Complete Guide · Updated April 2026
Maryland Solar Incentives 2026 — Every Program Explained
Maryland has one of the strongest state-level solar incentive packages in the country — including income-based grants up to $7,500, SRECs, a full sales tax exemption, indefinite net metering rollover, and county credits up to $5,000. This guide covers every program available to Maryland homeowners in 2026, who qualifies, and how much each is worth.
What's Available in 2026 — Quick Summary
Before diving into each program, here's a snapshot of what Maryland homeowners can access right now. The federal 30% ITC expired at the end of 2025, but Maryland's own programs remain strong.
Important 2026 change: The 30% federal residential solar tax credit (Section 25D) expired on December 31, 2025. Homeowners purchasing solar with cash or a loan in 2026 no longer receive this credit. Maryland introduced the Solar Access Bridge Fund to partially replace its value for qualifying homeowners. Lease and PPA providers may still access a commercial credit.
1. Maryland Solar Access Program (MSAP)
The MSAP is Maryland's flagship income-based solar grant program, established by the Brighter Tomorrow Act of 2024. It is by far the most substantial grant available to eligible Maryland homeowners in 2026.
Provides $750 per kilowatt of installed DC solar capacity, up to a maximum of $7,500, for income-eligible Maryland homeowners. A 10 kW system earns the maximum $7,500 grant. Applications are submitted through the MyMEA portal and grants are awarded on a first-come, first-served basis. The FY26 budget of $12 million is nearly exhausted as of April 2026 — the FY27 program is anticipated to launch in summer 2026.
- Household income must not exceed limits based on household size (see MEA website for current table)
- System must be installed by an MEA-approved contractor on the Participating Contractor List
- Primary residence only — applications submitted within 12 months of installation
- Applies to solar PV systems of at least 1 kW installed capacity
⚠ FY26 program closed to new applications April 17, 2026. FY27 expected to open summer 2026. Check energy.maryland.gov for updates.
2. Maryland Solar Access Bridge Fund
Introduced in 2026 specifically to address the loss of the federal ITC, the Bridge Fund helps qualifying Maryland homeowners maintain the financial viability of going solar now that the federal credit is no longer available.
A 2026 state program designed to replace a portion of the value lost when the federal residential ITC (Section 25D) expired on December 31, 2025. The Bridge Fund is intended for qualifying Maryland homeowners and is designed to help maintain the financial viability of residential solar projects in the absence of the federal credit. Contact the Maryland Energy Administration (energy.maryland.gov) or a licensed installer for current eligibility requirements, funding amounts, and application process.
Program details, eligibility criteria, and funding amounts are subject to change. Verify current availability with the Maryland Energy Administration before installation.
3. Solar Renewable Energy Credits (SRECs)
Maryland's SREC program is one of the most durable long-term incentives available to solar owners. Unlike a one-time grant or tax credit, SRECs generate ongoing income for as long as your system is producing electricity.
Your solar system earns one SREC for every megawatt-hour (MWh) of electricity it generates. SRECs are sold on Maryland's open market to utilities that must meet the state's Renewable Portfolio Standard (50% renewable by 2030, with 14.5% from solar). Every Maryland solar owner can participate. Registration is straightforward and many installers handle the enrollment process on your behalf.
- A typical 13 kW Maryland system generates approximately 15–17 MWh/year — producing 15–17 SRECs annually
- Current SREC values: approximately $100–$400 per SREC depending on market conditions
- SREC values have been declining due to market saturation from rising solar adoption statewide
- Over 10 years, SREC income typically totals $3,000–$4,000 for an average Maryland system
- Register through PJM-GATS or your installer can enroll you during activation
SREC values fluctuate with the market. Consult a SREC aggregator or broker for current pricing before making financial decisions based on projected SREC income.
4. Net Metering
Net metering is arguably the most powerful ongoing financial benefit for Maryland solar owners — and Maryland's policy is among the most homeowner-friendly in the nation.
When your solar panels produce more electricity than your home uses, the surplus is exported to the grid and credited to your utility bill at the full retail rate. Maryland's net metering policy is 1-to-1 — one kilowatt-hour exported earns credit for one kilowatt-hour of grid usage. Credits roll over indefinitely month to month, allowing you to bank summer surplus and draw on it in winter. At an annual true-up date, any remaining positive balance is settled at the utility's avoided cost rate.
- BGE — serves Baltimore, Annapolis, Bowie, Glen Burnie, parts of Silver Spring (~$0.165/kWh)
- Pepco — serves Montgomery County, DC border areas (~$0.18–$0.20/kWh)
- Delmarva Power — serves Eastern Shore
- Potomac Edison — serves Western Maryland and Frederick
- Municipal utilities — SMECO and others operate net metering for their customers
Net metering credits are more valuable in higher-rate utility territories. Pepco customers in Gaithersburg and Silver Spring see the highest credit value per kWh in Maryland.
