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What solar incentives are available in Maryland?
As a homeowner in Maryland, you have access to several different tax incentives that make solar panels more affordable. Solar incentives are available at both the federal and state levels to help you save thousands on your investment in solar energy.
Solar Calculator is here to help you take the next step in your transition to renewable energy. Below, we’ll discuss some of the different ways you can make solar more affordable.
Federal solar incentives
As part of the Inflation Reduction Act of 2022, congress passed several clean energy provisions to reduce energy costs. Among those provisions was an extension and upgrade of the Federal Investment Tax Credit (ITC).
Federal Investment Tax Credit
The Federal ITC allows you to claim 30% of your total equipment and installation costs on your federal taxes. There is no minimum or maximum amount you can claim and it includes equipment, installation, permitting, and even battery storage.
The ITC will remain at 30% until December 31, 2032. After that it will be reduced to 26% until December 31, 2033, then to 22% the following year. The ITC is currently set to disappear in 2035 unless it is renewed.
Who is eligible for the Federal ITC?
Most homeowners will qualify for the Federal ITC, but not all. You must meet the following criteria to claim your 30% tax credit:
The Federal ITC will also cover the following expenses:
Homeowners save around $10,000 on average with the Federal ITC. But that number can be higher or lower depending on your total expenses.
How to claim the Federal ITC
Claiming your Federal ITC couldn’t be easier. All you have to do is fill out IRS form 5695 and submit it with your tax return. You can consult with a tax professional for more assistance.
Local solar incentives
Who’s eligible : Construction, Schools, State Government
How to apply : 2023 Update: On May 17th, 2023, Governor Wes Moore signed executive order 01.01.2023.07 doubling Maryland's energy conservation goal for state-owned buildings from a 10% decrease by 2029 to a 20% decrease by 2031. The EO also requires the Maryland Green Building Council to update the High-Performance Green Building Program to ensure that all new buildings and major renovations align with the state's goal to achieve net-zero greenhouse gas emissions by 2045. These standards apply to new buildings or major renovation projects that are: Funded solely with State funds and are of 7,500-gross square feet or larger or are community college projects that receive any State funds and are of 7,500-gross square feet or larger; New and major renovations of pre-kindergarten through 12th grade (PK-12) public schools for which the Request for Proposal (RFP) for architecture and engineering (A/E) design services is issued after July 1, 2009 and is funded at least in part by State funds; Any construction implemented by another instrumentality, public or private, that may be subject to the Program pursuant to other Maryland statutes or regulations. The program does not apply to the folowing facilities or project types: Unoccupied buildings including warehouse and storage facilities; garages; maintenance facilities; transmitter buildings; pumping stations; and other similar types of buildings, as determined by the Department of Budget and Management; Facilities as described in Chapter 3 of the International Building Code (IBC): 1. High‐hazard Group: H 2. Storage Group: S 3. Utility And Miscellaneous Group: U New construction and major renovations must meet the requirements of the Green Building Councils High-Performance Building standard requiring at least one of the following: Achieve a minimum LEED Silver rating, while striving for a LEED Gold rating or better. Achieve a minimum rating of two Green Globes in the appropriate rating system, while striving for three Green Globes or better. Meet the State of Maryland Green Building Council-adopted version of the International Green Construction Code (IgCC) The State of Maryland also has clean energy procurement requirements for state facilities. Pre-2023 Update History: Maryland's policy for energy efficiency in state buildings is governed by a series of related policies adopted at different times. One of the earliest policies, adopted in 1985, established Life Cycle Cost Analysis Standards requiring the Department of General Services (DGS) to include an evaluation of the use of renewable energy systems (including active and passive solar and wind systems) and energy efficient strategies (including the effect of insulation and the amount and type of glass and direction of exposure) in creating standards for determining a building's life-cycle costs. Additionally, in determining life-cycle costs, an energy consumption analysis is required for each major piece of equipment in the building’s chief energy-consuming systems (including cooling, heating, hot water, lighting and ventilation systems). In 1992 the state enacted legislation requiring the Maryland Energy Administration (MEA) and the DGS to set energy performance standards that would reduce energy consumption in state buildings by 15% in 1996 and 25% by 2001 from a 1992 baseline. The law also required each state agency to perform an energy analysis for each building under its jurisdiction. Maryland's governor issued Executive Order 01.01.2001.02 in March 2001 calling for a further 10% reduction of energy use in state buildings by 2005 and 15% by 2010 (relative to a 2000 baseline) and requiring all new energy-using products to carry the "ENERGY STAR" label or be in the top 25% in energy efficiency when products with labels are unavailable. In 2006, S.B. 267 updated the older statute to require energy consumption in state buildings be reduced by 5% by 2009 and 10% by 2010 relative to a 2005 baseline. The bill also modified the previous energy analysis requirement to provide that a new analysis should be completed each year. The statute passed by the legislature supersedes the Executive Order described above, although the order has not been repealed and thus can still be considered an active part of state administrative law. In April 2008, Maryland enacted additional laws designed to promote energy efficiency in state buildings. Among these was the Maryland High Performance Buildings Act (S.B. 208), which requires that capital projects involving the construction or major renovation of buildings funded solely with state funds meet the criteria for classification as a "high performance building". New schools being constructed with state assistance must also meet this standard. In 2010 the law was amended to also require that community college capital projects that receive state funding also meet high performance building standards.
