Skip to content 
Maryland solar incentives are rebates, tax exemptions and credits that lower what homeowners pay for a solar energy system. Key aspects include the sales tax exemption, eligibility, the property tax exemption, the application process and county tax credits for homeowners. Some solar incentives in Maryland come with every solar energy system, such as the two tax exemptions, while the Maryland Solar Access Program rebate depends on household income and an application approved before installation.
Maryland solar incentives work in layers, so one solar energy system can use several at once. Two tax exemptions come with every system: solar equipment is sold without sales tax, and it adds no taxable value to your property. Income-eligible households can add a Maryland Solar Access Program rebate, several counties offer county tax credits, and SRECs and net metering pay back over the years the system produces electricity, none of them tied to the federal credit.
Top Solar Contractors
Solar Power World · 2026
Platinum Installer
Enphase Energy
Accredited PV Installer
NABCEP
Accredited Business
Better Business Bureau
Top Workplaces — Construction
Top Workplaces
Installer of the Year — Local
EnergySage · 2026
Best Places to Work
Business Journal · 2026
Innovation
Top Workplaces · Jun 2026
Compensation & Benefits
Top Workplaces · Jun 2026
Employee Appreciation
Top Workplaces · Jun 2026
Professional Development
Top Workplaces · Jun 2026
Purpose & Values
Top Workplaces · Jun 2026
Work-Life Flexibility
Top Workplaces · Jun 2026
Each of the solar incentive programs in Maryland has its own source and rules:
| Program (run by) | Who it is for | What it gives |
|---|---|---|
| Maryland Solar Access Program (Maryland Energy Administration) | Income-eligible households | $750 per kW, up to $7,500 |
| Sales tax exemption (state law) | Every buyer of solar equipment | No 6% sales tax |
| Property tax exemption (state law) | Every home with solar | No added property tax |
| County tax credits (your county) | Homeowners in some counties | Often 50% of cost, with county caps |
| SRECs (Public Service Commission) | Owners of a solar energy system | One credit per megawatt-hour |
| Net metering (your utility) | Homes that export solar power | Bill credits for excess electricity |
| Battery program (Maryland Energy Administration) | Homes adding battery storage | 30% of the cost, up to $5,000 |
Maryland county solar incentives are county tax credits on property tax in several counties, including: Anne Arundel County, a one-time 50% of the cost, up to $2,500; Baltimore County, 50% of eligible costs, up to $5,000; Harford County, up to $2,500 per device; Prince George’s County, 50% of eligible costs within its caps, up to $1,000 for leased systems. Rules and timing differ by county, and some keep waiting lists, so apply early.
Solar incentive eligibility depends on the Maryland solar incentives you use. For the Maryland Solar Access Program rebate, you need:
The tax exemptions are not tied to that limit.
The solar sales tax exemption is the simplest of the Maryland solar incentives: Maryland charges no sales and use tax on solar energy equipment, so the 6% state sales tax does not apply to the panels and other equipment that power your home. State law sets it, so there is nothing to apply for. Check that your contract shows no sales tax line.
Among Maryland solar incentives, SRECs pay you for what your solar energy system produces: it earns one Solar Renewable Energy Credit for every megawatt-hour of electricity, and the credits belong to the system owner. Electricity suppliers buy them to meet the Renewable Portfolio Standard, so the price is set on the SREC market, not by the state. The solar compliance fee suppliers pay when they fall short works as a ceiling: $45 per credit in 2026, $35 in 2027 and $22.50 from 2030 on. How the credits are earned and sold:
Systems of 20 kW AC or less that started operating from July 1, 2024 on can apply, while the program window and capacity last, to the Small Solar Energy Generating System Incentive Program of the Brighter Tomorrow Act, whose certified credits count 1.5 times for 15 years. Ask which contract fits that window before you sign one.
The Maryland Solar Access Program (MSAP) is the Maryland solar incentive for income-eligible households, created by the Brighter Tomorrow Act of 2024 and run by the Maryland Energy Administration. For the fiscal year 2027 round:
A home with funds reserved under an earlier state solar incentive, such as an earlier MSAP round, cannot get the FY27 rebate. Check the budget table on the program page before you sign a contract.