5. Sales Tax Exemption
Maryland exempts all solar energy equipment from the state's 6% sales tax. This applies to solar panels, inverters, racking, and all associated hardware — reducing your upfront installation cost immediately. For the average 13 kW Maryland system costing ~$33,000–$38,000, the sales tax exemption saves approximately $1,200–$1,600 with no application required. It applies automatically at the point of sale.
No application needed — the exemption applies automatically when your installer purchases equipment. Verify your installer is aware of and applying the exemption.
6. Property Tax Exemption
Solar installations typically add $15,000–$25,000 or more to a home's market value. Maryland's property tax exemption ensures this added value is excluded from your property tax assessment for 20 years — meaning your annual property tax bill does not increase because of your solar installation. This is a permanent statewide benefit and stacks with any county-level solar property tax credits.
The 20-year property tax exemption begins from the date of installation. It applies statewide and is separate from any additional county-level credits listed below.
7. County-Level Solar Tax Credits
On top of the statewide property tax exemption, several Maryland counties offer their own additional solar property tax credits — some of the most generous local solar incentives anywhere in the country.
How county credits work: These are separate from and stackable with the statewide property tax exemption. County credits are typically one-time credits applied directly to your county property tax bill after installation. Contact your county tax authority or ask your installer to confirm current amounts, eligibility requirements, and application deadlines.
| County | Credit Amount | Notes |
|---|---|---|
| Montgomery County | Up to $5,000 | Up to $5,000 or 50% of system cost. Also offers Green Bank 0% loan for Equity Emphasis Area residents. |
| Prince George's County | Up to $5,000 | Alternative Energy Tax Credit for residential installations. Solarize PG's group-buying program also available periodically. |
| Howard County | Up to $5,000 | Up to $5,000 or 50% of eligible costs, plus a separate $1,500 credit for solar hot water systems — one of the most comprehensive county packages in Maryland. |
| Baltimore County | Up to $5,000 | Energy Conservation Devices Tax Credit for residential solar installations. Availability may depend on demand and budget. |
| Anne Arundel County | Up to $2,500 | One-time tax credit. Covers Annapolis, Glen Burnie, and surrounding areas. Contact county assessor for application. |
| Harford County | Credit available | Local property tax credit — stackable with statewide exemption. Contact Harford County tax authority for current amounts and application. |
Montgomery County Green Bank: In addition to the property tax credit, Montgomery County residents can access a 30-year solar loan through the Montgomery County Green Bank — with 0% interest for the first 10 years for homes in Equity Emphasis Areas, and 4.99% for other residents. This is one of the most favorable solar financing terms available anywhere in Maryland.
8. Battery Storage Grant (RCES Program)
Maryland introduced a new battery storage grant program in FY26 to replace the Energy Storage Income Tax Credit that ended in 2024.
The RCES Program, launched by the Maryland Energy Administration for Fiscal Year 2026, provides grants for grid-connected battery energy storage systems (BESS) for both residential and commercial installations. Grants are awarded on a first-come, first-served basis with a total FY26 budget of $2 million. Applications are accepted through the MyMEA portal through June 5, 2026, or until funding is exhausted.
- Replaces the discontinued Maryland Energy Storage Income Tax Credit (ended 2024)
- Covers residential and commercial battery storage systems connected to the grid
- Applications submitted through the MyMEA portal at energy.maryland.gov
- Both property owners and third-party system owners may be eligible
FY26 budget: $2 million. Application deadline: June 5, 2026 or until funding is exhausted. Contact EnergyStorage.MEA@Maryland.gov for questions.
9. Community Solar — For Renters & Unsuitable Roofs
Maryland's permanent community solar program allows homeowners and renters who can't install panels to still benefit from solar energy — with no installation, no equipment, and no roof required.
Subscribe to a share of a local Maryland solar farm. Your utility (BGE, Pepco, Delmarva, or Potomac Edison) credits your electricity bill for your share of the power generated. Standard subscribers typically receive 5–15% off electricity costs. Low-income subscribers (below 80% of area median income) qualify for discounts of 20% or more. Maryland's program became permanent in 2025 and introduced consolidated billing as of January 2026, meaning all charges and credits appear on a single utility bill. Agreements are typically 20 years with cancellation available on 6 months' notice. No installation required — available to renters and condo owners.
Community solar providers in Maryland include Neighborhood Sun and CleanChoice Energy. Visit the Maryland Energy Administration's community solar project list for current projects accepting subscribers.
What Expired or Changed in 2026
It's important to know which programs are no longer available so you don't make decisions based on outdated information.
The 30% federal residential solar Investment Tax Credit (Section 25D), which allowed homeowners to deduct 30% of total solar installation cost from their federal taxes, expired on December 31, 2025. Homeowners who purchase solar with cash or a loan in 2026 do not receive this credit. The Maryland Solar Access Bridge Fund was introduced in 2026 to partially replace its value for qualifying homeowners. Lease and PPA providers may still access a commercial ITC (Section 48E), which can be reflected as lower monthly rates for customers.