Who’s eligible : Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government, Federal Government, Agricultural, Institutional
How to apply : In April 2007, Maryland enacted legislation (S.B. 595) requiring the Maryland Public Service Commission (PSC) to form a small generator interconnection working group to develop interconnection standards and procedures that are "consistent with nationally adopted interconnection standards and procedures," and to revise the state's interconnection standards and procedures on or before November 1, 2007. Final rules were adopted in March 2008 and became effective June 9, 2008. The new rules apply to interconnections of all types of distributed generation systems of less than 10 MW to the electric distribution system for all types of utilities -- investor-owned utilities, rural cooperatives and municipal utilities. Interconnections that are subject to PJM Interconnection are exempt from this rule. Standard Interconnection agreement employs a four-tiered approach to determine the level of review required before a system may be connected to the grid. Different levels of review are subject to specific technical screens, review procedures, and time lines. Generally speaking, the review process becomes more extensive and time consuming with increasing system size. Below are the basic criteria* for determining the level of review required for a prospective project. Level 1: Lab certified, inverter-based systems of 20 kW or less. Level 2: Lab certified or field approved systems of 2 MW or less connected to a radial distribution circuit or to a spot network serving one customer. Level 3: Only applies to systems that will not export power to the grid and which do not require new facility construction by the utility. Systems being located on an area network must be inverter-based, use lab certified equipment, and have a capacity of 50 kW or less. Systems located on a radial network must have a capacity of 10 MW or less and not be served by a shared transformer. These systems are also subject to additional criteria dealing with the aggregate capacity of interconnected systems on a given network. Level 4: Systems 10 MW or less that cannot be approved or do not meet the criteria for review under a lower tier. Lab certified equipment is defined to mean equipment tested and approved by a nationally recognized testing laboratory (NRTL) as being in accordance with IEEE 1547, UL 1741, and the National Electric Code (NEC). Field approved systems are generally non-certified systems that have been tested and approved under a prior review by a utility, subject to certain other restrictions. All interconnected systems must be equipped with a utility accessible “lockable isolation device” or alternately, a “draw-out type circuit breaker with a provision for padlocking at the draw-out position”. This requirement is equivalent to “lockable external disconnect switch” frequently specified in other jurisdictions. Utilities may not charge any processing fees to Level 1 applicants. Utilities are also required to designate a contact person and provide assistance materials on their website for use by prospective applicants. Standardized interconnection agreements are available on the PSC renewable portfolio standard website for all levels of interconnection request. The regulations also contain provisions for dispute resolution and utility reporting requirements. The issue of insurance additional insurance requirements is not addressed by the regulations. However, the standard Level 1 interconnection agreement specifically states that applicants are not required to obtain general liability insurance as a condition of interconnection approval. For Levels 2, 3 and 4 the interconnection agreement requires liability insurance of at least $2 million per occurrence and $4 million in aggregate for systems of 1 MW or larger. It also specifies that the policy must name the utility as an additional insured party. A separate standard agreement exists for Maryland state and local government entities, which among other things contains modifications to liability insurance requirements that accommodate self-insured entities. Maryland undertook a rulemaking (RM61) in December 2017 to implement recommendations from the Public Conference 44 Interconnection Working Group. The working group reached consensus on making interconnection process more efficient, allowing applications to be filed electronically, removing monitoring for systems less than 2MW, and other improvements. The new regulations added energy storage to interconnection procedures and made amendments to interconnection process for systems larger than 25 kW and 2 MW, along with other minor changes. As of January 1, 2024, in Maryland, any small generator facility requiring an inverter for which an interconnection is submitted shall use a smart inverter that meets the requirements of IEEE Standard 1547-2018 and UL Standard 1741-SB, or subsequent revisions to these standards. In addition, all newly interconnected smart inverters are required to use Maryland’s state-wide standard settings profile, a utility specific default profile (DU-URP), or a utility site-specific (IA-URP) settings profile which are based on the Hierarchy of Distributed Energy Resource Interconnection Requirements & Settings established by the Electric Power Research Institute (EPRI). *The general descriptions here are not a comprehensive listing of all testing and review criteria. Please see the actual rules for more details and additional restrictions that may apply.
Who’s eligible : Investor-Owned Utility
How to apply : Maryland enacted legislation in 2013 (H.B. 226) establishing a carve-out for offshore wind energy within its Renewable Energy Portfolio Standard (RPS). The legislation directed the Maryland Public Service Commission to determine the actual target, but provided that the requirement cannot exceed 2.5% of retail electricity sales in 2017 through 2020. The limit increases to 10% of retail electricity sales in 2025. Beginning in 2026, Maryland Statutes establish a specific megawatt (MW) target for offshore wind energy development, requiring 400 MW in 2026 and 2027, increasing to 800 MW in 2028, and 1,200 MW in 2030 and thereafter. Maryland Public Utilities Code § 7-704.1 separately established a goal of reaching 8,500 MW of offshore wind energy capacity by 2031.
Who’s eligible : Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government, Agricultural, Institutional
How to apply : In May 2012, Maryland enacted legislation stating that any calculation of "impervious surface" required by state or local authorities as part of a permit or variance relating to zoning, construction, or stormwater may only include the foundation or base supporting the solar panel. The law generally applies statewide, including charter counties and Baltimore City. It does not however apply in a defined "critical area", including the Chesapeake Bay Critical Area and the Coastal Bays Critical Area. The term "solar panel" is not specifically defined, but presumably would include both solar photovoltaic (PV) and solar thermal panels.
