Solar Panels in Maryland: 2026 Cost Guide, Incentives & Savings

Maryland Solar Costs at a Glance

Installed solar in Maryland costs $2.60–$3.50 per watt in 2026, putting a typical 8kW system at $20,800–$28,000. Maryland runs roughly in line with Mid-Atlantic averages — the Baltimore metro and DC suburbs (Silver Spring, Bethesda) run slightly higher due to installer density, while rural areas on the Eastern Shore tend to land at the lower end of the range.

The good news: Maryland’s incentive stack is genuinely competitive even without the federal ITC (expired December 31, 2025). SREC income, the MEA Residential Clean Energy Grant, full retail net metering, and a sales tax exemption on solar equipment bring effective costs down meaningfully and shorten payback — even in a post-ITC world.

Maryland Solar Cost by System Size (2026)

Here’s the full cost breakdown for the most common residential system sizes in Maryland, including estimated SREC income and payback:

System Size	Installed Cost (MD)	Annual SREC Income	Monthly Bill Savings*	Payback Period
6 kW	$15,600 – $21,000	$210 – $420/yr	$85 – $125/mo	10–13 years
8 kW	$20,800 – $28,000	$280 – $560/yr	$110 – $165/mo	9–12 years
10 kW	$26,000 – $35,000	$350 – $700/yr	$140 – $205/mo	9–12 years
12 kW	$31,200 – $42,000	$420 – $840/yr	$165 – $245/mo	10–13 years

* Monthly savings at $0.14–$0.18/kWh with net metering. BGE customers (Baltimore area) and Pepco customers (DC suburbs) see higher savings due to higher rates. Payback includes SREC income but excludes federal ITC (expired Dec 31, 2025).

Not sure what size you need? Our MD solar sizing calculator gives you a specific kW recommendation based on your monthly bill and zip code.

Maryland Solar Incentives in 2026

Maryland has one of the stronger solar incentive structures in the Mid-Atlantic. Here’s what’s available this year:

1. Maryland SREC: Income on Top of Bill Savings

Maryland’s Solar Renewable Energy Credit (SREC) program lets you earn credits for every megawatt-hour your system generates — typically 9–12 SRECs per year for an 8kW system. SRECs are sold to utilities that need them to meet Maryland’s renewable portfolio standard.

In 2026, MD SRECs trade at approximately $35–$70 per credit. At an 8kW system generating ~9,000–10,000 kWh/year, that’s $315–$700 per year in additional income on top of your electric bill savings. See our full MD incentives guide for details on the SREC market and current pricing.

System Size	Annual Generation (MD avg)	SRECs Earned/Year	Annual SREC Income
6 kW	6,900–7,500 kWh	7–8	$245–$560
8 kW	9,000–10,000 kWh	9–10	$315–$700
10 kW	11,000–12,500 kWh	11–13	$385–$910

SREC prices fluctuate with market conditions. Check current MD SREC market rates before finalizing your ROI estimates.

2. Residential Clean Energy Grant (MEA)

The Maryland Energy Administration (MEA) Residential Clean Energy Grant provides up to $1,000 for qualifying solar panel installations. This is a grant — not a loan, not a tax credit — meaning you don’t have to pay it back. Eligibility requires a system installed by an MEA-approved vendor and meets program requirements.

Budget for this program varies year to year. Apply early — MEA grant programs in Maryland tend to fill quickly once funding is announced. Your installer can often help with the application process.

3. Net Metering: Full Retail Credit

All four of Maryland’s major investor-owned utilities — BGE, Pepco, Delmarva Power, and Potomac Edison — offer net metering at the full retail electricity rate. When your panels produce more than you use, the excess spins your meter backward at the same rate you’d pay to buy it. Credits roll forward month-to-month and settle annually.

Size your system to cover your annual usage, not your peak summer month, to maximize net metering value. Oversizing to cover summer peaks will leave you with excess credits paid out at the lower wholesale rate at year-end.

4. Maryland Sales Tax Exemption

Solar energy equipment is exempt from Maryland’s 6% sales tax. On a $24,000 system, that’s $1,440 saved at purchase — applied automatically by your installer. Your contract should reflect the exemption before you sign.

5. Property Tax Exemption

Maryland law exempts the value solar panels add to your home from property tax assessments. A solar installation typically adds $15,000–$20,000 to assessed value. Depending on your county’s property tax rate, that’s $150–$400/year in property taxes avoided — for as long as you own the home.

