✅ Federal Incentives
All federal benefits apply to entities in Maryland.
✅ State Incentives
⚡ Residential Clean Energy Rebate Program
The Maryland Energy Administration (MEA) offers a one-time rebate of $1,000 for homeowners who install a solar photovoltaic (PV) system with a minimum capacity of 1 kW. The system must be installed at a primary residence, and the installation must be completed by a North American Board of Certified Energy Practitioners (NABCEP)-certified installer. Applications are accepted on a first-come, first-served basis and must be submitted within 12 months of installation.
⚡ Energy Storage Income Tax Credit
Maryland provides a tax credit for the installation of energy storage systems, such as solar batteries, in conjunction with solar energy systems. The credit is equal to 30% of the total installation costs, up to a maximum of $5,000. This program is available on a first-come, first-served basis and is set to end in 2024.
⚡ Solar Renewable Energy Credits (SRECs)
Homeowners with solar energy systems in Maryland can earn SRECs for each megawatt-hour (MWh) of electricity their system generates. These credits can be sold to utilities to meet renewable energy requirements, providing additional income. The market value of SRECs varies, and homeowners must register their systems with the Maryland Public Service Commission to participate.
⚡ Property Tax Exemption
Maryland offers a 100% property tax exemption for the added value of solar energy systems. Installing a solar system will not increase your property's assessed value for tax purposes.
⚡ Sales Tax Exemption
Maryland provides a 100% sales tax exemption on the purchase of solar panels and related equipment, reducing the upfront cost of the system.
✅ Utility Incentives
Utility-based incentives in Maryland vary by provider. Some utilities may offer rebates or incentives for solar installations. It's advisable to contact your local utility provider to inquire about available programs.
✅ Additional Considerations for Nonprofits
Under the Inflation Reduction Act (IRA) of 2022, tax-exempt organizations such as nonprofits are now eligible to receive a direct payment equal to 30% of their solar installation cost, effectively mirroring the federal Investment Tax Credit (ITC). This provision significantly enhances the financial benefits available to nonprofits investing in solar energy.
Summary
Maryland offers a combination of federal incentives, state tax credits, property and sales tax exemptions, and utility-level incentives to make solar energy a viable and beneficial investment for individuals, businesses, and nonprofits.