Who’s eligible : Commercial, Residential
How to apply : Note: H.B. 517 of 2021 allows "resiliency projects" to qualify for local PACE programs. The term resiliency project includes alternative vehicle charging equipment and energy storage. Note: In 2010, the Federal Housing Finance Agency (FHFA), which has authority over mortgage underwriters Fannie Mae and Freddie Mac, directed these enterprises against purchasing mortgages of homes with a PACE lien due to its senior status above a mortgage. Most residential PACE activities subsided following this directive; however, some residential PACE programs are now operating with loan loss reserve funds, appropriate disclosures, or other protections meant to address FHFA's concerns. Commercial PACE programs were not directly affected by FHFA’s actions, as Fannie Mae and Freddie Mac do not underwrite commercial mortgages. Visit PACENation for more information about PACE financing and a comprehensive list of all PACE programs across the country. What is a PACE Financing? Property-Assessed Clean Energy (PACE) financing effectively allows property owners to borrow money to pay for energy improvements. The amount borrowed is typically repaid via a special assessment on the property over a period of years. In May 2009, Maryland enacted legislation permitting counties and municipal corporations to adopt resolutions or ordinances establishing clean energy loan programs based on the "PACE" model. The legislation includes provisions permitting local governments to issue bonds to fund such financing programs. If adopted by a local governing body, the program allows local property owners to opt in to a renewable energy or eligible energy-efficiency loan program and repay the loan through a surcharge on their property tax bill. The surcharge remains attached to the property upon a change in ownership and is limited to the amount needed to recover costs associated with issuing bonds, financing the loans, and administering the program. The authorizing legislation describes a series of details that must be included in the local legislation implementing such financing programs, although specific details are largely left at the discretion of the local government. Local governments may generally specify property owner eligibility, eligible improvements or technologies, and loan terms and conditions. The statue provides that the local eligibility requirements for property owners address their ability to repay a loan through a process similar to mortgage loan approval. For a bond issuance, the local government may specify the principal amount, interest rate/variable rate, terms of sale, payment intervals, conditions for redemption before maturity, and other details as necessary. Bonds (serial or term) issued under this provision must mature no later than 40 years after their issue date. The Federal Housing Financing Agency (FHFA) issued a statement on July 2010 concerning the senior lien status associated with most PACE programs. In response to the FHFA statement, most local residential PACE programs have been suspended until further clarification is provided. In 2014, the Maryland legislature passed HB 202 (Chapter 473 of the 2014 Law of Maryland) that grants local governments the power to enact a surcharge on a clean energy system owner’s property tax bill to recover the cost associated with financing the loan and administering the loan program. Unpaid surcharges become liens on the property until paid. The bill also gives local authorities greater leeway work with private lenders to make loans to property owners under a local loan program. Following the changes enabled by H.B. 202, in August 2015, the Maryland Clean Energy Council (MCEC) partnered with PACE Financing Servicing (PFS) to implement commercial PACE program in the state. PFS has partnered with the Maryland Clean Energy Center to build a statewide administration program for C-PACE at no cost to jurisdictions that choose to participate. This enables more uniformity in PACE programs across different counties. Maryland Commercial PACE Program Details Eligibility Requirements: County Participation : Check with your local government to confirm participation Building Eligibility: Maryland’s C-PACE policy allows commercial, industrial, agricultural, hospitality, retail, multifamily and nonprofit properties to access financing secured by a C-PACE assessment. It applies to retrofit and new construction projects. Project Eligibility: The state law in Maryland requires the local jurisdictions to determine what particular projects are eligible for CPACE financing. Each jurisdiction’s enabling legislation lists eligible measures and can include solar, geothermal, wind energy systems, water conservation, and a broad range of energy efficiency upgrades as eligible. Financial Eligibility: The state law in Maryland also requires the local jurisdictions to give due regard to a property owner’s ability to repay C-PACE financing. Each jurisdiction’s enabling legislation includes related financial requirements of the property owner.
Can you claim multiple tax incentives in Maryland?
Yes. You are allowed to claim multiple solar incentives for the same installation. However, you can only claim each incentive once. For more guidance on how to claim your solar tax incentives, talk to your installer or consult with a licensed tax professional before submitting your tax forms.
Does Maryland offer tax exemptions?
Rebate Program
Category : Financial Incentive
Website : https://homeenergysavings.pepco.com/business/applyMLB?_ga=2.121639691.1070240287.1533837187-1129095877.1533837187
Applicable Sectors : Commercial, Industrial, Local Government, Schools, Federal Government, Agricultural, Institutional
Incentive Amount : Lighting: Varies Commercial Refrigeration Equipment: Varies Residential Air Conditioners: $25/unit Air Conditioner Units: $300/ton Water-Cooled Air Conditioners: $350 Packaged Terminal Air Conditioners: $75 - $125/unit Packaged Terminal Heat Pumps: $75 - $125/unit Air Source Heat Pump: $350/ton Ductless, Mini-Split Air Conditioners and Heat Pump: $225/ton Water Source Heat Pump: $300/ton Ground Source Heat Pumps: $350/ton Ground Water Source Heat Pumps: $350/ton Variable Refrigerant Flow: $350/ton Variable Frequency Drives (VFD): $1,800 - $5,000/unit (2 - 10 HP), $50/HP (15 - 20 HP) Electronically Commutated Motors: $100 - $400/unit Constant Speed Chiller: $15 - $24/ton (Base), $6 - $8/ton (Performance) VFD Chiller: $8 - $10/ton Smart Thermostats: $50/unit Hotel Room HVAC Controls: $70/room Receptacle Controls: $10/unit “Smart” Power Strips: $10/unit Vending Machine Refrigerated Control: $75/unit Vending Machine Control: $30/unit Heat Pump Water Heater: $500 - $1,000/unit Clothes Washer: $100 - $200/unit Dehumidifier: $25/unit Variable Speed Air Compressor: $100 - $125/HP Window Film: $1/sq. ft. Monitor: $5/unit Computer: $5/unit Copier: $10/unit Printer: $10/unit Multifunction: $10/unit Uninterruptible Power Supply: $40 per kVa Tune-Up: Varies Custom: $0.25 - $0.28/kWh
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.smeco.coop/energy-efficiency/commercial-programs/small-business/
Applicable Sectors : Nonprofit, Federal Government
Incentive Amount : Varies
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.smeco.coop/energy-efficiency/commercial-programs/business-solutions/
Applicable Sectors : Commercial, Construction, Industrial, Local Government, Nonprofit, Schools, State Government, Federal Government, Agricultural, Institutional
Incentive Amount : Amounts vary by equipment. See Program Website for a complete list of products.
