Maryland Solar Incentives, Rebates & Tax Credits 2026 (Full Guide)

Reviewed by:

Samantha Greer

Last updated: April 30, 2026

This guide is for informational purposes only and does not constitute financial, tax, or legal advice. Incentive programs are subject to change. Verify all program details with the Maryland Energy Administration or your utility before making installation decisions

Maryland has one of the strongest solar incentive stacks on the East Coast — sales tax exemption, property tax exemption, an active SREC market, state grants for income-eligible homeowners, and net metering at the full retail rate. For the right Maryland homeowner in April 2026, the financial case for solar remains solid.

But two things changed at the start of 2026 that most competitor guides haven’t caught up with yet. First, the 30% federal Investment Tax Credit expired December 31, 2025 — and any page still quoting it for 2026 installations is wrong. Second, the Maryland General Assembly passed sweeping energy legislation on April 13, 2026 that sets a sunset date of July 1, 2027 for the current 1-to-1 net metering program. That’s the single most valuable ongoing solar benefit available to Maryland homeowners, and it now has a deadline.

This guide covers every incentive currently available, what each one is worth in real dollars, and why the next 12–15 months represent a particularly important window for Maryland homeowners considering solar.

What Solar Incentives, Rebates & Tax Credits Are Available in California in 2026?

The table below summarizes every major program. The cards that follow provide full details, current status, and verified sources for each one.

The short version: the federal ITC is gone, but Maryland’s state programs more than compensate for homeowners who qualify for MSAP. For homeowners who don’t qualify on income, the combination of sales tax exemption, property tax exemption, SREC income, and net metering still produces solid 10–12 year payback math at current rates — particularly for BGE and Pepco customers paying above-average rates.

What Happened to the Federal Solar Tax Credit in Maryland?

The 30% residential solar Investment Tax Credit (Section 25D) expired December 31, 2025. For Maryland homeowners installing solar in 2026, this credit does not exist. A $30,000 system that would have generated a $9,000 federal tax credit in 2025 generates zero in 2026.

This is the largest single change to Maryland solar economics since the ITC was established. On an average Maryland installation — EnergySage puts the April 2026 average at $2.64 per watt, or approximately $36,609 for a typical 13.86 kW system — the ITC expiry adds roughly $10,980 back to your net cost compared to a 2025 installation.

A few clarifications worth stating directly:

If you installed solar before January 1, 2026 and have unused credit, you can carry it forward for up to five tax years. The credit doesn’t disappear — it applies against future federal tax liability.

If you signed a solar lease or PPA, you were never eligible for the residential ITC directly. The system owner (the solar company) claimed the credit, not you.

No extension of the residential ITC has been signed into law as of April 2026. Do not proceed based on installer claims that the credit is still available or is “coming back.” Verify directly with IRS.gov or a licensed tax professional before making any financial assumptions.

The Net Metering Deadline — What the April 2026 Legislation Means for You

This is the most time-sensitive piece of information on this page and the one most likely to affect your installation decision.

On April 13, 2026, the Maryland General Assembly passed a sweeping energy bill that, among other provisions, effectively ends Maryland’s current net metering program. The existing 1-to-1 retail rate net metering program will sunset on July 1, 2027, or when the program reaches its 3 GW statewide capacity cap — whichever comes first.

The Maryland Public Service Commission is required to design a replacement program that expands capacity to 6 GW but reduces ratepayer costs. That language is significant: a program designed to reduce costs for all ratepayers will almost certainly credit solar customers at a lower rate than the current full retail structure. The specific design of the replacement program has not been announced as of April 2026.

What this means for Maryland homeowners considering solar:

Homeowners who interconnect before the current program ends lock in current net metering treatment. The exact terms of what grandfathering looks like under the replacement program have not been defined — monitor Maryland PSC proceedings for updates, and confirm with your installer what interconnection timeline is realistic for your property.

Homeowners who wait until after July 1, 2027, or until the cap is reached, will be subject to whatever replacement program the PSC designs. Based on how similar transitions have played out in other states — California’s NEM 3.0 being the most prominent example — the replacement rate is likely to be materially less favorable than the current 1-to-1 structure.

The current net metering rate by utility: BGE approximately 16.5¢/kWh, Pepco approximately 18.2¢/kWh, Delmarva Power approximately 18.4¢/kWh, Potomac Edison approximately 11.7¢/kWh. These are the credits you receive per kWh exported under the current program.

Maryland Solar Access Program (MSAP) — The State’s Primary Grant

For income-eligible Maryland homeowners, MSAP is the most significant incentive currently available — and with the federal ITC gone, it does meaningful work in bridging the economics gap.

