Solar still pays off in Maryland in 2026, just more slowly than in high-rate states: a typical 7 kW system produces about 9,700 kWh a year and pays back in roughly 10 to 11 years at Maryland’s average rate of about 21.8 cents per kWh, before any SREC income or the income-qualified Maryland Solar Access grant. Maryland homeowners weighing solar want real numbers, not a sales pitch, so this page gathers the ones that matter in one place, each dated and sourced. Maryland’s residential electricity rate runs above the national average but below most of the Northeast, which stretches payback a little, and full-retail net metering, tradable SRECs, and two standing tax exemptions still make the math work for many roofs. Below you will find installed cost, simple payback, per-city production, how each utility handles net metering, and the current state incentives, updated for 2026.
Updated for 2026.
Key statistics: Maryland solar at a glance (2026)
Key numbers (Maryland, 2026)
- Average residential rate: 21.8 cents per kWh
- Typical system size: 7 kW
- Typical annual production: 9,743 kWh per year
- Typical installed cost: $2.85 to $3.50 per watt
- Estimated system cost: $19,950 to $24,500
- Simple payback: about 10 to 11 years
- Maryland SREC value: about $40 to $60 per SREC (2026 range)
According to MySolarFY’s analysis (July 2026), a typical 7 kW system in Maryland produces about 9,743 kWh a year, offsetting power that costs about 21.8 cents per kWh. These are our own compiled figures for Maryland; see Methodology below for exactly how each was produced. For the statewide rules behind these numbers, see our Maryland solar guide.
| Metric | Value | Source (dated) |
|---|---|---|
| Average residential rate | 21.8 cents per kWh | EIA Electric Power Monthly Table 5.6.A, May 2026 |
| Typical system size | 7 kW | MySolarFY, typical residential array |
| Typical annual production | 9,743 kWh per year | NREL PVWatts v8, as of July 2026 |
| Typical installed cost | $2.85 to $3.50 per watt | MySolarFY cost range, as of July 2026 |
| Estimated system cost | $19,950 to $24,500 | MySolarFY, 7 kW, as of July 2026 |
| Simple payback | about 10 to 11 years | MySolarFY analysis, as of July 2026 |
| Maryland SREC value | about $40 to $60 per SREC | Maryland SREC market, 2026 range |
Every figure is dated and attributed. Rate is the EIA residential average for Maryland (the latest published statewide figure, May 2026, against a 18.4 cent US average that month); production is a modeled NREL PVWatts v8 run for a 7 kW array at a Baltimore ZIP; cost and payback are MySolarFY estimates for planning, not a quote. Payback counts net-metering bill savings only and does not subtract SREC income or any grant, so your real payback can be shorter. Confirm current terms before you decide.
Want the numbers for your own roof? Check your Maryland ZIP to see the incentives, net-metering credits, and licensed installers that serve your address.
Solar cost and payback by city in Maryland
Production and payback vary within a state because the solar resource and the local rate shift by location. The table below models a 7 kW system for representative Maryland cities using NREL PVWatts v8.
| City | System size | Annual production | Est. system cost | Est. annual bill savings | Simple payback |
|---|---|---|---|---|---|
| Baltimore | 7 kW | 9,743 kWh per year | $22,200 | about $2,120 | about 10.5 years |
| Columbia | 7 kW | 9,587 kWh per year | $22,200 | about $2,090 | about 10.6 years |
| Silver Spring | 7 kW | 9,646 kWh per year | $22,200 | about $2,100 | about 10.6 years |
| Frederick | 7 kW | 9,471 kWh per year | $22,200 | about $2,060 | about 10.8 years |
Production is a modeled NREL PVWatts v8 run per city ZIP. Bill savings value each net-metered kWh at Maryland’s full retail rate (about 21.8 cents) under statewide net metering; power you use on-site offsets at that same retail rate. Payback is the system cost divided by that annual bill savings, holding today’s rate flat and ignoring financing, and it deliberately excludes SREC income and the income-qualified Solar Access grant, both of which can shorten it. The rate is held at the EIA statewide residential average for comparability, so the only per-city variable here is production. A written quote for your roof beats any table.
Utility rate and net metering comparison
Your utility sets the delivery rate and administers net metering, which is the credit you earn for the power your roof sends back to the grid. In Maryland the terms are set statewide by the Public Service Commission, so every regulated utility credits exported power at close to the full retail rate; see our Maryland net metering and SREC guide for the mechanics, and how net metering credits your solar exports in general.