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.firstenergycorp.com/save_energy/save_energy_maryland/for_your_home.html
Applicable Sectors : Residential
Incentive Amount : Appliance Recycling Program Refrigerator: $75 Dehumidifier: $75 Freezer: $25 Room Air Conditioner: $25 Mini Refrigerator: $25 Appliance Discounts Dishwashers: $35 Water Coolers: $25 Ceiling Fans: $25 Dehumidifiers: $50 Beverage Coolers: $35 Bathroom Fans: $40 Occupancy Sensors: $7 See additional details here Home Performance with Energy Star Save up to $7,500 per project on Energy-Efficient Upgrades See details here High-Efficiency HVAC Discounts Central Air Conditioner: Up to $1,400 Air Source Heat Pump: Up to $1,300 Ductless Heating and Air Conditioning Systems: $800 Heat Pump Water Heaters: $900 Smart Thermostats: $100 Geothermal Heat Pumps: $7,000 Packaged Terminal Heat Pumps: $225 Packaged Terminal Air Conditioners: $75 Circulating Pumps: $35 Furnace Fans: $75 Cold Climate Heat Pumps: $1,700 See additional details here
Implementing Sector : Utility
Category : Financial Incentive
Website : http://homeenergysavings.pepco.com/home-performance-with-energy-star-program
Applicable Sectors : Residential
Incentive Amount : Home Energy Assessment: Discounted by $300 (from $400 to $100) Home Performance Program: Up to $10,000 Air Sealing and Insulation: Tax Credit of 30% of project cost Energy Star Heat Pump Water Heater: Tax Credit of 30% of project cost
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.firstenergycorp.com/save_energy/save_energy_maryland.html
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, State Government, Federal Government
Incentive Amount : Lighting Incentives vary widely by equipment type. See Incentive Guide for more details. HVAC Air Conditioners: $250/ton Terminal Air Conditioners: $75 - $125/unit Room A/C: $25/unit Heat Pumps: $250 - $350/ton Terminal Heat Pumps: $75-$125/unit Variable Frequency Drive: $500 - $5,000/unit; $50/hp Chillers: $30/ton; $10 per Ton for each 0.1 EER point above or for each 0.01 kW below minimum efficiency Full Load or Integrated Part Load Value Variable Frequency Drive: $500 - $5,000/unit Smart Thermostat: $100/unit Food Service Equipment Incentives vary widely by equipment type. See Incentive Guide for more details. Consumer Electronics Advanced Power Strips: $20/unit Computers/Monitors: $5/unit Imaging Equipment: $10/unit Small Network Equipment: $15/PC Uninterruptible Power Supply (UPS): $40/kVA Appliances Pre-Rinse Sprayers: $50/unit Dehumidifiers: $25/unit Water Coolers: $50/unit Heat Pump Water Heaters: $1,000/unit Clothes Washers: $100/unit Refrigerators: $100/unit Freezers: $50/unit Agriculture Incentives vary widely by equipment type. See Incentive Guide for more details. Combined Heating and Power 50 kW or less: $2,000/kW 51 kW to 200 kW: $1,600/kW 201 kW to 1000 kW: $1,200/kW Larger than 1000 kW: $800/kW Custom Incentives Custom: Up to 50% of project cost, capped at $1 million per project
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.bgesmartenergy.com/residential/rebates-and-discounts
Applicable Sectors : Construction, Residential, Multifamily Residential
Incentive Amount : Appliances & Recycling Ducting Sealing: $500 - $750 Heat Pump Water Heater: Up to $1,600 Dehumidifier: $50 (New); $25 (Recycling) Smart Thermostat: $100 Refrigerator/Freezer (Recycling): $50
Implementing Sector : Utility
Category : Financial Incentive
Website : https://wgsmartsavings.com/programs-rebates/home/md
Applicable Sectors : Residential, Installers/Contractors, Low Income Residential
Incentive Amount : Home Heating/Appliances Furnace: up to $450 - $600 Boiler: up to $475 - $775 Combination Home and Water Heating Units: $800/unit Boiler or Furnace Tune-Up: $100 Natural Gas Clothes Dryer: $90 Tankless Water Heater: $450 Storage Water Heater: $175 Direct-Vent Gas Fireplace: $75 Gas Fireplace Tune-Up: $50 Smart Thermostat Demand Response: $20 + $10/year
Implementing Sector : Utility
Category : Financial Incentive
Website : http://homeenergysavings.delmarva.com/home-performance-with-energy-star-program
Applicable Sectors : Construction, Residential, Installers/Contractors
Incentive Amount : Home Energy Assessment: Cost discounted to $100
Implementing Sector : Utility
Category : Financial Incentive
Website : https://homeenergysavings.delmarva.com/md/business/overview
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, Federal Government, Multifamily Residential, Institutional
Incentive Amount : Small Business Incentives Up to 70% of the total project cost. You qualify if you use 100 kW of electricity or less per month. Medium and Large Business Incentives Up to 50% of the total project cost. You qualify if you use more than 100 kW of electricity per month.
