- Maryland residential power runs about 35.85 cents per kWh (EIA, as of March 2026), among the highest in the country, so the bill BGE solar offsets is large.
- BGE credits exports as kWh on your monthly bill, and unused credits roll forward to later months (BGE net metering).
- The year-end buy-back is lower than retail: BGE’s net-metering year ends April 1, and any leftover Net Excess Generation is paid at the Standard Offer Service generation rate, not the full retail rate. You can also choose to carry credits forward instead.
- A 2027 change is coming: under 2026 Maryland legislation, today’s 1:1 retail net metering is set to end by July 1, 2027 or once the state hits 3 GW, with a state successor program to follow (Maryland General Assembly SB 843).
- You also earn Maryland SRECs: one per 1,000 kWh, sold on the statewide market (BGE does not buy them), with prices that move a lot, so check current quotes (DSIRE).
- BGE serves about 1.3 million electric customers across Baltimore City and central Maryland.
- The 30% federal homeowner credit (Section 25D) ended for expenditures made after December 31, 2025 (IRS).
If BGE is your electric utility in the Baltimore area, this is how rooftop solar pays you back in 2026, including the buy-back question so many customers ask. BGE, an Exelon utility, credits the power you export under Maryland’s net-metering rules, and once a year it pays out or rolls over your surplus. Maryland has some of the highest power prices in the country, which is what makes solar worth it here. This page explains what BGE pays, how the year-end buy-back works, an important 2027 change, and how to tell if your home is a good fit.
BGE Maryland at a glance
BGE runs the net-metering and interconnection process in its central Maryland territory, while the SREC market you sell into is statewide.
| Detail | What to know |
|---|---|
| Service territory | Baltimore City and central Maryland (Baltimore, Anne Arundel, Howard, Harford, Carroll counties) |
| Electric customers | About 1.3 million, the largest utility in Maryland |
| Net metering | Monthly kWh credits that roll forward |
| Year-end buy-back | Net-metering year ends April 1; surplus paid at the SOS generation rate, not retail |
| 2027 change | 1:1 retail net metering set to end by July 1, 2027 or at 3 GW; a successor program follows |
| SRECs (statewide) | One per 1,000 kWh, sold on the market; BGE does not buy them; prices vary widely |
| Before you switch on | BGE must grant Permission to Operate |
| Source | BGE net metering |
Two ways your BGE solar pays. First, net metering offsets your bill with kWh credits for the power you export. Second, the statewide SREC market pays you separately, one SREC for every 1,000 kWh your system makes, which you sell through a broker. The two stack, and at Maryland’s high rates the bill offset is the bigger of the two for most homes. Estimate your roof’s likely output with NREL’s free PVWatts calculator, since production drives both your bill credits and your SREC count.
How BGE pays you for excess solar: the buy-back explained
During the year, BGE banks your excess as kWh credits; at year-end, it pays the lower rate. Each month, BGE bills you on your net usage, the power you drew from the grid minus the power your solar sent back, and any monthly surplus becomes a kWh credit that rolls forward (BGE net metering). The buy-back is the part people ask about. BGE’s net-metering year ends April 1, and if you have produced more than you used over that year, BGE pays you for the leftover Net Excess Generation. The key detail is the rate: BGE pays at the Standard Offer Service generation, or commodity, portion of the rate, not the full retail rate, so that year-end payout is worth noticeably less per kWh than an on-bill credit. You can also elect to keep carrying your credits forward instead of taking the annual payout. Because the buy-back is low, the smart move is to size a system close to your annual usage rather than oversizing it to chase a big year-end surplus. For the mechanics of export credits, see how net metering credits your solar exports.
| What you earn | How it is valued | Who receives it |
|---|---|---|
| Monthly net-metering credits | kWh credits that roll forward | The BGE account holder |
| Year-end Net Excess Generation | The SOS generation rate, below retail (or carry forward) | The account holder |
| SREC sales (statewide) | One per 1,000 kWh, market-driven, sold via a broker | The system owner |
To see how the bill credit lowers your monthly cost, read how solar lowers your electricity bill, and to weigh payback, see the financial case for whether solar panels are worth it.
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A 2027 change to Maryland net metering
Today’s 1:1 net metering is scheduled to change, so timing matters. Under 2026 Maryland legislation, the current full-retail net metering for new residential solar is set to end on July 1, 2027, or once Maryland reaches 3,000 megawatts of net-metered capacity, whichever comes first (Maryland General Assembly SB 843). After that, the Public Service Commission will run a successor program that may credit exports at less than the full retail rate. Systems that interconnect before the change are expected to be grandfathered under today’s rules, though the Commission is still finalizing the details. The practical takeaway for a BGE customer in 2026: connecting sooner rather than later is the safer bet, and you should confirm the current status with BGE before you commit, since this is an area still being written.
How to connect solar to BGE in Maryland
Connecting a home system to BGE follows a set order, and the key rule is that you cannot turn the system on until BGE grants Permission to Operate. The general path is:
- Interconnection application. You or your installer file an application through BGE’s online interconnection portal, Intellio Connect. Most residential systems of 20 kW or less, using a certified smart inverter, qualify for the simplified Level 1 process.
- Interconnection agreement. After BGE approves the application, it sends an interconnection agreement to sign and return.
- Install and inspect. The system is installed and passes your county or municipal electrical inspection.
- Meter set. BGE installs or reconfigures a bidirectional net meter that measures both delivered and exported energy.
- Permission to Operate. BGE issues Permission to Operate by email. The system may not run on the grid before this.
