- Maryland’s SREC market is active: you earn one SREC per 1,000 kWh generated, trading at roughly $40 to $45 each in 2026 (market-driven), and SRECs go to the system owner (DSIRE).
- Maryland residential power runs about 35.85 cents per kWh, among the highest nationally, so solar offsets an expensive bill (EIA, as of March 2026).
- Net metering is full-retail 1:1 today, but 2026 legislation sets it to sunset by July 1, 2027 (or at a 3 GW cap), with a state replacement to follow (Maryland OPC).
- Solar equipment is exempt from the 6% state sales tax, and a system’s added home value is 100% exempt from property tax (DSIRE).
- The Maryland Solar Access Program grants $750/kW up to $7,500, but it is income-limited and funding-capped, so it is not available to every household (DSIRE).
- The 30% federal homeowner credit (Section 25D) ended for expenditures made after December 31, 2025 (IRS).
Maryland homeowners pay about 35.85 cents per kWh for electricity (EIA retail sales, residential MD, as of March 2026), among the highest rates in the country, which is exactly why rooftop solar pays here. Maryland backs that up with an active SREC market, full-retail net metering, and two tax exemptions, none of which depend on the federal tax credit that ended after 2025. This page covers what Maryland actually pays in 2026, the catches worth knowing, and how to tell if your home qualifies.
Why solar pays in Maryland
Maryland has some of the highest power prices in the country. At about 35.85 cents per kWh, a Maryland home with a $150 to $300 monthly bill offsets expensive grid power with every kilowatt-hour the roof makes. Your production drives both your bill savings and your SREC income, since you earn one SREC for every 1,000 kWh you generate. Estimate your roof’s likely output with NREL’s free PVWatts calculator; actual production depends on your roof’s pitch, orientation, and shading. The durable part of Maryland’s stack is the SREC market plus full-retail net metering, which together pay you both for generating and for exporting.
Maryland solar incentives at a glance
Maryland’s incentives come with more fine print than most states: some are income-limited, some are funding-capped, and net metering is changing. Here is what each one pays in 2026 and the catch worth knowing.
| Incentive | What it pays | 2026 value and status | Who receives it | Source |
|---|---|---|---|---|
| SREC market | One SREC per 1,000 kWh generated, sold on the market | About $40 to $45 per SREC, market-driven | The system owner (not lease or PPA homeowners) | DSIRE |
| Net metering | A bill credit for power you export | Full retail, 1:1; set to sunset by July 1, 2027 | The homeowner | Maryland OPC |
| Sales-tax exemption | Waives state sales tax on equipment | 100% of the 6% rate | The buyer | DSIRE |
| Property-tax exemption | Excludes solar’s added value from assessment | 100% of added value | The owner | DSIRE |
| Solar Access Program grant | An upfront grant for income-eligible homes | $750/kW up to $7,500, income-limited and funding-capped | The applicant household | DSIRE |
| Battery storage grant | An upfront grant for home batteries | Up to $5,000, but FY26 funds are exhausted and the portal is closed | The applicant | Maryland Energy Administration |
| Federal residential (Section 25D) | A 30% homeowner credit | Ended for expenditures made after December 31, 2025 | No 2026 homeowner-buyer | IRS |
The headline is the SREC market. Maryland still runs an active SREC market, so a residential system earns one Solar Renewable Energy Certificate for every 1,000 kWh (one megawatt-hour) it generates, and those certificates can be sold (DSIRE). In 2026 SRECs trade at roughly $40 to $45 each, just under the state’s $45 alternative-compliance ceiling, and the price moves with supply and demand, so treat any quoted SREC income as an estimate. SRECs belong to whoever owns the system, which matters if you lease or sign a PPA. For a full breakdown of what a Maryland system actually earns from both programs, see our guide to the Maryland net metering and SREC market.
Heads up, two catches: first, the Maryland Solar Access Program and the battery grant are income-limited or funding-capped, and the current cycle may be closed, so confirm the live status with the Maryland Energy Administration before counting on either. Second, the old Maryland Energy Storage income-tax credit expired after tax year 2024 and is no longer available, so ignore any quote that still lists it. Confirm every figure against the linked source, and ask a tax professional about your situation. MySolarFY does not provide tax advice.
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Net metering in Maryland, and the 2027 change
Maryland offers full-retail, 1:1 net metering today. Every kWh you export offsets a kWh you import at the retail rate, credited monthly, with an annual true-up each spring. One nuance: any surplus left at the true-up is cashed out at the lower average commodity rate, not the full retail rate, so the best strategy is to size a system to your own usage (DSIRE). For the mechanics of how export credits work, see how net metering credits your solar exports.
The important change: under legislation passed in 2026, Maryland’s current 1:1 net-metering program is set to sunset by July 1, 2027, or once the state hits a 3 GW solar cap, after which the Public Service Commission will design a replacement that may credit exports at less than the full retail rate (Maryland OPC). Homeowners who connect before that change are generally grandfathered under the current terms, which is worth factoring into your timing. To see how the credit lowers your monthly cost, read how solar lowers your electricity bill.