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.smeco.coop/save-energy-and-money
Applicable Sectors : Construction, Residential
Incentive Amount : Smart Thermostat: Up to $75 Hybrid Heat Pump Water Heater: Up to $800 Refrigerator/Freezer Recycling: $50 Room Air Conditioner Recycling: $25 Dehumidifier Recycling: $25 Heat Pumps and Central Air: See Website for Details
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.delmarva.com/WaysToSave/ForYourHome/Pages/MD/RebatesAndDiscounts.aspx
Applicable Sectors : Residential
Incentive Amount : Appliances Heat Pump Water Heater: $1,600 Smart Thermostat: $100 Recycling Recycling Refrigerator/Freezer: $50 Recycling Room AC/Dehumidifier: $25
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.pepco.com/WaysToSave/ForYourHome/Pages/MD/RebatesAndDiscounts.aspx
Applicable Sectors : Residential, Integrators
Incentive Amount : Appliances Heat Pump Water Heater: $1,600 Smart Thermostat: $100 Recycling Recycling Refrigerator/Freezer: $50 Recycling Room AC/Dehumidifier: $25
Implementing Sector : Utility
Category : Financial Incentive
Website : https://wgsmartsavings.com/programs-rebates/business/md
Applicable Sectors : Commercial, Industrial, Local Government, Schools, State Government, Federal Government, Installers/Contractors, Multifamily Residential
Incentive Amount : Food Service Combination Ovens: $1,200 - $2,200/unit Convection Oven: $1,000/unit Conveyor Oven: $1,500/unit Rack Ovens: $3,000 - $4,000/unit Rotisserie Oven: $525/unit Gas Fryers: $1,500/unit Gas Griddles: $750 - $1,250/unit Gas Steam Cookers: $750 - $1,000/unit Broiler: $500/unit Commercial Dishwasher: $600/unit Kitchen Demand Ventilation Controls: $200/hp of motor Spray Rinse Valve: $30/unit Boiler Systems Small Boiler: $2.50 - $3.00/MBH Large Boiler: $4.00/MBH Boiler Cut Out Control: $0.25/MBH High Pressure Steam Trap: $300/unit Medium Pressure Steam Trap: $180/unit Outdoor Air Reset: $0.25/MBH HVAC Tune-Up Wrap Pipes: $3.00 - $5.00/foot Wrap Water Heater: $60 Water Heater Temperature Setback: $20 Water and Space Heating Large Furnace: $2.00/MBH Small Furnace: $1.25 - $2.25/MBH Infrared Heater: $1.00/MBH Wi-Fi Enabled Thermostat: $100/unit Storage Water Heaters: $400 - $700/unit Tankless Water Heater: $425 - $700/unit Volumetric Water Heater: $0.75/MBH Miscellaneous High-Efficiency Measures Gas Modulating Valve: $800/unit Gas Dryer: $100/unit Clothes Washer: $35/unit Residential Dishwasher: $100/unit Gas-Fired Pool Heater: $800/unit Water/Space Heating & Controls Hybrid Water Heater: $650/unit Ozone Laundry: $15/Lb-Capacity Central Domestic Hot Water Plants: $4.00/MBH Controls for Central Domestic Hot Water: $750/unit Linkageless Boiler Controls for Space Heating: $2,000/unit Furnace and Rooftop Unit Tune-Up: $140/Tune-up
Implementing Sector : Utility
Category : Financial Incentive
Website : http://energy.maryland.gov/residential/Pages/incentives/CleanEnergyGrants.aspx
Applicable Sectors : Residential, Multifamily Residential, Low Income Residential
Incentive Amount : PV or Solar Shingles: $1,000/project (flat per installation/household incentive) SWH: $500/project (flat per installation/household incentive) New GHC: $3,000/project
Implementing Sector : State
Category : Financial Incentive
Website : http://energy.maryland.gov/business/Pages/incentives/cleanenergygrants.aspx
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, Federal Government
Incentive Amount : PV (1-8 kW-dc): $1,000 PV (8-108 kW-dc): $1,000 + $150/kW *(capacity – 8 kW) PV (108-250.0 kW-dc): $16,000+$100/kW*(capacity–108 kW) PV (250-375 kW-DC) *Rooftop only* $20,000+$80/kW*(capacity-250 kW) SWH: $20/square foot Geothermal Heating and Cooling: 1-10 tons: $3,000/ ton 10-50 tons: $3,000 + $400*(capacity-10 tons)
Implementing Sector : State
Category : Financial Incentive
Website : https://energy.maryland.gov/transportation/Pages/incentives_evserebate.aspx
Applicable Sectors : Commercial, Local Government, Residential
Incentive Amount : Residential: 50% of cost, up to $700 Business or Government: 50% of cost, up to $5,000
Implementing Sector : State
Category : Financial Incentive
Website : https://www.evdrivenpe.com/
Applicable Sectors : Residential, Multifamily Residential
Incentive Amount : Residential Level 2 smart charger: $300 Multifamily Level 2 and DC Fast Charging stations: 50% of cost
Implementing Sector : Utility
Category : Financial Incentive
Website : https://dhcd.maryland.gov/Residents/Pages/lieep/default.aspx
Applicable Sectors :
Incentive Amount : Direct installation, no cost to the recipient
Implementing Sector : State
Category : Financial Incentive
Website : http://energy.maryland.gov/residential/Pages/incentives/woodstoves.aspx
Applicable Sectors : Residential
Incentive Amount : Stick Burning Stove: $500 Pellet Burning Stove: $700
Implementing Sector : State
Category : Financial Incentive
Website : https://www.bge.com/SmartEnergy/InnovationTechnology/Pages/ElectricVehicles.aspx
Applicable Sectors : Residential, Multifamily Residential
Incentive Amount : Residential Customers: $50/year for eligible Level 2 smart charger and charging during off-peak times (9pm - 7am) 90% of the time. Multifamily Residential: 50% for Level 2 smart EVSE equipment, warranty and installation (up to $5,000 per port); 50% for DCFC equipment, warranty and installation (up to $15,000)
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.pepco.com/SmartEnergy/InnovationTechnology/Pages/ElectricVehicleProgramMD.aspx
Applicable Sectors : Residential, Multifamily Residential
Incentive Amount : Residential Customers: $50 per year for Level 2 smart charger data sharing Multifamily Residential: 100% for Level 2 smart charger and 100% of the installation
