Are Solar Panels Worth It in Maryland?

6 factors to consider before going solar in Maryland

Based on feedback from thousands who have already gone solar, it’s generally worth it if you like the idea of lowering your monthly utility bills, helping the environment and gaining more energy independence. But it doesn’t work out for everyone. Here’s what to consider before making the switch.

1. Solar panel installation costs

2. Your energy consumption

3. How long you stay in your house

4. Maryland solar incentives

5. How you pay

6. The solar company you hire

1. Solar panel installation costs

A typical residential solar panel installation costs $34,866 in Maryland, not including battery storage. Adding a battery can cost another $7,000 to $18,000 or more.

A battery could become more useful after Maryland changes its net-metering rules in July 2027, especially if homeowners get less credit for extra solar power sent to the grid.

What to know about solar quotes

Most installers set the price according to the system's wattage, with a typical cost between $2.50 and $5 per watt. “Cost per watt” is a little like looking at the price per square foot when you buy a house. It helps you compare the value of solar energy systems in different sizes.

Average solar panel costs in Maryland are comparable to the national average. In Maryland, the average cost per watt is $2.60.

Average solar panel costs by system size in Maryland 

2. Your current energy consumption

A typical Maryland household needs a system with the capacity of 13.41 kW to offset its electricity needs with solar energy. You might need a larger or smaller system, depending on your current energy consumption.

How do you know what size you need? Look at your most recent utility bills to see how much electricity your house needs each month. This tells you what size and capacity your solar system needs to be.

Once you know your current energy consumption, you can calculate your potential savings and the time it should take for your solar installation to pay for itself.

You may also get more value from solar if most of your home runs on electricity. An electric vehicle, heat pump or other large electric loads can increase how much of your solar power you use yourself.

3. How long you plan to stay in your house

Solar installations are expensive, and it takes years for electric bill savings to make up for the initial cost. Solar panels typically pay for themselves within 8.4 years in Maryland. If you sell your house and move before then, you might not fully realize the financial benefits of your solar investment.

It's true that solar panels can increase the value of your home. But they can also complicate a sale. This is especially true if you lease your system, since the buyer may need to take over the contract.

If you think you’ll move in the next couple of years, you may want to consider a home improvement project with a better return on investment, like a kitchen or bathroom remodel.

4. Maryland solar incentives

The 30% federal solar tax credit is gone, but Maryland still has a few incentives that can help make solar more affordable:

• Maryland Solar Access Program: Income-qualified homeowners can get up to $7,500 toward solar, but they must reserve the rebate before installation.

• Sales tax break: You won’t pay state sales tax on qualifying solar equipment.

• Property tax break: Adding qualifying solar equipment generally won’t raise your property taxes.

• SRECs: You may be able to earn extra money based on how much solar power your system produces.

• Community solar: If rooftop solar isn’t a good fit, you may be able to join a nearby solar project and get credits on your electric bill.

What to know about net metering in Maryland

Net metering gives you bill credits for extra solar power you send to the grid. In Maryland, the solar power you produce can offset the electricity you use from the grid during the billing cycle. If you still have extra credits left over, separate payout rules apply.

The current net metering program is subject to a statewide capacity limit. State regulators and lawmakers are working on how solar exports will be compensated under a future successor program.

» MORE: Maryland solar incentives

5. How you pay

If you can, it’s often financially strategic to pay for the whole thing upfront. You own the system from day one and don’t have to pay interest on a loan. Of course, paying cash is not always an option. That’s when loans, leases and other agreements come into play.

• Solar loans work like any other type of home improvement loan. There’s an application and approval process. You pay it back over time (with interest) each month.

• Leasing solar panels lets you set up a system without the high upfront costs. Monthly payments usually range $150 to $250. Agreements last 20 to 25 years.

• Power purchase agreements are similar to leases. PPAs let homeowners install solar panels without the upfront costs. You sign a long-term contract with a solar services provider to purchase the electricity generated by the panels at a predetermined rate. The provider owns and maintains the panels throughout the agreement, which usually lasts 10 to 25 years.

