Solar panels are being installed all over the state, whether on the Eastern Shore, in the Baltimore and Washington D.C. metropolitan areas, or in the mountains of western Maryland.
If you're a Maryland homeowner, farmer, or business leader looking to reduce energy costs and your carbon footprint, now is an excellent time to explore going solar.
This comprehensive guide covers everything you need to know about installing solar panels in Maryland, including:
With over 200 sunny days per year and 4.2 peak sun hours a day (just .3 less than Florida) coupled with some of the highest electricity rates in the nation, Maryland residents have significant potential to save money by going solar.
This is a significant reason why the state has over 2,100 megawatts (MW) of solar installed. That’s a lot of solar panels!
Thanks to the state's Renewable Portfolio Standard, which requires 50% renewable energy by 2030, with a minimum of 14.5% from solar power, along with a 30% federal tax credit and other incentives, solar offers exceptional returns for Maryland homeowners and businesses.
|
|
|
Visit our project gallery to view some of our other solar installations in Maryland.
1. Request a free solar evaluation from 2-3 reputable local installers.
A site evaluation will allow the solar company to review your electricity usage, examine your roof for solar potential, and gather other important information that is needed to provide an accurate quote.
2. Review the quote, examine your financing options, and do your due diligence for each company.
A quote should empower you with all the information you need to make an informed investment decision in solar energy. If you decide to move forward, spend time researching and interviewing your solar company. Solar is a long-term investment; you want to ensure your installation company is in it for the long haul.
3. The installation begins.
Once you select an installer, they should handle all permitting & paperwork, the system design, and installation. This process can take weeks to a few months for a residential system. The process for commercial installations can be much longer, taking several months to a year to complete in most cases.
4. After inspection and approval, it’s time to energize your system!
This is the moment you’ve been waiting for! Your system can now be energized and begin saving your hard-earned money.
The cost of installing solar panels in Maryland can vary, but as a general estimate:
However, generous incentives, such as the 30% federal tax credit and Maryland's Solar Renewable Energy Credits (SRECs) program, dramatically reduce the net cost.
For example, a typical 10kW residential solar panel system that costs $33,340 before incentives has a net cost of $22,338 after the federal tax credit and Maryland state grant.
A standard 100 kW commercial or agricultural solar panel system in Maryland would cost $225,400 before utilizing any of the available incentives. The net cost would be $86,231 after the 30% federal tax credit, depreciation, and Maryland state grant.
The chart below provides a breakdown of the average cost and savings for Maryland residential solar installations.
Here is a detailed breakdown of the typical costs with tax savings and grants for Maryland businesses that choose to invest in a solar panel installation.
There are several incentives available for Maryland businesses and homeowners that invest in solar panels.
The main benefit is the federal tax credit, which offsets your tax liability. The credit is a flat 30% for residential solar owners. It’s a little more complex for commercial and agricultural systems, starting at 30% for systems under 1 MW AC and with the opportunity to grow to 70%.
In addition to the tax credit, businesses can capitalize on depreciation by accelerating 60% of the federal depreciation to year one. The remaining 40% and state depreciation will follow the five-year MACRS schedule.
Additional Insight: Visit our commercial tax benefits blog to learn more.
There is also a 25% grant available, which is a less competitive grant to obtain.
We expect the grant to stay at 25% after the 50% rounds end. However, this is subject to change at any time.
The current Maryland state grant is being phased out. Through 2024, Maryland homeowners can apply for a $1,000 grant towards their solar energy system. The Commercial Clean Energy Rebate Program (CERP) amount varies based on the size of the system.
However, both programs are being replaced with a Maryland Solar Access Program (MSAP). This will begin for commercial projects in the summer of 2024. The new program will then begin for Maryland homeowners in January 2025. Outside of the start dates, the details of this program have not yet been made available.
Solar owners generate 1 Solar Renewable Energy Credit (SREC) for every 1,000 kWh their solar panels produce. That SREC can then be sold on an open market, generating additional income for the system owner.
Maryland recently introduced a Certified SREC program that will pay 150% of the standard SREC value if the solar system installation meets specific qualifications and is installed within the state of Maryland between July 1, 2024, and January 1, 2028. Those qualifications include:
Net metering allows solar system owners to receive a one-for-one credit for the electricity they send back to the grid. At night or on a low production day, the electricity pulled from the grid can be offset using those credits.
Reimbursement procedures for net metering vary depending on the utility company. Some Maryland utility companies reimburse their customers at the end of the year. While others will rollover the credits for the next anniversary cycle instead of issuing a payout.
Aggregate net metering is available for commercial, agricultural producers, non-profit organizations, and municipalities. This benefit allows one solar system to offset multiple electricity meters virtually.
The requirements for aggregate net metering will vary by utility company. For example, Delmarva Power requires one host account and a minimum of two waterfall/child accounts to aggregate. Choptank Electric and Easton Utilities require one host account and one waterfall/child account.
Please check with your installation company to confirm the requirements of your utility company.
Solar panel systems offer Marylanders immediate tax savings and long-term energy savings, making them an investment with a consistent payback that can be trusted.
One of the best parts of a solar energy investment is the front-loaded return. The federal tax credit and accelerated depreciation for businesses can be utilized in the first year soon after the system is energized.
Maryland homeowners can expect an average payback period of 14.36 years on their solar panels, with an ROI of 8.18%.
Maryland businesses can expect to recoup their initial investment in around 8.75 years, with a high 17% return on investment.
Solar panels typically last 25 to 30 years and are backed by a warranty for the same duration. This means homeowners can enjoy over a decade and a half of free electricity, while businesses can benefit for more than two decades.
In making your decision, consider the solar panel system's expected lifespan in relation to potential tax savings, energy savings, and environmental benefits. While solar panels are a beneficial investment for many Maryland residents and businesses, solar is not suited for everyone.
Embrace the power of the sun and take advantage of Maryland's solar incentives. Contact us today to learn more about how solar panels can save you money and reduce your carbon footprint.
Not all solar companies are equal. To ensure a high-quality installation and maximize your savings, be sure to:
Additional Resource: Is Paradise Energy the right solar company for you? Find out.
Based on ratings from Google Reviews, here are the top solar installation companies for Eastern Shore, Maryland, and Western Maryland. They are listed in no particular order.
| Eastern Shore Maryland | Western Maryland |
|
- Sunrise Solar - Located in Chestertown, Maryland - Paradise Energy Solutions - Located in Salisbury, Maryland - Solair LLC - Located in Selbyville, Delaware |
- Solar Energy World - Located in Laurel, Maryland - Maryland Solar Solutions - Located in Owings Mills, Maryland - Paradise Energy Solutions - Located in Williamsport, Maryland - Lumina Solar - Located in Baltimore, Maryland |
The financial and environmental case for going solar in Maryland is compelling, with ample sunshine, lucrative solar incentives, and rising utility costs.
To learn more about how solar can benefit your Maryland home or business, click the button below to request your free custom quote.
If you’re not ready for a quote, visit our learning center for blogs, videos, and other tools to help you on your solar journey.