Before considering any incentives, a typical residential solar panel system costs $13,186 to $26,372 in Maryland.
Jump to insightTax breaks and rebate programs can help offset the upfront costs of going solar.
Jump to insightMaryland homeowners can earn extra income by selling Solar Renewable Energy Credits (SRECs) to suppliers, brokers or aggregators.
Jump to insightThe 30% federal tax credit expired at the end of 2025, but you may still qualify for other federal programs.
Jump to insightResidential solar incentives in Maryland
Maryland is committed to transitioning to green energy. To further that goal, the state offers lots of local and state tax incentives to make it easier to get solar on your home. You can also sell your energy credits back to the utilities to help them meet their green power requirements.
Solar tax breaks in Maryland
- Sales and use tax exemption: Maryland has a 100% sales and use tax exemption for solar panels, water heaters and space heaters. It also applies to solar thermal electric projects and geothermal heat pumps.
- Property tax exemption: The Maryland Department of Assessments and Taxation has a 100% real property tax exemption for the value solar and wind energy equipment adds to your property. Eligible technologies include solar panels, solar water heaters, solar thermal electric and all wind projects.
Community solar options
If you rent, have a shaded roof or otherwise can’t install rooftop panels, Maryland’s permanent Community Solar program lets you subscribe to a share of a nearby solar project and get a bill credit for the electricity it produces, with no property ownership required. Subscriptions plus any rooftop solar can’t exceed 200% of your annual electricity use.
What to know about net metering in Maryland
If you install a solar system in Maryland, you can get into the net metering program. That means the electric company will give you full-price credit for any extra energy your system generates, up to 200% of what you normally use.
Your system must be under 2 megawatts (MW) to qualify.
The state’s current net metering program remains open to new customers through June 30, 2027, or until it reaches its original 3,000-megawatt cap, whichever comes first.
Starting July 1, 2027, the Maryland Public Service Commission will phase in a new net metering framework under a combined 6,000-megawatt cap. For now, homeowners can still sign up for net metering with any utility company.
Solar renewable energy certificates (SRECs)
Through the SREC program, you have another way to earn money with your solar system. You earn one SREC for every megawatt-hour your system produces, and the credits sell at a fluctuating market price (recently around $40 per MWh for standard Maryland SRECs).
Systems installed under the Brighter Tomorrow Act (between July 1, 2024 and Jan. 1, 2028, and 20 kW or smaller) may qualify for Certified BT SRECs, which have recently traded higher, around $55 to $58 per MWh.
Any grid-connected systems can still tap into the local power grid when needed. The alternative is to store it in a battery. That way, you can still turn your lights on when panels aren’t generating electricity, like at night or on especially cloudy days. The biggest downside is that solar storage battery costs can be almost as high as the panels — $7,000 to $18,000.
How much are solar panels in Maryland?
Solar panel costs in Maryland typically range from $13,186 to $26,372. Your system size greatly affects how much you pay overall. The typical system size for solar systems in Maryland is 8.2 kW.
How do you know if the average size system is enough for your home or if you need a bigger one? Check the amount of electricity you used last year in kilowatt-hours (kWh). Find this information in your electric account dashboard online. Then divide your annual kWh by 1,200 to find the system size you need. For example, if your home used 15,000 kWh last year, you would need a 13-kW system.
Average solar panel costs by system size in Maryland
| 5 kW | 6 kW | 7 kW | 8 kW | 9 kW | 10 kW | |
|---|---|---|---|---|---|---|
| Statewide average | $13,186 | $15,823 | $18,460 | $21,097 | $23,735 | $26,372 |
| Baltimore | $14,201 | $17,041 | $19,881 | $22,722 | $25,562 | $28,402 |
Federal solar programs
The 30% federal solar investment tax credit (ITC) expired at the end of 2025, but Maryland homeowners may still qualify for one of the following federal programs.
- Residential Energy Conservation Subsidy Exclusion: This isn’t a direct payment. It’s a tax rule that generally lets you exclude utility rebates or subsidies for energy-saving improvements, including some solar programs, from your taxable income.
- Energy-Efficient Mortgages: These mortgages may let you include the cost of solar panels or other energy upgrades in your home loan, based on the savings the improvements are expected to provide.
