- Maryland’s 1-to-1 net metering is on a deadline. The 2026 SUNRISE Act directs the Public Service Commission to replace today’s full-retail net metering with a less generous successor program by July 1, 2027, or once the state hits a 3,000 MW cap, so connecting in 2026 locks in the current terms (Maryland SB 843 fiscal note, as of June 2026).
- BGE power is expensive, which is what makes solar pay. Maryland residential electricity averages about 22.20 cents per kWh (EIA Electric Power Monthly, March 2026, up from 18.94 cents a year earlier), and BGE credits your solar exports against that full retail rate.
- In the Historic District, your roof goes through design review. Exterior changes in the Annapolis Historic District, including rooftop solar, generally need a Certificate of Approval from the Historic Preservation Commission before a building permit (City of Annapolis Historic Preservation, as of June 2026).
- Maryland has no state income-tax credit for solar. Unlike some states, Maryland’s support comes through SRECs, the sales- and property-tax exemptions, and a local Anne Arundel County credit, not a state income-tax credit.
- Anne Arundel County adds a one-time property-tax credit of up to $2,500. The county credit equals the lesser of 50% of your net system cost or $2,500, on top of Maryland’s statewide property-tax exemption (Anne Arundel County tax credits, as of June 2026).
- The federal homeowner credit is gone. The 30% federal Residential Clean Energy Credit (Section 25D) ended for systems placed in service after December 31, 2025 (IRS, as of January 1, 2026), so a 2026 Annapolis buyer cannot claim it.
Annapolis is a rare combination for a solar project: high electric bills that make solar pay, a downtown full of protected historic homes, a waterfront governed by Chesapeake Bay rules, and a net-metering program with a clock on it. Maryland just voted to wind down today’s full-credit net metering, so a system connected in 2026 locks in better terms than one that waits. This page covers what solar really costs in Annapolis at BGE’s rates, the Maryland incentives that actually apply to a typical homeowner in 2026 (including the ones that do not), how BGE net metering works before the 2027 change, and what the Historic Preservation Commission and Chesapeake Bay Critical Area mean for your roof. Updated for June 2026.
The 2027 deadline: why timing matters for Annapolis solar
The single most important thing to know about Annapolis solar in 2026 is the calendar. In its 2026 session, the Maryland General Assembly passed the SUNRISE Act (Senate Bill 843), which winds down the state’s current one-to-one retail net metering. The Public Service Commission must establish a successor “SUNRISE” program by July 1, 2027, or sooner if the existing program reaches its statewide cap of 3,000 MW, whichever comes first (Maryland SB 843 fiscal note, as of June 2026). The successor program is built on the utility’s Standard Offer Service rate plus grid-value adders, a value-of-solar style export rate that is likely to pay less for your exported power than today’s full-retail credit.
What that means in plain terms: a home that interconnects under BGE’s net metering in 2026 keeps today’s full-retail, one-to-one credit, while a project that waits until after the program transitions may be compensated under the new, less generous rules. The exact future rate is up to the PSC and is not set yet, so the safe read for 2026 is that the current terms are the better-known quantity. For the statewide mechanics behind all of this, see our Maryland solar guide and the BGE net metering and solar guide.
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Why Annapolis electric bills make solar pay
The case for solar in Annapolis starts with the price of grid power, which has jumped. Maryland residential electricity now averages about 22.20 cents per kWh (EIA Electric Power Monthly, March 2026), well above the national average and up sharply from 18.94 cents a year earlier. BGE credits the power your roof exports against that full retail rate, so every kilowatt-hour you make offsets an expensive one you would otherwise buy. A home spending $150 or more a month on electricity is a strong candidate, and Annapolis’s mix of older in-town homes and larger waterfront properties with central air conditioning tends to run high usage. Read the supply and delivery lines on your BGE bill to see your own all-in rate.