6. Federal ITC: What Changed in 2026

The federal Investment Tax Credit (ITC) — 30% of system cost — expired December 31, 2025 for residential installations. If you signed a contract or placed your system in service before that date, you could claim 30% back on your 2025 federal taxes. In 2026, that credit is no longer available to new residential buyers.

This matters for the math: it adds roughly $6,000–$8,400 to the effective cost of a typical MD system. Maryland’s incentive stack — SREC income, the MEA grant, net metering, and tax exemptions — partially compensates, but payback periods are longer than they were during the ITC era. Use our solar assessment tool to get your specific break-even point.

Maryland Utility Rates: BGE, Pepco, Delmarva Power & Potomac Edison

Your utility company and their rates are the single biggest variable in your solar ROI. Higher rates mean more savings per kWh your panels produce. Here’s where MD’s four major utilities stand in 2026:

BGE — Baltimore Gas & Electric

BGE serves Baltimore, Towson, Columbia, and the surrounding Baltimore metro area at approximately 14–17 cents/kWh in 2026. Columbia homeowners benefit from Howard County’s additional solar incentives on top of the state programs. BGE territory is the strongest solar market in Maryland — the combination of high rates and full retail net metering produces strong payback. An 8kW system in the Baltimore metro typically pays back in 9–11 years.

Pepco — Washington, DC Suburbs (Montgomery & Prince George’s Counties)

Pepco serves Silver Spring, Bethesda, Hyattsville, and the Maryland suburbs of Washington, DC at approximately 15–18 cents/kWh. These are among the highest electricity rates in Maryland — and in the country. More sun than Baltimore, plus high rates, makes this territory excellent for solar. Payback for an 8kW system here typically runs 8–10 years — one of the best ROIs in the Mid-Atlantic.

Delmarva Power — Eastern Shore (Wicomico, Worcester, Somerset Counties)

Delmarva Power serves Maryland’s Eastern Shore — including Salisbury, Ocean City, and surrounding counties — at approximately 13–16 cents/kWh. Slightly lower rates and a somewhat cloudier microclimate than the DC/Baltimore suburbs mean longer payback. An 8kW system in Salisbury or Ocean City typically pays back in 10–12 years.

Potomac Edison — Western Maryland (Frederick, Allegany, Washington Counties)

Potomac Edison covers Frederick, Hagerstown, and western Maryland at approximately 13–15 cents/kWh. Frederick County is one of Maryland’s fastest-growing areas, and the solar installer market there is competitive. Frederick homeowners get solid sun exposure (4.1–4.5 peak sun hours/day) and can expect 8kW payback in 10–12 years.

Utility	Service Area	Rate (2026)	Peak Sun Hours	8kW Payback (est.)
BGE	Baltimore, Towson, Columbia	14–17¢/kWh	4.1–4.5	9–11 years
Pepco	Silver Spring, Bethesda, PG County	15–18¢/kWh	4.3–4.7	8–10 years
Delmarva Power	Salisbury, Ocean City, Eastern Shore	13–16¢/kWh	4.0–4.3	10–12 years
Potomac Edison	Frederick, Hagerstown, Western MD	13–15¢/kWh	4.1–4.5	10–12 years

MD Solar ROI: The 25-Year Math

Let’s run the numbers for a typical Maryland homeowner: $130/month electric bill, 8kW system, BGE territory (Baltimore, ~$0.155/kWh average rate).

• System cost: $24,000 (8kW at $3.00/watt, MD average)
• Sales tax savings: −$1,440 (6% exemption applied at purchase)
• MEA grant: −$1,000 (if approved)
• Effective upfront cost: $21,560
• Year 1 electric bill savings: ~$1,560/year (offset 100% of $130/mo bill)
• Year 1 SREC income: ~$490/year (9 SRECs × ~$55 avg price)
• Total Year 1 benefit: ~$2,050
• Payback period: ~10.5 years (accounting for 3%/year rate escalation)
• Year 25 cumulative savings: ~$58,000–$65,000 (after paying off system)

After ~10 years, you have 15+ years of essentially free electricity — plus ongoing SREC income. In Pepco territory (Silver Spring/Bethesda) where rates are higher, the same 8kW system reaches payback 1–2 years sooner and produces $65,000–$75,000 in 25-year savings.

Run your specific numbers with our savings calculator — it factors in your exact zip code, electric bill, and utility to give you a personalized payback estimate.

Best Cities for Solar in Maryland

Not all Maryland cities are equal for solar. Here’s how the five major markets compare:

Silver Spring: Top ROI in Maryland

Silver Spring runs on Pepco at 15–18 cents/kWh — among the highest rates in the state. The DC suburb gets 4.3–4.7 peak sun hours per day. That combination produces the best solar economics in Maryland. Montgomery County also has active energy programs that sometimes layer on top of state incentives. Best-case payback: 8–9 years.

