As of August 2026, Maryland residential solar runs about $2.63 to $3.01 per watt installed, or roughly $21,000 to $24,100 for an 8 kW system before financing. At Maryland’s electricity rate of about 21.8 cents per kWh plus SREC income, a typical system pays back in about 7 to 9 years. The 30% federal homeowner credit (Section 25D) ended for expenditures made after December 31, 2025, so no federal credit lowers a 2026 Maryland purchase.
This page breaks down what rooftop solar actually costs in Maryland in 2026 and how long it takes to pay for itself, now that the 30% federal tax credit is gone. Maryland still has two things that make the math work: some of the higher power prices in the country and an active market that pays you for the clean energy your roof makes. Below is the cost per watt, a payback estimate by system size, and the honest catches, including a net-metering change coming in 2027. For the full list of state programs, see our companion guide to Maryland solar incentives.
What solar costs in Maryland in 2026
Expect about $2.63 to $3.01 per watt installed before any incentive. That is the 2026 range Maryland pricing guides report, with EnergySage putting the state average near $2.63 per watt and other guides a bit higher (EnergySage Maryland; SolarReviews Maryland). Price per watt is the useful number because it scales with system size: multiply it by your system’s watts to get the gross price. A quote is driven by your roof, the equipment tier, and the installer, so treat these as planning figures and verify your own number with real local quotes.
| System size | Gross cost (at $2.63 to $3.01 per watt) | Estimated yearly production | Estimated first-year value |
|---|---|---|---|
| 6 kW | About $15,800 to $18,100 | About 8,350 kWh | About $2,170 |
| 8 kW | About $21,000 to $24,100 | About 11,100 kWh | About $2,900 |
| 10 kW | About $26,300 to $30,100 | About 13,900 kWh | About $3,600 |
Production here is scaled from NREL’s PVWatts estimate for a Baltimore-area roof, about 11,100 kWh a year for an 8 kW system, and first-year value combines the bill offset at 21.8 cents per kWh with roughly $40 to $45 per SREC. Run your own address through the free PVWatts calculator, since pitch, orientation, and shade move the result. The exemption on the 6% state sales tax already lowers the gross price at purchase (DSIRE).
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What drives your Maryland payback
Three things pay back a Maryland system: the bill you avoid, the SRECs you sell, and today’s full-retail net metering. At about 21.8 cents per kWh, Maryland power costs more than the national average of roughly 18.4 cents, so every kilowatt-hour your roof makes is worth more here than in most states (EIA Electric Power Monthly, Table 5.6.A). On top of the bill savings, Maryland’s active SREC market pays you one certificate per 1,000 kWh you generate, trading around $40 to $45 each in 2026, and those certificates go to whoever owns the system (DSIRE). Net metering then credits the power you export at the full retail rate today, which is the piece most sensitive to timing. For how those export credits work, see our guide to Maryland net metering and SRECs.
One timing catch matters for payback. Under 2026 Maryland legislation, today’s 1:1 full-retail net metering for new residential solar is set to end by July 1, 2027, or once the state reaches 3,000 megawatts of net-metered capacity, whichever comes first, with a state successor program to follow (Maryland General Assembly SB 843). Systems that interconnect before the change are expected to be grandfathered under today’s rules, though the Public Service Commission is still finalizing details. The practical read: connecting sooner protects the export value that shortens your payback.
| What pays you back | How it is valued in 2026 | Who receives it |
|---|---|---|
| Bill offset (net metering) | Full retail, about 21.8 cents per kWh today; set to change by July 1, 2027 | The homeowner on the account |
| SREC sales | About $40 to $45 per SREC, one per 1,000 kWh, market-driven | The system owner |
| Sales and property tax exemptions | 100% of the 6% sales tax and 100% of added home value | The buyer and owner |
| Federal 25D credit | Ended for expenditures after December 31, 2025; not available in 2026 | No 2026 homeowner-buyer |
How we estimate Maryland payback
We divide the gross system price by the yearly value it produces, with no federal credit to subtract now that Section 25D ended December 31, 2025. According to MySolarFY’s analysis (August 2026), a typical 8 kW Maryland system costs about $21,000 to $24,100 before financing, generates about 11,100 kWh a year, and pays back in roughly 8 years at the state’s 21.8 cents per kWh rate with today’s full-retail net metering. The math is simple: an 8 kW roof offsets about $2,400 of grid power a year and adds roughly $450 in SREC sales, for about $2,900 of first-year value, so a $22,000 system returns its cost in a little under eight years. Because SREC prices move and net metering is set to change, we frame payback as a 7 to 9 year range rather than a single promise. See how the broader case pencils out in our resource on whether solar panels are worth it financially.