Production is the other half of the math. NREL’s PVWatts model puts a typical, well-oriented Annapolis rooftop array near 1,395 kWh per year for every kW of panels (modeled for Annapolis ZIP 21401, about 8,370 kWh a year from a 6 kW system, NREL PVWatts, as of June 2026). That is a typical-year model for this location, not a live reading for your roof: your real output depends on roof pitch, orientation, and the tree cover common in Annapolis neighborhoods, so run PVWatts for your address before sizing a system. Production drives both your bill savings and your SREC income, so it is worth getting right.
What solar costs in Annapolis, and when it pays back
Here is the local math, built from the figures on this page. We value each kilowatt-hour at the Maryland residential rate, apply a typical Maryland production band against a typical installed price, and subtract the one-time Anne Arundel County credit. Maryland charges no sales tax on the equipment, so there is no 6% to add on top. Treat this as a planning estimate, not a quote, and note that it does not yet count SREC income (covered below), which shortens the payback further.
Assumptions: each kW of panels produces about 1,395 kWh per year (NREL PVWatts modeled for Annapolis, ZIP 21401, about 8,370 kWh from a 6 kW array, NREL PVWatts, as of June 2026); each kWh is valued at the 22.20 cent Maryland residential rate (EIA, March 2026), since BGE net metering credits exports near the full retail rate; an installed price of $3.00 per watt before incentives, a typical Maryland figure (EnergySage Maryland, as of 2026); and the one-time Anne Arundel County property-tax credit, the lesser of 50% of net cost or $2,500 (Anne Arundel County, as of 2026). No federal or Maryland state income-tax credit is included, because the federal homeowner credit ended for systems placed in service after December 31, 2025, and Maryland has no state income-tax credit for solar.
| System size | Est. annual production | Est. first-year bill savings | Cost before incentives | After the $2,500 county credit | Simple payback |
|---|---|---|---|---|---|
| 7 kW | about 9,750 kWh | about $2,170 | $21,000 | $18,500 | about 8.5 years |
| 9 kW | about 12,550 kWh | about $2,790 | $27,000 | $24,500 | about 8.8 years |
| 11 kW | about 15,350 kWh | about $3,400 | $33,000 | $30,500 | about 9.0 years |
Note: This estimate holds today’s rate flat, ignores financing costs, and leaves out SREC income, so the real payback is usually shorter. SRECs are the biggest swing. The 7 kW system makes about 9.8 SRECs a year (one per 1,000 kWh produced), and valued at a midpoint near $55 each, within the $40 to $70 range below, that is roughly $540 more a year, which would pull its simple payback from about 8.5 years toward roughly 7 years. SREC prices fluctuate and the state cap steps down over time, so treat that as illustrative, not a promise. BGE rates have also been rising, which raises the value of every kilowatt-hour you offset, while the Anne Arundel County credit offsets your county property-tax bill rather than the purchase price, so a smaller county tax bill can leave part of the $2,500 unused. For the full method, see whether solar panels are worth it.
Maryland incentives for an Annapolis homeowner in 2026
Maryland’s incentive stack looks different from a state that hands homeowners an income-tax credit. There is no Maryland income-tax credit for solar, so the value comes from selling SRECs, skipping sales and property tax, and the local county credit. The MEA cash grants that used to help most buyers are now income-restricted and, for 2026, out of funding. Each benefit goes to the system owner, so on a lease or PPA the company that owns the panels keeps the SRECs and tax benefits, while the net-metering bill credit follows your BGE account.
