MD incentive guide
Maryland solar incentives in 2026
Last updated · every MD program below is verifiable against the sources at the foot of this page.
The most valuable solar incentive in Maryland right now is Residential Clean Energy Grant plus an active SREC market. Overall, the state's incentive stack rates as strong compared with the rest of the country.
The federal credit is gone — start here
The 30% federal residential clean energy credit (Section 25D) ended for systems installed after December 31, 2025. If you are buying a system in Maryland this year, there is no federal credit. That is a roughly $8,160 swing on an $27,200 system compared with 2025 pricing, and it is why state programs matter more now than they did a year ago.
What Maryland offers at a glance
| Incentive | Available? | Details |
|---|---|---|
| State income tax credit | No | — |
| Rebate or performance payment | Yes | Residential clean energy grant, historically $1,000 per system, plus a storage tax credit |
| SREC market | Yes | Maryland has a solar renewable energy certificate market you can sell into. |
| Sales tax exemption | Yes | Qualifying solar equipment is exempt from state sales tax. |
| Property tax exemption | Yes | The value solar adds to the home is excluded from property tax assessment. |
| Federal tax credit | No | Section 25D ended for systems installed after December 31, 2025. |
Reviewed September 2026. Incentive programs change frequently and several are funding-capped — verify current status with the administering agency or DSIRE before relying on any figure.
Maryland solar tax credit
There is no Maryland solar tax credit in 2026, and no federal one either — Section 25D ended for systems installed after December 31, 2025. What Maryland does offer on the tax side is sales and property tax exemptions, covered below.
Maryland solar rebates and grants
Residential clean energy grant, historically $1,000 per system, plus a storage tax credit. Rebate and grant programs are funding-limited and have opened and closed mid-year before, so confirm the current round is open before counting on it. Maryland does have a solar renewable energy certificate (SREC) market, which pays per megawatt-hour your system generates rather than up front.
Maryland offers a residential clean energy grant (historically $1,000 per system), an active SREC market, and a storage tax credit. Program funding varies year to year.
Net metering and export rates in Maryland
Maryland requires retail-rate net metering statewide with annual true-up, among the stronger export policies on the East Coast.
Compare this with net metering in every other state.
Export rules deserve to be read as an incentive. In a retail net metering state, every exported kilowatt-hour is worth the full retail rate; under net billing or avoided-cost compensation, the same kilowatt-hour can be worth a third of that. For a Maryland home at an assumed $0.18/kWh, that difference compounds across a 25-year system life.
What this means for your numbers
A typical 8 kW system in Maryland costs roughly $20,800–$27,200 installed before incentives, producing about 10,400 kWh a year and saving around $1,543 in year one — a simple payback near 13–18 years with no incentives applied. Anything in the table above shortens that.
Frequently asked questions
What are Maryland solar tax credits worth in 2026?
Maryland offers no residential solar income tax credit in 2026, and the 30% federal credit ended for systems installed after December 31, 2025. What remains on the tax side is sales and property tax exemptions, which lower cost indirectly rather than paying you back.
Does Maryland have solar rebates?
Yes. Residential clean energy grant, historically $1,000 per system, plus a storage tax credit. Rebate programs in MD are funding-limited and have historically opened and closed mid-year, so confirm the current round is still accepting applications before you count the money.
Is there a Maryland solar property tax exemption?
Yes. Maryland excludes the value solar adds to a home from property tax assessment, so a system that raises your home's value does not raise your annual tax bill. Maryland also exempts qualifying solar equipment from state sales tax, which comes straight off the installed price.
What solar incentives are available in Maryland in 2026?
Maryland offers a residential clean energy grant (historically $1,000 per system), an active SREC market, and a storage tax credit. Program funding varies year to year. Because the federal Section 25D credit ended for systems installed after December 31, 2025, these state, local and utility programs are now the entire incentive picture for a purchased system.
Is there still a 30% federal solar tax credit in Maryland?
No. The 30% federal residential clean energy credit (Section 25D) ended for systems installed after December 31, 2025 under the One Big Beautiful Bill Act. Any quote or website still applying 30% to a 2026 purchased installation is out of date. Leased and PPA systems can still benefit indirectly, because the third party that owns the system may claim the commercial 48E credit through 2027 and pass some of the value through in pricing.
Does Maryland have net metering?
Maryland requires retail-rate net metering statewide with annual true-up, among the stronger export policies on the East Coast. Export rules are effectively an incentive — often the largest one — because they set what every kilowatt-hour you do not use on site is worth.
How much do incentives change the cost of solar in Maryland?
Before incentives, a typical 8 kW system in Maryland runs roughly $20,800–$27,200. Residential clean energy grant, historically $1,000 per system, plus a storage tax credit — the value depends on current funding. See our full Maryland cost breakdown for payback math.
Verify before you rely on any of this
Incentive programs open, close, deplete their funding and change their caps — often mid-year. This page is a starting point reviewed September 2026, not tax advice. Confirm with: