Maryland solar panels guide 2023
Updated August 18, 2020Maryland had previously been a power player in the solar industry when it came to incentives. However, as the value of SRECs decreased because of an oversaturated market and utility incentives reached their capacity limits, solar in Maryland became a little less juicy a financial proposition.
However, a recent change to the state’s renewable portfolio standard may start to drive utilities to extend their incentives. The state’s net metering policy, the federal tax credit, and the remaining incentives still lead to a great return on investment on residential solar panels in Maryland.
On this page:
Solar power prices, savings and payback in your part of Maryland
The average cost for an installed residential solar system in Maryland is currently $11,500 after claiming the 30% federal solar tax credit. This is $2.74 per watt. However, there is some variance in solar prices in different parts of the state. The graph below shows the average cost of installed solar systems in your part of the state.
Showing data for:
Prices based on a 5.7kW system, after 30% federal tax credit
Net profit (savings less system cost)
$48,059-$58,739
Payback period
6.1-7.5 years
Recommended size for the selected utility bill
5.7kW
Solar panel cost calculator
Cash flow graph based on cash purchase of a 5.7kW system
Are solar panels worth it in Maryland
Solar panels have fallen in price by more than 80% in the last ten years. In 2022 they also remain subsidized by the 30% federal tax credit and the net metering law, making them an excellent investment. They offer a return well above the long term average return from both the share market and also property investment.
Another way to look at this question is the levelized amount you will pay for each kWh of power you will use over the next 25 years with and without solar panels. As you can see below the savings are significant.
Levelized cost of solar energy
?
Levelized cost per kWh is the cost of the solar system divided by the total number of kWh produced by a solar system over it’s lifetime
5¢ /kWh
If you don't get solar
32¢ /kWh
(forecast avg Maryland electric rates over the next 25 years)
MD solar panel cost calculator
Maryland solar incentives & tax credits
Federal solar tax credit
The most significant incentive to install solar panels for homes and businesses in Maryland is the federal solar tax credit. At the end of 2020, the amount of the credit will decrease from 26% to 22% of the cost of the solar installation.
Because home and business owners want to get the largest incentive amount possible, solar panel installation companies will likely be flooded with new projects before year’s end. In order to maximize your savings potential, the best time to go solar in Maryland is now.
Net metering
Investor-owned utilities in Maryland are required to offer their customers net metering. So, if your solar system produces more energy than you use in a billing period, your utility will pay you for the excess energy that your system produced - at the retail rate of electricity.
Since electricity rates are so high in Maryland, net metering can save homeowners a pretty penny on their electric bills.
Maryland SREC Program
Maryland has created a solar renewable energy certificate market (SREC), based on the state’s commitment to derive 14.5% of its electricity mix from solar energy by 2030. Luckily for you as a solar homeowner, that is a direct benefit to you.
Current market prices are about $75 per SREC. An average 10kW solar installation in Maryland will produce about 13 SRECs annually. That amounts to $900 in SRECs you can sell annually back to your utility company, in addition to your electric bill savings.
Maryland Battery Backup Tax Credit
Maryland legislators have created a battery backup tax credit of 30% of your installed costs up to $5,000. When you go solar, you can combine the Federal tax credit with this one to reap big savings on your home solar energy and energy storage system here.
Maryland Clean Energy Grant
Maryland has also crafted a Clean Energy Grant. This solar incentive provides an upfront rebate of $1,000 per solar system installed, in order to help reduce upfront installation costs.
Sales and use tax exemption
Thanks to Maryland’s solar energy sales tax exemption, the state’s 6% sales tax cannot be added onto purchases of solar energy equipment. Sales tax can sometimes accumulate to over $1,000, so the energy savings are more than you think!
Property tax exemption
When a solar panel system is installed on a home, the value of the property goes up - and so do the property taxes. Maryland law exempts 100% of the assessed cost of a solar system from property taxes, so you won’t have to pay more when you install a system.
Local solar tax credits
Certain Maryland counties offer solar tax credits when you install a solar system on your home. In Anne Arundel County for example, you can apply for a tax credit that is equal to 50% of the costs of solar system materials and installation up to $2,500. This tax credit is then applied to your property taxes.
With the state’s property tax exemption, this means that not only will installing a solar system not raise your property taxes, it can also actually decrease them!