How you pay changes which incentives you keep
The way you finance solar decides who owns the system, and ownership decides who collects the SRECs and any grant. This is the most misunderstood part of a Maryland solar quote.
| How you pay | Up-front cost | Who owns the system | SRECs and grants | Net metering |
|---|---|---|---|---|
| Cash | Full system price | You | You earn and keep them | Yours |
| Solar loan | Little or none, financed over time | You | You earn and keep them | Yours |
| Lease or PPA | $0-up-front where you qualify | A third-party company | The company keeps the SRECs | You still see net-metering bill credits |
If you own the system (cash or loan), you keep the SREC income, the net-metering credits, and the tax exemptions, and you can apply for the Solar Access grant if you are income-eligible. If you lease or sign a PPA, the company that owns the panels keeps the SRECs, and your benefit is a lower or fixed power price with no up-front cost. Neither path gives a 2026 Maryland homeowner the federal residential credit, since that credit ended after December 31, 2025. For a deeper payback comparison, see the financial case for whether solar panels are worth it.
What changed federally, and what it means for Maryland
The federal homeowner credit is gone, but Maryland’s incentives 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 Maryland homeowner who buys solar with cash or a loan in 2026 cannot claim it (IRS OBBB FAQ; SEIA). The state’s SREC market, net metering, and tax exemptions were not affected, and over the life of a system they can add up to more than the old one-time federal credit. 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 in Maryland 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 Maryland
Maryland has a deep market of licensed installers. Rather than chasing a “best” list, screen any installer 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 Maryland experience and verifiable reviews, plus help registering your SRECs and net metering.
- A written production estimate and a transparent quote you can compare. 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. Looking at a specific city? See our local solar guides for Silver Spring, Hyattsville, and Bowie. We also have local solar guides for Annapolis, Baltimore, Bethesda, Columbia, Gaithersburg, Glen Burnie, and Rockville.
To see exactly how your utility credits solar, read our net metering guides for BGE, Pepco, Delmarva Power, Potomac Edison, and Choptank Electric.
Frequently asked questions
What solar incentives does Maryland offer in 2026?
Maryland’s durable benefits are an active SREC market (about $40 to $45 per SREC, one per 1,000 kWh generated), full-retail net metering, a 100% exemption from the 6% state sales tax on equipment, and a 100% property-tax exemption on the value solar adds to your home (DSIRE). Income-eligible households may also qualify for the Maryland Solar Access Program grant of $750/kW up to $7,500, though it is funding-capped. Maryland has no general residential solar income-tax credit, and its old battery-storage tax credit expired after 2024.
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 Maryland homeowner 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’s own incentives, the SREC market, net metering, and tax exemptions, were not affected. See our guide on what the federal solar tax credit change means in 2026.
How do Maryland SRECs work and what are they worth?
Maryland runs a market-based SREC program: your system earns one Solar Renewable Energy Certificate for every 1,000 kWh (one megawatt-hour) it generates, and you sell those certificates to utilities that must meet the state’s renewable rules (DSIRE). In 2026 Maryland SRECs trade at roughly $40 to $45 each, just below the $45 alternative-compliance ceiling, but the price moves with the market, so treat any SREC income as an estimate. SRECs belong to the system owner, so a lease or PPA customer does not keep them.
How does net metering work in Maryland?
Maryland offers full-retail, 1:1 net metering: each kWh you export offsets a kWh you import at the retail rate, credited monthly, with an annual spring true-up where any surplus is paid at a lower commodity rate (Maryland OPC). One thing to watch: under 2026 legislation, the current 1:1 program is set to sunset by July 1, 2027, or at a 3 GW statewide cap, after which a replacement may credit exports at less than retail. Homeowners who connect before that change are generally grandfathered, so timing matters.
Is the Maryland Solar Access grant available to everyone?
No. The Maryland Solar Access Program is an income-limited grant for low-to-moderate-income households, paying about $750 per kW up to a $7,500 maximum, and it is funded on an annual, first-come basis through the Maryland Energy Administration (DSIRE). Because the budget is capped, a given year’s window can close once funds run out. If you do not qualify by income, the SREC market, net metering, and the tax exemptions are still available to you. Always confirm the current cycle with the Maryland Energy Administration.
Do I qualify for MD solar incentives if I lease or sign a PPA?
It depends on the incentive. SRECs and any grant go to whoever owns the system, so on a lease or PPA the third-party company keeps them, not you. What you get instead is a lower or fixed power price with no up-front cost. Net-metering bill credits still reduce your usage charges either way. If keeping the SREC income matters to you, owning the system through cash or a loan is the path that captures it.
Reviewed by the MySolarFY team. Figures were verified against the linked Maryland (Maryland Energy Administration, Maryland OPC), DSIRE, EIA, and IRS sources as of June 2026; incentive amounts, funding windows, and net-metering rules change, so confirm current terms with each source 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 grant 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.