The solar property tax exemption is one of the Maryland solar incentives every solar home gets: state law says solar energy property used to generate electricity is not subject to real property tax. The State Department of Assessments and Taxation assigns no value to a net metered solar energy system, so the assessed value of your land and house is figured as if the panels were not there. The assessment office notes the solar on the property record, so check your next assessment notice to confirm it.
Claiming Maryland solar incentives starts with income, because the Maryland Solar Access Program is the incentive with an income limit. Work out your household annual gross income with the MEA guidance for calculating it, and compare it with the limit for your household size: $195,375 for a household of four, for example. You attest to that income in the application. Above the limit, the sales tax exemption, the property tax exemption, county tax credits and SRECs are not tied to that limit, so note which group your home falls in before you go further.
The second step is a signed agreement with a participating contractor, because MSAP accepts only contractors on the Maryland Energy Administration list for the fiscal year 2027 round. The contractor signs the Authorizations & Disclosures Form with you, must follow the program's Consumer Protection Policy, and can file the application for you or take the rebate and lower your price. Confirm the company is on the list before you sign.
The first MSAP filing reserves the rebate: you or your contractor submit the request in the MEA online application portal, with the system size in kW DC, before installation. The rebate is $750 per kW DC, up to $7,500. Missing documents are due within 14 calendar days of a request. Requests are approved first-come, first-served while the budget lasts, and a solar energy system installed before approval cannot receive the rebate. Wait for the approval notice before you book the installation.
An approved rebate reservation opens a 180-day window: within 180 calendar days the solar energy system must be installed, be approved by your utility and have its payment request filed. An extension can be requested at least 30 days before it expires, but it is not guaranteed. Plan the installation date and that approval inside the window.
After installation, your utility reviews the interconnection and gives Permission to Operate, the approval that connects the solar energy system to the grid. MSAP also requires the system to be registered for Maryland SRECs, with its certification approved or pending. Keep that approval and the SREC paperwork together, because the payment request depends on both. Your utility’s interconnection certificate of completion, which shows that approval, is also required when you register the system for SRECs with the Public Service Commission.
The second MSAP filing is the payment request, made in the same portal inside that 180-day window. The program checks the installed system size from your documents and pays the final rebate on that capacity, so it can be lower than the reserved amount but never higher. The rebate goes to the homeowner, or to your contractor when you chose that option, who passes it on as a lower price. County tax credit applications also ask for the installed cost, so keep the final invoice.
Maryland solar incentives come with forms at every stage, and that is where Lumina Solar helps. Lumina Solar reviews the solar incentives in Maryland that fit your home, walks you through any applications you need to file and offers guidance on submitting them. It also gives you the information and materials that make claiming Maryland solar incentives later easier, and helps guide you through using your Maryland SRECs once the system runs. Ask Lumina Solar which incentives your household can claim.
Maryland solar incentives work without the homeowner federal tax credit for any solar energy system placed in service after December 31, 2025: the 30% federal Residential Clean Energy Credit, taken against federal income tax, covers only systems placed in service through that date, and a federal law signed on July 4, 2025 ended it early; before that law it was set to phase down from 2033. To fill part of that gap, the state ran the Maryland Solar Access Bridge Fund, a one-time grant of $1,000 per kW, up to $15,000 or the net project cost, for households that applied to MSAP between July 1 and November 30, 2025 and bought their system with cash or a loan; it closed to new applications on June 1, 2026.
Net metering is the Maryland solar incentive that turns excess electricity into bill credits: your utility measures what your system sends to the grid and what you draw, with a two-way meter, and your electric bill charges the net kilowatt-hours plus the usual customer charges.
Net metering rules depend on when your solar energy system is enrolled. Under the Utility RELIEF Act, signed on May 12, 2026, the net metering tariff stays open to new customers until July 1, 2027, or until statewide capacity reaches 3,000 MW if that comes first. Customers enrolled as of July 1, 2027 keep net metering until the system is decommissioned, unless they raise its output, sign a new interconnection agreement or repower it. From July 1, 2027, new customers join a successor program set by the Public Service Commission, which the law intends to pay less. Excess kilowatt-hours become credits against later bills; credits left unused roll over for 12 months and are paid out each April at the supply rate, or carry forward with no end date if you choose that option, which co-ops and municipal power systems do not offer. Plan your interconnection well before July 1, 2027.
