Solar Incentives in Maryland
Maryland homeowners considering solar in 2026 have access to several active state programs. The Maryland Energy Administration (MEA) runs the Maryland Solar Access Program (MSAP), a grant for income-eligible residents to install residential solar PV, awarded first-come, first-served with individual amounts set by MEA's Maximum Offer Calculator; the FY26 round carried a $12,000,000 budget and closed to new applications mid-cycle. MEA also administers the new Residential and Commercial Energy Storage (RCES) Program, a grant for battery storage systems with an FY26 budget of $2,000,000, which replaced the Maryland Energy Storage Income Tax Credit that ended after calendar year 2024. On the tax side, Maryland exempts qualifying solar energy property from real property tax statewide (100% exemption) and waives the state's 6% sales and use tax on qualifying solar energy equipment. Under Maryland's net metering law, eligible customer-generators with systems up to 2 MW can offset electricity use with on-site solar generation and receive bill credits for net excess generation; export rates and credit terms vary by utility. Owners of certified solar facilities also earn Solar Renewable Energy Certificates (SRECs) — one per megawatt-hour generated — which can be sold in Maryland's RPS compliance market at prices that fluctuate with market conditions. Separately, Maryland's permanent community solar program allows subscribers to receive bill credits from a shared project without installing panels themselves, with terms varying by project and utility.
At the federal level, the residential Clean Energy Credit under Internal Revenue Code §25D — commonly called the 30% federal solar tax credit — expired for systems placed in service after December 31, 2025, under the One Big Beautiful Budget Act (Pub. L. 119-21). Homeowners who install a new residential solar system in 2026 do not qualify for that credit. The loss of this credit meaningfully extends the payback period compared to prior years, making the remaining state incentives and Maryland's electricity rate environment more significant factors in any financial analysis.
Maryland's residential electricity rate averaged approximately 22.20 cents per kilowatt-hour as of March 2026, up roughly 3.26 cents year-on-year. At that rate, the value of solar generation offset against utility bills is relatively high, which supports shorter payback timelines independent of tax credits. Homeowners should also note that program budgets — including MSAP and RCES — are finite and awarded on a first-come, first-served basis; the CCSP commercial grant budget, for example, was exhausted by mid-2026, illustrating how quickly funds can be depleted within a fiscal year.
All figures here are verified as of June
Federal credit update. The federal residential Clean Energy Credit (the 30% “solar tax credit” under §25D) expired for systems placed in service after December 31, 2025. New 2026 residential installs do not qualify; a 2025 install can still be claimed on a 2025 return (IRS Form 5695). What this means for 2026 →
Current solar incentives in Maryland
Maryland Solar Access Program (MSAP)
State grant program run by the Maryland Energy Administration that helps income-eligible residents install residential solar PV systems. Grants are awarded first-come, first-served through a two-step process (fund reservation, then installation verification within 180 days). The FY26 round had a $12,000,000 budget and closed to new applications on April 17, 2026 after funding requests exceeded the budget; MEA anticipates launching the FY27 program year in summer 2026.
| Amount | FY26 budget $12,000,000; individual grant amounts are set by MEA's Maximum Offer Calculator published with the Funding Opportunity Announcement. |
|---|---|
| Who qualifies | Maryland residents under household income caps that scale with household size (FY26: $136,785 for a 1-person household up to $257,910 for 8); applicant attests to income; system must be installed by a participating contractor within 180 days of fund reservation. |
| Administered by | Maryland Energy Administration |
Source: Md. Code, State Government § 9-2016 (Brighter Tomorrow Act of 2024, Ch. 595) Official source →
Residential and Commercial Energy Storage (RCES) Program
New in fiscal year 2026, this MEA grant program funds battery energy storage systems for residential and commercial customers, replacing the Maryland Energy Storage Income Tax Credit that ended at the close of calendar year 2024. Grants are awarded first-come, first-served through a two-step application. The FY26 budget of $2,000,000 has been fully requested and the portal is closed to new applications; the FY27 program year is anticipated.
| Amount | FY26 budget $2,000,000 from the Strategic Energy Investment Fund; per-project grant amounts are set in the Funding Opportunity Announcement. |
|---|---|
| Who qualifies | Residential and commercial customers in Maryland installing qualifying battery energy storage systems; funds reserved for 180 days after Step 1 approval. |
| Administered by | Maryland Energy Administration |
Source: Md. Code, State Government § 9-2012 Official source →
Commercial and Canopy Solar Program (CCSP)
MEA grant program for businesses and other non-residential entities that combines the former Commercial Solar Grant Program and the Solar Canopy and Dual Use Technology Program. It funds rooftop-mounted systems, ground-mounted systems, and solar canopies over parking areas or bodies of water. The FY26 budget has been exhausted; MEA anticipates launching FY27 grant programs in summer and fall 2026.