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.delmarva.com/SmartEnergy/InnovationTechnology/Pages/ElectricVehicleProgramMD.aspx
Applicable Sectors : Residential, Multifamily Residential
Incentive Amount : Residential Customers: $300 for Level 2 smart charger Multifamily Residential: 50% for Level 2 smart charger and 100% of the installation
Implementing Sector : Utility
Category : Financial Incentive
Website : https://www.bgesmartenergy.com/business/energy-solutions-business/application-forms
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, State Government, Federal Government, Installers/Contractors
Incentive Amount : Prescriptive Incentives See full list of prescriptive business incentives here Commercial Refrigeration Equipment: Varies, see program website Commercial Kitchen Equipment: $50-$1,000/unit Refrigerators: $75-$225/unit Freezers: $100-$500/unit Ice Machines: $50-$250/unit Commercial Dishwashers: $50-$1,000/unit Commercial Clothes Washers: $100-$200 Water Coolers: $50/unit Dehumidifiers: $25/unit Smart Power Strips: $10/strip Vending Machine Controls: $30-$75/control Window Film: $1/sq. ft. Air Conditioning: $250/ton Air Source Heat Pumps: $250/ton Water Cooled and Evaporative Air Conditioner: $200-$250/ton Packaged Terminal Air Conditioner (PTAC): $50-$100/ton Ductless Mini-Split Heat Pump or A/C: $100/ton Ground Source/Ground Water Source Heat Pump: $300/ton Hotel Room HVAC Controls: $80/room Receptacle Controls: $10/control Chillers: $15-$25/ton plus $8-$10/ton of additional incentives New Construction Lighting: $0.40-$0.80/W Retrofit Lighting: Varies, see program website Lighting Controls: $30-$100/control LED Signs: $1.00-$1.65/W HVAC Tune-Up: $140/3 tons Custom Incentives See program website here Combined Heat and Power See program website here Building Tune-Up See program website here
Implementing Sector : Utility
Property Tax Incentive
Category : Financial Incentive
Website : https://finance.baltimorecity.gov/sites/default/files/HPMRRH-Citywide%20-%20Regulations%202-8-22.pdf
Applicable Sectors : Multifamily Residential
Incentive Amount : Varies per year
Implementing Sector : Local
Category : Financial Incentive
Website :
Applicable Sectors : Commercial, Industrial, Residential
Incentive Amount : 100% real property tax exemption for solar and wind energy property
Implementing Sector : State
Category : Financial Incentive
Website :
Applicable Sectors : Residential, Multifamily Residential
Incentive Amount : 50% of eligible costs
Implementing Sector : Local
Category : Financial Incentive
Website : http://www.aacounty.org/Finance/Forms.cfm
Applicable Sectors : Residential
Incentive Amount : 50% of the cost of materials and installation less any federal and state grants and state solar energy tax credits
Implementing Sector : Local
Category : Financial Incentive
Website :
Applicable Sectors : Residential
Incentive Amount : 50% of eligible costs
Implementing Sector : Local
Category : Financial Incentive
Website : http://www.harfordcountymd.gov/1286/Green-Initiatives
Applicable Sectors : Commercial, Industrial, Residential
Incentive Amount : 100% of total real property taxes on the host structure for one year
Implementing Sector : Local
Category : Financial Incentive
Website : http://www.aacounty.org/Finance/Forms.cfm
Applicable Sectors : Residential
Incentive Amount : LEED or NGBS Silver: 40% of property taxes for 5 years LEED or NGBS Gold: 60% of real property taxes for 5 years LEED Platinum or NGBS Emerald: 80% of real property taxes for 5 years
Implementing Sector : Local
Category : Financial Incentive
Website : https://www.montgomerycountymd.gov/finance/taxes/tax_credit_exempt.html#p19
Applicable Sectors : Residential
Incentive Amount : 100% of eligible costs
Implementing Sector : Local
Category : Financial Incentive
Website : https://www.montgomerycountymd.gov/finance/taxes/tax_credit_exempt.html#p19
Applicable Sectors : Commercial, Industrial, Multifamily Residential
Incentive Amount : 10% to 75% credit from property taxes owed on building for 3-5 years; varies by building type and building rating
Implementing Sector : Local
Category : Financial Incentive
Website :
Applicable Sectors : Commercial, Industrial, Residential, Multifamily Residential
Incentive Amount : Varies
Implementing Sector : State
Category : Financial Incentive
Website : http://www.baltimorecountymd.gov/Agencies/environment/sustainability/residents.html
Applicable Sectors : Commercial, Residential, Multifamily Residential
Incentive Amount : Commercial: 10% - 80% of county real property taxes assessed for 3 - 5 years Homes (LEED or NGBS): 40% - 100% of county real property taxes assessed for 3 - 5 years Homes (Energy Improvements): varies, equal to the % of energy efficiency improvement over a baseline of existing home or the energy code for new homes
Implementing Sector : Local
Category : Financial Incentive
Website : https://www.howardcountymd.gov/Departments
Applicable Sectors : Commercial, Residential, Multifamily Residential
Incentive Amount : High Performance Buildings (except R-2, R-3 buildings): credit of 10% to 75% of taxes owed for 3 to 5 years; varies by building type and building rating High Performance R-2, R-3 Buildings: credit of 19% to 100% of taxes owed for 4 years; varies by building rating and declines for each year claimed (i.e., the Year 2 % is less than Year 1) Green Buildings (w/energy conservation devices): credit of 14% - 20% of cost of device for 3 years; varies by building rating
Implementing Sector : Local
Category : Financial Incentive
Website :
Applicable Sectors : Commercial, Industrial, Residential, Agricultural, Multifamily Residential
Incentive Amount : Varies by jurisdiction; credit may be available for up to 3 years.
