Solar Panels in Maryland (2026): What It Costs and What's Actually Left

Maryland lost two incentives in twelve months. The 30% federal tax credit expired at the end of 2025, and the state's $1,000 Residential Clean Energy Rebate quietly ran its final year in FY2025. Together that's roughly $8,000–$11,000 off a typical system — gone. Most Maryland solar pages still advertise both.

This page covers what genuinely still pays in 2026, verified against the Maryland Energy Administration and the Public Service Commission.

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The Short Answer

The Two Incentives Maryland Just Lost

The $1,000 Residential Clean Energy Rebate — ended

For years, Maryland's Residential Clean Energy Rebate Program (R-CERP) handed homeowners a flat $1,000 for installing solar. It was simple, popular, and unusual — few states offered anything like it.

FY2025 was the final year of the program. It was not renewed.

This is the single most common piece of bad information in Maryland solar content. Researching this page in July 2026, we found active, 2026-dated pages from national solar sites still listing the $1,000 rebate as a live incentive you should apply for "soon." One described it as "an amazing incentive that very few other states offer." It isn't an incentive anymore. It's a memory.

What to do with that: if a proposal shows a $1,000 Maryland rebate line, the net cost is wrong. Ask the installer to point you at the current MEA program page. If they can't, that tells you something about the rest of the quote.

The 30% federal credit — ended

The Residential Clean Energy Credit (Section 25D) was terminated by the One Big Beautiful Bill Act, signed July 4, 2025, for systems placed in service after December 31, 2025. Cash and loan buyers get nothing from it in 2026. See our 2026 tax credit guide.

The commercial credit (Section 48E) survives, but it belongs to whoever owns the system. In a lease or PPA, that's the solar company — they may pass some of it back as a lower rate, but it isn't a credit you claim. Compare the 25-year cost, not the monthly payment. More in our financing guide.

What Solar Actually Costs in Maryland Right Now

Based on an installed price of roughly $2.54/W (EnergySage marketplace data, July 2026), with a working range of about $2.50–$2.90/W.

Here's the part worth pausing on: Maryland is one of the cheaper states in the country to install solar — well under the $2.90–$3.40/W you'd pay in Massachusetts. Low install costs are the main reason Maryland still works at all now that the incentives thinned out.

What the price usually doesn't include: an electrical panel upgrade if you're on 100-amp service ($1,200–$2,000), roof work (do it first if your roof has under ~10 years left), or a battery ($10,000–$15,000 — see our battery guide).

Quotes for identical equipment routinely vary 20–30%. Compare cost per watt, not the headline total — our quote comparison tool does the math.

Maryland Electricity Rates — and the EIA Error Worth Knowing About

Maryland residential electricity runs about 22.2¢ per kWh, roughly 17% higher than a year earlier — nearly double the national rate of increase.

There's a wrinkle here that explains why the numbers you see online are all over the map. In March 2026, the EIA published data showing Maryland at 35¢/kWh — which would have made it the second most expensive state in the country, an 89% year-over-year jump. Maryland Public Service Commission analysts flagged it as wrong. EIA agreed and corrected the figure to 22.2¢/kWh.

That correction matters because plenty of solar sites scrape EIA and never re-check. If you see a Maryland rate anywhere near 35¢, it's the bad data. If you see 15–16¢, that's a supply-only rate that ignores delivery charges. The number that matters is the all-in rate on your actual bill — that's what solar offsets.

Utility default supply rates through May 31, 2026 varied widely: BGE around 16.6¢, Pepco 13.3¢, Delmarva 12.1¢, Potomac Edison 11.2¢ — before delivery. Which utility you have materially changes your math.

What Still Pays in Maryland

SRECs — the real one

Maryland runs one of the few genuine SREC markets in the country. Your system earns one certificate per megawatt-hour generated, and you sell them. On a typical 8–10 kW system that's roughly 10 SRECs a year.

The detail almost nobody covers: Maryland now has two SREC classes.

So there's a real, closing window here, and it's capped. Ask your installer to confirm your system will be registered for Certified BT status, in writing.

Two honest caveats: SREC prices fall — most sites still quote $60–$80 based on old data, and Maryland's Solar Alternative Compliance Payment (the ceiling that anchors prices) is set at $45 through 2026 and declines after. And SREC income is taxable. Don't model 25 years of SREC income at today's price.

Maryland Solar Access Program — currently closed

MSAP is an income-limited rebate created by the Brighter Tomorrow Act of 2024. It's real money, and it's currently unavailable.

If you're income-eligible and not in a rush, waiting for the FY27 window may be worth more than anything else on this page. Talk to your installer about timing before you sign.

Net metering

Maryland credits excess generation at the retail rate, with credits rolling over month to month. Annual excess is settled at a lower rate, so size to your actual usage rather than building a credit bank you'll never use.

Sales and property tax exemptions

Solar equipment is exempt from Maryland's 6% sales tax — roughly $1,700 on a $28,000 system you simply never pay. And solar doesn't raise your property assessment, so you keep the resale value without the tax bill.