Table 2: Available incentive programs
|
Eligibility: Federal incentive
Type: Personal Tax Credit
|
|
Eligibility: State incentive
Type: Solar Renewable Energy Credit Program
|
Best unit price
$320.00 ($0.96 per watt)
Best system price
Installed 5.0kW system
$12,721.85
($2.53 p/w)
LG335N1K-V5 overview
Rated power
335 watts
Efficiency
19.6
Number of Cells
60
Cell type
Monocrystalline/N-type
Manufactured
KR
Best unit price
$562.50 ($1.50 per watt)
Best system price
Installed 4.9kW system
$12,120.18
($2.49 p/w)
LG375A1C-V5 overview
Rated power
375 watts
Efficiency
21.7
Number of Cells
60
Cell type
Monocrystalline/N-type
Manufactured
KR
Best unit price
$430.00 ($1.15 per watt)
Best system price
Installed 4.9kW system
$12,919.30
($2.65 p/w)
LG375Q1C-V5 overview
Rated power
375 watts
Efficiency
21.7
Number of Cells
60
Cell type
Monocrystalline/N-type
Manufactured
KR
Best unit price
$473.34 ($1.30 per watt)
Best system price
Installed 5.1kW system
$13,231.07
($2.59 p/w)
LG365Q1K-V5 overview
Rated power
365 watts
Efficiency
21.1
Number of Cells
60
Cell type
Monocrystalline/N-type
Manufactured
KR
Best unit price
$432.00 ($1.20 per watt)
Best system price
Installed 5.0kW system
$13,276.66
($2.63 p/w)
LG360Q1K-V5 overview
Rated power
360 watts
Efficiency
20.8
Number of Cells
60
Cell type
Monocrystalline/N-type
Manufactured
US
Best unit price
$530.85 ($1.50 per watt)
Best system price
Installed 5.0kW system
$12,386.87
($2.49 p/w)
LG355Q1K-V5 overview
Rated power
355 watts
Efficiency
20.6
Number of Cells
60
Cell type
Monocrystalline/N-type
Manufactured
US
Best unit price
$495.00 ($1.38 per watt)
Best system price
Installed 5.0kW system
$13,091.06
($2.60 p/w)
LG360Q1C-V5 overview
Rated power
360 watts
Efficiency
20.8
Number of Cells
60
Cell type
Monocrystalline/N-type
Manufactured
US
Best unit price
$407.97 ($1.10 per watt)
Best system price
Installed 5.2kW system
$13,159.30
($2.54 p/w)
LG370Q1C-V5 overview
Rated power
370 watts
Efficiency
21.4
Number of Cells
60
Cell type
Monocrystalline/N-type
Manufactured
US
Best unit price
$323.39 ($0.97 per watt)
Best system price
Installed 5.0kW system
$12,691.01
($2.53 p/w)
LG335N1C-V5 overview
Rated power
335 watts
Efficiency
19.6
Number of Cells
60
Cell type
Monocrystalline/N-type
Manufactured
US
Best unit price
$338.19 ($0.99 per watt)
Best system price
Installed 5.1kW system
$0.00
($0.00 p/w)
LG340N1C-V5 overview
Rated power
340 watts
Efficiency
19.8
Number of Cells
60
Cell type
Monocrystalline/N-type
Manufactured
US
Best unit price
$600.00 ($1.83 per watt)
Best system price
Installed 4.9kW system
$12,808.41
($2.61 p/w)
SPR-E20-327-COM overview
Rated power
327 watts
Efficiency
20.4
Number of Cells
96
Cell type
Monocrystalline
Manufactured
US
Best unit price
$800.00 ($2.22 per watt)
Best system price
Installed 5.0kW system
$13,201.67
($2.62 p/w)
SPR-X22-360 overview
Rated power
360 watts
Efficiency
22.2
Number of Cells
96
Cell type
Monocrystalline
Manufactured
US
Best unit price
$620.00 ($1.90 per watt)
Best system price
Installed 4.9kW system
$13,703.10
($2.79 p/w)
SPR-E20-327-D-AC overview
Rated power
327 watts
Efficiency
20.4
Number of Cells
96
Cell type
Monocrystalline
Manufactured
US
Best unit price
$620.00 ($1.90 per watt)
Best system price
Installed 4.9kW system
$13,610.59
($2.77 p/w)
SPR-E20-327 overview
Rated power
327 watts
Efficiency
20.4
Number of Cells
96
Cell type
Monocrystalline
Manufactured
US
Best unit price
$181.00 ($0.60 per watt)
Best system price
Installed 5.1kW system
$11,003.04
($2.16 p/w)
CS6K-300MS overview
Rated power
300 watts
Efficiency
18.33
Number of Cells
60
Cell type
Monocrystalline
Manufactured
CA
Best unit price
$196.11 ($0.65 per watt)
Best system price
Installed 5.1kW system
$9,948.02
($1.95 p/w)
LR6-60-HPB-300M overview
Rated power
300 watts
Efficiency
18.1
Number of Cells
120
Cell type
Mono PERC
Manufactured
CN
Best unit price
$172.00 ($0.56 per watt)
Best system price
Installed 4.9kW system
$9,568.53
($1.96 p/w)
LR6-60-HPB-305M overview
Rated power
305 watts
Efficiency
18.4
Number of Cells
120
Cell type
Mono PERC
Manufactured
CN
Best unit price
$165.00 ($0.53 per watt)
Best system price
Installed 5.0kW system
$9,761.72
($1.97 p/w)
LR6-60-HPB-310M overview
Rated power
310 watts
Efficiency
18.7
Number of Cells
120
Cell type
Mono PERC
Manufactured
CN
Best unit price
$228.00 ($0.60 per watt)
Best system price
Installed 4.9kW system
$9,579.65
($1.94 p/w)
LR4-60HPH-380M overview
Rated power
380 watts
Efficiency
20.9
Number of Cells
120
Cell type
Mono PERC
Manufactured
CN
Best unit price
$234.00 ($0.60 per watt)
Best system price
Installed 5.1kW system
$10,126.74
($2.00 p/w)
LR6-72HBD-390M overview
Rated power
390 watts
Efficiency
19.4
Number of Cells
144
Cell type
Mono PERC
Manufactured
CN
Average cost of solar panel installation in Maryland by system size
System size* |
Cash purchase(After tax credit) |
Financed purchase(After tax credit) |
|---|---|---|
| 4kW | $11,960 | $12,797 |
| 5kW | $14,320 | $15,322 |
| 6kW | $16,428 | $17,578 |
| 7kW | $18,977 | $20,305 |
| 8kW | $22,080 | $23,626 |
| 9kW | $23,913 | $25,587 |
| 10kW | $26,300 | $28,141 |
Best solar companies in the main cities of Maryland
Home solar basics
Is it better to lease or buy solar panels in Maryland
You will save most money by buying your solar system rather than leasing it. Read more about the pros and cons of leasing vs buying solar.