The federal ITC was the largest single solar incentive available in previous years. Its expiry makes Maryland's own MSAP, Bridge Fund, SREC, and county programs relatively more significant in 2026.
The Maryland Energy Storage Income Tax Credit, which offered up to $5,000 or 30% of battery installation costs, was discontinued at the end of 2024. It has been replaced by the new Residential & Commercial Energy Storage (RCES) Grant Program launched for FY26. If you are considering battery storage, apply for the RCES grant through the MyMEA portal before June 5, 2026, or when FY27 funding opens.
The $1,000 flat Residential Clean Energy Rebate, available to any Maryland homeowner who installed at least 1 kW of solar, ended in November 2024. It was replaced by the Maryland Solar Access Program (MSAP), which provides larger grants (up to $7,500) but is limited to income-eligible homeowners. If you are not income-eligible for MSAP, you are not eligible for a Maryland state solar grant in 2026.
How to Stack Maryland Solar Incentives
The most financially effective approach is to claim every available incentive. Here's how a typical income-eligible Montgomery County homeowner might stack programs in 2026:
| Incentive | Amount | Type |
|---|---|---|
| MSAP Grant (10 kW system) | $7,500 | Upfront grant |
| Montgomery County Tax Credit | $5,000 | Property tax credit |
| Sales Tax Exemption (6%) | ~$1,400 | Automatic savings |
| SRECs (10 years estimated) | ~$3,000 | Ongoing income |
| Net Metering (Pepco, 25 yrs) | $80,000+ | Bill credits |
| Property Tax Exemption | $5,000+ (20 yrs) | Tax savings |
| Combined Value | $100,000+ | Over 25 years |
Financing matters for incentives: Only homeowners who purchase their system outright (cash or loan) are eligible for MSAP grants, SREC income, county tax credits, and property value benefits. With a solar lease or PPA, the solar company retains all incentives — you benefit only from lower monthly electricity costs.
Frequently Asked Questions
Is the federal solar tax credit still available in Maryland in 2026? ▾
No. The 30% federal residential solar tax credit (Section 25D) expired on December 31, 2025 for homeowner-purchased systems. Homeowners buying solar in 2026 with cash or a loan do not receive this credit. Maryland introduced the Solar Access Bridge Fund in 2026 to partially replace its value for qualifying homeowners. Maryland's state incentives — MSAP grants, SRECs, sales tax exemption, property tax exemption, and county credits — all remain fully available. Lease and PPA providers may still access a commercial federal credit.
What is the Maryland Solar Access Program (MSAP)? ▾
The MSAP, established by the Brighter Tomorrow Act of 2024, provides grants of $750 per kilowatt of installed solar capacity up to a maximum of $7,500 for income-eligible Maryland homeowners. The FY26 budget of $12 million is nearly exhausted as of April 2026. The FY27 program is expected to launch in summer 2026. Eligibility is limited to homeowners below specific income thresholds based on household size, and systems must be installed by an MEA-approved contractor.
How much are Maryland SRECs worth in 2026? ▾
Maryland SREC values in 2026 typically range from $100 to $400 per SREC depending on market conditions. The market has been declining due to rising solar adoption creating more supply. A typical 13 kW Maryland system generates 15–17 SRECs per year, worth roughly $1,500–$6,800 annually at current prices. Over 10 years, most homeowners can expect $3,000–$4,000 in total SREC income. Values fluctuate — check current pricing through a SREC broker or aggregator before making projections.
What is the Maryland Solar Access Bridge Fund? ▾
The Maryland Solar Access Bridge Fund is a 2026 program designed to replace some of the financial value lost when the federal residential ITC expired at the end of 2025. It is intended for qualifying Maryland homeowners to help maintain the financial viability of going solar without the federal credit. Contact the Maryland Energy Administration at energy.maryland.gov or ask a licensed installer for current eligibility criteria, available funding, and application details.
Which Maryland counties offer solar tax credits? ▾
Several Maryland counties offer local property tax credits for solar: Montgomery County (up to $5,000 or 50% of system cost), Prince George's County (up to $5,000), Howard County (up to $5,000 or 50%, plus $1,500 for solar hot water), Baltimore County (up to $5,000), Anne Arundel County (up to $2,500), and Harford County (credit available — contact county for details). All stack with Maryland's statewide 20-year property tax exemption.
Can renters access Maryland solar incentives? ▾
Yes — through Maryland's Community Solar program. Renters with a utility account through BGE, Pepco, Delmarva, or Potomac Edison can subscribe to a share of a local solar farm with no installation. Subscribers receive 5–15% off electricity bills, with low-income subscribers qualifying for 20% or more. The program became permanent in 2025 and uses consolidated billing as of January 2026. No credit check or installation required.
View city-specific incentive breakdowns and installer rankings