| Utility | Residential rate | Net metering treatment |
|---|---|---|
| BGE (Baltimore, central Maryland) | About 21.8 cents per kWh (EIA statewide residential average, May 2026) | Statewide Maryland net metering: exports credited at close to the full retail rate for systems up to 2 MW, with unused monthly credits rolling forward indefinitely under the 2025 law change. |
| Pepco (Montgomery, Prince George’s) | About 21.8 cents per kWh (EIA statewide residential average, May 2026) | Same statewide net metering: full-retail export credit up to 2 MW, credits roll forward indefinitely. Home systems are sized to roughly 90 to 110 percent of your annual usage. |
| Delmarva Power (Eastern Shore) | About 21.8 cents per kWh (EIA statewide residential average, May 2026) | Same statewide net metering: full-retail export credit up to 2 MW, credits roll forward indefinitely. |
| Potomac Edison (Western Maryland) | About 21.8 cents per kWh (EIA statewide residential average, May 2026) | Same statewide net metering under the FirstEnergy Maryland tariff: full-retail export credit up to 2 MW, credits roll forward indefinitely. |
| SMECO (Southern Maryland) | About 21.8 cents per kWh (EIA statewide residential average, May 2026) | SMECO is a member-owned cooperative but follows the same Maryland net-metering rules: full-retail export credit up to 2 MW, credits roll forward indefinitely. |
Net metering rules are set by Maryland law and the Public Service Commission, not the installer, so the treatment is the same across BGE, Pepco, Delmarva Power, Potomac Edison, and SMECO. Rates shown are the EIA statewide residential average; each utility’s actual delivery rate differs. Important: Maryland’s current one-to-one retail net metering is scheduled to end on July 1, 2027 or when the state hits a 3 GW cap, whichever comes first, after which the PSC must design a successor program that will likely credit exports at a lower rate. Confirm your utility’s current tariff before you size a system.
Maryland solar incentive stack (2026)
Net metering, SRECs, an income-qualified grant, and two standing tax exemptions make up the Maryland incentive stack; for the full breakdown see our Maryland net metering and SREC guide and our state solar incentives overview. These go to the system owner, so on a lease or PPA the company that owns the panels keeps the SREC and any grant while the net-metering bill credit follows your account.
Maryland net metering
Exported power is credited at close to the full retail rate for residential systems up to 2 MW, and since a 2025 law change unused monthly credits roll forward indefinitely rather than cashing out each April. Note that the current one-to-one retail structure is set to end July 1, 2027 or at a 3 GW statewide cap, after which the PSC will design a lower-value successor (active 2026) (Maryland Public Service Commission, as of July 2026)
Maryland Solar Access Program
An income-qualified grant of $750 per kW of installed capacity, up to $7,500, for households at or below 150 percent of area median income, paid through an upfront two-step reservation. Important: the FY26 budget of $12 million was fully committed and the application portal closed to new applications on April 17, 2026, so a homeowner today should confirm the next funding round before counting on it (income-limited, FY26 closed) (Maryland Energy Administration, as of July 2026)
Maryland SRECs (Solar Renewable Energy Certificates)
A purchased system earns one SREC for every 1,000 kWh it produces, which the owner sells into the Maryland market. In 2026 Maryland SRECs have traded roughly $40 to $60 each; the market is volatile and has trended down over the long run, so treat SREC income as a bonus, not a guarantee. On a lease or PPA the SREC goes to the company that owns the panels (active 2026) (Maryland SREC market data, as of July 2026)
Maryland sales and use tax exemption
Residential solar energy equipment and its installation are exempt from Maryland’s 6 percent state sales and use tax, which trims the up-front cost directly (active) (Maryland Tax-General Article, as of July 2026)
Maryland property tax exemption
One hundred percent of the home value your solar system adds is exempt from state and local property tax under Tax-Property Article Section 7-240. It applies automatically at assessment with no separate filing, so going solar does not raise your property tax (active) (Maryland Tax-Property Article Section 7-240, as of July 2026)
Retired: Residential Clean Energy Rebate Program
The flat $1,000 state rebate for residential solar PV ended after fiscal year 2025 (about June 2025) and is no longer available. The income-qualified Maryland Solar Access Program above replaced it, so do not budget for the old $1,000 rebate in 2026 (ended FY2025) (Maryland Energy Administration, as of July 2026)
Federal Residential Clean Energy Credit (Section 25D)
Ended December 31, 2025 and is not available to homeowners who buy solar in 2026, so no federal credit reduces the cost for cash or loan buyers (ended 12/31/2025) (IRS, as of July 2026)
The federal homeowner credit has ended, but Maryland’s programs have not. The 30% federal Residential Clean Energy Credit (Section 25D) ended December 31, 2025, so a Maryland homeowner who buys solar with cash or a loan in 2026 cannot claim it (IRS Residential Clean Energy Credit, as of 2026). Maryland’s net metering, SRECs, and the two state tax exemptions listed above were not affected by that change. For the full timeline, see what the federal solar tax credit change means and our state solar incentives overview.
Methodology and sources
- Electricity rate: the latest EIA published residential retail price for Maryland, about 21.8 cents per kWh for May 2026, against a US residential average of 18.4 cents that month, which we hold flat for payback (EIA Electric Power Monthly, Table 5.6.A, as of May 2026). Note on this figure: EIA briefly published an erroneous Maryland price near 35 cents per kWh in a March 2026 report, the Maryland Public Service Commission flagged it, and EIA revised the March figure to 22.2 cents on June 3, 2026 (Maryland PSC, as of June 2026). We publish only EIA’s corrected series.