Implementing Sector : State
Energy Standards for Public Buildings
Category : Regulatory Policy
Website : https://dgs.maryland.gov/pages/greenbuilding/index.aspx
Applicable Sectors : Construction, Schools, State Government
Incentive Amount :
Implementing Sector : State
Interconnection
Category : Regulatory Policy
Website : https://www.psc.state.md.us/electricity/engineering-division/small-generator-interconnection/
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government, Federal Government, Agricultural, Institutional
Incentive Amount :
Implementing Sector : State
Offshore Wind Energy Target
Category : Regulatory Policy
Website : https://energy.maryland.gov/Pages/Info/renewable/offshorewind.aspx
Applicable Sectors : Investor-Owned Utility
Incentive Amount :
Implementing Sector : State
Solar/Wind Permitting Standards
Category : Regulatory Policy
Website :
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government, Agricultural, Institutional
Incentive Amount :
Implementing Sector : State
Category : Regulatory Policy
Website : http://permittingservices.montgomerycountymd.gov/DPS/general/Home.aspx
Applicable Sectors : Residential
Incentive Amount :
Implementing Sector : Local
PACE Financing
Category : Financial Incentive
Website : http://www.md-pace.com/
Applicable Sectors : Commercial, Residential
Incentive Amount :
Implementing Sector : State
Net Metering
Category : Regulatory Policy
Website : https://www.psc.state.md.us/electricity/the-electricity-division/community-net-metering/
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government, Federal Government, Agricultural, Institutional
Incentive Amount :
Implementing Sector : State
Grant Program
Category : Financial Incentive
Website :
Applicable Sectors : Commercial, Industrial
Incentive Amount : 75% of incremental cost of purchase (compared to non-zero-emission vehicle)
Implementing Sector : State
Category : Financial Incentive
Website : https://energy.maryland.gov/transportation/Pages/Clean-Fuels-Incentive-Program.aspx
Applicable Sectors : Commercial, Local Government, Nonprofit, Schools
Incentive Amount : Electric Vehicles (Class 1 - 2): $5,000 per vehicle Electric Vehicles (Class 3 - 8): 100% of incremental cost Hydrogen Vehicles: 100% of incremental cost Natural Gas Vehicles: 100% of incremental cost Propane Vehicles: 100% of incremental cost Biodiesel Vehicles: 100% of incremental cost
Implementing Sector : State
Category : Financial Incentive
Website : https://energy.maryland.gov/business/Pages/MEACHP.aspx
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, Schools, State Government, Agricultural, Multifamily Residential, Institutional
Incentive Amount : Range from $400/kW to $600/kW based on the size and configuration of the CHP system.
Implementing Sector : State
Category : Financial Incentive
Website : https://energy.maryland.gov/business/Pages/ResilientMaryland.aspx
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, Schools, State Government, Agricultural, Multifamily Residential, Institutional
Incentive Amount : Range from $10,000 to $100,000 based on Area of Interest (AOI). See the Summary section below for more information.
Implementing Sector : State
Category : Financial Incentive
Website : http://mgaleg.maryland.gov/mgawebsite/Legislation/Details/hb1255/?ys=2019rs
Applicable Sectors : Schools
Incentive Amount : Varies
Implementing Sector : State
Category : Financial Incentive
Website : http://energy.maryland.gov/business/Pages/incentives/empowermdcigp.aspx
Applicable Sectors : Commercial, Industrial, Federal Government, Agricultural
Incentive Amount : Up to 50% of the project cost after all other incentives and grants have been applied; Starting at $20,000
Implementing Sector : State
Category : Financial Incentive
Website : http://energy.maryland.gov/business/Pages/incentives/PVEVprogram.aspx
Applicable Sectors : Commercial, Local Government, Nonprofit, State Government
Incentive Amount : Up to $600 per kW (DC) of PV installed per project
Implementing Sector : State
Category : Financial Incentive
Website : http://energy.maryland.gov/govt/Pages/smartenergycommunities.aspx
Applicable Sectors : Local Government
Incentive Amount : Funding based on population size and funding availabilily
Implementing Sector : State
Category : Financial Incentive
Website : http://energy.maryland.gov/business/Pages/incentives/DCEEG.aspx
Applicable Sectors : Commercial, Industrial, Nonprofit, State Government, Federal Government, Agricultural
Incentive Amount : Up to 50% of the project cost
Implementing Sector : State
Renewables Portfolio Standard
Category : Regulatory Policy
Website : http://www.psc.state.md.us/electricity/renewable-energy/
Applicable Sectors : Investor-Owned Utility, Local Government, Retail Supplier
Incentive Amount :
Implementing Sector : State
Solar/Wind Access Policy
Category : Regulatory Policy
Website :
Applicable Sectors : Commercial, Construction, Industrial, Local Government, Nonprofit, Residential, State Government, Federal Government, Agricultural
Incentive Amount :
Implementing Sector : State
Generation Disclosure
Category : Regulatory Policy
Website :
Applicable Sectors : Investor-Owned Utility, Municipal Utilities, Cooperative Utilities
Incentive Amount :
Implementing Sector : State
Building Energy Code
Category : Regulatory Policy
Website : https://www.energycodes.gov/status/states/maryland
Applicable Sectors : Commercial, Residential
Incentive Amount :
Implementing Sector : State
Personal Tax Credit
Category : Financial Incentive
Website : https://energy.maryland.gov/business/Pages/EnergyStorage.aspx
Applicable Sectors : Commercial, Industrial, Residential, Agricultural, Multifamily Residential