County credits — the overlooked money

These are real and rarely mentioned in national content:

County programs are typically capped and first-come, first-served, so availability moves year to year. With the state rebate gone, a $2,500–$5,000 county credit is now potentially the largest single incentive available to a Maryland homeowner — and it's the one most installers forget to mention. Check your county's own page before you sign anything.

Battery storage — the program changed

Maryland's Energy Storage Income Tax Credit is reported to have been replaced in FY2026 by the Residential & Commercial Energy Storage (RCES) Grant Program, funded at about $2 million and awarded first-come, first-served. Many sites still advertise the old 30% / $5,000 tax credit. Given how much else in Maryland changed this year, confirm the current storage program directly with MEA before budgeting around it.

The Payback Math, Shown in Full

These are our calculations from the sourced figures above — not a quote, and not a promise about your home.

Assumptions: 8 kW system at $2.70/W = $21,600 installed; Maryland production ~1,250 kWh per kW per year = ~10,000 kWh/year; electricity offset at $0.222/kWh; 10 Certified BT SRECs per year at $57.50.

Simple payback: $21,600 ÷ $2,795 ≈ 7.7 years.

What moves it down: a county credit ($2,500–$5,000 knocks roughly a year off), MSAP eligibility in the FY27 round, higher usage, BGE territory, rising rates. What moves it up: standard SRECs instead of Certified BT, a needed panel upgrade, declining SREC prices, tax owed on SREC income, lower usage.

We didn't apply rate escalation. Given Maryland rates just rose 17% in a year, a real model would show a shorter payback — we left it flat because escalation assumptions are where optimistic savings claims get manufactured.

When Solar Does Not Make Sense in Maryland

We generate leads for solar companies. We'd rather be straight with you:

Frequently Asked Questions

Is the $1,000 Maryland solar rebate still available in 2026?
No. The Residential Clean Energy Rebate Program ran its final year in FY2025 and was not renewed. Many sites still advertise it. If a quote includes it, the net cost is wrong.

Is the 30% federal solar tax credit still available in Maryland in 2026?
No. Section 25D ended for systems placed in service after December 31, 2025. Section 48E still exists but goes to the owner — in a lease or PPA, that's the company, not you.

How much do solar panels cost in Maryland in 2026?
About $2.50–$2.90 per watt before incentives — below the national average. The average system is roughly 13.7 kW (~$34,900, range $29,600–$40,100). An 8 kW system runs ~$20,300–$23,200.

Can I still get the Maryland Solar Access Program grant?
Not currently. The portal closed to new applications on April 17, 2026 after requests exceeded the $12 million FY26 budget. A FY27 round is anticipated in summer 2026. It's income-limited and requires an approved reservation before installation.

How much are Maryland SRECs worth in 2026?
Standard SRECs trade around $40/MWh. Certified BT SRECs — new residential systems installed July 1, 2024 to January 1, 2028, capped at the first 300 MW AC of systems ≤20 kW — carry a 1.5x multiplier and trade around $57.50. Prices move and the income is taxable.

Is solar still worth it in Maryland without the federal credit?
For many homeowners, yes — low install costs, rates near 22¢/kWh climbing 17% a year, retail net metering, SREC income, and county credits. But it's a narrower case than 2025, and it doesn't work for low-usage homes or shaded roofs.

Does Maryland have net metering?
Yes — excess generation credited at retail rate, rolling over monthly. Annual excess settles at a lower rate, so size to your usage.

Are there county solar tax credits in Maryland?
Yes — Anne Arundel up to $2,500, Baltimore County up to $5,000, Prince George's up to $5,000. Typically capped and first-come, first-served. With the state rebate gone, this may now be your largest single incentive.

See What Solar Actually Costs on Your Roof — With 2026 Numbers

The ranges here are market averages. Your number depends on your roof, your usage, your county, and which utility bills you. Compare solar quotes for your Maryland home → Free, no obligation — and see our certified installer standards.

More: 2026 solar cost breakdown · 2026 incentives guide · is solar worth it · state-by-state index · Virginia · Pennsylvania · Washington DC

Sources

Electricity rate correction (35¢ → 22.2¢, +17% YoY): Maryland Public Service Commission, June 2026. Costs: EnergySage, July 2026. Solar Access Program status, FY27 notice, income limits, reservation-before-install rule: Maryland Energy Administration. Brighter Tomorrow Act of 2024, §9-2016 State Government Article. SREC and Certified BT pricing, 1.5x multiplier, 300 MW cap: Flett Exchange; SACP schedule: Xpansiv/SRECTrade. R-CERP conclusion: Solar United Neighbors; MEA FY25 program notices. Federal credit expiration: One Big Beautiful Bill Act (signed July 4, 2025). Payback figures are Solar Energy Nerds calculations from the sources above, with assumptions stated in full.

See how Maryland compares nationwide: our Net Metering by State (2026) guide covers how every state's utility credits solar exports.

See What Solar Would Save You in 2026

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Written and reviewed by , Founder of Solar Energy Nerds — in solar since 2017. Published June 12, 2026. Last updated July 18, 2026.

We verify costs, incentives, and policy claims against the IRS, DSIRE, and official state & utility sources. Update dates change only when the underlying facts change.

Solar Energy Nerds provides general information, not tax or financial advice. Incentives and costs vary by state, utility, and household — verify current figures for your address before deciding.