- Production: modeled with NREL PVWatts v8 for a 7 kW south-facing array at each city ZIP; the statewide typical is anchored to a Baltimore ZIP (NREL PVWatts v8, as of July 2026).
- Cost and payback: MySolarFY estimates built from an installed cost of $2.85 to $3.50 per watt (informed by the DataForSEO cost SERP for Maryland) and the EIA rate, valuing net-metered exports at the full retail rate, holding today’s rate flat, and ignoring financing, SREC income, and any grant.
- Net metering: the Maryland Public Service Commission; statewide full-retail net metering for systems up to 2 MW, with indefinite credit rollover after the 2025 law change and a scheduled end to the current one-to-one structure on July 1, 2027 or at a 3 GW cap (Maryland PSC net metering, as of July 2026).
- Incentives: the Maryland Energy Administration for the Solar Access Program and the retired rebate (Maryland Solar Access Program), the Maryland SREC market for certificate values, and the Maryland Tax-General and Tax-Property Articles for the sales and property tax exemptions, all as of July 2026.
- Assumptions: a 7 kW system, standard losses, and a south-facing array. Your roof, usage, utility, and financing change the result, so treat these as planning figures, not a quote.
Citing this data
Citing this data?
Cite as: “MySolarFY, Maryland Solar Data & Statistics 2026, accessed July 22, 2026.” Data compiled by MySolarFY from EIA (residential electricity rate), NREL PVWatts v8 (modeled production), the Maryland Public Service Commission (net metering), the Maryland Energy Administration (Solar Access Program), the Maryland SREC market (certificate values), and the Maryland Tax-General and Tax-Property Articles (tax exemptions). Figures are dated in each table above.
Journalists and researchers may quote these statistics with attribution to MySolarFY and a link to https://mysolarfy.com/maryland-solar-data-statistics-2026/.
See what solar programs are available in your Maryland ZIP code
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How to choose a solar installer in Maryland
To choose a solar installer in Maryland, confirm three things before you sign: a valid Maryland Home Improvement Commission license, NABCEP certification, and a written warranty. Beyond those, screen any company against objective criteria: NABCEP certification, a valid Maryland Home Improvement Commission license, a written workmanship and equipment warranty, real experience with your utility’s interconnection, and a transparent quote that uses today’s incentive values and does not promise the retired $1,000 rebate or a federal credit that has ended. 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. To compare with a higher-rate state, see our Rhode Island solar data page.
Frequently asked questions
What is the average solar cost in Maryland in 2026? A typical residential system in Maryland runs about $2.85 to $3.50 per watt installed before any incentives (MySolarFY cost range, as of July 2026). A 7 kW system is a common size for a single-family home, roughly $19,950 to $24,500, and Maryland’s sales tax exemption keeps the 6 percent state tax off that price. Cost varies with roof, equipment, and installer, so use a written quote for your own numbers.
How long is solar payback in Maryland? About 10 to 11 years on bill savings alone, using a 7 kW system, the roughly 21.8 cents per kWh EIA rate, and full-retail net metering (MySolarFY analysis, as of July 2026). Maryland’s rate runs above the national average but below most of the Northeast, but SREC income and, for income-eligible households, the Solar Access grant can shorten it, and neither is counted in that estimate.
Does Maryland have a solar rebate or grant in 2026? The old flat $1,000 Residential Clean Energy Rebate ended after fiscal year 2025 and is gone. The Maryland Solar Access Program replaced it with an income-qualified grant of $750 per kW, up to $7,500, but its FY26 funding was fully committed and the application portal closed to new applicants on April 17, 2026 (Maryland Energy Administration, as of July 2026). Net metering, tradable SRECs, and the sales and property tax exemptions remain available to all buyers.
Did the federal solar tax credit end? Yes for homeowners. The 30% federal Residential Clean Energy Credit (Section 25D) ended December 31, 2025, so a Maryland homeowner who buys solar in 2026 cannot claim it (IRS, as of 2026). Maryland’s net metering, SRECs, and state tax exemptions were not affected by that change.
Reviewed by the SolarFY Editorial Team. Figures were verified against the linked EIA, NREL, Maryland PSC, Maryland Energy Administration, and Maryland Tax Article sources as of July 2026, following our data and methodology standards; rates, incentive values, SREC prices, and net-metering terms can change, so confirm current terms before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional. 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. Solar panels are not free and any monthly payments apply. “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 may include an annual escalator and total payments may exceed a cash purchase, and on a lease or PPA the incentives, SRECs, and any grant go to the company that owns the system. Homeowners do not get the federal residential credit that ended after December 31, 2025. Eligibility, savings, incentives, and rates vary and are not guaranteed. See our full disclaimer.
