dsireusa.org/

Name Implementing Sector Program Type Administrator DSIRE ID
Solar Easements & Rights Laws State Solar/Wind Access Policy 3
Wood Heating Fuel Exemption State Sales Tax Incentive 143
Fuel Mix and Emissions Disclosure State Generation Disclosure 193
Local Option - Property Tax Credit for Renewables and Energy Conservation Devices State Property Tax Incentive Programs locally administered 232
Local Option - Property Tax Credit for High Performance Buildings State Property Tax Incentive Programs locally administered 2363
Energy Savings in Capital Projects State Energy Standards for Public Buildings 2368
Property Tax Exemption for Solar and Wind Energy Systems State Property Tax Incentive Maryland Department of Assessments and Taxation 2542
Sales and Use Tax Exemption for Renewable Energy Equipment State Sales Tax Incentive Comptroller of Maryland 2928
Prince George's County - Solar and Geothermal Residential Property Tax Credit Local Property Tax Incentive Prince George's County Office of Finance 3106
Sales and Use Tax Exemption for Residential Solar and Wind Electricity Sales State Sales Tax Incentive Comptroller of Maryland 4853
Baltimore County - Property Tax Credit for Solar and Geothermal Devices Local Property Tax Incentive Baltimore County Office of Budget and Finance 5042
Permits and Variances for Solar Panels, Calculation of Impervious Cover State Solar/Wind Permitting Standards 5185
Clean-Burning Wood Stove Grant Program State Rebate Program Maryland Energy Administration (MEA) 5303
Game Changer Competitive Grant Program State Grant Program Maryland Energy Administration 5559
Parking Lot Solar PV with EV Charger Grant Program State Grant Program Maryland Energy Administration 5630
SMECO- Small Business/Non-Profit Solutions Utility Rebate Program 5696
Washington Gas- Residential Rebate Program Utility Rebate Program 5819
Washington Gas- Commercial Rebate Program Utility Rebate Program 5820
Combined Heat and Power (CHP) Grant Program State Grant Program 5836
Maryland Smart Energy Communities Grant State Grant Program 5838
City of Baltimore- BEI Loan Program Local Loan Program Baltimore City Energy Office 5887
Montgomery County- Green Building Standard Local Energy Standards for Public Buildings Division of Building Design and Construction 5889
Montgomery County- Expedited Permitting for Solar PV Local Solar/Wind Permitting Standards Department of Permitting Services 5890
Clean Energy Communities Low-to-Moderate Income Grant Program State Grant Program Maryland Energy Administration 5939
FirstEnergy Corporation - Power Management Platform and FirstEnergy Efficiency Solutions Other Energy Analysis 13923
Southern Maryland Electric Cooperative - Business Solutions Utility Energy Analysis 16192
Maryland Energy Administration - Ten Tips for Saving Natural Gas State Training and Information 16405
TVA - EnergyRight Solutions Other Energy Analysis 16497
First Energy - Business Energy Analyzer נOhio Other Energy Analysis 19777
First Energy - Business Energy Analyzer Other Energy Analysis 19977
PEPCO - Commercial & Industrial Energy Efficiency Incentive Program Utility Training and Information PEPCO 21599
PEPCO - New Construction and Major Renovation Projects Utility Energy Analysis PEPCO 21608
PEPCO - Energy Saving Solutions for Existing Buildings Utility Energy Analysis PEPCO 21609
PEPCO - ASHRAE Level 2 Energy Audit Utility Energy Analysis PEPCO 21617
PEPCO - Operations & Maintenance (O&M) Training Utility Training and Information PEPCO 21641
U.S. Department of Energy - Industrial Assessment Center (IAC): University of Delaware Federal Energy Analysis U.S. Department of Energy 21693
Northeast Energy Efficiency Partnerships - EM&V Forum Non-Profit Training and Information Northeast Energy Efficiency Partnerships 22027
MEA- Data Center Energy Efficiency Grant Program State Grant Program Maryland Energy Administration (MEA) 22041
Energy Storage Tax Credit State Personal Tax Credit Maryland Energy Administration 22076
DHCD Net Zero Construction Loan Program State Loan Program Maryland Department of Housing and Community Development 22085



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