» SOLAR PANELS: Lease vs. buy

6. The solar company you hire

People have had mixed experiences with solar companies. In the best-case scenario, it’s easy and you’re happy with the system’s performance. In the worst-case scenario, you end up paying thousands for overpriced solar equipment from a company with poor customer service and no follow-up or support.

That’s why it’s so important to thoroughly research and verify claims made by sales teams before making a decision. Use the NLR's PVWatts Calculator to estimate how much electricity a solar panel system can produce over a year on your house.

Is my house a good candidate for solar panels?

Going solar ends up being worth it for many homeowners as long as their house is a good candidate to support a solar panel installation. Here’s what to think about before you commit:

• What is the condition of your roof? If you have to replace your roof, do that before you install solar panels. Solar panels are designed to last up to 30 years, so you want your roof to last just as long. Otherwise, it could cost thousands to remove the panels, fix your roof and reinstall the panels — an expensive and frustrating process that you can avoid.

• How old are your appliances? It’s smart to ensure that your electrical loads are as small as possible. If you have an older refrigerator or air conditioning unit, for instance, upgrade those before investing in solar panels. That way, you can get a smaller system, which will be cheaper overall.

• How much sunlight do you get? Solar panels need regular exposure to sunlight to produce the most energy possible. Maryland averages 3 to 4 peak sun hours each day. However, lots of shading — like trees or tall buildings above your roof — could make your solar system less efficient.

• What is the size and angle of your roof? Maryland (and the rest of the United States) is in the Northern Hemisphere, so solar panels perform best on south-facing roofs. The worst place to install would be on north-facing roofs, especially if those roofs have a high pitch. If the only place you can install is a north-facing roof with a 30-degree pitch, your costs will likely go up by 30% to 40%.

Pros and cons of solar panels in Maryland

t’s a common misconception that solar panels always eliminate your monthly power bill. They often don’t. Still, you’ll likely be paying much less than you would for traditional utility bills.

Benefits of solar panels in Maryland

• Better for the environment: Traditional energy sources like coal and natural gas release carbon dioxide and other harmful pollutants into the air. Solar panels generate electricity from sunlight, a clean and renewable energy source. Installing solar panels on your roof helps the environment primarily by reducing greenhouse gas emissions and dependence on fossil fuels.

• Higher home resale value: Installing solar panels can significantly increase a home's value. According to the study mentioned above, houses with solar panels sell for 4.1% more on average. The exact increase in value varies by location, with homes in active solar markets sometimes seeing even higher boosts.

• Cheaper energy bills: The average homeowner in Maryland uses a lot of power, which adds up to a lot of savings when you switch to solar. Many residents are happy to see their electric bills fall after switching to solar power. Going solar now means that your monthly energy expenses will be more predictable (and very often significantly lower). It can also reduce how much rising electricity rates affect your household.

Drawbacks of solar panels in Maryland

• Solar equipment is expensive: Even with rebates and other financial incentives, the price typically starts between $10,000 and $30,000. It’s even more expensive if you want a solar battery for energy storage. Solar battery costs are generally between $7,000 and $18,000.

• Potential roof leaks: The installation process involves drilling holes into the roof to anchor the panel mounting systems. If not done correctly, this can lead to leaks or structural damage.

• Energy production varies: Solar panels are dependent on weather conditions and seasonality. Solar panels still work on cloudy days, but less available sunlight does affect how efficiently they produce energy. Snow cover may also temporarily reduce efficiency until it's removed or melts off.

» MORE: Solar energy pros and cons

Find solar companies in Maryland

A good solar company helps you navigate local incentives, permitting and net metering policies. Watch out for door-to-door solar scams that attempt to gather your personal information, misleading claims, false advertising and aggressive sales tactics. Compare our picks for the top solar companies in Maryland to learn more.

FAQ

Bottom line: Is going solar in Maryland worth it for you?

Solar tends to make the most sense if you have a high electric bill, a sunny roof and plan to stay in your home long enough to see the savings add up.

For a lot of homeowners, solar panels are worth it as long as their cost savings over time outweigh the initial investment. Others are happy to go solar for the environmental benefits alone. The main obstacle to going solar is the high upfront cost of purchasing and installing solar panels, inverters and other equipment.

Solar costs vs. savings: Maryland and nearby states