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Maryland · MD

Solar Panels in Maryland:
Is It Worth It in 2026?

Maryland averages 1318.6 kWh per kWp per year with 4.8 peak sun hours per day. At 20.61¢/kWh, an 8 kW system saves roughly $2,174/year and pays back in about 7 years.

Maryland Solar at a Glance

Peak sun hours / day4.8 hrs
Avg solar yield1318.6 kWh/kWp/yr
Electricity rate20.61¢ / kWh
Avg payback (8 kW)7 years
Annual savings (8 kW)$2,174/yr
Net meteringFull retail net metering ✓

EIA data updated: April 11, 2026 · EIA, PVGIS v5.3

Solar Incentives in Maryland

Federal ITC
30%

The 30% federal solar tax credit (Section 25D) expired December 31, 2025. Cash and loan purchases no longer qualify. State incentives below still apply.

State Programs
Rebates & Exemptions

SREC market (strong), MEA Residential Clean Energy Grant, sales & property tax exemptions

Total Savings
Varies

Utility rebates, exemptions, and net metering still apply. Federal ITC expired Dec 2025. Plus sales tax exemption. Property value increase is tax-exempt.

All Available Incentives in Maryland

Federal ITC (Section 25D)Expired December 31, 2025 — no longer available for residential cash/loan
Sales Tax ExemptionSolar equipment is sales-tax exempt
Property Tax ExemptionSolar-added home value not taxed
SREC MarketEarn certificates for energy produced
Net MeteringFull retail net metering ✓

How Much Solar Power Do Maryland Cities Get?

Real PVGIS yield data and EIA electricity rates for all 5 cities. Click any city for detailed payback calculations.

Personalized estimate

Enter your monthly bill — get exact payback numbers for Maryland.

Calculator
All Maryland incentives

Full breakdown of credits, rebates, net metering, and SREC programs.

Incentives

Solar in Maryland: Frequently Asked Questions

Is solar worth it in Maryland?
Generally yes — solar makes financial sense in Maryland for most homeowners. The 7.0-year payback is near the national average. At 20.61¢/kWh, annual savings on an 8 kW system run approximately $1,685. Maryland has a strong SREC market (SRECs trade at $50–$80 each), a $1,000 state grant, and property tax exemption — making it one of the best mid-Atlantic solar states.
What solar incentives are available in Maryland?
Maryland homeowners can stack multiple incentives: the state solar incentives (federal ITC expired Dec 2025) (ITC) — $6,480 on a typical 8 kW system; a property tax exemption (solar-added home value not taxed); sales tax exemption on solar equipment; and net metering through BGE / Pepco / Delmarva. Maryland has a strong SREC market (SRECs trade at $50–$80 each), a $1,000 state grant, and property tax exemption — making it one of the best mid-Atlantic solar states.
How much electricity do solar panels produce in Maryland?
Maryland averages 1318.6 kWh per kWp of solar per year — 12% below the US average. An 8 kW system produces roughly 10,549 kWh/year, with a monthly average of 109.9 kWh/kWp. Output varies by location: southern Maryland produces more than the north.
How much do solar panels cost in Maryland?
The average 8 kW system in Maryland costs approximately $21,600.0 before incentives. After the 30% federal ITC ($6,480), your net cost is around $15,120. Prices range from $2.40–$3.20/watt installed depending on installer, panel brand, and mid-Atlantic climate, good year-round production.

Going Solar in Maryland: Step by Step

From first quote to first kilowatt — here is the typical timeline for a residential solar installation in Maryland. Most homeowners complete this process in 6–12 weeks.

  1. 1
    Get 3 quotes

    Prices in Maryland average $22,400 for an 8 kW system before incentives. Getting three quotes typically saves 10–15%. Use the same system size so you can compare apples to apples.

  2. 2
    Review your electricity bill

    Your last 12 months of usage determines the right system size. At 20.61¢/kWh in Maryland, a system that offsets 90% of your bill hits the best cost-per-kWh sweet spot.

  3. 3
    Check state incentives

    Maryland does not have a statewide solar tax credit, but utility rebates and net metering may still apply. SREC market (strong).

  4. 4
    Sign contract & apply for permits

    Your installer pulls the building permit and files interconnection paperwork with your utility. Permit approval in Maryland typically takes 1–4 weeks depending on your county.

  5. 5
    Installation day

    A standard 8 kW residential installation takes 1–2 days. Racking goes on first, then panels, then the inverter is wired to your main panel. The crew usually keeps the power on throughout.

  6. 6
    Utility inspection & interconnection

    After installation your utility inspects the system and approves grid connection. This final step can take 1–3 weeks. Once approved, your meter tracks both import and export.

Data summary for Maryland: Maryland averages 1318.6 kWh/kWp/year with 4.8 peak sun hours/day. Electricity costs 20.61¢/kWh. An 8 kW solar system saves ~$2,174/year and pays back in 7.0 years. SREC market (strong), MEA Residential Clean Energy Grant, sales & property tax exemptions.