Baltimore: Strong Market, Good Installer Competition

Baltimore runs on BGE at 14–17 cents/kWh with 4.1–4.5 peak sun hours. The city has a deep installer market, which keeps pricing competitive. BGE’s net metering is straightforward and reliable. Typical payback: 9–11 years.

Columbia: Howard County Bonus

Columbia falls under BGE at 14–17 cents/kWh, but Howard County has some of the most progressive energy programs in Maryland — including additional incentives that sometimes stack on top of state programs. Howard County residents should check the county energy office for local grants before installing. Typical payback: 9–11 years.

Annapolis: Pepco Territory, High Bills

Annapolis is served by Pepco at 15–18 cents/kWh with solid sun exposure from the Chesapeake Bay area. The city has a well-established solar installer base. Annapolis homeowners with $150+/month electric bills are among the best candidates in Maryland for solar. Typical payback: 8–10 years.

Frederick: Growing Market, Competitive Pricing

Frederick runs on Potomac Edison at 13–15 cents/kWh with 4.1–4.5 peak sun hours. Frederick County is one of Maryland’s fastest-growing areas, and the installer market is competitive — homeowners who shop around tend to get competitive quotes. Typical payback: 10–12 years.

When Solar Doesn’t Work in Maryland

Solar is a good fit for most MD homeowners — but not all. Here’s when the numbers don’t work:

• Electric bill under $100/month. Low usage means limited savings. Payback stretches to 15+ years and the system may never deliver strong ROI.
• North-facing or heavily shaded roof. Heavy tree cover (common in rural MD and along the Chesapeake Bay) or north-facing orientation can cut production 30–50%. Run the numbers carefully before installing.
• Roof needs replacement within 10 years. Removing and reinstalling panels for a roof job costs $2,000–$5,000. Do the roof first if it’s in poor shape.
• Planning to sell within 5 years. You’ll likely recoup solar’s value at resale, but in a slow market you may not recover the full investment.
• Delmarva Power customer with low bill. Eastern Shore customers with lower rates and cloudier microclimate need a longer time horizon. The math gets tight below $100/month in electricity spend on Delmarva Power territory.

Still on the fence? Our solar assessment tool walks through your specific situation and gives you a concrete go/no-go recommendation with payback math.

FAQ: Solar Panels in Maryland

How much do solar panels cost in Maryland in 2026?

$2.60–$3.50 per watt fully installed, averaging around $3.00/watt. A typical 8kW system runs $20,800–$28,000. MD costs are comparable to the Mid-Atlantic average, with the Baltimore metro and DC suburbs running slightly higher. The federal ITC expired December 31, 2025, so incentives now consist of SREC income ($315–$700/yr), the MEA grant ($1,000), net metering at retail rates, and the 6% sales tax exemption. Use our sizing calculator to estimate your system cost.

What are the best solar incentives in Maryland in 2026?

MD’s strongest incentives: (1) SREC income — $315–$700/year for a typical 8kW system; (2) MEA Residential Clean Energy Grant — up to $1,000 for qualifying installations; (3) net metering at full retail rates through BGE, Pepco, Delmarva Power, and Potomac Edison; (4) 6% sales tax exemption on all solar equipment; (5) property tax exemption on the home value solar adds. The federal ITC (30%) expired at the end of 2025.

Is solar worth it in Maryland in 2026?

Yes, for most homeowners paying $130+/month for electricity with a 9+ year time horizon. Without the federal ITC, payback periods are longer than in recent years — typically 8–11 years depending on utility and city. But after payback, panels generate free electricity for 15+ more years plus ongoing SREC income. Get your specific estimate here.

Does Maryland have net metering for solar in 2026?

Yes. BGE, Pepco, Delmarva Power, and Potomac Edison all offer full retail-rate net metering under Maryland Public Service Commission rules. Excess generation credits your bill at the same rate you pay, roll forward monthly, and settle annually at wholesale. MD net metering is strong compared to other Mid-Atlantic states — no recent adverse rulings or export rate reductions for residential customers.

How much does solar save on electric bills in Maryland?

A properly sized 8–10kW system in MD offsets 80–100% of a typical household’s electricity use. At $130/month, that’s $1,560/year in bill savings plus $315–$700/year in SREC income — roughly $1,875–$2,260 total annual benefit. Over 25 years with 3% annual rate increases, that compounds to $55,000–$70,000 in total savings after system payoff. Run your exact numbers here.