How the end of the federal tax credit changed Maryland payback
The 30% federal homeowner credit is gone, so Maryland payback is a year or two longer than the numbers you saw in 2024. The federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, under the One Big Beautiful Bill Act, so a Maryland homeowner who buys solar with cash or a loan in 2026 cannot claim it (IRS; SEIA). Ignore any Maryland cost table that still subtracts a 30% credit from the 2026 price. The state benefits that survive, the SREC market, full-retail net metering for now, and the sales and property tax exemptions, are what keep Maryland payback competitive. For the full timeline, see what the federal solar tax credit change means in 2026.
One federal exception exists, and it is not the homeowner’s 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). On a lease or PPA the company that owns the panels files for that credit, and it typically keeps the SRECs and bill credits too, while your benefit is a lower or fixed power price with no up-front cost. The 25D homeowner credit, by contrast, ended after December 31, 2025.
Cash, loan, or lease in Maryland: what each does to cost
How you pay changes both your out-of-pocket cost and who captures Maryland’s incentives.
- Cash gives the lowest lifetime cost and the fastest payback, and you keep the SRECs, the net-metering credits, and the tax exemptions in your own name.
- A solar loan spreads the same gross cost over time; you still own the system, so you keep the SRECs and credits, but interest adds to the total you pay.
- A lease or PPA can mean no up-front cost, but the company that owns the panels usually keeps the SRECs and often the net-metering credits, so your benefit is a lower or fixed power price rather than the full incentive stack. Solar panels are not free, and lease or PPA terms typically run 20 to 25 years with a possible annual price escalator.
To see how the monthly bill offset drives all of this, read how solar lowers your electricity bill.
How Maryland cost compares to its incentives
This page is about the price tag and the payback clock. The programs that feed that payback, the SREC market, net metering, the tax exemptions, and the income-limited Maryland Solar Access grant of $750 per kW up to $7,500, are covered in depth in our Maryland solar incentives guide (DSIRE). Use that page to check what you qualify for, then come back here to run the cost and payback math for your system size.
Frequently asked questions
How much does solar cost in Maryland in 2026?
Maryland residential solar runs about $2.63 to $3.01 per watt installed in 2026, so an 8 kW system costs roughly $21,000 to $24,100 before financing, and a 6 kW system about $15,800 to $18,100 (EnergySage Maryland). Your final price depends on your roof, equipment tier, and installer, and the state sales-tax exemption already lowers the amount at purchase. Compare real local quotes rather than relying on a single average.
What is the solar payback period in Maryland?
For most Maryland homes the payback is about 7 to 9 years in 2026. An 8 kW system that costs around $22,000 offsets roughly $2,400 of grid power a year at 21.8 cents per kWh and earns about $450 in SREC sales, for close to $2,900 of first-year value, which returns the cost in a little under eight years. SREC prices move and net metering is set to change, so treat this as a range, not a fixed figure.
Does the 30% federal tax credit still lower Maryland solar cost?
No. The 30% federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, so a Maryland homeowner who buys solar with cash or a loan in 2026 cannot claim it (IRS). Any 2026 Maryland cost estimate that still subtracts a 30% credit is out of date. A separate commercial credit, Section 48E, applies only to leased and PPA systems and is claimed by the company that owns them, not by the homeowner.
Do SRECs and net metering shorten the payback in Maryland?
Yes, both do. Maryland’s SREC market pays about $40 to $45 per certificate, one certificate per 1,000 kWh you generate, and full-retail net metering credits the power you export at the retail rate today (DSIRE). Together they add several hundred dollars a year on top of the bill you avoid. Note that net metering is set to change by July 1, 2027 or at a 3 GW cap, and SRECs go to whoever owns the system.
Is it cheaper to buy or lease solar in Maryland?
Buying with cash gives the lowest lifetime cost and the fastest payback, and you keep the SRECs, net-metering credits, and tax exemptions. A loan spreads the same cost but adds interest. A lease or PPA can mean no up-front cost, but the company that owns the panels usually keeps the SRECs and credits, so your benefit is a lower power price rather than the full incentive stack. Solar panels are not free, and lease or PPA terms typically run 20 to 25 years.
Reviewed by the MySolarFY team. Cost, production, and incentive figures were verified against the linked EnergySage, SolarReviews, EIA, NREL PVWatts, DSIRE, IRS, SEIA, and Maryland General Assembly sources as of August 2026; solar prices, SREC values, and the 2027 net-metering change all move over time, so confirm current terms and get real local quotes 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.