Maryland has required certified smart inverters meeting current standards since 2024, so make sure your equipment qualifies. A licensed installer normally manages this whole process for you. For the questions to ask, see the right questions to ask a solar installer.
The rest of Maryland’s solar benefits on a BGE account
Beyond net metering, Maryland gives BGE customers statewide benefits, with a couple of common misconceptions worth clearing up:
- Maryland SRECs: one per 1,000 kWh, sold on the statewide market. BGE does not buy them, so you sell through a broker, and prices move a lot, so treat any quote as a snapshot (DSIRE).
- A 6% sales-tax exemption on qualifying solar equipment.
- A 100% property-tax exemption on the added home value from a solar system.
- What is gone: Maryland’s battery-storage tax credit expired after 2024, and the Maryland Solar Access grant is income-limited, so most homeowners should not budget around either.
The SRECs and any income-limited grant go to the system owner, so on a lease or PPA the company that owns the panels typically keeps the SRECs and often the net-metering bill credits too, while your benefit is a lower or fixed power price with no up-front cost.
What changed federally, and what it means for BGE customers
The federal homeowner credit is gone, but Maryland’s high rates and exemptions are not. The 30% federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, under the One Big Beautiful Bill Act, so a BGE customer who buys solar with cash or a loan in 2026 cannot claim it (IRS OBBB FAQ; SEIA). Net metering, the SREC market, and the tax exemptions were not affected, and at Maryland’s high rates the bill offset alone is substantial. 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, and it runs for projects placed in service through 2027, with a begin-construction safe harbor by July 4, 2026 (IRS Clean Electricity Investment Credit; SEIA tax policy). For a leased system on a BGE account 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.
How to choose a solar installer in BGE territory
The Baltimore area is a deep solar market, so you have many licensed installers to compare. Rather than chasing a “best” list, screen any installer against objective criteria:
- NABCEP certification, the industry’s professional standard for PV installers.
- Proper Maryland licensing and any required local electrical and building permits.
- A clear workmanship and equipment warranty in writing.
- Real experience with BGE interconnection and Maryland’s SREC registration, so the paperwork and Permission to Operate go smoothly.
- A written production estimate and a transparent quote that is honest about the year-end buy-back rate and the 2027 change. 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.
For how Maryland’s 1:1 retail net metering and the statewide SREC market work in 2026, plus the 2027 changes ahead, see our guide to the Maryland net metering and SREC market in 2026.
Looking at the specifics? See local solar guides for Annapolis, Glen Burnie, Gaithersburg, and Columbia in this service area.
Frequently asked questions
How does BGE pay me for excess solar?
BGE banks your monthly excess as kWh credits that roll forward, and at the end of its net-metering year, which is April 1, it pays out any leftover Net Excess Generation (BGE net metering). The catch is the rate: that year-end buy-back is paid at the Standard Offer Service generation, or commodity, portion of the rate, not the full retail rate, so it is worth noticeably less per kWh than an on-bill credit. You can also choose to keep carrying your credits forward instead of taking the annual payout. Because the buy-back is low, sizing a system close to your yearly usage gives the best result.
What happened to the federal solar tax credit?
The 30% federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, under the One Big Beautiful Bill Act. A BGE customer who buys solar in 2026 with cash or a loan cannot claim it. 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 and the SREC market were not affected. See our guide on what the federal solar tax credit change means in 2026.
Is Maryland net metering changing in 2027?
Yes, so timing matters. Under 2026 Maryland legislation, the current 1:1 retail net metering for new residential solar is set to end on July 1, 2027, or once the state reaches 3,000 megawatts of net-metered capacity, whichever comes first (Maryland General Assembly SB 843). After that, the Public Service Commission will run a successor program that may credit exports at less than full retail. Systems interconnected before the change are expected to be grandfathered under today’s rules, though the details are still being finalized, so confirm the current status with BGE before you commit.
Do BGE customers earn Maryland SRECs?
Yes, but BGE does not buy them. Maryland’s SREC market is statewide, so your system earns one SREC for every 1,000 kWh it produces, and you sell those certificates through a broker rather than to BGE (DSIRE). Prices move a lot with supply and demand and have ranged widely, so treat any quoted SREC income as a snapshot, not a fixed figure. SRECs go to the system owner, so a lease or PPA customer usually does not keep them; the company that owns the panels does.
How do I connect solar to BGE?
You or your installer file an interconnection application through BGE’s online portal, Intellio Connect, BGE reviews and approves it, you sign an interconnection agreement, the system is installed and passes a local inspection, BGE sets a bidirectional meter, and then BGE issues Permission to Operate (BGE net metering). You cannot turn the system on until you have that permission. Most residential systems of 20 kW or less with a certified smart inverter use the simplest Level 1 process, and a licensed installer usually handles the paperwork for you.
Do I qualify for BGE solar credit if I lease or sign a PPA?
Net-metering credits normally follow the BGE account, but on a lease or PPA the company that owns the panels often keeps both the SRECs and the bill credits, depending on the contract, while your benefit is a lower or fixed power price with no up-front cost. Maryland’s tax exemptions follow ownership of the system and the property. If you want the net-metering value, the SRECs, and the exemptions in your own name, owning the system through cash or a loan is the path that captures them.
Reviewed by the MySolarFY team. Figures were verified against the linked Maryland (BGE, Maryland Public Service Commission, Maryland General Assembly), DSIRE, EIA, and IRS sources as of June 2026; the year-end buy-back rate, the 2027 net-metering change, and SREC prices all move over time, so confirm current terms with BGE and the Maryland PSC 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 bill credits often 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.
