- Pepco serves Maryland’s DC suburbs, Montgomery County and Prince George’s County, a distinct territory and rate from BGE in Baltimore, Potomac Edison in western Maryland, and Delmarva Power on the Eastern Shore (Maryland Office of People’s Counsel, as of June 2026).
- A Pepco Maryland bill runs about 19.66 cents per kWh all-in for energy plus delivery, with a separate $8.44 monthly customer charge (Maryland Office of People’s Counsel, as of June 2026), and Pepco filed in late 2025 to raise distribution rates further.
- Maryland gives Pepco customers full 1-for-1 retail net metering, with monthly credits that roll over, plus an option to elect indefinite rollover so unused credits keep their full retail value (EnergySage Pepco net metering; Solar United Neighbors Maryland, as of 2026).
- Your system earns one Maryland SREC per megawatt-hour, a tradable certificate that has recently sold in roughly the $40 to $55 range and that you sell for income (EnergySage Maryland incentives, as of 2026).
- Maryland’s old $1,000 solar rebate has ended, replaced by the income-eligible Maryland Solar Access Program worth up to about $7,500 (Maryland Energy Administration, as of 2026), so do not budget around the old flat rebate.
- The 30% federal homeowner credit (Section 25D) ended for systems placed in service after December 31, 2025 (IRS, as of 2026), so a 2026 cash or loan buyer cannot claim it, and Maryland’s own stack now carries the payback.
If Pepco is your electric utility in the Maryland suburbs of Washington, rooftop solar can pay you in two ways at once, and the local details differ from the rest of the state. Pepco delivers power across Montgomery and Prince George’s counties and runs the interconnection that lets a home system switch on. Maryland gives you full retail net metering on your Pepco bill, your system earns Solar Renewable Energy Certificates you can sell for separate income, and while the federal tax credit ended for 2026 buyers, Maryland’s own programs did not. This page covers Pepco’s real Maryland rate, how net metering and the SRECs work, how the credits can roll over indefinitely if you ask, how you connect, and how to tell whether your roof is a good fit, with every figure sourced and dated.
Is Pepco your utility in Maryland?
Pepco is the regulated electric utility for the Maryland suburbs of Washington, and it is also the interconnection authority for rooftop solar there. It serves Montgomery County and Prince George’s County, which makes it a different territory and a different rate from the rest of the state (Maryland Office of People’s Counsel, as of June 2026). If your bill says Pepco, your net metering and interconnection run through Pepco and the rules on this page apply; if it says BGE, Potomac Edison, or Delmarva Power, the mechanics are similar but the rate and program details differ, so confirm the utility name on your bill first.
| Detail | What to know |
|---|---|
| Service territory | The Maryland suburbs of Washington: Montgomery County and Prince George’s County |
| Parent company | Pepco is an Exelon company |
| Distinct from | BGE (Baltimore), Potomac Edison (western Maryland), and Delmarva Power (the Eastern Shore), each with its own rate |
| 2026 rate | About 19.66 cents per kWh all-in for energy plus delivery, plus a $8.44 monthly customer charge (Maryland OPC) |
| Net metering | Full retail 1-for-1, monthly rollover, with an optional indefinite-rollover election |
| SRECs | One Maryland SREC per MWh produced, sold separately for income |
| Before you switch on | Pepco must grant approval to operate first |
What you pay: the Pepco Maryland rate
Solar offsets the power you would otherwise buy from Pepco, so the rate it replaces is what makes the math work. A Pepco Maryland residential bill adds up to about 19.66 cents per kWh for energy and delivery combined, on top of a fixed $8.44 monthly customer charge (Maryland Office of People’s Counsel, as of June 2026). The supply side, the part your solar offsets first, runs about 13.27 cents per kWh, and Pepco’s delivery charges add roughly 6.39 cents per kWh on top. Pepco’s distribution rates have been rising, and the utility filed in November 2025 to raise them further, so the bill your roof offsets is trending up rather than down.
