Is solar worth it in Maryland?
For a typical Maryland home in 2026, solar is worth it: about a 8.9-year payback and $57,979 saved over 25 years after paying for the system. Check your own home, because roofs, usage and utilities vary a lot.
- Payback, typical home
- 8.9 yrs8.2 kW, paying cash
- Electricity price
- 21.0¢per kWh, U.S. 18.0¢
- Solar production
- 1,380kWh per kW per year
- Exports credited at
- RetailFull retail net metering
The numbers for a typical Maryland home
| Electricity use | 941 kWh a month (Maryland average) |
|---|---|
| Best-value system | 8.2 kW, producing 11,319 kWh a year (100% of use) |
| Price | $23,590 at about $2.95/W |
| First-year savings | $2,297 |
| Payback | 8.9 years |
| 25-year net | $57,979 (11.4% a year return) |
| Rate increase assumed | 3.5% a year, from Maryland's 2015–2025 history |
Paying cash, no federal credit, 5% discount rate, microinverters, $25 per kW a year for maintenance and repairs. Methodology.
Why it comes out this way
- Electricity is expensive: 21.0¢ per kWh over the last 12 months, 17% above the U.S. average (18.0¢).
- Most utilities credit exported solar at or near the retail rate, so you get full value for midday surplus.
- A typical system here produces about 1,380 kWh per kW per year (ranked #25 of 51).
- There is no federal tax credit for homeowners who buy in 2026, which adds several years to payback compared with 2025.
Net metering and export rules in Maryland
Full retail net metering. Maryland currently offers full retail net metering: exports earn a full kWh credit. However, the 2026 Utility RELIEF Act closes the existing program to new enrollees by July 1, 2027 (or when the 3 GW cap is hit) and directs a lower-compensation successor ('NEM 2.0') to start July 1, 2027.
kWh-for-kWh credit at full retail; annual excess at end of April billing paid at the commodity (generation/supply) rate.
- Netting: monthly
- Unused credits: Excess kWh roll monthly; at the annual true-up (April bill) remaining excess is paid at the supply/commodity rate (~7-10 cents).
- System size limit: 2000 kW
- Fixed charges: Standard customer charges (BGE ~$16-20/month, Pepco similar); no solar-specific minimum bill currently.
- Last major change: Utility RELIEF Act (HB 1532/SB 966), signed May 12, 2026: raises aggregate cap to 6,000 MW, ends entry into NEM 1.0 by July 1, 2027, PSC to approve NEM 2.0 framework by Feb 1, 2027; legalizes plug-in solar up to 1.2 kW.
- Pending: PSC PC 78 / RM 56 (2026) designing NEM 2.0 and grandfathering/cutoff rules; successor credit expected below retail. Install timing matters: interconnect before July 1, 2027 to likely retain NEM 1.0.
Read net metering explained to see why export rules can swing payback by years.
| Utility | Export credit | Notes |
|---|---|---|
| Baltimore Gas & Electric (BGE) | ~100% of retail | NEM 1.0 until successor; annual April true-up at supply rate. |
| Pepco (Maryland) | ~100% of retail | Same statewide rules. |
| Delmarva Power (Maryland) | ~100% of retail | Same statewide rules. |
| Potomac Edison | ~100% of retail | Same statewide rules. |
Solar incentives in Maryland
The federal 30% Residential Clean Energy Credit ended for systems installed after December 31, 2025. What that means.
| Program | Type | What you get | Status |
|---|---|---|---|
| Maryland SRECs | srec | Solar renewable energy credits sold per MWh produced. Solar ACP (price ceiling) ~$45/MWh in 2026 declining to $22.50 by 2030; market prices below ACP. Residential systems typically sell via aggregator. Eligibility: Systems in Maryland registered with PSC | active |
| Maryland Solar Access Program (MEA) | low income | Grant of $750 per kW-DC up to $7,500 per income-eligible household; ~$10M per fiscal year; MEA-approved contractors only. Eligibility: Income-eligible Maryland households | active |
| Sales tax exemption | sales tax exemption | Residential solar equipment exempt from 6% sales tax. Eligibility: Residential | active |
| Property tax exemption | property tax exemption | Residential solar exempt from state and local property tax assessment. Eligibility: Residential | active |
| Residential & Commercial Energy Storage (RCES) Grant | battery incentive | New FY2026 MEA grant replacing the Energy Storage Income Tax Credit (ended after CY2024); $2M total for FY2026, first-come first-served, 2-step application. Per-project amount not verified. Eligibility: Maryland residential/commercial storage | active |
Ended programs: MEA Residential Clean Energy Rebate Program.
What solar costs in Maryland
A fair cash price is around $2.95 per watt before incentives. For the 8.2 kW system that fits a typical home, expect roughly $20,600 to $29,000; smaller systems cost more per watt.
How many homes have solar
- Homes with net-metered solar (2025)
- 118,789
- Share of homes
- 4.8%
- Residential solar capacity
- 1,076 MW
- Growth over the past year
- +12.4%
Sources: EIA-861 (2025), EIA small-scale solar estimates, LBNL Tracking the Sun and state interconnection data.
