Solar in Baltimore, MD: Real Costs, BGE Net Metering, and Maryland SRECs

Baltimore homeowners have a stronger case for rooftop solar than many realize, and it comes down to three things working together: rising electricity rates, full-retail net metering through BGE, and Maryland’s SREC market, which actually pays you for the solar power you generate. The catch in a city of historic rowhouses is the local detail: your flat roof, your service panel, and whether your block falls under historic review. This page covers what solar really costs in Baltimore, how BGE credits your power, what Maryland’s incentives are worth, and the rowhouse-specific hurdles, then you can check your address in about a minute.

Why Baltimore’s electric rates make solar worth it

The reason solar pays in Baltimore is the price of the power it replaces, and that price just jumped. Maryland’s average residential electricity price is about 22 cents per kWh (EIA, corrected by the Maryland Public Service Commission, as of 2026), up roughly 17% year over year. That figure is itself a small Baltimore news story: EIA first reported Maryland near 35 cents per kWh in 2026, the state PSC flagged it as an error, and EIA corrected it down to about 22 cents, which is still well above where Maryland sat a year earlier. Either way, rates are rising, and every kilowatt-hour your roof produces offsets one you would otherwise buy from BGE at that climbing rate.

Your production is what turns that rate into savings. Baltimore gets a solar resource typical of the Mid-Atlantic, and a well-placed roof offsets a large share of a normal home’s annual use. Because output depends on your roof’s pitch, shading, and orientation, and because dense rowhouse blocks add shading from neighbors and street trees, estimate your specific roof with NREL’s free PVWatts calculator rather than a generic number. Your production drives your bill savings and your SREC income, so it is worth getting right before you size a system.

How BGE credits the power your Baltimore roof sends back

Net metering is the foundation of your savings, and Maryland’s version credits a normal home at the full retail rate. Maryland net metering is set statewide by the Public Service Commission, not by the utility, and BGE credits the power you export to the grid against the power you draw, kilowatt-hour for kilowatt-hour, at the full retail rate within each monthly bill (Maryland PSC net metering, as of 2026). When your panels make more than you use, the extra is banked as a credit that rolls forward month to month. For the mechanics, see how net metering credits your solar exports.

The one rule to plan around is the annual true-up. At the end of your 12-month netting period, BGE settles any leftover surplus, and that year-end excess is paid out at the utility’s avoided-cost rate, which is lower than retail, not at the full retail credit you earn month to month. The practical takeaway is to size your system close to your annual usage rather than oversizing it, so most of your output offsets retail kilowatt-hours instead of being cashed out cheaply once a year.

What you earn	How it is valued	Who receives it
Monthly net-metering credits	Full retail value, banked and rolled forward	The BGE account holder
Year-end surplus at true-up	The lower avoided-cost rate, below retail	The account holder
SRECs	A market price per 1,000 kWh produced	The system owner

Maryland SRECs: the income stream most states do not have

This is what makes the Maryland math different from a state like Massachusetts. Maryland runs a Solar Renewable Energy Credit (SREC) market tied to its Renewable Portfolio Standard, which requires utilities to source a rising share of power from solar, an 8% solar carve-out for energy year 2026 (Sol Systems Maryland RPS summary, as of 2026). Your system earns one SREC for every 1,000 kWh (one megawatt-hour) it generates, and you sell those SRECs to utilities that need them for compliance.

SREC income is real, but it is variable, so do not bank on a fixed number. Maryland SRECs for 2026 have recently traded around $40 each, below the state’s roughly $45 compliance-payment ceiling (Flett Exchange Maryland SREC prices, as of 2026). Prices move with supply and demand, and Maryland is expected to shift toward an administratively-set Distributed Solar incentive around 2026 to 2027, which would change how new systems are paid. Ask your installer to model SREC income at a conservative current value and to explain how your specific system would be registered and sold, since this is income, not a guarantee. For the full statewide rules, see our Maryland solar guide and the BGE net metering page.

Other Maryland solar incentives on a Baltimore home

Beyond net metering and SRECs, Maryland and Baltimore City stack a few more benefits. These reduce your cost or your tax exposure rather than paying you per kilowatt-hour.

• A 100% state sales-tax exemption on qualifying residential solar equipment, off Maryland’s 6% sales and use tax (DSIRE Maryland, as of 2026).
• A Baltimore City solar property-tax credit, so the home value your system adds is not taxed the way a normal improvement would be. The exact percentage and term are set by city ordinance, so confirm the current credit with Baltimore City finance before you sign (DSIRE Maryland, as of 2026).
• The Maryland Energy Administration (MEA) Residential Clean Energy Rebate has ended. This flat $1,000 grant for residential solar closed to new applicants on November 30, 2024, so it is not available for a 2026 install and is not part of your savings math (DSIRE MEA rebate, as of 2026).

Because these are statewide and city programs that change with each budget, we keep the full detail on our Maryland solar guide rather than repeating it on every city page.

What the federal tax-credit change means for Baltimore

The federal homeowner credit is gone, but Maryland’s programs are not. 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 a Baltimore homeowner who buys 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 and search results asking whether the 30% credit is going away; the accurate answer for 2026 is that the homeowner version already ended. Net metering, SRECs, and Maryland’s tax benefits were not affected, and at Baltimore’s rising rates the bill offset and SREC income still carry the case. For the full timeline, see what the federal solar tax credit change means in 2026.

One federal exception exists, and it is not yours to claim. A separate commercial credit, Section 48E, is 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.