| Part of your Pepco Maryland bill | Recent figure | Can solar help? |
|---|---|---|
| Standard Offer Service supply (generation plus transmission) | About 13.27 cents per kWh | Yes, your panels reduce what you buy |
| Delivery (distribution plus the EmPOWER surcharge) | About 6.39 cents per kWh | Yes, net metering credits offset delivery on your exports |
| Fixed customer charge | $8.44 per month | No, you pay it even with solar |
| All-in energy plus delivery | About 19.66 cents per kWh | This is the rate your production offsets |
Source: Maryland Office of People’s Counsel, Pepco rates (as of June 2026). The cleanest figure is always your own bill, so divide the total by the kWh you used to see your personal rate. Your production drives both the savings and the SREC income, so estimate it before you commit. A Maryland roof makes far more power in June than in December, and the exact yearly figure depends on your roof’s pitch, orientation, and shade, so estimate yours with NREL’s free PVWatts calculator rather than a generic number, then have your installer confirm it with a site model.
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How Pepco credits your rooftop solar: net metering
Net metering is the first of your two earnings, and Maryland keeps it at the full retail rate. When your panels make more power than your home is using, the surplus flows back to the grid and Pepco credits it on your bill at the full retail rate for a residential system, then rolls that credit forward month to month (EnergySage Pepco net metering, as of 2026). Your credits build through the long days of summer and draw down in winter. For a plain-English primer on how export credits work in general, see how net metering credits your solar exports.
The Maryland detail worth knowing is what happens to leftover credits. By default, Pepco runs an annual true-up around April: any net credit you have not used is cashed out at the utility’s lower wholesale-style rate, well below the retail rate you pay, and the bank resets. But under Maryland’s Net Metering Flexibility Act you can elect indefinite rollover instead, which keeps your unused credits at their full retail value and skips the annual cash-out (Solar United Neighbors Maryland, as of 2026). Ask Pepco or your installer to set up the election that fits your usage.
| Crediting option | What happens to leftover credits | Who it tends to suit |
|---|---|---|
| Default annual true-up | Unused credits cashed out around April at the lower wholesale rate, then reset | Homes sized close to their own yearly use |
| Indefinite rollover (you elect it) | Unused credits keep their full retail value and carry forward, no annual cash-out | Homes that bank a seasonal surplus they will use later |
Maryland SRECs: your second stream of solar income
This is the part that sets Maryland apart from a plain net-metering state. On top of the bill credits, your system earns one Solar Renewable Energy Certificate, or SREC, for every megawatt-hour it produces, and you can sell those certificates into Maryland’s market for cash (EnergySage Maryland incentives, as of 2026). It is a separate income stream from the power savings, so a typical home earns several SRECs a year in addition to a lower bill, and your installer or an SREC aggregator usually handles the registration and the sales.
The price moves, so treat any SREC figure as a snapshot. A Maryland SREC has recently traded in roughly the $40 to $55 range per certificate, but the market floats and the value is capped by the state’s Solar Alternative Compliance Payment, so a 2026 quote should model the SREC income conservatively rather than stretch today’s price out for fifteen years (EnergySage Maryland incentives, as of 2026). Check a live SREC market before counting on a specific number, and remember that the certificates go to whoever owns the system, which matters if you lease or sign a PPA.
Rooftop solar versus Pepco community solar
Search for “Pepco Maryland solar” and most results are about community solar, which is a different product, so it is worth being clear. Community solar lets you subscribe to a share of a large shared array that someone else owns and operates, and you receive a credit on your Pepco bill for your share of its output (Maryland Energy Administration community solar, as of 2026). There are no panels on your roof and nothing to buy. It is a reasonable option for renters or shaded roofs, but it is not the same as owning a system.
| Question | Rooftop solar you own | Pepco community solar |
|---|---|---|
| Panels on your roof | Yes, your system | No, a shared off-site array |
| Up-front cost | Cash, a loan, or a $0-up-front lease or PPA where you qualify | Usually none, you subscribe |
| Net metering | Yes, full retail 1-for-1 on your bill | No, you get a community-solar bill credit instead |
| SREC income | Yes, the owner earns and sells the SRECs | No, the array owner keeps them |
| Best for | A sunny, structurally sound roof you plan to keep | Renters, shaded roofs, or anyone who does not want equipment |
This page is about rooftop solar you own, because that is the path that captures both net metering and the SREC income. If a sunny roof is not an option, community solar is a fair alternative to compare.