How long do solar panels last?
Minimum of 25 years but generally 30 or more
How do solar panels work on a home?
Solar panels power your house when they can but your home uses the utility company for power at other times. In 2023 "solar systems with battery storage" are becoming more popular. These are known as hybrid systems.
How do solar panels work?
Grid-tied solar system
A grid-tied system is the most common type of solar system. It has no solar battery for backup power and utilizes net metering to maximize savings. Solar panels are mounted on your roof then wired together, and the power generated flows into an inverter where direct current (DC) electricity is converted into alternating current (AC) electricity. This electricity is either used by your home or is exported to the utility grid.
Hybrid solar system
In hybrid solar systems, rooftop solar panels are connected to both a solar battery and the electric grid. The solar electricity generated by your panels that your home does not use is stored in the battery instead of being sent to the grid, which reduces your reliance on the utility while also providing backup power when needed. Battery storage is still expensive but you may be able to reduce costs by using state incentives.
Off-grid solar system
Off-grid solar systems are not connected to the grid at all, so all of your energy needs must be met by the sun. There is no utility to fall back on. The solar installation needs to power your home not only during the day, but after dark as well, so many solar panels and a large battery system are required. These systems are often expensive and don’t make sense for homes that have access to the grid.
Read more about types of home solar systems.
Do solar panels require regular maintenance?
No, but cleaning them can improve power generation if they are dirty.
Will residential solar power system cost fall in Maryland in 2023?
Given this environment, and the effect of import tariffs placed on solar panels by the Trump administration during 2018, it is hard to see that solar power system prices in Maryland will fall during 2023.
How much electricity do solar panel systems generate in Maryland?
Depending on the location, solar panels will generate different amounts of electricity.
A solar system that is installed on a south-facing 29-degree pitch roof Maryland will generate 1,150kWh of peak DC (direct current) capacity per year per 1kW in Maryland.
Enter your details into the solar panel calculator to see how your location, roof tilt, and roof direction impacts solar panel production.
What are the pros and cons of installing solar panels in Maryland?
The advantages of installing solar panels in Maryland are that there are state and local-based incentives that can be used with the federal tax credit. Maryland’s high electric rates combined with their net metering requirement makes the overall return on investment for solar panels one of the best in the nation. The state also recently approved the expansion of their RPS, thereby increasing the amount of energy utilities must provide from solar power.
The disadvantage of installing solar panels for your home in Maryland is that there is less overall solar irradiation per year, meaning a solar system in Maryland will produce less than a solar system in sunnier states.
Despite this, there is no better time to make the switch to solar while local incentives and the 26% federal tax credit are still available.
Enter your details to calculate the cost and savings you are likely to get from installing solar panels for your home.
What you can learn from our state solar panel calculator
This solar calculator requires you to input your address, utility company, your average monthly power spend - it tells you:
- What size solar system do you need?
- Answers the question of How many solar panels do I need?
- How many square feet of roof space you need for solar panels
- Solar electricity production in annual kWh (kilowatt-hours) you can expect from your solar system in Maryland
- The value of solar tax credits and other incentives you are entitled to based on the estimated size of system you need, your location and your utility provider.
- Likely cost based on an average of prices charged for solar systems of that size in the last year in Maryland or
- The likely payback period on your solar panels and your investment return.
- Your total lifetime solar savings based on each of the major solar finance options, a cash purchase, a cash purchase funded with a HELOC (home equity line of credit) and a zero-down PPA or third party lease product.
If you want to see all of the above but also see live pricing, the three best solar deals available in your city and get binding quotes from each of these solar companies then use this Maryland solar panels calculator. This calculator requires you to also input your name and contact details because most of our 200+ installer partners will only authorize the sharing of their live solar pricing where we have validated that you are a real homeowner with a home in their service area. We respect the privacy of your data and only share your contact details with the solar companies you ask us to get binding quotes from.
Note: Please keep in mind that the best source of up-to-date information on incentives are the solar installers who specialize in your area.