- Fannie Mae Green Financing: This financing is mainly designed for multifamily properties and developers, so it’s less relevant to most single-family homeowners. However, it may apply to some larger residential projects in Maryland.
Find solar companies in Maryland
A good solar company helps you navigate local incentives, permitting and net metering policies. Compare our picks for Maryland’s top solar companies to learn more.
| Company | Customer rating | Pro install | Payment options | Year founded | |
|---|---|---|---|---|---|
 Sunrun | Learn More | 4.3 |  | Cash, loan, lease, PPA | 2007 |
 Project Solar | Learn More | 3.9 | | Cash, loan | 2020 |
 Solar Energy World | Learn More | 5.0 | | Cash, lease, PPA | 2009 |
 Tesla Energy | Learn More | 1.9 | | Cash, loan and lease | 2015 |
 ShopSolar | Learn More | 4.5 |  | Cash, loan | 2018 |
FAQ
Can I get free solar panels in Maryland?
No, but you can lease solar equipment or enter a power purchase agreement (PPA) with little to no upfront costs. Still, neither is totally free. Solar leases generally require a flat monthly fee; PPAs make you pay per unit of electricity.
How can I pay for solar panels?
You can pay cash, but most people finance solar panels with a solar loan. It works a lot like any other type of loan — there’s an application and approval process, and you pay it back over time (with interest). You also have the option of getting a lease or power purchase agreement.
How much can I save with solar panels in Maryland?
On average, Maryland homeowners with solar panels avoid $75,628 in utility costs over 25 years. Your current electric bill is the starting point for assessing the financial benefits of transitioning to solar energy. Knowing your average energy consumption helps determine the size and capacity of the solar system you need. Once you know this, you can figure out potential savings and how long it should take for your solar installation to pay for itself.
How do I know if my house is a good candidate for solar?
It’s best to have plenty of unshaded roof space that faces south or west for optimal sun exposure. It’s also smart to upgrade any old, inefficient appliances first. Reducing your electrical loads now means you can get a smaller system, which will be cheaper.
The condition of your roof matters too — if it needs replacement soon, do that before installing solar panels. Installing solar panels on an old roof might mean you have to remove the panels, replace your roof and then reinstall the panels. This will cost around $5,000 for a 19-panel setup.
Solar photovoltaic (PV) technologies, more commonly known as solar panels, absorb sunlight and convert it into usable electricity. If you have a lot of shading around your house, they might not get enough sun to power your home.
Is my HOA allowed to restrict solar panels?
No. According to Maryland law, a homeowners association can’t restrict your home’s solar panels in a way that will significantly increase the cost of a solar system or significantly decrease the system’s efficiency.
What has Maryland’s investment in solar been so far?
Total solar investment in the state amounts to $7.5 billion, according to the Solar Energy Industries Association’s June 2026 Maryland factsheet.
Bottom line
The ConsumerAffairs Research Team conducted an in-depth analysis to determine the average costs of going solar. Turns out, it’s worth it for many homeowners, particularly in Maryland.
Solar costs and savings: Maryland and nearby states
| 6 kW system cost (before incentives) | 10 kW system cost (before incentives) | Typical system size needed* | Average cost per watt | Total utility power cost savings** | |
|---|---|---|---|---|---|
| Maryland | $15,823 | $26,372 | 8.2 kW | $2.64 | $75,628 |
| Pennsylvania | $15,802 | $26,336 | 7.8 kW | $2.63 | $65,657 |
| Virginia | $16,363 | $27,271 | 6.9 kW | $2.73 | $41,992 |
| West Virginia | $18,573 | $30,955 | 8.4 kW | $3.10 | $63,643 |
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- DSIRE, “Maryland Programs.” Accessed July 14, 2026.
- Maryland Public Service Commission, “Maryland Renewable Energy Portfolio Standard Program FAQ.” Accessed July 14, 2026.
- Maryland Energy Administration, “A Maryland Consumers Guide to Solar.” Accessed July 14, 2026.
- Solar Energy Industries Association, “Maryland Solar.” Accessed July 14, 2026.
- State of Maryland Office of People’s Counsel, “Residential Rooftop Solar in Maryland: Frequently Asked Questions.” Accessed July 14, 2026.
- Maryland General Assembly, “Article - Tax - Property.” Accessed July 14, 2026.