| Incentive | What it is worth | Status for an Annapolis home in 2026 |
|---|---|---|
| Maryland SREC market | About $40 to $70 per SREC (1 SREC per 1,000 kWh), a fluctuating market price | Active. You earn and sell SRECs over time; prices move and the cap declines (DSIRE Maryland) |
| Maryland sales-tax exemption | 100% of the 6% state sales tax on residential solar equipment | Active (DSIRE Maryland) |
| Maryland property-tax exemption (Tax-Property 7-242) | The added home value from solar is not taxed | Active statewide (DSIRE) |
| Anne Arundel County solar property-tax credit (4-2-315) | One-time, lesser of 50% of net cost or $2,500, against county tax on the dwelling | Active. Apply by June 1; offsets county tax only (Anne Arundel County) |
| Maryland Energy Administration grants (MSAP, Bridge Fund) | $750 per kW up to $7,500, or $1,000 per kW up to $15,000 | Income-restricted (at or below 150% of state median income) and the 2026 rounds are closed; next round expected later in 2026 (Maryland Energy Administration) |
The SREC market is the ongoing-income piece, and it is modest, not a windfall. Maryland runs a Solar Renewable Energy Certificate market tied to its renewable portfolio standard: your system earns one SREC for every 1,000 kWh it produces, and you sell them. In 2026 a Maryland SREC has traded roughly in the $40 to $70 range on market trackers, a fluctuating price capped by a state-set Solar Alternative Compliance Payment of about $64 to $67.50 that steps down over time (DSIRE Maryland, as of 2026). For a typical home that can mean a few hundred dollars a year, declining as the cap falls, so treat SRECs as a helpful add-on rather than the core of your payback, and confirm a current price with an SREC broker before you bank on it.
The cash grant most buyers used is now income-limited and out of money for 2026. Maryland’s old flat $1,000 Residential Clean Energy Rebate ended in 2024. Its replacement, the Maryland Solar Access Program, pays $750 per kW up to $7,500 but only to households at or below 150% of the state median income, and the 2026 funding round is fully subscribed and closed, with the next round expected later in 2026 (Maryland Energy Administration, as of June 2026). So a standard-income Annapolis buyer generally cannot count on an MEA grant right now. For the full statewide picture, see our Maryland solar guide and the solar incentives overview.
What the end of the federal homeowner credit means here
The federal homeowner credit is gone, and Maryland never had a state income-tax credit to replace it. The 30% federal Residential Clean Energy Credit (Section 25D) ended for systems placed in service after December 31, 2025, under the One Big Beautiful Bill Act, and the IRS treats the expense as made when installation is completed, so an Annapolis homeowner who installs solar with cash or a loan in 2026 cannot claim it (IRS Residential Clean Energy Credit; SEIA, as of 2026). You will still see installer pages implying the 30% credit is available; the accurate answer for 2026 is that the homeowner version already ended. SRECs, the tax exemptions, the county credit, and net metering were not affected, so the local case still holds, especially before the 2027 net-metering change.
One federal exception exists, and it is not yours to claim. A separate commercial credit, Section 48E, can be claimed by the business that owns a leased or PPA system, not by the homeowner (IRS Clean Electricity Investment Credit, as of 2026). On a leased system you do not file for a federal credit yourself; the company that owns the panels does. The 25D homeowner credit, by contrast, ended after December 31, 2025. For the full timeline, see what the federal solar tax credit change means in 2026.
How BGE net metering works (before the 2027 change)
Through 2026, BGE credits your solar at the full retail rate, one to one. When your panels make more than you use, the extra flows to the grid and BGE banks it as a kilowatt-hour credit, so you are billed only on your net usage (DSIRE Maryland net metering, as of June 2026). The net-metering year trues up around the end of April. By default, any leftover credit at true-up is cashed out at the lower Standard Offer Service supply rate, not full retail, and your credit bank resets. To keep the full value, you can opt into indefinite rollover under Maryland’s Net Metering Flexibility Act, which lets your excess kilowatt-hour credits carry forward indefinitely at full retail instead of the April cash-out. For the mechanics, see how net metering credits your solar exports.
| What happens | How BGE handles it (through 2026) |
|---|---|
| Your panels make less than you use | You buy the difference from the grid at the retail rate |
| Your panels make more than you use | The excess is banked as a full-retail kWh credit and carried forward |
| Leftover credit at the April true-up | Default: cashed out at the lower supply rate; or opt into indefinite rollover to keep full retail |
| System sizing | Up to 200% of your baseline annual usage, with a 2 MW per-system cap |
Because of the SUNRISE Act, these full-retail terms apply to systems interconnected before the program transitions by July 1, 2027. For how BGE handles applications and interconnection, see the BGE net metering and solar guide, and compare another BGE market in how solar works in Baltimore.