How MSAP Works

MSAP provides $750 per kilowatt of installed DC solar capacity, up to a maximum grant of $7,500. On a 10 kW system, that’s a $7,500 grant — the maximum. The program is administered by the Maryland Energy Administration on a non-competitive, first-come, first-served basis.

The application is a two-step process: first, you submit an application through the MEA portal to reserve funding. Once reserved, you have 180 days to complete installation and submit verification. Only MEA-approved contractors may submit applications on your behalf — verify your installer appears on the participating contractor list at energy.maryland.gov before signing anything.

Income Eligibility

MSAP is limited to homeowners whose annual gross household income does not exceed the following limits:

• Household of 1: $136,785
• Household of 2: $156,375
• Household of 3: $175,875
• Household of 4: $195,375
• Household of 5: $211,035
• Household of 6: $226,695
• Household of 7: $242,340
• Household of 8: $257,910

These limits are relatively generous — a significant portion of Maryland’s homeowner population qualifies. Income is self-attested during application, but MEA reserves the right to verify.

Current Application Status

As of MEA’s March 17, 2026 update, 92% of the $12 million FY26 budget has been requested and 75% has been reserved. The application portal is open but funding is running out quickly. The application deadline is June 5, 2026 or until funding is exhausted — whichever comes first.

The FY27 MSAP program is anticipated to launch in summer 2026, which means there will likely be another funding cycle. However, do not assume FY27 funding will be available at the same amount or terms — apply in FY26 if you are eligible and ready to proceed.

Maryland’s SREC Market — Additional Income on Top of Net Metering

Solar Renewable Energy Credits are one of Maryland’s most underappreciated ongoing solar incentives. They’re separate from your electricity savings and net metering credits — an additional income stream that continues for 15 years from your system’s interconnection date.

How SRECs Work in Maryland

Maryland utilities are required by the state’s Renewable Portfolio Standard to source a defined percentage of electricity from solar. Rather than building solar themselves, they purchase SRECs from homeowners and businesses who generate solar electricity. Each time your system produces one megawatt-hour of electricity, you earn one SREC, which can be sold through SREC brokers like Flett Exchange or SRECTrade (now part of Xpansiv).

Maryland SRECs have a 3-year useful life — an SREC generated in 2026 can be used for compliance through 2028. Prices fluctuate with supply and demand. As of April 2026, standard Maryland SRECs trade at approximately $40 per MWh on Flett Exchange. Certified BT SRECs — available to qualifying systems installed between July 1, 2024 and January 1, 2028 under the Brighter Tomorrow Act — trade at approximately $55 per MWh and carry a 1.5x compliance multiplier.

What SRECs Are Worth for a Typical System

A 7 kW system in Maryland producing approximately 8–9 MWh annually earns 8–9 SRECs per year. At $55 per BT SREC, that’s approximately $440–$495 per year in additional income. Over 15 years of SREC eligibility, total SREC income at current prices would be approximately $6,600–$7,425 — though prices will fluctuate over that period.

SREC income is taxable as ordinary income at both the federal and state level. Report on Form 1099-MISC. Work with a tax professional to ensure proper reporting.

The Brighter Tomorrow Act BT SREC Advantage

Systems installed between July 1, 2024 and January 1, 2028 on rooftops, parking canopies, or brownfield sites may qualify as Certified BT SRECs under the Brighter Tomorrow Act, provided capacity limits haven’t been reached. BT SRECs carry a 1.5x compliance multiplier — meaning each BT SREC satisfies 1.5x the compliance obligation of a standard SREC, making them more valuable to buyers. The first 300 MW AC of systems 20 kW and smaller qualify. If you’re installing now, confirm BT SREC eligibility with your installer and SREC broker during registration.

How Long Does Solar Take to Pay for Itself in Maryland?

Without the federal ITC, payback periods are longer than they were in 2025. Here’s what the math looks like at current rates.

