Maryland has been one of the states leading the country in progressive energy policies. The state of Maryland, collectively, has increased its solar power capacity to 1,700 megawatts and powers over 200,000+ Maryland homes and businesses!

Here are a few of the top Maryland Solar Incentives to see if you qualify for.

Federal Solar Investment Tax Credit (ITC)

The Federal Solar Investment Tax Credit (ITC), also known as the Green Energy Tax Credit, is a policy tool used by the US government to promote the use of solar energy. It provides individuals and businesses with a tax credit of up to 30% of the cost of installing a solar energy system, which can be deducted from their federal income taxes. This credit has been instrumental in the growth of the solar industry, making solar energy more affordable and accessible for homeowners and businesses.

Initially introduced in 2005 as part of the Energy Policy Act, the ITC has been extended several times since its inception. The credit was initially set to expire at the end of 2007, but has been extended through 2030. The Solar ITC has played a vital role in driving the growth of solar power and reducing dependence on fossil fuels, contributing to a cleaner environment and a more sustainable future.

Net Metering & Solar Energy Credits

Solar Net Energy Metering (NEM) is a program that credits homeowners and businesses for excess energy generated by their solar panels and fed back into the grid. The credit is applied at the retail electricity rate and can be used to offset the cost of electricity. Solar NEM has become an essential policy tool in the transition to a cleaner, more sustainable energy future, enabling more people to participate in the switch to renewable energy.

One megawatt-hour (1000 kilowatt-hours) of solar energy equals one Renewable Energy Credit (REC). So if your solar panels produced 4 megawatts of power over the course of a year, that gains you 4 RECs. RECs have actual monetary value, meaning you can sell them.

Maryland's Renewable Portfolio Standard requires electricity utilities to use renewable energy sources to generate a set portion of their produced power. If a company can't meet this requirement, they have to either pay a fine, or take the cheaper option of purchasing Maryland solar RECs on the open market. You can go online with your RECs and post them for sale, and wait for the buyers to contact you.

Solar Tax Exemptions

Maryland solar panels are exempt from property taxes! This tax exemption helps home owners increase their property value without imposing any additional tax burdens.

Solar panels are also exempt from Sales tax in Maryland! This sales tax exemption eliminates the 6% sales tax on the purchase and installation of solar panels, making solar installations more affordable for residents and businesses. Compared to neighboring states, this tax exemption provides an automatic 6% discount, as surrounding states typically do not offer sales tax exemptions or have lower sales tax rates.

As a result of these tax exemptions, homeowners can enjoy the financial benefits of solar energy without paying any additional taxes, making solar installations more affordable and accessible for Maryland residents!