Solar in the Annapolis Historic District and on the water
Two local layers can shape an Annapolis project: history and the Bay. If your home is in the Annapolis Historic District, exterior changes are reviewed by the city’s Historic Preservation Commission, and rooftop solar counts as an exterior alteration, so it generally needs a Certificate of Approval before a building permit is issued (City of Annapolis Historic Preservation, as of June 2026). The city asks owners to apply for review before signing a contract or starting work. Less visible installations, for example panels on a rear roof slope, may qualify for faster staff-level administrative approval, but residential solar is not automatically exempt, so plan for the step.
Note: Much of waterfront Annapolis lies within Maryland’s Chesapeake Bay Critical Area, the land within 1,000 feet of tidal water (Maryland DNR Critical Area, as of June 2026). For most homeowners this does not block rooftop solar, because panels on an existing roof add no new impervious surface. It matters more for ground-mounted systems, which can run into Critical Area limits on impervious surface, lot coverage, and buffer areas. If you are on or near the water and considering a ground mount, ask your installer to check the Critical Area rules for your lot before you design it.
Paying for solar in Annapolis: cash, loan, lease, or PPA
There is no single right way to pay for solar; the best fit depends on whether you want to own the system and keep the SRECs and tax benefits yourself, or avoid an up-front cost. The table compares the common paths. A lease or PPA can mean no up-front cost for eligible homeowners, but it is a long-term agreement with monthly payments, not free solar, and the system owner, not you, keeps the SRECs and the tax benefits. To weigh the long-run numbers, see whether solar panels are worth it.
| Path | Up-front cost | Who keeps the SRECs and tax benefits | Best when |
|---|---|---|---|
| Cash purchase | Full system cost | You, the owner | You want the fastest payback and the most lifetime savings |
| Solar loan | Little to none, financed | You, the owner | You want ownership without paying cash up front |
| Lease or PPA | $0-up-front where eligible | The third-party owner | You prefer no up-front cost and a simpler, fixed monthly bill |
How to choose a solar installer in Annapolis
Annapolis sits in a competitive Maryland solar market, which is good for you on price and service. Rather than chasing a “best installer” list, screen any company against objective criteria:
- NABCEP certification, the industry’s professional standard for PV installers.
- A valid Maryland Home Improvement Commission (MHIC) license and electrical licensing.
- A clear workmanship and equipment warranty in writing.
- Real experience with BGE interconnection, the Annapolis Historic Preservation Commission, and Chesapeake Bay Critical Area rules if your home is downtown or on the water, so the design review and permit move smoothly.
- A written production estimate and a transparent quote that reflects what actually applies to you: SRECs, the tax exemptions, the Anne Arundel County credit, the 2027 net-metering change, and the fact that there is no federal homeowner credit in 2026. For a checklist, see the right questions to ask a solar installer.
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Frequently asked questions
Should I install solar in Annapolis before 2027?
There is a real timing reason to act sooner. Maryland’s 2026 SUNRISE Act winds down today’s one-to-one retail net metering and directs the Public Service Commission to replace it with a less generous successor program by July 1, 2027, or once the state reaches a 3,000 MW cap (Maryland SB 843 fiscal note, as of June 2026). A system interconnected under BGE’s net metering in 2026 locks in the current full-retail credit, while one connected after the transition may earn a lower value-of-solar export rate. The exact future rate is not set yet, so the current terms are the better-known quantity. This is timing, not a guarantee, so confirm details with BGE and your installer.
Is solar worth it in Annapolis in 2026?
For most owner-occupied Annapolis homes with decent sun, yes. Maryland residential electricity averages about 22.20 cents per kWh (EIA, March 2026), and BGE credits your exports near that full retail rate, so solar offsets expensive grid power. On bill savings alone our estimate puts simple payback near 8.5 to 9 years, and SRECs plus the Anne Arundel County credit shorten it further. Savings depend on your roof, usage, and how you pay, and are not guaranteed, but the high local rate and the pre-2027 net-metering terms make Annapolis a solid market right now.
What incentives can an Annapolis homeowner get in 2026?