Incentive Amount : 30% of installed cost
Implementing Sector : State
Solar Renewable Energy Credit Program
Category : Financial Incentive
Website : https://www.psc.state.md.us/electricity/maryland-renewable-energy-portfolio-standard-program-frequently-asked-questions/
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, Agricultural, Multifamily Residential, Low Income Residential, Integrators
Incentive Amount : Varies based on market conditions
Implementing Sector : State
Sales Tax Incentive
Category : Financial Incentive
Website :
Applicable Sectors : Residential
Incentive Amount : 100% exemption from sales and use tax
Implementing Sector : State
Category : Financial Incentive
Website :
Applicable Sectors : Commercial, Industrial, Residential, Agricultural
Incentive Amount : 100% exemption
Implementing Sector : State
Category : Financial Incentive
Website : https://commerce.maryland.gov/fund/data-center-maryland-sales-and-use-tax-exemption-incentive-program
Applicable Sectors : Commercial, Industrial
Incentive Amount :
Implementing Sector : State
Category : Financial Incentive
Website : http://comptroller.marylandtaxes.com/Public_Services/Agency_Information/Office_of_the_Comptroller/Comptroller_Initiatives/Shop_Maryland_Tax-free_Week/
Applicable Sectors :
Incentive Amount : 100% exemption
Implementing Sector : State
Category : Financial Incentive
Website :
Applicable Sectors : Commercial, Residential
Incentive Amount : 100% exemption
Implementing Sector : State
Community Solar Rules
Category : Regulatory Policy
Website : https://www.psc.state.md.us/electricity/community-solar-pilot-program/
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government, Federal Government, Agricultural, Multifamily Residential, Low Income Residential
Incentive Amount :
Implementing Sector : State
Loan Program
Category : Financial Incentive
Website : https://dhcd.maryland.gov/HousingDevelopment/Pages/EnergyEfficiencyWeatherization.aspx
Applicable Sectors : Multifamily Residential, Low Income Residential
Incentive Amount :
Implementing Sector : State
Category : Financial Incentive
Website : http://energy.maryland.gov/Govt/pages/janeelawton.aspx
Applicable Sectors : Commercial, Industrial, Local Government, Nonprofit, Schools, Institutional
Incentive Amount :
Implementing Sector : State
Category : Financial Incentive
Website : http://www.marbidco.org/_pages/programs_loans/loan_programs_rbeeil.htm
Applicable Sectors : Commercial, Agricultural
Incentive Amount :
Implementing Sector : State
Category : Financial Incentive
Website : https://www.marbidco.org/_pages/programs_loans/loan_programs_rbeeil.htm
Applicable Sectors : Agricultural
Incentive Amount :
Implementing Sector : State
Category : Financial Incentive
Website : https://dhcd.maryland.gov/Residents/Pages/besmart/default.aspx
Applicable Sectors : Residential
Incentive Amount :
Implementing Sector : State
Category : Financial Incentive
Website : https://dhcd.maryland.gov/Pages/NetZero/default.aspx
Applicable Sectors : Residential
Incentive Amount :
Implementing Sector : State
Green Power Purchasing
Category : Regulatory Policy
Website : https://dgs.maryland.gov/pages/energy/purchasing.aspx
Applicable Sectors : State Government
Incentive Amount :
Implementing Sector : State
Category : Regulatory Policy
Website : https://www.montgomerycountymd.gov/green/energy/renewable.html
Applicable Sectors : Local Government
Incentive Amount :
Implementing Sector : Local
Appliance/Equipment Efficiency Standards
Category : Regulatory Policy
Website : http://www.energy.state.md.us/policy/standards.html
Applicable Sectors :
Incentive Amount :
Implementing Sector : State
Energy Efficiency Resource Standard
Category : Regulatory Policy
Website : http://167.102.231.189/
Applicable Sectors : Investor-Owned Utility, Municipal Utilities, Retail Supplier
Incentive Amount :
Implementing Sector : State
Category : Regulatory Policy
Website : http://www.psc.state.md.us/electricity/empower-maryland/
Applicable Sectors : Investor-Owned Utility, Municipal Utilities, Cooperative Utilities
Incentive Amount :
Implementing Sector : State
What is the best way to pay for solar?
Cash payments
Paying cash upfront is easily the simplest and most cost-effective route — if you can afford it. It lets you maximize your total savings by avoiding interest rates and other fees. You also don’t have to worry about making monthly payments. But the downside is you have to spend a lot of cash at once which isn’t an option for everyone.
Pros
Cons
Financing
Financing solar panels is probably the most common payment method. You get to own the system — as opposed to leasing — but you don’t have to spend all your cash at once. And although you do have to pay interest, you can secure a fairly low interest rate as long you have good credit.
Pros
Cons
Solar leases and PPA agreements
If purchasing solar equipment isn’t an option for you, a lease or a PPA may be worth exploring. This is where you are essentially “renting” the equipment for a fixed rate each month. And although you don’t have ownership of your system, there are other benefits such as maintenance and servicing agreements.
Pros
Cons
Going solar doesn’t have to break the bank
Going solar is becoming more affordable than ever. And thanks to a variety of solar incentives in Maryland, you can save thousands more on your investment.
Want to get an idea for what it will cost you to go solar? You can use our solar cost calculator to generate a customized estimate instantly. We take into consideration a wide range of criteria including location, electric bill, roof size, and other factors. Try it out today and start planning for your future.
