Solar in Maryland costs about $2.73 per watt, so the 7.78 kW system a typical home needs runs about $21,239 before incentives, and with no federal credit that is also what you pay. It pays back in about nine years on BGE because full-retail net metering credits every exported kWh at your own rate, and HB 1532 closes that deal to new systems by July 1, 2027 at the latest.
Lock in your Maryland price while full retail lasts
A system connected before the HB 1532 cutoff keeps full-retail net metering for life. Your ZIP code shows local prices and installers.
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Maryland’s full-retail net metering has a closing date
Full-retail net metering is what makes Maryland solar pay. Under Public Utilities Article §7-306, every kWh you export is netted against your use at the retail rate. Surplus rolls forward month to month as a kWh credit. Leftover credit is cashed out each April at the lower commodity rate.
House Bill 1532, the Utility RELIEF Act, took effect on enactment in 2026 as an emergency measure. It ends full retail for new systems at the earlier of two limits.
Source for the cap figures: the PSC net energy metering report. Our Maryland incentives and worth-it solar guides cover the successor in full.
Connect before the cutoff, keep full retail for lifeA system interconnected before the cutoff stays on full-retail net metering for its whole life. With the pipeline this large, the cap could fill well before July 1, 2027.
Your bill rarely reaches zeroBGE and Pepco keep charging a fixed monthly customer charge after net metering, even when your panels cover all your use.
Nine years or 12.8: payback depends on your Maryland utility
A 7.78 kW system makes about 11,141 kWh a year. Measured against each utility’s volumetric rate, the part of the bill solar offsets, the payback on a $21,239 system shifts by service area. BGE covers half of Maryland.
Over 25 years, the net comes to about $70,000 as rates climb and the system keeps producing. For the long-horizon picture, see whether solar is worth it in Maryland.
Why the statewide figure looks shorterThe statewide all-in rate of 22.2¢ gives a shorter 8.6-year payback. That rate includes fixed charges solar cannot erase, so it overstates real savings.
Three things decide your returnYour rate exposure, how long you stay, and how you finance. A homeowner staying 15 years on a rising rate sees a different result than one moving in three.
What a Maryland system costs, from 6 kW to 12 kW
A competitively shopped Maryland system runs $2.73 per watt installed before incentives. Size drives the total more than any other choice. Maryland gets 5.01 peak sun hours a day, so each kW of panels makes about 1,432 kWh a year. For the national picture, see solar panel costs across the country.
Quote ranges use $2.73 per watt, plus or minus 12%. The battery figures add $15,525 for 13.5 kWh of storage at $1,150 per kWh installed. Real quotes vary by roof, equipment and installer.
Why 7.78 kW fits the typical homeA home using 929 kWh a month needs a 7.78 kW system to cover a year of use in Maryland sun. Many higher-usage homes choose 10 kW.
With the federal credit gone, two Maryland tax exemptions remain
Both exemptions apply on their own, for owner-occupants. They are the reliable savings in 2026. The grant programs are not.
The 30% federal credit ended for 2026 purchasesThe One Big Beautiful Bill Act ended the Section 25D Residential Clean Energy Credit for systems installed after December 31, 2025. Buy with cash or a loan in 2026 and there is no federal credit to claim: the gross price is the net price.
Solar equipment is exempt from Maryland’s 6% sales tax. Your installer applies it at purchase, so you never see the charge.
The home value your system adds is exempt from real property tax, automatically, for the life of the system.
The $1,000 Residential Clean Energy Grant ended in late 2024. The Maryland Solar Access Program is capped, income-limited and closed for the current funding year.
For the dollar impact on a typical system, see Maryland’s solar incentives in detail.
Rowhome roofs, shore wind and slow utility approvals
Equipment is only part of the price. A few Maryland conditions move the final number, some up and some down.
+What raises a Maryland quote
- Baltimore rowhome roofsMany have flat or low-slope roofs that need ballasted or tilt-up racking instead of a standard pitched mount.
- An undersized electrical panelHomes with under 200-amp service may need an upgrade before the system can connect. It rarely shows in a per-watt quote.
$1,200 to $2,500 - Coastal and Eastern Shore windHigher wind uplift calls for a structural letter stamped by a professional engineer. It shows up in labor cost.
- Permits and interconnectionCounty permits have run $250 to $650. A BGE interconnection costs $100 to $150.
- Waiting for permission to operateA January 2026 Sierra Club and CHESSA review found permit waits of ten days but weeks-long delays for permission to operate from BGE and Pepco. You can end up paying a loan and a full utility bill at once.
−What keeps it lower
- HB 1532 permit-fee capResidential solar permit fees are capped at $500.
- No sales tax on equipmentThe §11-230 exemption comes off at purchase.
- Larger rural roofs and cash purchasesBoth keep the per-watt number low.
Cash, loan or lease in Maryland after the 30% credit
The end of the federal credit reshuffled the financing question. Each option works differently now that no 30% comes back in year one.
Pay cash
You own the system
Upfront
The full price, about $21,239 for 7.78 kW.
Monthly
Nothing. You keep every net-metering credit.
Credits
No federal credit. You keep any renewable-energy credits the system earns.
Watch out for
A higher upfront check than before 2026.
The best long-term return, thanks to high rates and full-retail net metering.
$0-down loan
You own the system
Upfront
Often $0 down.
Monthly
A loan payment. Confirm it is lower than your current electric bill.
Credits
No federal credit for systems installed in 2026.
Watch out for
A dealer fee of 20% to 30% of system cost, baked into the financed amount.
Ownership without cash. Ask for the cash price next to the financed price.
Lease or PPA
The installer owns the system
Upfront
$0.
Monthly
A monthly fee or a price per kWh.