Electric utilities in Maryland
| Utility | Homes served | Price (2026 est.) | Typical use | Typical-home verdict |
|---|---|---|---|---|
| BGE | 1,220,644 | 21.8¢ | 880 kWh/mo | Worth it |
| Pepco | 558,809 | 23.5¢ | 761 kWh/mo | Worth it |
| The Potomac Edison | 258,523 | 15.8¢ | 1,166 kWh/mo | Worth it |
| Delmarva Power | 187,814 | 20.6¢ | 924 kWh/mo | Worth it |
| Southern Maryland Electric Cooperative | 163,451 | 17.7¢ | 1,170 kWh/mo | Worth it |
| Choptank Electric Cooperative | 50,981 | 18.4¢ | 1,169 kWh/mo | Worth it |
| Hagerstown Light Department | 14,878 | 12.1¢ | 947 kWh/mo | Close call |
| Easton Utilities Comm | 8,884 | 16.4¢ | 1,046 kWh/mo | Worth it |
| A & N Electric Cooperative | 226 | 15.5¢ | 991 kWh/mo | Worth it |
Solar by city in Maryland
- Baltimore8.6-yr payback · Worth it
- Columbia8.7-yr payback · Worth it
- Germantown11.5-yr payback · Worth it
- Frederick11.7-yr payback · Worth it
- Waldorf10.3-yr payback · Worth it
- Silver Spring8.2-yr payback · Worth it
- Ellicott City8.6-yr payback · Worth it
- Glen Burnie8.6-yr payback · Worth it
- Gaithersburg8.2-yr payback · Worth it
- Bethesda8.2-yr payback · Worth it
- Rockville8.2-yr payback · Worth it
- Dundalk8.7-yr payback · Worth it
- Towson8.7-yr payback · Worth it
- Severn8.6-yr payback · Worth it
- Bel Air South8.7-yr payback · Worth it
- Bowie8.5-yr payback · Worth it
- Aspen Hill8.1-yr payback · Worth it
- Wheaton8.1-yr payback · Worth it
- North Bethesda8.1-yr payback · Worth it
- Potomac8.2-yr payback · Worth it
- Odenton8.5-yr payback · Worth it
- Hagerstown12-yr payback · Worth it
- Catonsville8.5-yr payback · Worth it
- Annapolis8.6-yr payback · Worth it
- Essex8.8-yr payback · Worth it
- Woodlawn CDP (Baltimore County)8.6-yr payback · Worth it
- Severna Park8.6-yr payback · Worth it
- Clinton8.3-yr payback · Worth it
- Owings Mills8.6-yr payback · Worth it
- Randallstown8.6-yr payback · Worth it
- Olney8.1-yr payback · Worth it
- Chillum8.2-yr payback · Worth it
- College Park8.2-yr payback · Worth it
- Pasadena8.6-yr payback · Worth it
- Montgomery Village11.6-yr payback · Worth it
- Pikesville8.8-yr payback · Worth it
- Salisbury8.7-yr payback · Worth it
- Middle River8.8-yr payback · Worth it
- Eldersburg8.6-yr payback · Worth it
- Bel Air North8.7-yr payback · Worth it
- Milford Mill8.6-yr payback · Worth it
- Parkville8.5-yr payback · Worth it
- Clarksburg11.5-yr payback · Worth it
- Laurel8.6-yr payback · Worth it
- Crofton8.6-yr payback · Worth it
- South Laurel8.6-yr payback · Worth it
- Perry Hall8.5-yr payback · Worth it
- Ilchester8.7-yr payback · Worth it
- Carney8.6-yr payback · Worth it
- Lochearn8.5-yr payback · Worth it
- Ballenger Creek11.4-yr payback · Worth it
- Elkridge8.6-yr payback · Worth it
- Fairland8.6-yr payback · Worth it
- Reisterstown8.6-yr payback · Worth it
- North Laurel8.6-yr payback · Worth it
- Fort Washington8.5-yr payback · Worth it
Protect yourself when buying
- Check the license. Maryland Home Improvement Commission (MHIC) license for residential contractors, plus master electrician license (state Board of Master Electricians) for electrical work. Look up an installer
- Cancellation rights. Federal law gives you 3 business days to cancel most door-to-door sales over $25. How to cancel
- HOA and solar access. Yes - Md. Real Property 2-119 voids HOA/covenant restrictions that unreasonably limit solar or significantly increase cost.
- Community solar. Yes - permanent Maryland Community Solar program (made permanent 2023; expanded under RELIEF Act).
Questions about solar in Maryland
Is solar worth it in Maryland in 2026?
For a typical Maryland home, solar is worth it. A 8.2 kW system costing about $23,590 after state incentives saves about $2,297 in the first year and pays back in about 8.9 years. Your result depends on your roof, usage, utility and price, so run the calculator for your address.
How much do solar panels cost in Maryland?
A reasonable cash price is around $2.95 per watt before incentives, or roughly $20,600 to $29,000 for a 8.2 kW system.
Does Maryland have net metering?
Maryland currently offers full retail net metering: exports earn a full kWh credit. However, the 2026 Utility RELIEF Act closes the existing program to new enrollees by July 1, 2027 (or when the 3 GW cap is hit) and directs a lower-compensation successor ('NEM 2.0') to start July 1, 2027.
Is there a solar tax credit in Maryland?
The 30% federal credit for homeowners ended for systems installed after 2025. Maryland does not offer a state income tax credit for solar that we're aware of. Solar may be exempt from property tax.
How do I check a solar installer's license in Maryland?
Maryland Home Improvement Commission (MHIC) license for residential contractors, plus master electrician license (state Board of Master Electricians) for electrical work.. Look up any installer with the state's license search at https://www.dllr.state.md.us/cgi-bin/ElectronicLicensing/OP_Search/OP_search.cgi.
Policy research current as of October 2026; sources include opc.maryland.gov, solarbuildermag.com, reslink.org. Electricity data: EIA, through July 2026. Found something out of date? Tell us.