Maryland incentives a Pepco customer can stack
Beyond net metering and SRECs, Maryland adds a grant and two tax breaks. One correction worth making up front: the old $1,000 state solar rebate has ended, so do not count on it. For the statewide picture, see our Maryland solar incentives hub, and our guide to solar incentives for how these fit together.
| Incentive | What it gives you | The Maryland detail |
|---|---|---|
| Net metering | Full retail 1-for-1 credit, with optional indefinite rollover (EnergySage) | Delivered on your Pepco bill; you elect the rollover option |
| Maryland SRECs | One certificate per MWh, sold for income (recently about $40 to $55) (EnergySage) | Price floats and is capped by the state, so model it conservatively |
| Maryland Solar Access Program | An income-eligible grant of up to about $7,500 (Maryland Energy Administration) | Replaced the old $1,000 rebate; income-limited, first-come funding that can close mid-year |
| Sales and use tax exemption | 100% exemption from Maryland’s 6% sales tax on solar equipment (EnergySage) | Applied at purchase; your installer normally handles it |
| Property tax exemption | The added home value from the system is exempt from property tax (EnergySage) | May require a filing with your county or the state, so confirm it locally |
How to connect solar to Pepco in Maryland
Connecting a home system follows Maryland’s interconnection rules, administered by Pepco, and the rule that matters most is that you cannot turn the system on until Pepco grants approval to operate (Pepco interconnection application, as of 2026). The general path is:
- Application. Your installer files Pepco’s online net-metering and interconnection application with the system design, a one-line diagram, and the inverter data. Most home systems qualify for the simplest review level.
- Review and authorization to install. Pepco reviews the package and issues authorization to install; the application details must match the account holder.
- County permit, install, and inspect. You pull a Montgomery County or Prince George’s County permit, a licensed contractor installs the system, and it passes local electrical inspection.
- Meter and approval to operate. Pepco installs a bidirectional meter at no cost that counts power in and power out, then issues approval to operate, and the system may not run in parallel with the grid before that.
A licensed installer normally manages this whole process, including the interconnection paperwork and registering your system to earn SRECs. Plan for a few weeks of county permitting plus a few weeks of Pepco review after installation.
What changed federally, and what it means for Pepco customers
The federal homeowner credit is gone, but Maryland’s programs are not. People are searching whether the 30% solar credit is going away, and the answer is that it already has: the federal Residential Clean Energy Credit (Section 25D) ended for systems placed in service after December 31, 2025, so a Pepco customer who buys solar with cash or a loan in 2026 cannot claim it (IRS, as of 2026). For the full timeline, see what the end of the federal solar tax credit means in 2026. What carries the math now is Maryland’s own stack: full retail net metering, the SREC income, the tax exemptions, and the Solar Access grant if you qualify.
One federal exception remains, 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. On a leased system you do not file for a federal credit yourself, because the company that owns the panels does. The 25D homeowner credit, by contrast, ended after December 31, 2025, so do not let a sales pitch tell a 2026 cash or loan buyer that the 30% federal credit is still available.
How to choose a solar installer in Pepco Maryland territory
The Maryland suburbs of Washington have a crowded installer market, so vetting matters. 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 license for the contractor.
- A clear workmanship and equipment warranty in writing.
- Real experience with Pepco interconnection and approval to operate, plus the Montgomery or Prince George’s County permit and SREC registration so your certificates start earning promptly.
- A written production estimate and a transparent quote that models SREC income conservatively and shows your bill after solar, fixed customer charge included.