A home battery has its own Maryland solar incentive: the battery program, the Residential and Commercial Energy Storage (RCES) Program of the Maryland Energy Administration, is a rebate of 30% of a home battery project cost, including purchase, installation and interconnection, up to $5,000. For the FY27 battery program round:
Solar costs are not covered unless the battery needs them, so ask for the battery costs to be listed separately in your contract.
The Maryland solar incentives that apply to every solar home are the property tax exemption on the system and the sales tax exemption on solar equipment. SRECs and net metering add value as the system produces, county tax credits apply in several counties, and income-eligible households can add the Maryland Solar Access Program rebate, based on system size and capped at $7,500. Lumina Solar can review which of these fit your home before you sign.
The income limits for Maryland solar incentives apply only to the Maryland Solar Access Program, created by the Brighter Tomorrow Act: income at or below 150% of the state median income, from $136,785 for one person to $257,910 for eight, as set in the FY27 funding opportunity announcement. The tax exemptions, county tax credits and SRECs are not tied to the MSAP income limit. Talk to Lumina Solar about which group your household falls in.
Yes, solar panels are exempt from sales tax in Maryland: state law exempts the sale of solar energy equipment, including the solar panels, from the 6% sales and use tax, with nothing to apply for. Ask Lumina Solar to walk you through how the exemption shows on your contract.
Yes, Maryland solar incentives include county tax credits in several counties: Anne Arundel, Baltimore County, Harford and Prince George's, among others, give a tax credit on county property tax for solar panels, often 50% of eligible costs with county caps such as $2,500 or $5,000. Baltimore County calls it the energy conservation devices tax credit, and rules and timing differ by county. Lumina Solar can check whether your county offers one.
No, Maryland solar incentives include no federal tax credit for homeowners whose solar energy system is placed in service after December 31, 2025; the 30% federal Residential Clean Energy Credit covered systems placed in service through that date. The state rebate, the tax exemptions, county tax credits and SRECs do not depend on that tax credit. Ask Lumina Solar which state incentives apply to a system installed after that date.
SRECs fit into Maryland solar incentives as one credit for every 1,000 kilowatt-hours your solar energy system produces, and their value is set on the SREC market, not by the state, below a compliance fee of $45 per credit in 2026 and $22.50 from 2030 on. Systems in the Brighter Tomorrow Act program, registered with the Public Service Commission, earn credits that count 1.5 times. Lumina Solar helps guide homeowners through using their Maryland SRECs.
Yes, Maryland solar incentives include net metering: your utility turns the electricity your system sends out into net metering credits on your electric bill. The existing net metering tariff is open to new customers until July 1, 2027 at the latest, and customers enrolled by then keep it until the system is decommissioned, unless they increase its output, sign a new interconnection agreement or repower it. Ask Lumina Solar which incentives depend on the date your system connects.
Yes, Maryland solar incentives cover a home battery through the state battery program: a rebate of 30% of the battery project cost, up to $5,000, approved before installation. The battery program has its own application, separate from the Maryland Solar Access Program. Ask Lumina Solar how a battery fits your solar energy system.
Yes, homeowners can combine most Maryland solar incentives: the sales tax exemption, the property tax exemption, SRECs and net metering work alongside the MSAP rebate, and some county tax credits subtract state grants from the cost they are based on. A home with funds reserved under the Clean Energy Grant Program, the Clean Energy Rebate Program, the Residential Energy Equity Program or the FY25 or FY26 MSAP round cannot get the FY27 rebate. Lumina Solar walks you through the applications that apply to your home.
Maryland solar incentives follow fiscal-year rounds and dated rule changes. Lumina Solar reviews the incentives that fit your home and walks you through each application, so ask before you sign.
Every solar home gets the property tax exemption, solar equipment is sold without sales tax, and income-eligible households can add the Maryland Solar Access Program rebate while the budget lasts. Lumina Solar reviews the solar incentives in Maryland for your home and gives you the information and materials to claim them. Fill out the short form to get started.
Every solar home gets the property tax exemption, solar equipment is sold without sales tax, and income-eligible households can add the Maryland Solar Access Program rebate while the budget lasts. Lumina Solar reviews the solar incentives in Maryland for your home and gives you the information and materials to claim them. Fill out the short form to get started.