| Amount | Grant amounts set per the FY26 Funding Opportunity Announcement; FY26 budget exhausted as of mid-2026. |
|---|---|
| Who qualifies | Commercial and other non-residential Maryland entities installing solar PV (rooftop, ground-mount, or canopy/dual-use). |
| Administered by | Maryland Energy Administration |
Source: program page Official source →
Property Tax Exemption for Solar Energy Property
Maryland law exempts solar energy property from real property tax statewide. The statute defines solar energy property as equipment installed to use solar or solar thermal electric energy to generate electricity for use in a structure or supplied to the grid, or to provide hot water for a structure. Residential wind energy equipment is covered by the same section.
| Amount | 100% exemption from real property tax for qualifying solar energy property. |
|---|---|
| Who qualifies | Solar energy equipment generating electricity for a structure or the grid, or providing hot water for a structure; applies statewide (subject to the agricultural-use provision in Tax-Property § 8-240). |
| Administered by | Maryland Department of Assessments and Taxation |
Source: Md. Code, Tax-Property § 7-242 Official source →
Sales and Use Tax Exemption for Solar Energy Equipment
Maryland's 6% sales and use tax does not apply to sales of solar energy equipment, defined as equipment that uses solar energy to heat or cool a structure, generate electricity used in a structure or supplied to the grid, or provide hot water. The same section also exempts geothermal equipment and residential wind energy equipment. Equipment that is part of a non-solar system or uses a recreational facility (such as a pool) as a storage medium does not qualify.
| Amount | Full exemption from the state sales and use tax on qualifying solar energy equipment. |
|---|---|
| Who qualifies | Purchasers of qualifying solar energy equipment in Maryland; excludes equipment that is part of a non-solar energy system or uses recreational facilities as storage media. |
| Administered by | Comptroller of Maryland |
Source: Md. Code, Tax-General § 11-230 Official source →
Net Energy Metering
Maryland's net metering law lets eligible customer-generators offset their electricity use with on-site generation, including solar, with systems up to 2 MW of generating capacity. Customer-generators retain ownership of all renewable energy credits associated with their generation unless assigned. Electric cooperatives must pay customer-generators monthly for the dollar value of net excess generation remaining from the previous month, and the Public Service Commission reports annually to the General Assembly on program status.
| Amount | Bill credits for net excess generation; system capacity capped at 2 MW per customer-generator (5 MW for community solar and meter-aggregated facilities). |
|---|---|
| Who qualifies | Customers of Maryland electric utilities generating with solar and other eligible resources; systems must meet National Electrical Code, IEEE, and UL standards. |
| Administered by | Maryland Public Service Commission |
Source: Md. Code, Public Utilities § 7-306 Official source →
Solar Renewable Energy Certificates (Maryland RPS)
Under Maryland's Renewable Energy Portfolio Standard, electricity suppliers must source a prescribed share of retail sales from renewable resources, rising to 50% by 2030 under the Clean Energy Jobs Act of 2019. Owners of PSC-certified solar facilities earn one renewable energy credit per megawatt-hour generated and can sell those credits to suppliers, who otherwise pay a compliance penalty. Homeowners register systems through the Commission's PV solar certification (Brighter Tomorrow) portal.
| Amount | Market-based; 1 SREC per MWh generated by a certified solar facility. SREC prices vary with the RPS compliance market. |
|---|---|
| Who qualifies | Solar generating facilities certified by the Maryland PSC as Tier 1 renewable energy facilities located in the PJM region; customer-generators own their RECs under PUA § 7-306. |
| Administered by | Maryland Public Service Commission |
Source: Md. Code, Public Utilities § 7-701 et seq. Official source →
Community Solar Program
Maryland made community solar permanent through House Bill 908 (2023), which amended Public Utilities Article § 7-306.2 and replaced the 2015 pilot program that ended December 31, 2024. Subscribers receive credit for their share of a community solar project's output without needing to own property or install panels, and the program includes incentives for serving low- and moderate-income customers. Final permanent-program regulations were published by the Commission on February 4, 2025, with consolidated billing regulations in development.
| Amount | Subscription bill credits; community solar systems may be up to 5 MW. Terms vary by project and utility tariff (BGE, Pepco, Delmarva, Potomac Edison). |
|---|---|
| Who qualifies | All Maryland customers of participating electric companies, including renters and those without suitable roofs; projects must incentivize low- and moderate-income participation. |
| Administered by | Maryland Public Service Commission |
Source: Md. Code, Public Utilities § 7-306.2; COMAR 20.62 Official source →
Compare solar incentives across all states → · Check what applies to you →
Programs verified as of June 2026 against official state and federal sources (each cited above); refreshed quarterly as legislatures and utility rate cases change the rules. How we verify this data. This page is informational only — not tax or legal advice.