Solar Incentives in Baltimore, MD
Complete guide to solar tax credits, rebates, and incentive programs available to Baltimore homeowners in 2026.
Federal Solar Investment Tax Credit (ITC)
30% of total system cost
Baltimore homeowners can deduct 30% of the cost of installing a solar energy system from their federal taxes. This applies to all qualified solar installations in Baltimore, MD.
Maryland State Solar Incentives for Baltimore Homeowners
Maryland Solar Renewable Energy Credits (SRECs)
SRECMaryland has one of the strongest SREC markets in the country. Solar system owners earn one SREC per MWh of solar production.
Residential Clean Energy Grant
RebateMaryland offers grants for residential solar installations through the Maryland Energy Administration.
Property Tax Exemption
Property TaxSolar energy systems are exempt from property tax increases in Maryland.
Sales Tax Exemption
Sales TaxSolar energy equipment is exempt from Maryland's 6% sales tax.
Net Metering in Baltimore, MD
Maryland offers net metering at the full retail rate for residential solar systems. Customers receive credits for excess generation that can roll over month to month.
Solar Renewable Energy Credits (SRECs) in Baltimore
Maryland has a robust SREC market driven by the state's Renewable Portfolio Standard. Solar system owners earn one SREC per MWh of production, providing significant ongoing income.
Average SREC Price: $50-$80 per SREC
Tax Exemptions in Baltimore
How to Claim Solar Incentives in Baltimore
- Install your solar system: Work with a qualified Baltimore solar installer to design and install your system.
- Claim the federal ITC: File IRS Form 5695 with your federal tax return to claim the 30% tax credit.
- Apply for state programs: Contact your Maryland energy office or local Baltimore utility to apply for available incentives.
- Set up net metering: Contact your utility in Baltimore to set up net metering and start earning credits.
- Keep records: Save all receipts, contracts, and permits for tax filing and warranty purposes.
Solar Incentives FAQ - Baltimore, MD
Baltimore homeowners can take advantage of the 30% federal solar tax credit, plus 4 state-level incentive programs, net metering, and SRECs. These incentives can reduce your total solar cost by 30-50%.
The 30% federal tax credit alone can save Baltimore homeowners approximately $5.4k on a typical system. Combined with Maryland state programs and SREC income, total savings over 25 years can reach $38k or more.
Maryland offers net metering at the full retail rate for residential solar systems. Customers receive credits for excess generation that can roll over month to month.
To claim the 30% federal ITC, Baltimore homeowners need to file IRS Form 5695 with their annual tax return. The credit applies to the full cost of your solar system including equipment and installation. You must own the system (not lease it) to claim the credit.
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