Going solar on a Baltimore rowhouse

Baltimore’s rowhouses are what make its solar projects distinct. Many have flat or low-slope built-up roofs that fit a tidy system, and the formstone you see is a facade treatment, not part of the roof, so it rarely affects a solar mount. The two checks that catch Baltimore homeowners are structural and historic. An older flat roof usually needs a structural look before low-penetration or ballasted racking goes on, and a shared party-wall rowhouse needs the panel layout planned around parapets and the neighbor’s wall.

Note: If your rowhouse is in a Baltimore CHAP historic district or is a designated landmark, exterior solar needs Commission for Historical and Architectural Preservation (CHAP) review before you can pull a building permit (Baltimore CHAP, as of 2026). The usual standard is that panels are set back from the front roof edge, kept low on flat roofs, and not visible above the cornice line from the street. CHAP staff can administratively approve many compliant installs, while a highly visible design may go to the full Commission. An installer who has done CHAP projects will prepare the roof drawings and visibility study for you.

Baltimore roof or site factor	What to plan for
Flat or low-slope built-up rowhouse roof	Often fits a tidy system; needs a structural check and low-profile or ballasted racking
Formstone facade	A facade treatment, not the roof; the mount attaches to roof framing, not the formstone
CHAP historic district or landmark	CHAP review and approval before the building permit; set-back, low, street-hidden panels
Party-wall or shared rowhouse roof	Layout planned around parapets and the neighbor’s wall; confirm roof rights
Older or undersized service panel	May need an electrical service upgrade to carry solar plus a battery or EV charging

Paying for solar in Baltimore: 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 below compares the common paths at a high level. 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, collects the SRECs and any state benefit. To weigh the long-run numbers, see whether solar panels are worth it.

Path	Up-front cost	Who keeps the SRECs	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 Baltimore

Baltimore has an active market of licensed installers, from local Maryland companies and nonprofits to national brands, which is good for you because it means real competition 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, Maryland SREC registration, and Baltimore CHAP review if your home is in a historic district, so the paperwork and approvals go smoothly.
• A written production estimate and a transparent quote that models SREC income at a conservative current value, not an old peak. For a checklist, see the right questions to ask a solar installer.

MySolarFY matches you with licensed installers that serve your area so you can compare real local quotes side by side, with no obligation.

Check which solar programs are available at your Baltimore address →

Weighing your options across the area? Compare nearby solar markets with our local guides for Silver Spring, Annapolis, Bethesda, and Columbia.

Frequently asked questions

Is solar worth it in Baltimore in 2026?

For most owner-occupied Baltimore homes with decent sun, yes. Maryland’s average residential electricity price is about 22 cents per kWh and rising, after the Maryland PSC corrected an EIA error that had briefly overstated it (as of 2026). BGE credits your exports at full retail value through net metering, and Maryland’s SREC market pays you per 1,000 kWh on top of the bill savings. Savings depend on your roof, usage, and how you pay, and SREC prices vary, but the combination of a rising rate, full-retail net metering, and SREC income makes Baltimore a strong solar market.

Who is my electric utility for solar in Baltimore?

Baltimore Gas and Electric, known as BGE, is the electric distribution utility for the city and most of the surrounding region, and it administers your net metering. Maryland’s net-metering rules are set statewide by the Public Service Commission, so the full-retail monthly credit and the annual true-up apply to BGE customers across Baltimore (Maryland PSC net metering, as of 2026). You may shop your electricity supply through a third-party supplier, but BGE still handles delivery and your net-metering credits either way.

What is a Maryland SREC worth in 2026?

A Solar Renewable Energy Credit is created for every 1,000 kWh your system produces, and you sell it into Maryland’s compliance market. In 2026, Maryland SRECs have recently traded around $40 each, below the state’s roughly $45 compliance-payment ceiling (Flett Exchange; Sol Systems, as of 2026). The value moves with the market and is not guaranteed, and Maryland is expected to move toward an administratively-set incentive around 2026 to 2027, so ask your installer to model SREC income at a conservative current price rather than an old peak.

How does net metering work with BGE?

When your panels make more than you use, BGE banks the excess as a credit at the full retail rate and rolls it forward month to month, so a sunny month offsets a cloudy one (Maryland PSC net metering, as of 2026). The one rule to know is the annual true-up: at the end of your 12-month netting period, any leftover surplus is paid out at the utility’s avoided-cost rate, which is lower than retail. The smart move is to size your system close to your yearly usage so most of your output offsets retail power instead of being cashed out cheaply once a year.

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 a Baltimore homeowner who buys solar in 2026 with cash or a loan 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 net metering, the SREC market, and the state tax benefits were not affected, so the local payback case still holds.

Do I need historic approval for solar on a Baltimore rowhouse?

Only if your property is in a Baltimore CHAP historic district or is a designated landmark. There, exterior solar needs Commission for Historical and Architectural Preservation review before you can pull a building permit, and the panels generally must be set back from the front edge, kept low on a flat roof, and not visible above the cornice from the street (Baltimore CHAP, as of 2026). CHAP staff can administratively approve many compliant installs, while a highly visible layout may go to the full Commission. An installer experienced with CHAP normally prepares the roof drawings and visibility study, so build a few extra weeks into your timeline if your block is historic.

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Reviewed by the MySolarFY team. Figures were verified against the linked Maryland (Maryland PSC, MEA via DSIRE), EIA, and IRS sources as of June 2026; the Maryland residential rate reflects EIA’s PSC-corrected figure, and SREC prices and Baltimore City’s property-tax credit can change, so confirm current terms with the Maryland PSC, MEA, and Baltimore City 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 any state tax benefit 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. SREC income is variable and not guaranteed. Eligibility, savings, incentives, and rates vary and are not guaranteed. See our full disclaimer.