Maryland Solar Tax Credits, Incentives and Rebates (2023)

Maryland’s solar rebates, SREC program and tax exemptions can significantly lower the cost of going solar in the state.

Maryland Solar Renewable Energy Credits (SREC) Program

Incentive value: Around $50 per 1,000 kilowatt-hours (kWh) of energy generated

Frequency: Ongoing

A solar renewable energy certificate (SREC) represents the environmental value of the clean energy you generate using a solar panel system. You can earn one SREC for every 1,000 kWh (one megawatt-hour) of energy generated by solar panels in Maryland.

This program allows solar system owners to sell SRECs to electricity suppliers in the SREC market. Electricity suppliers purchase SRECs to help reach the state’s renewable portfolio standards (RPS) or goals.

The value of an SREC in Maryland varies depending on market conditions. However, the average value of an SREC in Maryland in 2023 is $50.

To start selling SRECs, you must apply for a qualifying generating certification through the Maryland Public Services Commission (MPS).

Maryland Solar System Sales Tax Exemption

Incentive value: 100% of the sales tax on your solar system

Frequency: Applied at the time of purchase

All taxpayers in Maryland are exempt from paying sales tax on solar equipment. This sales tax exemption is administered through the Comptroller of Maryland.

Maryland Renewable Energy System Property Tax Exemption

Incentive value: 100% of added residential property value from installing a renewable energy system

Frequency: Ongoing after initial home value assessment

Maryland residents do not have to pay taxes on the value added to their property due to a solar or wind renewable energy system. After you install a solar panel system, your property value assessor will determine the value of your home without the system. To learn more about claiming this incentive, visit the Maryland Department of Assessments and Taxation website.

Maryland Residential Clean Energy Grant Program

Incentive value: $1,000 per solar photovoltaic (PV) project

Frequency: One-time rebate

Maryland’s Residential Clean Energy Grant Program offers a flat award of $1,000 to property owners who install a solar PV system or solar shingles. Solar water heating systems also earn $500 per project. To qualify for this rebate, you must install a solar power system on a property that is your primary residence.

Visit the Maryland Energy Administration (MEA) website to apply and learn more about the grant program.

Maryland Energy Storage Income Tax Credit

Incentive value: 30% of the total cost of an energy storage system

Frequency: One-time tax credit

Maryland offers an income tax credit for energy storage systems, including solar batteries. The state distributes the tax credit to applicants on a first-come, first-served basis. It is worth either 30% of the total installed cost of your energy storage system or $5,000, whichever is lower. Incentives are also available for commercial energy storage systems.

Apply or learn more about the program through the Maryland Energy Administration.