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Yes, Maryland still have solar incentives in 2026, but the lineup looks different than it did a year ago. The federal 30% tax credit is gone for residential systems. In its place, Maryland leans harder on state-level tools: an income-based grant, a sales tax exemption, a property tax exemption, and an ongoing SREC market that pays you for the electricity your panels produce. Some programs are running low on funds. Others are as strong as ever. Let’s sort out which is which.
Last verified: July 2026, against the Maryland Energy Administration and DSIRE.org. Incentive programs change often, confirm current status directly with MEA before making a purchase decision.
| Incentive | Value | Status in 2026 |
|---|---|---|
| Federal Residential Clean Energy Credit (25D) | Was 30% of system cost | Expired Dec 31, 2025 |
| Maryland Solar Access Program (MSAP) grant | $750/kW, up to $7,500 | Active, but funding nearly exhausted |
| Sales tax exemption | 6% of system cost waived | Active, no expiration set |
| Property tax exemption | 100% of added home value exempted | Active, no expiration set |
| SRECs | ~$50–$90 per credit, ~$3,000–$4,000 lifetime | Active, ongoing market |
| Net metering | Full retail rate for excess power | Active through at least July 2027 or state cap |
| Energy Storage Income Tax Credit | Was 30% of battery cost, up to $5,000 | Funding exhausted, renewal unconfirmed |
What Changed With Maryland Solar Incentives in 2026
The biggest shift didn’t come from Annapolis. It came from Washington.
The federal Residential Clean Energy Credit, known as Section 25D, officially expired for any solar expenditures made after December 31, 2025. That credit used to knock 30% off the cost of a home solar system. On a typical $24,000 installation, that was roughly $7,200 in savings, gone overnight for anyone installing in 2026.
If you had solar installed and paid for in 2025, you can still claim that credit on your 2025 tax return. If you’re installing in 2026, that specific federal benefit no longer applies to you. No amount of hoping changes that one.
Maryland’s legislature didn’t just watch this happen and shrug. State lawmakers passed energy legislation in April 2026 that adjusted several programs, including how Solar Renewable Energy Certificates get weighted for utility compliance, and it set new caps and sunset dates for net metering statewide. Some reporting also points to a new “Solar Access Bridge Fund,” aimed at narrowing the gap left by the expired federal credit for qualifying homeowners. Details on that fund are still developing, so treat it as a program to watch rather than a guarantee.
Bottom line: the federal safety net shrank, but Maryland didn’t leave homeowners empty-handed.
Solar Incentives Still Active in Maryland
Here’s what’s genuinely still on the table for Maryland homeowners going solar in 2026.
Sales tax exemption
Maryland exempts solar equipment from the state’s 6% sales tax. On an average residential installation, that saves homeowners somewhere around $2,000, applied automatically at purchase. No forms, no waiting period, no drama.
Property tax exemption
Solar panels typically raise a home’s value, by an estimated 6.9% on average, according to industry research. Normally, a value bump means a bigger property tax bill. Maryland exempts that added value from property taxes entirely, so installing solar doesn’t quietly punish you every spring at assessment time. Details and application forms are on the Maryland Department of Assessments and Taxation site.
Local county tax credits
Depending on where you live, you may qualify for an additional one-time credit on top of the statewide exemption. These vary by jurisdiction and by year, so check with your local tax office before assuming one applies to you.
| County | Local Credit | Notes |
|---|---|---|
| Anne Arundel County | Up to $2,500 one-time credit | Applied against county property tax |
| Baltimore County | Up to $5,000 one-time credit | Check current cap with county finance office |
| Harford County | One-time credit, amount varies | Confirm current-year cap locally |
| Prince George’s County | One-time credit, amount varies | Confirm current-year cap locally |
Solar Renewable Energy Certificates (SRECs)
This is Maryland’s slow-and-steady incentive, and honestly, it’s a pretty clever one. Every time your system generates 1,000 kilowatt-hours, roughly once a month for an average home, you earn one SREC. Utilities are required by Maryland’s Renewable Portfolio Standard to buy a certain number of these each year, which creates real demand. Recent market prices for Maryland SRECs have ranged from about $50 to $80 per credit, with some sources reporting up to $90 depending on timing. Over the life of a system, an 8-kW installation can generate an estimated $3,000 to $4,000 in total SREC income. It’s not a lump sum. It’s more like a slow drip of passive income from your roof.
Net metering
Maryland utilities, including BGE, Pepco, Delmarva Power, and SMECO, credit solar customers at the full retail electricity rate for excess power sent back to the grid. That’s a meaningful benefit, since some states only offer wholesale-rate credit, which is considerably less generous. Under energy legislation passed by the Maryland General Assembly in April 2026, the current 1-to-1 net metering structure is set to sunset around July 1, 2027, or once the state hits its program capacity, whichever comes first.
Energy Storage Income Tax Credi
This one is trickier. It offered up to 30% back on battery installation costs, capped at $5,000 for residential systems. However, funding for this credit has been fully claimed in past cycles, and there’s no confirmed word on renewal. Don’t count on it unless your installer confirms current availability through the Maryland Energy Administration.