Credits
The owner claims the commercial clean-energy credit and may pass some back as a lower rate.
Watch out for
PPA payments rise 2.9% a year. You give up the net-metering value and the renewable-energy credits.
The only 2026 path to any federal benefit, at the smallest long-term return.
Read this before a $0-down pitchA $0-down offer is rarely free once the dealer fee is counted. See how $0-down solar works in Maryland.
Where the Maryland math breaks: western rates, old roofs, shade
Not every Maryland home is a good fit. Think twice if one of these is true:
- You are on Potomac Edison. Its 14.88¢ rate is the lowest in the state and stretches payback to 12.8 years. Weigh it harder if you may move within five years.
- Your roof has under 8 to 10 years left. Replace it first. Removing and resetting an array for a re-roof costs $1,500 to $5,000. With about twelve years left, ask whether to re-roof now and mount once.
- Deep afternoon shade or a mostly north-facing roof. Output falls below rating. On a partly shaded south roof, ask the installer to model production with the shade in place.
- You use under 250 kWh a month. Fixed costs do not shrink with a small system. Community solar is the better option for renters, shaded roofs and the smallest bills.
License, panel and permission to operate: what to ask a Maryland installer
Maryland’s licensing and interconnection rules are specific. These questions separate a competent installer from a risky one:
- Do you hold a current MHIC license? Business Regulation §8-301 requires one, and a licensed master electrician must make the grid and panel connection. Ask for the license number.
- Are your installers NABCEP-certified? It is the industry standard for crews and required for grant-program work.
- Is a panel upgrade in this quote? With under 200-amp service, confirm whether the $1,200 to $2,500 upgrade is included or added later.
- What is your permission-to-operate track record with BGE and Pepco? Ask how long recent projects waited.
- Did you apply the §11-230 sales-tax exemption? It should already be in the quote.
See which companies handle this well in our guide to the top solar companies in Maryland.
BGE, Pepco, Delmarva or Potomac Edison? Check your payback
Your service area alone can shift payback by years. Enter your ZIP code for an estimate built on your local utility rate and your roof.
- Quotes built for your roofEach quote is designed around your home and your bills.
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More Maryland solar guides
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Frequently asked questions
How Much Do Solar Panels Cost in Maryland in 2026?
A typical 7.78 kW system runs $21,239 before incentives, based on a competitive price of $2.73 per watt. Smaller 6 kW systems start at $14,400, while larger 12 kW systems reach $36,700. With the federal credit gone for purchases, the gross price is also what you pay.
How Much Does a 10 kW Solar System Cost in Maryland?
A 10 kW system runs $24,000 to $30,600 before incentives at the $2.73 per watt competitive price. Adding a 13.5 kWh battery brings it to $39,525 to $46,125, since storage adds $15,525.
Can I Still Get the Federal Solar Tax Credit in 2026?
No. The Residential Clean Energy Credit ended for systems installed after December 31, 2025. A lease or PPA can still reach the separate commercial clean-energy credit, claimed by the system owner, with some value passed back through a lower monthly rate.
What Is the Solar Payback Period in Maryland?
For a purchased system, payback runs nine years on the volumetric rate solar offsets. It is nine years in BGE and Delmarva territory, and slower in western Maryland, where Potomac Edison’s lower rate stretches it to 12.8 years.
Does Maryland Have a Solar Sales-Tax Exemption?
Yes. Maryland Tax-General §11-230 exempts solar equipment from the 6% sales tax, applied automatically at purchase. The state also exempts the added home value from property tax under Tax-Property §7-242.
Will the HB 1532 Net-Metering Cap Affect My Costs?
It affects your long-term value, not your install price. House Bill 1532 closes full-retail net metering to new systems at a 3,000 MW cap or July 1, 2027, after which a lower-paying successor applies. Interconnecting before the cutoff locks full retail for the system’s life.
Do Solar Panels Raise My Maryland Property Taxes?
No. Under Tax-Property §7-242, the home value added by your solar system is exempt from real property tax, so you keep the resale value without a higher tax bill.
How we calculate these costs
The $2.73 per watt behind every figure is Maryland’s entry in the EcoGen Solar Cost Index (v2 method), 5.9% below the $2.90 national figure. Payback uses the EcoGen Solar Payback Methodology with 0.5% degradation over 25 years. Rate growth is capped at 4% a year, below Maryland’s unusually fast 6.36% five-year rate growth, so these paybacks run longer than recent rate history alone would give. The $206 average monthly bill comes from EIA consumption and rate data.
Sources (13)
- Maryland PSC, U.S. EIA Corrects Maryland Electricity Price Data (June 3, 2026)
- U.S. EIA, Electric Power Monthly, Table 5.6.A (April 2026 data, released June 25, 2026)
- IRS, Residential Clean Energy Credit (Section 25D): irs.gov
- IRS, Treasury, IRS Issue FAQs to Address the Accelerated Termination of Several Energy Provisions Under OBBB (August 21, 2025)
- Maryland General Assembly, House Bill 1532: Utility RELIEF Act (2026 enrolled emergency bill): mgaleg.maryland.gov
- Maryland PSC, Net Energy Metering in the State of Maryland (revised November 20, 2025): psc.maryland.gov
- Maryland Code, Public Utilities Article §7-306, Net Energy Metering: mgaleg.maryland.gov
- Berkeley Lab, Tracking the Sun
- NREL, PVWatts Calculator
- Maryland Code, Tax-General Article §11-230, solar energy equipment sales-tax exemption
- Maryland Code, Tax-Property Article §7-242, solar energy property tax exemption
- NABCEP, Certifications
- Maryland Energy Administration, Maryland Solar Access Program (FY2026; portal closed April 17, 2026)
