State solar guide
Maryland has strong solar fundamentals in 2026. The federal residential credit expired December 31, 2025, but state incentives and net-metering rules still support solid payback timelines for qualified homeowners.
Sources: ElectricChoice June 2026 | NREL PVWatts (verify at your assessment) | EnergySage June 2026 | Federal residential credit: Section 25D expired December 31, 2025, H.R.1 (One Big Beautiful Bill Act).
Net metering
Maryland offers full 1-to-1 retail net metering for residential systems under all Maryland investor-owned utilities including BGE, Pepco, Delmarva Power, and Potomac Edison. Credits roll over indefinitely with no annual expiration, which is a significant advantage over states that reset credits at year-end. This indefinite rollover structure allows Maryland customers to bank summer surplus production against winter months without losing value. There are no announced proposals to change Maryland's net metering structure as of June 2026.
BGE (Baltimore Gas and Electric, serving Baltimore city and surrounding counties): full retail 1-to-1 net metering, credits roll indefinitely. Pepco (serving Montgomery County and Prince George's County): full retail 1-to-1 net metering, credits roll indefinitely. Delmarva Power (serving the Eastern Shore): full retail 1-to-1 net metering, credits roll indefinitely. Potomac Edison (serving western Maryland): full retail 1-to-1 net metering, credits roll indefinitely. All Maryland IOUs operate under the same statewide net metering mandate.
Program: NM1_full_retail. Last verified: June 1, 2026. DSIRE source (opens in new tab).
Verify with your utility
Net-metering rules change by utility and program cycle. Confirm current export credit rates and eligibility with your specific Maryland utility before contracting. Current program details at DSIRE (opens in new tab).
State incentive stack
The federal residential credit expired December 31, 2025. The programs below are what remains for Maryland homeowners. Amounts and availability change; every program is date-stamped and linked to its DSIRE source.
Federal residential solar credit (Section 25D): expired. The Section 25D residential investment tax credit expired December 31, 2025. The residential credit rate is 0%. State and local incentives below may still significantly reduce your net system cost. Commercial systems still qualify for Section 48E (30%).
| Program | Benefit | Eligibility | Status | Source |
|---|---|---|---|---|
| Maryland Solar Incentives State and local programs Incentive amounts and availability change frequently. Verify at dsireusa.org before relying on any program. | See description Maryland Solar Access Program (MSAP): income-targeted grant of up to $7,500; effectively closed for new applicants as of mid-2026 (approximately 99% of funding reserved). Maryland Solar Access Bridge Fund: 2026 program to partially offset the loss of the federal ITC for qualifying homeowners; verify current availability at the Maryland Energy Administration (mea.maryland.gov). EmPower Maryland: energy efficiency program covering insulation, HVAC, and other efficiency upgrades (not solar rebates directly). BGE and Pepco utility programs: verify current utility-specific bill credits and efficiency program incentives. | Maryland homeowners. Verify current programs at dsireusa.org. | Limited | DSIRE (opens in new tab) |
| Maryland Solar Property Tax Exemption Property tax exemption Confirm exemption filing requirements with your county assessor. | Exemption on solar-added home value (amount varies by local tax rate and system size) Maryland exempts residential solar installations from property tax assessments. Solar systems do not increase the assessed value of the property for property tax purposes. | Maryland residential property owners with qualifying solar installations. | Active | DSIRE (opens in new tab) |
| Maryland Solar Sales Tax Exemption Sales tax exemption Verify that your specific installation and municipality qualify for the Maryland sales tax exemption. | State sales tax savings on system equipment and installation Maryland exempts solar energy equipment from the state 6% sales tax. | Maryland homeowners purchasing qualifying solar energy systems. | Active | DSIRE (opens in new tab) |
Data last verified June 1, 2026. Incentive programs change; verify current amounts and availability at dsireusa.org (opens in new tab) before committing to a project.
Savings example
This example uses real Maryland market data. No federal residential credit is applied. Figures are illustrative; your in-home assessment uses your actual utility bills and the current rate schedule for your specific utility.
An 8 kW system at the EnergySage June 2026 Maryland average of $2.55 per watt costs approximately $20,400. The federal residential credit is zero (Section 25D expired December 31, 2025). Maryland's previous state tax credit is exhausted for 2026. The 6% sales tax exemption saves approximately $1,224 on this system at purchase. Maryland SREC income at approximately $40 per MWh adds approximately $320 to $440 per year for this system size. At 4.88 peak sun hours per day and full retail BGE or Pepco net metering at 20.08 cents per kWh (one of the highest rates in this regional group), combined annual electricity bill savings plus SREC income are estimated at $2,000 to $2,600, producing an illustrative payback of 10 to 11 years. Systems certified under the Brighter Tomorrow Act (placed in service July 2024 through January 2028) may earn the $55 per MWh Maryland Certified SREC rate. Figures are illustrative. Your in-home assessment will use your actual utility bill, rate schedule, and current SREC market price.
Maryland homeowner savings example (illustrative)
Illustrative example. Federal residential credit: $0 (Section 25D expired December 31, 2025). Your estimate will use your actual utility bills and current rate schedule.
Permitting
Permit requirements in Maryland vary by municipality. Verify permit timelines and fees with your installer and local Authority Having Jurisdiction (AHJ).
Commercial solar in Maryland
The commercial solar credit (Section 48E, 30 percent) remains available for qualifying commercial projects. Construction must begin by July 4, 2026 to qualify for the full placed-in-service window. Combined with MACRS accelerated depreciation and 100 percent first-year bonus depreciation, the combined first-year federal benefit can reach 45 to 55 percent of project cost for many Maryland business owners. Direct Pay is also available for nonprofits, municipalities, and other tax-exempt entities.
Commercial solar overviewCommercial solar projects must begin construction by July 4, 2026 to qualify for the 30 percent Section 48E federal tax credit. After that date, the system must be placed in service by December 31, 2027.
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Frequently asked
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