Solar Panels in Maryland2026 Cost Guide & Incentives
Average cost, state incentives, payback estimates, and how to find certified installers in Maryland.
$18,000–$30,000
Avg system cost
$12,600–$21,000
After 30% ITC
4.5 hrs/day
Peak sun hours
$0.164/kWh
Avg rate
Is Solar Worth It in Maryland?
Based on a home with a $150/month electric bill in Maryland
Est. system size
6.1 kW
Gross cost
$17,828
Federal tax credit
−$5,348
Net cost
$12,480
Year-1 savings
$1,800
20-year savings
$45,911
Estimated payback: 6.9 years — then 13 years of free electricity.
* Estimates assume $2.90/W installed, 92% solar offset, and 3% annual electricity rate inflation. Get an installer quote to confirm your actual savings.
Maryland Solar Incentives & Policies
Federal
Investment Tax Credit (ITC)
30%
of total system cost — off your federal tax bill
Available through 2032
Maryland State
State Incentive
Clean Energy Grant up to $1,000 + property & sales tax exemptions
Additional Maryland Solar Policies
Net Metering: Available — excess energy credited to your bill
Property Tax Exemption: Solar system value exempt from property taxes
Sales Tax Exemption: Solar equipment exempt from state sales tax
Solar Installation Cost in Maryland by System Size
| System size | Gross cost | After 30% ITC | Year-1 savings |
|---|---|---|---|
| 5 kW | $12,272,800 | $8,590,960 | $1,239,102/yr |
| 7 kW | $17,181,920 | $12,027,344 | $1,734,743/yr |
| 9 kW | $22,091,040 | $15,463,728 | $2,230,384/yr |
| 12 kW | $29,454,720 | $20,618,304 | $2,973,845/yr |
* Costs based on $2.90/W national average. Maryland installer pricing may vary ±15%.
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Frequently Asked Questions — Solar in Maryland
How much do solar panels cost in Maryland?
Solar installation in Maryland typically costs $18,000–$30,000 before incentives. After the 30% federal tax credit, most homeowners pay $12,600–$21,000 net.
Is solar worth it in Maryland?
Yes — Maryland homeowners benefit from 4.5 average peak sun hours per day. The 30% federal ITC combined with clean energy grant up to $1,000 + property & sales tax exemptions make the financial case strong for most homeowners.
What state incentives are available for solar in Maryland?
Clean Energy Grant up to $1,000 + property & sales tax exemptions. On top of state incentives, all Maryland homeowners qualify for the federal 30% Investment Tax Credit (ITC). Your solar system is also exempt from property tax assessment. Solar equipment is exempt from sales tax in ${s.name}.
How long is the payback period for solar in Maryland?
Based on Maryland's average electricity rate of $0.164/kWh and 4.5 peak sun hours, most homeowners see payback in 6.9–9 years. Systems then produce free electricity for 15–20+ more years.
Does Maryland have net metering?
Yes — Maryland has a net metering policy that credits your utility bill for excess electricity your system sends back to the grid. This significantly improves your ROI.