Guide to Maryland Tax Credits

Does Maryland Offer Solar Tax Credits? 

 

Yes, Maryland offers multiple solar tax credits that provide abundant cost-effective opportunities to obtain a solar system.

However, you must identify the solar incentives available in your city, the qualification, and how much energy bills you can save with solar.

Top Maryland Solar Incentives, Tax Credits, and Rebate Programs

Get to know how solar energy policies can reduce the upfront cost of your solar system. We highlight the top solar panel Maryland incentives here: 

Solar Renewable Energy Credits (SRECs)

Maryland's solar panel installation has experienced exponential growth over the years. In 2019,  Governor Hogan proposed the Clean and Renewable Energy Standard (CARES), a program bill to produce 100% clean electricity by 2040 with zero emissions.

 

The motive is to generate 50% of its electricity from renewable energy sources by 2030. Solar Renewable Energy Certificate (SREC) validates that your solar system generates one megawatt-hour (MWh) or 1000 kilowatts hours (kWh) of electricity.

 

Thus, homeowners and businesses get credit by selling the excess energy their panels supply to the grid. Users sell certificates to either their utility company or the SREC market.

 

Note: The certificate's price depends on the market value. 

 

Residential Clean Energy Grant Program

The Residential Clean Energy Grant Program is a valuable Maryland solar rebates for homeowners.

 

Residents are paid $1000 for solar panel installation in Maryland. The criteria are simple: ensure that your system is more than one kWh but less than 20 kWh.

 

Also, it must be installed at your primary residence. And finally, your installer must possess a North American Board of Certified Energy Practitioners (NABCEP) certificate. 

 

Inflation Reduction Act (IRA)

The Inflation Reduction Act offers thousands of dollars in rebates and incentive programs to support Americans, Marylanders inclusive, with solar rooftops.

 

The IRA is an extension of the solar investment tax credits (ITC), proposed to reduce 30% of the initial cost of solar systems. 

 

Net Energy Metering

Like SRECs, excess energy produced by the panel sent back to the grid ensures you get a credit.

However, net metering does not require certificates or the SREC market for you to get paid. Credits are measured and delivered by your utility company via retail rates. 

 

Learn how Maryland's net metering policy allows you to earn credits for the excess energy your solar panels generate, further offsetting your energy costs.

 

Sales and property tax exemptions

Remember that solar panel installation boosts your home value; an increase in property taxes. However, Maryland's residents are exempted from solar installation property taxes.

 

Although a 6% sales tax might seem too small, residents are exempted from paying it. This makes going solar tax-free in Maryland and many other states. 

 

Ready to go solar without breaking the bank? Our comprehensive guide to free solar panels in Maryland reveals all the programs and incentives available to make it happen!

 

Common Mistakes to Avoid When Applying for Maryland Solar Incentives

While Maryland's solar incentives offer significant benefits, navigating the application process can sometimes be tricky. To ensure you maximize your savings and avoid potential pitfalls, here are some common mistakes to watch out for:

 

Missing Deadlines

Some incentives have specific application deadlines or program expiration dates. Failing to submit your application on time can result in missed opportunities for savings. Always double-check the deadlines and submit your paperwork well in advance.

 

Incomplete Applications

Ensure that your application is complete and includes all required documentation. Missing information can lead to delays or even disqualification from the program.

 

Not Meeting Eligibility Requirements

Each incentive program has specific eligibility criteria. Make sure you understand the requirements and confirm that you meet them before applying. This includes factors like system size, location, and installer certifications.

 

Failing to Compare Incentives

Don't assume that one incentive is the best fit for everyone. Take the time to compare different programs and their benefits to determine which ones align best with your needs and goals.

 

Overlooking Local Incentives

In addition to state-level incentives, some local governments or utility companies may offer additional rebates or programs. Research local options to see if you can stack incentives for even greater savings.

 

Not Consulting a Solar Professional

A qualified solar installer can help you navigate the complexities of Maryland's solar incentives and ensure that you're taking advantage of all available opportunities. Don't hesitate to seek professional guidance.

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 being aware of these common mistakes and taking proactive steps to avoid them, you can streamline your application process and ensure you receive the maximum benefits from Maryland's solar incentives. Remember, thorough research and careful planning are key to a successful solar installation.

 

Get a free consultation on Maryland Solar Panel Installation

 

If you wish to utilize solar energy to your advantage, EcoGen is here to make your dream a reality. Team up with a solar installation company in Maryland like EcoGen to solve 90% of your solar installation hurdles.

 

We're always happy to help you get the best out of solar incentive programs. Talk to us now.