Maryland Solar Incentives

Unlock Maryland solar incentives, tax credits, SRECs, net metering, and more.

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

Jorge Castillo

2023-10-13

We highly recommend NoVa Solar as a trusted company with a knowledgeable team. We solicited bids from four different solar installers. NoVa Solar stood-out from the rest in value. We made the right selection, from receiving the proposal to activation of our solar arrays NoVa Solar made the process efficiently and seamlessly. Always anticipating our time commitments, the NoVa Solar team took care of everything. Thank you, LB, Robert, Max, Barklie and everyone else that was involved in our successful project. Jorge Castillo & Randal Joyner

Suzanne Kopplin

2023-09-07

An excellent experience working with Nova Solar. We reviewed options and companies for solar as our new home was being built. We decided to use Nova Solar. They were helpful from beginning to completion. We had problems getting approval of the solar panels from our HOA. Nova Solar worked with us to provide all the necessary information and reconfiguration to get the approval. They managed all the building and electrical permits and all the necessary inspections. Once the panels and system were set up, they kept us advised on the status of Dominion Energy getting us connected. We were very impressed with the guidance they gave us on setting up the monitoring system and engaging a company to obtain Solar Renewable Energy Credits. They even provided a completed sample Federal Income Tax form for the tax credit and provided the completed form and guidance on applying for our county’s property tax relief. Highly recommend.

Steven Schooner

2023-09-03

We found the folks at Nova Solar, Inc. to be a pleasure to work with😊, and we strongly recommend them. Our first full month of data is primarily from the July, when days are significantly longer than most (and there weren’t a lot of dreary, rainy days). Over our first full month of data, the panels generated more than 1,700 kWh, with a few days of generating more than 80 kWh per day (!!!) and a peak of 86 kWh (which appears to be somewhat of an outlier). Looking ahead, all of the paperwork suggests that we’ll be enjoying a significant tax credit next Spring. I haven’t completely figured out the Virginia Solar Renewable Energy Credits (SRECs) regime yet, but any cash that the panels generate (or any portion of the initial investment they recoup), so much the better.

Bobby Roos

2023-08-06

We had a fantastic experience with Nova Solar and we couldn’t be happier with our decision to choose them for our solar project. From the beginning, Jake, our project manager, stood out as an exceptional professional. His extensive knowledge, support, and prompt responsiveness to our questions made the process seamless and enjoyable. Jake worked closely with us, providing multiple quotes and ensuring that we got the best fit for our needs and budget. One of the most impressive aspects of our journey with Nova Solar was the speed and efficiency of the installation process. They secured all necessary permits within just a few weeks, and the installation team was on-site and ready to work within a week of receiving final approvals. This was a much faster turnaround than any other company we talked to. We went with 47 panels and Nova Solar was able to install everything in one day. Everybody on the Nova Solar team was extremely friendly and professional. Even after the panels were up and running, Jake and the team continued to be extremely helpful. Their willingness to address any post-installation questions with the same attentiveness as before truly sets Nova Solar apart. I couldn’t recommend them more if you’re looking at solar!

Gary Trimble

2023-07-30

Nova Solar lives up to all of the high reviews. I searched a number of companies but came back to Nova Solar as the best deal. They answered my questions, gave me a competitive price and walked me through the process from start to finish. The install was done in a day and passed inspection. They have great communication with the customer and ensured it all went smoothly. Highly recommend this company

William Richards

2023-07-17

Very professional outfit. Efficient and seems like high quality product. Very smooth from pre install through final inspection.

Max Guscoff

2023-06-26

Very happy with the work Kodie and team did in installing our 19 solar panel system in Bumpass, VA. Throughout the whole process from proposal to installation everyone was informative and professional. Also to note Kodie did an amazing job with the electrical work inside the house and the run to the meter. 5 STARS for their work.

Bruce Johnson

2023-05-07

Nova Solar is one of the most efficient companies that I’ve ever worked with. Their work is excellent and they don’t over promise and under deliver. They are dependable and complete the project within the time frame promised at the price quoted. If you are considering a solar installation, I highly recommend Nova Solar!!!

Amber Carey

2023-04-22

We had our panels installed yesterday (4/21/23), we couldn’t have asked for a smoother process. Everyone involved is very professional, knowledgeable and friendly. From day one we never felt pressured to purchase, all conversations were genuine and they were there to answer all of our questions along the way. If you’re looking to go solar, we 100% recommended going with Nova Solar.

Matt Cuccia

2023-04-19

The installation from Nova Solar did an outstanding job installing my ground mounted system. This was no easy job as I live in more of a mountain area so they had a lot of bigger rocks to deal with while trenching. Never once did I hear the team complain. The quality of their work was excellent and they went above and beyond to make sure my system was installed properly. If you are planning to get solar, roof or ground mounted, this is the company to go with.