Cost of Solar Panels in Maryland: Best Solar Companies, Cost and Installation

Solar is a complicated decision and OhmHome has compiled this guide to Maryland solar with the cost of solar panels in Maryland and advice on how to estimate cost and savings, navigate state and federal incentives, and find the best solar companies in Maryland.

Solar Trends in Maryland

Maryland solar permits decreased 58% to 743 in June from 1,751 in June 2016 and decreased 5% from May 2017 (YTD decrease of 41%)

Cost of Solar Panels in Maryland

The cost of solar has dropped significantly in recent years due to the increase in module supplies and other supply chain efficiency improvements. According to the U.S. Department of Energy’s Q4-16 Sunshot report, the median price of residential solar in major markets was $4.20 per watt with the lowest 20% at approximately $3.50 per watt. 

Solar Incentives in Maryland

Maryland offers to major incentives for homeowners going solar:

  • The Maryland Solar Rebate Program – Maryland offers $1,000 incentive per each solar energy project.
  • The Maryland Solar Renewable Energy Certificates – Maryland has a renewable portfolio standard goal to produce 20% of its electricity from renewable sources by 2020 and homeowners receive SRECs for the energy that they produce. SREC’s currently trade at $150 per megawatt-hour. A homeowner with a 5 kW system that produces 1,000 kWs per year will earn $750 annually.

Federal Solar Tax Incentives

The IRS offers a 30% tax credit for solar systems based on the cost after state rebates and credits (discussed above).  It is important to note that that federal tax credit only applies to purchased systems and you need sufficient tax liability to claim the credit.  The federal solar tax credit was set to expire in 2016, but was recently extended through 2019, at which point it will start to decrease to 10% by 2022.  The IRS form 5695, Residential Energy Credits can be found here.

Solar Financing in Maryland

The number of solar financing options has expanded significantly in recent years to includes a number of low-interest rate loans, as well as power purchase agreements or solar leases. To learn more, refer to our lease or buy solar guide.

Our Major Maryland City Solar Guides

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