For comparison with the rest of the state, see how the credits work under BGE Maryland net metering in the Baltimore area. 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 address →
For how Maryland’s full retail net metering and the statewide SREC market work in 2026, see our guide to the Maryland net metering and SREC market in 2026.
Looking at the specifics? See local solar guides for Silver Spring, Bowie, and Bethesda in this service area.
Frequently asked questions
How does Pepco net metering work in Maryland in 2026? Pepco credits the power your panels export to the grid at the full retail rate for a residential system and rolls that credit forward month to month (EnergySage Pepco net metering, as of 2026). By default there is an annual true-up around April, when any leftover credit is cashed out at the utility’s lower wholesale rate. Maryland’s Net Metering Flexibility Act lets you elect indefinite rollover instead, which keeps your unused credits at full retail value with no annual cash-out. You still pay the fixed $8.44 monthly customer charge, so a solar bill is rarely exactly zero, and a system can be credited up to 200% of your annual usage.
What is Pepco’s electricity rate in Maryland in 2026? A Pepco Maryland residential bill runs about 19.66 cents per kWh all-in for energy and delivery, plus a fixed $8.44 monthly customer charge (Maryland Office of People’s Counsel, as of June 2026). The supply portion is about 13.27 cents per kWh and delivery adds roughly 6.39 cents per kWh. Pepco’s distribution rates have been rising, and the utility filed in late 2025 to raise them further, so the cleanest way to see your own rate is to divide the total on your Pepco bill by the kWh you used.
What is the difference between rooftop solar and Pepco community solar? Rooftop solar is a system you own on your own roof, so you get full retail net metering and you earn and sell the SRECs. Community solar is a subscription to a share of a large shared array that someone else owns, and you get a credit on your Pepco bill instead of panels of your own (Maryland Energy Administration, as of 2026). Community solar usually has no up-front cost, which makes it a fair option for renters or shaded roofs. Owning a rooftop system generally captures more value over time because you keep both the net-metering credits and the SREC income.
What Maryland solar incentives can a Pepco customer get in 2026? Net metering and SRECs are the two biggest, and they stack. On top of those, solar equipment is 100% exempt from Maryland’s 6% sales tax, and the added home value from the system is exempt from property tax (EnergySage Maryland incentives, as of 2026). The income-eligible Maryland Solar Access Program adds a grant of up to about $7,500 if you qualify and funding is open (Maryland Energy Administration, as of 2026). Maryland has no separate state income tax credit for residential solar, and the old $1,000 rebate has ended, so plan around net metering, SRECs, and the exemptions.
What happened to the federal solar tax credit for Pepco customers? The 30% federal Residential Clean Energy Credit (Section 25D) ended for systems placed in service after December 31, 2025, so a Pepco customer buying with cash or a loan in 2026 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’s net metering, the SRECs, and the tax exemptions were not affected and still carry the payback in 2026. MySolarFY does not provide tax advice, so confirm your situation with a tax professional.
How do I connect rooftop solar to Pepco in Maryland? Your installer files Pepco’s online net-metering and interconnection application before installation, with the system design and inverter data (Pepco interconnection application, as of 2026). Pepco reviews the package and issues authorization to install. After you pull a Montgomery or Prince George’s County permit, a licensed contractor installs the system and it passes local electrical inspection. Pepco then installs a bidirectional meter at no cost and issues approval to operate, and your system can only start banking net-metering credits and earning SRECs once it is approved to run. A licensed installer normally manages the whole process for you.
Reviewed by the MySolarFY team. Figures were verified against the linked Maryland Office of People’s Counsel, Pepco, Maryland Energy Administration, EnergySage, Solar United Neighbors, and IRS sources as of June 2026; Pepco’s rates are rising under a 2025 to 2026 rate filing, SREC prices float and are capped by the state, the Maryland Solar Access Program is income-eligible and first-come, and net-metering terms can change, so confirm current terms with Pepco and the Maryland Energy Administration before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional about your own situation.
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 SREC income and any state 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.
