Solar Panels aren’t just useful on the West Coast, in fact, solar panel installations are growing more and more popular. Solar power in Maryland is getting more and more popular especially with the state shifting towards sources of renewable energy. Maryland has some impressive solar incentives, including strong net metering, and solar energy tax benefits.

Solar in Maryland

The average cost of solar in Maryland ranges from $11,985 to $16,215. When you look at the cost of solar on a per watt ($/W) basis, a solar panel installation in Maryland is going to range from $2.40 per watt to $3.24 per watt.

A common question that homeowners are going to have is ‘how long is it going to take to earn back their initial investment of solar panels?’ A solar payback period is the amount of time it takes for property owners who get a solar panel installation to recover their initial investment through solar power savings. In Maryland, homeowners can earn the original cost of solar back in 8.60 years.

Fortunately, there are plenty of financial options that available for customers who are interested in getting a solar panel installation. The cash purchases are one common method to pay for for solar panels and often lead to the most long-term value for your money. If an upfront purchase isn’t right for you, solar loans and leases are available to help finance a solar panel installation.

2019 Cost of Solar in Maryland for a 5-kW Solar-Powered System

Solar Power in Maryland 

The state moved from the 13th nationally ranking in 2018 to 14th in 2019. There are currently 1,173.86 MW of solar power installed, enough to provide solar electricity for 136,185 homes. The state is currently using solar electricity for 3.33% of its electrical needs. The solar power industry has created 4,515 jobs in the state in Maryland. There are currently 241 solar companies in Mary, 17 solar power manufacturing jobs, 127 solar installers, and 97 others. The state has invested $3,186.38 million in solar power. It is projected that in the next 5 years the state will add 1,106 MW of solar power in the next year, predicting that it will drop to the 20th spot in national rankings. The state currently has 65,219 solar panel installations.

Solar Incentives in Maryland

The solar incentives in Maryland are a big reason that a lot of homeowners are making the switch to solar power. The leading solar inventive in Maryland is going to be the solar Investment Tax Credit (ITC), which is going to effectively reduce the cost of solar panel installations by 30 percent. Maryland has a few notable solar policies that decrease the cost of solar and increase the amount of money that your solar panel installation will generate:

Residential Clean Energy Grant Program

The MD solar rebate program is quite simple. If you get a solar panel installation, Maryland will pay you $1,000. You will just have to ensure that your solar-powered system is smaller than 20 kilowatts (kW), is located at your primary residence, and that whoever is completing your solar panel installation has the standard NABCEP certification.

Maryland Net Metering

If you install solar panels in Maryland, you are going to receive full credit on your utility electric bills for the extra electricity that your solar panels generate, thanks to net metering. During the times that your solar panel installation generates more solar power than you use, you can “bank” it with your utility and draw it later when you need more than your solar panels are generating at the moment. PEPCO (Potomac Electric Power Company) offers the top utility net metering program in Maryland.

Maryland Solar Energy Tax Benefits 

Maryland offers homeowners with solar panels a few tax breaks, so you won’t have to worry about your tax bills going up as a result of getting a solar panel installation. Thanks in part to the Property Tax Exemption for Solar and Wind Energy Systems, you aren’t going to have to pay any extra taxes on the increased value of your home due to the solar panels. The Sales and Use Tax Exemption for Renewable Energy Equipment making the purchase of your solar panel installation tax-free.

The Federal Solar Tax Credit (ITC)

The federal government offers the holy grail of solar incentives, the federal ITC. In addition to the Maryland-specific solar power programs, you can cut the cost of solar by 30 percent through this solar energy tax benefit. The ITC applies to those who buy they're their solar panel installation outright with a case or with a loan for solar and you must have enough income for the tax credit to be relevant.