Key Inputs for Maryland Calculations

Maryland average electricity rate: varies significantly by utility — BGE 16.5¢, Pepco 18.2¢, Delmarva 18.4¢, Potomac Edison 11.7¢ (April 2026 data) Average peak sun hours: approximately 4.5 per day (NREL data — moderate for the Mid-Atlantic) Net metering export rate: full retail rate under current program — varies by utility Average system cost: approximately $2.64/watt (EnergySage April 2026) Federal ITC: $0 for 2026 installations

Scenario 1 — BGE Customer, Baltimore Area, 8 kW System

System cost: 8 kW × $2.64/watt = $21,120 before incentives Sales tax exemption savings: ~$1,267 (applied automatically) MSAP grant (if income-eligible): up to $6,000 (8 kW × $750) Net cost after sales tax exemption and MSAP: approximately $13,853

Annual electricity savings (self-consumption + net metering at 16.5¢): approximately $1,800–$2,200 depending on roof orientation and consumption Annual SREC income (BT SREC at $55 × 9 SRECs): approximately $495 Total annual benefit: approximately $2,295–$2,695

Payback period (non-MSAP eligible): $19,853 ÷ $2,495 average = approximately 7.9 years Payback period (MSAP eligible): $13,853 ÷ $2,495 average = approximately 5.6 years

25-year net savings estimate: $35,000–$45,000 depending on rate escalation

Scenario 2 — Pepco Customer, Montgomery County, 7 kW System

System cost: 7 kW × $2.64/watt = $18,480 Sales tax exemption: ~$1,109 savings No MSAP (above income threshold) Net cost: approximately $17,371

Annual benefit at 18.2¢/kWh (Pepco rate, one of the highest in the state): approximately $2,000–$2,400 Annual SREC income: approximately $440 Total annual benefit: approximately $2,440–$2,840

Payback: $17,371 ÷ $2,640 average = approximately 6.6 years — better than the BGE scenario despite similar system size, driven by Pepco’s higher rate

Scenario 3 — Potomac Edison Customer, Western Maryland, 8 kW System

Potomac Edison’s rate is the lowest among major Maryland utilities at approximately 11.7¢/kWh. This materially affects solar economics.

Net cost after sales tax exemption: approximately $19,853 Annual electricity savings at 11.7¢: approximately $1,300–$1,600 Annual SREC income: approximately $440 Total annual benefit: approximately $1,740–$2,040

Payback: $19,853 ÷ $1,890 average = approximately 10.5 years

The same system that pays back in under 8 years for a BGE customer takes over 10 years for a Potomac Edison customer. Your utility rate is as important as your system size when evaluating solar in Maryland.

Maryland Solar by Utility

Maryland has four major investor-owned utilities, each with slightly different rate structures and interconnection processes.

BGE (Baltimore Gas and Electric): Serves Baltimore City and surrounding counties including Baltimore County, Anne Arundel, Carroll, Howard, and portions of Montgomery, Harford, and Prince George’s. Maryland’s largest utility. Rate approximately 16.5¢/kWh. BGE has streamlined interconnection — most residential applications process within 30 days.

Pepco (Potomac Electric Power Company): Serves Montgomery and Prince George’s counties. Rate approximately 18.2¢/kWh — among the highest in the state, which improves solar economics meaningfully. Interconnection timelines vary.

Delmarva Power: Serves the Eastern Shore. Rate approximately 18.4¢/kWh — the highest among major Maryland utilities. Solar economics are strong for Delmarva customers, though Eastern Shore installation costs can vary.

Potomac Edison: Serves western Maryland. Rate approximately 11.7¢/kWh — the lowest among major utilities. Lower rates reduce the value of solar savings and net metering credits, extending payback periods.

SMECO (Southern Maryland Electric Cooperative): Serves Southern Maryland counties — Charles, Calvert, St. Mary’s, and Prince George’s. Rate approximately 14.1¢/kWh. As a cooperative, SMECO operates under different regulations from investor-owned utilities — confirm current net metering terms directly with SMECO before installing.

All four major investor-owned utilities are required to offer net metering under Maryland state law.

5 Steps to Maximize Maryland Solar Incentives in 2026

Step 1 — Apply for MSAP Immediately If You Qualify

At 92% of the FY26 budget requested as of late March 2026, MSAP funding will run out before the June 5 deadline. If your household income is within the eligibility limits, prioritize starting the application process now rather than after you’ve finalized your system design. Only MEA-approved contractors can submit applications — verify your installer’s status first.

Step 2 — Interconnect Before the Net Metering Sunset

The current 1-to-1 retail rate net metering program ends July 1, 2027 or at the 3 GW statewide cap. Given typical installation timelines of 2–4 months from contract to interconnection, homeowners who want to lock in current net metering treatment should be targeting contracts in late 2026 at the latest. Ask your installer for a realistic interconnection timeline given current utility queue backlogs.

Step 3 — Register for BT SREC Status at Interconnection

Systems installed through January 1, 2028 may qualify for Certified BT SREC status under the Brighter Tomorrow Act — worth approximately $15 more per SREC than standard credits. Confirm eligibility with your installer and register through the Maryland PSC or an SREC broker at the time of interconnection. Don’t wait — BT SREC registration is tied to your interconnection date.

