How To Get Free Solar Panels in Maryland
Updated August 28, 2024 | 12 min read
If you are reading this then you are probably wondering if you can get free solar panels for your home in Maryland. The short answer is: Yes, it is possible to get free solar panels in Maryland!
The State of Maryland does not offer free solar panels to residents, however you can get free solar panels in Maryland by entering a Power Purchase Agreement (PPA) or solar lease with a local installer.
In this post, we delve into the world of solar incentives Maryland has to offer, exploring the various programs and rebates available to make your transition to clean energy more affordable.
Maryland Solar Incentives: A Comprehensive Guide
Navigating the world of solar incentives can be overwhelming, but we're here to simplify it.
This comprehensive guide will walk you through the various tax credits, rebates, and programs available in Maryland, empowering you to make informed decisions and maximize your savings when going solar.
Step 1: Understand Your Options
There are several programs that offer free solar panels in Maryland. Your options depend on a number of factors such as where you live, the type of energy system you need, and your income status.
Based on these factors, you may also qualify for even more financial benefits like rebates and tax credits.
The following are some of the most popular programs currently available in the State of Maryland…
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Power Purchase Agreement (PPA)
The most common path to "free" solar is a Power Purchase Agreement directly between you and a state-licensed solar energy company. Under a "PPA", the solar company absorbs the full cost of the solar panel equipment and installation for you.
The solar company is technically the owner of the equipment, however, they are responsible for providing you with electricity produced from your home for a guaranteed fixed rate (unlike the unpredictable rising costs of traditional utilities).
They are also responsible for any continued maintenance or repairs the solar system may require.
This can be a great option if you don’t want to buy or simply can’t afford to buy the solar panels outright. Even though the homeowner isn’t purchasing the actual solar system, they still enjoy the benefits of solar energy and save money on their electricity bills.
Residential Clean Energy Rebate Program
The Maryland Residential Clean Energy Program is a statewide, non-competitive (first come, first served) rebate program by the Maryland Energy Administration (MEA). This landmark program provides rebates directly to homeowners who choose to adopt solar electric (photovoltaic) or solar water heating.
For MD residents who meet certain eligibility requirements, this can be an excellent way to obtain a state-licensed solar panel installation at no cost.
While MD Clean Energy is the leading state program, many local counties offer their own programs as well, each with unique eligibility requirements.
Considering how specific each program is to the details of your home, we strongly suggest you speak with a local solar expert to review all of your best options.
Maryland Solar Energy Equity Grant Program
The Maryland Low Income Solar Grants program offers financial assistance to low-income households for installing solar energy systems. The grants cover a portion of the installation costs, making solar energy more accessible and affordable for eligible residents.
The program aims to reduce energy bills and promote clean energy adoption among low-income families in Maryland.
For more details, visit the official page from the Maryland Energy Administration (MEA).
Additional Maryland Solar Incentives
In addition to these programs, there are many financial benefits for homeowners in Maryland who switch to solar energy. Some of the biggest incentives and benefits are:
Federal Tax Credit
Formerly known as the Solar Investment Tax Credit (ITC), this program was extended in 2022 and renamed the Residential Clean Energy Credit.
Homeowners who install solar can claim a massive federal tax credit worth 30% of the gross system cost (including panels, related equipment, wiring, installation, permits, and fees). That means that if the gross system cost is $20,000, your federal tax credit would be a whopping $6,000!
Solar Renewable Energy Credits (SRECs)
SRECs are financial credits that you receive automatically for the excess energy your solar system produces and distributes back to the grid.
These credits come in the form of deductions from your bills or can even be sold for monetary payment based on market value. This is a great way to make some passive income from your solar panels and increase your solar savings!
Multiple Tax Exemptions: Homeowners with solar can receive a property tax exemption for the value of their system. This allows homeowners to increase their property values without increasing their taxes.
The state also applies a Sales Tax Exemption to the purchase of the system, so residents won't have to pay the 6% Maryland state sales tax. So if your solar energy system costs $20,000 total, you’ll save an additional $1,325 off taxes!
Explore our complete Maryland solar tax guide and discover how much you can save.
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Step 2: Find Out if Your Home Qualifies for Free Solar Panels
Depending on where you live, your home may qualify for several different solar savings or free install programs, each with unique advantages.
We strongly recommend you speak with a local solar expert regarding your options prior to installation. If you begin an installation without applying for the right programs, you may lose out on massive savings!
Step 3: Get a State-Licensed Installation
According to the Solar Energy Information Administration (SEIA), there are 187 solar companies currently operating in the state of Maryland. The quality and reputation of these companies can vary widely so it's important to work with top solar companies for your installation.
Working with a state-licensed installer is the best way to ensure your solar system is installed safely, securely, and most importantly, legally. Setting up a cutting-edge solar system and connecting it with your utility company’s grid is no simple DIY project.
Be sure only to evaluate options provided by licensed and insured solar panel installers. They can also advise you on the best systems to suit your needs and budget, further helping to manage the cost of solar panels in Maryland.
Be sure only to evaluate options provided by licensed and insured solar panel installers.
Contact our local Maryland solar experts and we’ll walk you through the whole process, from qualification to installation!
How to Maximize Your Savings with Maryland Solar Incentives
Taking advantage of Maryland's solar incentives can significantly reduce the upfront cost and long-term expenses of your solar panel system. Here are some tips on how to maximize your savings:
- Stack Incentives: Combine multiple incentives whenever possible. For example, you might be able to take advantage of the federal tax credit, the Residential Clean Energy Grant, and SRECs all at the same time.
- Choose the Right System Size: Carefully consider your energy needs and budget when choosing the size of your solar system. A larger system may generate more SRECs, but it will also have a higher upfront cost.
- Shop Around for Installers: Get quotes from multiple solar installers to compare prices and ensure you're getting the best deal.
- Understand the Fine Print: Each incentive program has its own specific rules and regulations. Make sure you understand the requirements and deadlines to avoid missing out on any potential savings.
- Partner with a Knowledgeable Solar Company: A reputable solar installer like EcoGen can help you navigate the complexities of Maryland's solar incentives and ensure you're maximizing your savings. We'll guide you through the entire process, from system design to installation to claiming incentives.
By following these tips and working with a trusted solar partner, you can make the most of Maryland's solar incentives and enjoy the benefits of clean, renewable energy for years to come.
Key Takeaways:
- Qualification for Free Solar Panels: Many Maryland homeowners and businesses may qualify for free solar panel installations through various programs and incentives.
- Understanding Your Options: Eligibility for free solar panels depends on factors like location, energy system type, and income. Programs like PPAs and state rebates are available.
- Power Purchase Agreements (PPAs): Under a PPA, a solar company covers the cost of equipment and installation. Homeowners pay a fixed rate for electricity produced, benefiting from reduced electricity bills without purchasing the system.
- Residential Clean Energy Rebate Program: This statewide program offers rebates to eligible homeowners for solar electric and water heating systems, reducing the upfront cost of installation.
- Federal Tax Credit: Homeowners can claim a 30% federal tax credit on the gross system cost, significantly reducing the financial burden of going solar.
- Solar Renewable Energy Credits (SRECs): Homeowners can earn credits for excess energy produced, which can be sold or used to offset electricity bills, providing additional financial benefits.
- Tax Exemptions: Maryland offers property tax exemptions for the added value of solar systems and a sales tax exemption on system purchases, providing further cost savings.
- State-Licensed Installers: Using state-licensed and insured installers ensures safe, legal, and efficient installation of solar systems. Consulting with local experts is recommended to maximize benefits and savings.
Frequently Asked Questions:
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