The Maryland Solar Access Program: Still Open or Closed
This is the one homeowners ask about most, and the honest answer is: it’s closing fast, if it isn’t already closed by the time you read this.
The Maryland Solar Access Program, sometimes referred to as MSAP, is an income-based grant for lower- and moderate-income households. It pays $750 per kilowatt of installed DC capacity, up to a maximum of $7,500. That’s a real chunk of change for a household that qualifies.
Eligibility is based on household income, not homeownership history or credit score. Under the Brighter Tomorrow Act of 2024, the cutoff is 150% of Maryland’s area median income, adjusted for household size. In the most recent published income table, that worked out to roughly $128,430 for a one-person household and $183,375 for a four-person household, though these figures update annually, so confirm the current-year table on the MEA’s MSAP page before applying.
But funding is limited, and it’s going fast. As of mid-April 2026, reports indicated that roughly 99% of MSAP funding was already reserved for approved projects. The application window was set to run through early June 2026, or until funds ran out, whichever came first.
Translation: if you’re reading this and you think you might qualify, don’t wait around to “think about it.” Contact the Maryland Energy Administration or an MEA-approved solar contractor directly to check real-time availability. Program funding for state solar grants tends to refill in future cycles, but there’s no official confirmation of a follow-up round yet. Treat current MSAP funding as essentially a closing window, not a standing offer.
What No Longer Applies
Let’s clear the deck of a few things that used to be part of the Maryland solar conversation but no longer apply in 2026.
- The federal 30% Residential Clean Energy Credit (Section 25D) for new installations. Expired after December 31, 2025.
- The flat $1,000 Residential Clean Energy Rebate, an older program some sources still reference. It officially concluded at the end of fiscal year 2025, around June 2025, and was succeeded by the income-based MSAP grant, which pays more per household but requires income eligibility.
- Unlimited Energy Storage Tax Credit funding. As mentioned above, this pool has been exhausted in recent cycles, with no confirmed refill.
If a contractor pitches you on any of these as a current, guaranteed incentive, ask for the source. A good installer will point you straight to the Maryland Energy Administration or DSIRE.org rather than getting vague about it.
How Much Maryland Solar Incentives Are Worth Right Now
Numbers help more than vibes, so here’s a rough picture for a typical Maryland home.
A 5-kW to 8-kW residential solar system in Maryland costs somewhere in the $17,000 to $24,000 range before incentives, depending on equipment and installer. Stack the still-active incentives against that:
- Sales tax exemption: roughly $1,500–$2,100 saved upfront
- SREC income over system lifetime: roughly $3,000–$4,000
- MSAP grant, if you qualify and funding remains: up to $7,500
- Property tax exemption: ongoing savings that grow with your home’s value
- Net metering: full retail-rate credit on excess power, which meaningfully shortens payback time
Combined, and assuming you qualify for MSAP, savings can land somewhere between $6,000 and $13,000 depending on system size and eligibility. Without the state grant, most homeowners are still looking at meaningful savings from the sales tax exemption, SRECs, and net metering alone.
Electricity rates in Maryland have also been climbing, up from around 13 cents per kWh in 2021 to roughly 16–18 cents in 2026 depending on your utility. That trend actually works in solar’s favor. The faster grid electricity gets more expensive, the faster a solar system pays for itself, regardless of what federal credits are or aren’t doing.
Typical payback periods for Maryland solar systems currently land somewhere between 8 and 13 years, depending on system size, financing, incentive eligibility, and local sun exposure. Systems generally last 25 to 30 years, so most of that lifespan is pure savings once the payback period ends.
FAQs
Is the federal solar tax credit completely gone for Maryland homeowners?
For residential systems, yes. The 30% federal credit under Section 25D ended for any solar spending made after December 31, 2025. Systems purchased and paid for in 2025 can still claim it on that year’s tax return.
Do I need to qualify by income to get any Maryland solar incentive?
Only for the Maryland Solar Access Program grant. Other incentives, including the sales tax exemption, property tax exemption, SRECs, and net metering, are available to Maryland homeowners regardless of income.
How do I sell my SRECs?
Most homeowners work through an SREC broker or aggregator, who registers your system, tracks your production, and handles the sale to utilities on your behalf. You typically don’t need to find buyers yourself.
Will Maryland add new solar incentives later in 2026?
Possibly. State energy policy has shifted multiple times in recent years, and there’s ongoing discussion of a “Bridge Fund” to help offset the loss of the federal credit. Nothing is confirmed yet, so check the Maryland Energy Administration’s website or DSIRE.org for the latest updates before making final decisions.
Is solar still worth it in Maryland without the federal tax credit?
For many homeowners, yes. Between the sales tax exemption, property tax exemption, SREC income, strong net metering rates, and rising utility prices, Maryland still ranks among the stronger states in the Mid-Atlantic for solar economics. The math is less dramatic than it was with the federal credit in play, but it hasn’t disappeared.