Step 4 — Check County Property Tax Credits Before Installing

Anne Arundel, Prince George’s, and Baltimore counties offer property tax credits on top of the statewide exemption. These programs have limited annual budgets and can be exhausted. Contact your county assessor’s office to confirm current availability and whether a pre-installation application is required.

Step 5 — Size Your System for Self-Consumption

Maryland’s net metering program credits exports at full retail — but only until the program sunsets. A well-sized system that matches your consumption has lower risk exposure to a future policy change than an oversized system designed primarily to export. Size for what you use, treat export credits as a bonus rather than a primary return mechanism.

Maryland Solar Incentives FAQ

Does Maryland have a state solar tax credit? No. Maryland does not offer a state income tax credit for residential solar installations in 2026. The state’s Energy Storage Income Tax Credit — which applied to battery systems and was worth up to $5,000 or 30% of cost — ended in 2024 when funding ran out and was replaced by the RCES grant program. The federal 30% ITC also expired December 31, 2025.

Is solar worth it in Maryland without the federal tax credit? For most Maryland homeowners — yes, particularly those on BGE, Pepco, or Delmarva Power with above-average electricity rates. Payback periods in 2026 run approximately 7–11 years depending on utility, system size, and whether MSAP is available. The combination of net metering, SREC income, sales tax exemption, and property tax exemption still produces meaningful 25-year net savings. For Potomac Edison customers with lower rates, the economics are tighter and deserve careful analysis.

What is Maryland’s net metering rate in 2026? Full retail rate — a true 1-to-1 structure where every kWh you export earns the same credit as the rate you’d pay to buy it. Rate varies by utility: BGE ~16.5¢/kWh, Pepco ~18.2¢/kWh, Delmarva ~18.4¢/kWh, Potomac Edison ~11.7¢/kWh. Credits roll forward indefinitely with an annual true-up in April. This program ends July 1, 2027 or at the 3 GW cap under legislation passed April 13, 2026.

What are Maryland SRECs worth in 2026? Standard Maryland SRECs trade at approximately $40 per MWh as of April 2026 on Flett Exchange. Certified BT SRECs — available to qualifying systems installed July 1, 2024 through January 1, 2028 — trade at approximately $55 per MWh. Prices fluctuate with market supply and demand. A typical 7–8 kW system earns 8–10 SRECs per year, generating approximately $400–$550 annually at current prices.

Does Maryland have a sales tax exemption for solar panels? Yes. Solar equipment and installation are fully exempt from Maryland’s 6% sales tax. The exemption is automatic — no separate application required. On a typical Maryland installation, this saves approximately $1,800–$2,200 upfront.

Does Maryland have a property tax exemption for solar? Yes, statewide. Solar installations do not increase your home’s assessed value for property tax purposes. Several counties — including Anne Arundel, Prince George’s, and Baltimore County — also offer additional local property tax credits of up to $2,500–$5,000. Confirm with your county assessor before installing.

What is the Maryland Solar Access Program? MSAP is a state grant program offering $750 per kW of solar installed, up to $7,500 maximum, for income-eligible Maryland homeowners. The FY26 program has $12 million in funding and accepts applications through June 5, 2026 — but 92% of funding was already requested as of late March 2026. The FY27 program is anticipated for summer 2026. Only MEA-approved contractors may apply.

When does Maryland’s net metering program end? Under legislation passed April 13, 2026, Maryland’s current 1-to-1 retail rate net metering program ends July 1, 2027 or when the program reaches its 3 GW statewide capacity cap — whichever comes first. The Maryland PSC is required to design a replacement program expanding capacity to 6 GW. The replacement program’s credit rate structure has not been determined. Homeowners who interconnect before the current program ends lock in current treatment.

Sources: Maryland Energy Administration — MSAP program page (energy.maryland.gov), accessed April 2026; MEA March 17, 2026 budget status update; Brighter Tomorrow Act (Chapter 595, 2024 Acts of Maryland); Flett Exchange Maryland SREC and BT SREC market prices (April 2026); SRECTrade / Xpansiv Maryland SREC market specifications; Utility Dive — Maryland General Assembly energy legislation reporting, April 13, 2026; EnergySage — Maryland solar cost data and electricity rate data (April 2026); Solar United Neighbors — Maryland solar incentives and financing guide; Maryland PSC — net metering program documentation; IRS.gov — Section 25D tax credit status. All savings and payback estimates are projections based on current rates, typical system performance, and verified incentive amounts — actual results vary by utility territory, system size, roof orientation, shading, household income eligibility, and future program changes. Verify all incentive availability and current program status before making installation decisions.