Maryland Solar Incentives

Incentives for going solar in Maryland.

Federal Tax Credit

The single most important incentive available to anyone considering purchasing a solar system is the Federal Renewable Energy Tax Credit. This credit pays new solar owners 26% of the total cost of their systems via a personal income tax credit. As an example, someone who purchases a $30,000 system will receive an extra $7,800 back on their annual tax refund as long as they paid at least that much in federal income taxes over the course of the year. If the person only paid $7,000 in taxes, that extra $800 would be carried forward to the next year.

Clean Energy Grant Program

Maryland homeowners who install solar panels on their roof get a flat $1,000 rebate through the Clean Energy Grant Program. This rebate is only valid for systems sized 20kW and below. If you’re planning a larger system, you do not qualify for this grant, but you are then eligible for the state production tax credit (see below). As a bonus, the $1,000 grant is completely tax exempt, meaning it doesn’t count towards the income of the recipient.

Clean Energy Production Tax Credit

Maryland homeowners who are installing extremely large solar systems (production of >23,500 kWh, ~5x the average system) are eligible for the state’s Clean Energy Production Tax Credit. This credit pays .85¢/kWh against the state income tax, for a five-year period, for electricity generated by eligible resources.

SRECs

Solar Renewable Energy Certificates (SRECs) are certificates that represent proof that one megawatt-hour (MWh) of electricity was generated from solar resources. SRECs can be sold to utilities in Maryland which are required to produce a certain percentage of their electricity from renewable resources, a requirement known as a Renewable Portfolio Standard (RPS) or solar carve-out. The sale of these certificates is completely different from the actual sale or credit from exporting electricity into the grid, which is related to Net Metering (see below).

Property Tax Exemption

Solar systems have a significant increase on the value of a home, with one recent study indicating an increase of approximately 3.8% in MD. However, because Maryland has a property tax exemption for solar systems, this increase in home value won’t cost you a penny when tax time rolls around.

Sales Tax Exemption

Since July 2008, Maryland has had a Sales and Use Tax Exemption for Renewable Energy Equipment. This exemption allows us to buy any materials to be used for a solar system without having to pay the normal sales tax of 6%. This translates to a significant reduction in the price of a solar system for Maryland homeowners.

Property Tax Credits

In addition to Maryland’s generous renewable energy policies, several counties have enacted additional measures to promote the use of solar.

Anne Arundel County– property tax credit for the lesser of $2,500 or 50% of the net system cost
Baltimore County– property tax credit for the lesser of $5,000 or 50% of the net system cost. *The allocated budget for these credit have been met. Applications are being waitlisted for the new budget*
Harford County– property tax credit for the lesser of $2,500 or 100% of total real property tax
Prince George’s County– property tax credit for the lesser of $5,000 or 50% of the system cost. *This tax credit has been fully subscribed until 2020*

Net Metering

Net metering is a stipulation that requires utility companies to give you credit for any excess electricity your system produces. For example, a home that consumes 20 kWhs of grid electricity during the night and produces an excess of 20 kWhs of solar electricity during the day would register as having used no grid electricity at all. Maryland’s net-metering rules let you connect your solar panel system to the grid, and if you generate more kWh than you use, your electric company is required to credit you the going rate toward future bills.

Interconnection

Maryland has enacted strong interconnection standards which outline how you can connect to the grid.

SEE WHAT OUR CUSTOMERS HAVE TO SAY

Customer Reviews

Michelle Zebrowski

2023-01-24

Nova Solar did an outstanding job from start to finish. The communication was excellent, and they ensured every step was monitored throughout the process until project completion. I would recommend them for anyone looking to go solar.

Tim Bach

2023-01-17

I could not be happier with both the process of working with Nova Solar (LB as our PM specifically) or the end result. From the very beginning of the quote process, they were incredibly helpful with my many questions, and ultimately designed a system that fit as many panels as possible in our space to maximize output. The entire design, permitting, and approval process was handled by LB with minimal effort required from me, and he kept us updated every step of the way. On installation day, he and the team were amazing, and the installation went very quickly, even though they were also installing monitoring hardware and working in a very tightly packed electrical panel. The final approval and turning on of the system were equally smooth, and everything immediately worked. Despite going operational in a time of year with minimal sun, we’ve already seen several days where we are net-positive generation or close to it. As part of the wrap up, LB also sent us several pictures of the installation and final system, which was a nice touch that means I won’t have to get out a ladder to satisfy my curiosity later. Thanks to LB and the whole team – if we ever try to expand the system or move somewhere else in the future, I would work with them again without question!

Dawn Straitz

2023-01-04

Everyone at Nova Solar was knowledgable, kind and communicative. Had a fantastic experience from beginning (with all my questions) to the end. Highly recommend!

Sabine Mullin

2022-12-06

The team at NOVA Solar goes above and beyond consistently. I have been a happy customer since 2020 and could not ask for a better solar company. All representatives are prompt, professional, courteous and have outstanding communication skills. Every employee I have met is a true ambassador of NOVA Solar.

victoria s andrews

2022-10-28

Guys did a great job and were super friendly and at the same time very professional. Answered all questions big and small without eye rolling. Took care and respected the integrity of our roof during installation. Would highly recommend using Nova Solar.

Tom Speirs

2022-10-23

I highly recommend NOVA Solar. My experience with them was first rate. They are competitively and fairly priced. They have an array of different financing options. Continuous communication throughout the process prevents you from having to guess what’s going on during design, permitting, scheduling the install and inspections and receiving necessary follow up files. Although I spoke with several of their personnel, one person was designated as point of contact to guide you through it all. The installation was extremely efficient; a half dozen men working like a well oiled machine. Very impressive. They are very customer oriented and responsive. Good people.

George Kolumbic

2022-10-12

These guys went above and beyond to help me out when another national solar company left me out in the cold. They were so responsive and helpful and got back to me right away, I can’t thank them enough for helping me out. They are true professionals and care about their customers, and are not just here to make a quick buck. You can trust them, especially if you are dealing with an HOA that does not understand new solar rights laws for VA and its residents. Thanks again Nova Solar!

Zach Jett

2022-09-30

I cannot say enough good things about Nova Solar. They were one of the most responsive companies I have ever worked with. Everything was so organized and very easy to follow. If you were like me, you knew minimal about Solar. Nova walked me through the process from beginning to end. Very professional and great to work with. I cannot recommend them enough.

Brian Briscombe

2022-09-21

Nova Solar was awesome! I’m a rare residential customer who hired 2 different companies to install 2 different solar arrays at 2 houses in Virginia. Nova was hands-down the superior company, wish i had hired them for both projects! Nova was faster, better communication, organized…all for a good price.

Eric Garwood

2022-09-08

Extremely happy with the work that Nova Solar did to install my large 54 panel system. They quickly answered my (many) questions before and after system installation, along with being flexible when I asked to expand my system beyond the original proposal. All in all I couldn’t be happier with the way it all turned out!