Maryland has no state income-tax credit for solar, so the value comes from a few places: you earn and sell SRECs (about $40 to $70 each in 2026, a fluctuating price), you pay no state sales tax on the equipment, the added home value is exempt from property tax, and Anne Arundel County offers a one-time property-tax credit of up to $2,500 (Anne Arundel County; DSIRE Maryland, as of 2026). The Maryland Energy Administration’s cash grants are income-restricted and the 2026 round is closed. The federal homeowner credit ended after December 31, 2025.
Do I need historic-district approval for solar in Annapolis?
Only if your property is in the Annapolis Historic District or is a designated landmark. There, exterior changes including rooftop solar are reviewed by the city’s Historic Preservation Commission, and you generally need a Certificate of Approval before a building permit is issued (City of Annapolis Historic Preservation, as of June 2026). The city asks you to apply before signing a contract or starting work. Lower-visibility installations, such as panels on a rear roof slope, may qualify for faster staff-level approval, but residential solar is not automatically exempt, so plan for the review and favor low-profile, less visible placement.
What happened to the federal solar tax credit?
The 30% federal Residential Clean Energy Credit (Section 25D) ended for systems placed in service after December 31, 2025, under the One Big Beautiful Bill Act, so an Annapolis homeowner who installs solar with cash or a loan in 2026 cannot claim it (IRS, as of 2026). A separate commercial credit, Section 48E, can apply to leased and PPA systems, but the business that owns the system claims it, not the homeowner. Maryland’s SRECs, tax exemptions, county credit, and net metering were not affected, so the local payback case still holds. See our guide on what the federal solar tax credit change means in 2026.
How does BGE net metering work, and what is the April true-up?
Through 2026, BGE credits your exported solar at the full retail rate, one to one, and bills you on your net usage (DSIRE Maryland, as of June 2026). Credits carry forward month to month. At the annual true-up around the end of April, any leftover credit is, by default, cashed out at the lower Standard Offer Service supply rate and your bank resets. Under Maryland’s Net Metering Flexibility Act you can instead opt into indefinite rollover, keeping excess kilowatt-hour credits at full retail value rather than taking the April cash-out. Systems can be sized up to 200% of your baseline annual usage.
Can I get solar with no up-front cost in Annapolis?
Some homeowners can, through a lease or power purchase agreement (PPA) where eligible, which can mean no out-of-pocket cost at installation in exchange for monthly payments. This is not free solar; it is a long-term agreement, typically 20 to 25 years, that may include an annual price escalator, and total payments may exceed the cost of a cash purchase. On a lease or PPA the third-party owner, not you, keeps the SRECs and tax benefits, and there is no homeowner federal credit in 2026, because the federal residential credit ended after December 31, 2025. If you want to own the system and keep those benefits, a cash purchase or solar loan is the path that does. Check what you qualify for before deciding.
Reviewed by the MySolarFY team. Figures were verified against the linked Maryland (Maryland Energy Administration, Maryland General Assembly, Maryland PSC / DSIRE), Anne Arundel County, City of Annapolis, Maryland DNR, BGE, EIA, NREL, and IRS sources as of June 2026; the SREC market price, the SUNRISE Act net-metering transition, MEA grant funding, installed prices, and the historic-district and Critical Area processes can change, so confirm current terms with BGE, the City of Annapolis, Anne Arundel County, and the Maryland Energy Administration before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional about your own situation. Learn more about the MySolarFY team and how we work.
MySolarFY is a free service that matches homeowners with licensed solar installers. We are not an installer, financing company, or government program. “No up-front cost” refers to qualifying lease or PPA financing, where eligible homeowners may have no out-of-pocket cost at installation. Lease and PPA terms typically run 20 to 25 years, may include an annual price escalator, and total payments may exceed the cost of a cash purchase; on a lease or PPA the SRECs and tax benefits go to the company that owns the system, not the homeowner. Homeowners do not get the federal residential credit that ended after December 31, 2025. Solar panels are not free and monthly payments apply. Eligibility, savings, incentives, and rates vary and are not guaranteed. See our full disclaimer.
