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Why Maryland pushes solar hard
Maryland wants clean energy. The state has aggressive climate goals. Solar power is a big part of the plan.
The Maryland Energy Administration runs most incentive programs. Funding comes from the Strategic Energy Investment Fund. Each year, the agency launches new grant rounds. Fiscal year 2026 includes several programs for homes, businesses, nonprofits, and communities.
This guide breaks down every major maryland solar incentive available right now.
Residential solar incentives for homeowners
If you own a home in Maryland, several programs help pay for solar panels.
Maryland Solar Access Program
This program helps low to moderate income homeowners install solar. The Maryland Energy Administration launched this program to make solar affordable for families who cannot pay upfront. Full income requirements are published with each funding announcement. The program targets residents who meet certain household income limits.
Residential Energy Equity Program (Solar AOI2)
This program gives grants to local governments and nonprofits. Those organizations then install solar on eligible homes. The homes must be owner occupied and the resident’s primary residence.
Key details for the solar portion:
- System size between 3 kW and 15 kW DC
- System must provide 95% or less of the home’s annual electric needs
- Roof mounted or ground mounted systems both qualify
- Home must have received weatherization work within the last 5 years
The home must receive weatherization before or within six months of solar installation. A certified energy auditor does the weatherization work.
Income limits for residential programs
To qualify for income based programs, your household must fall under these limits. The limits are based on 80% of state median income.
- 1 person household: $72,950
- 2 person household: $83,400
- 3 person household: $93,800
- 4 person household: $104,200
- 5 person household: $112,550
- 6 person household: $120,900
- 7 person household: $129,250
- 8 person household: $137,550
Each additional person adds $13,750.
Commercial solar incentives for businesses and nonprofits
Businesses, nonprofits, and other organizations have their own Maryland solar incentive programs.
FY26 Commercial and Canopy Solar Program
This program combines two older programs into one. It offers grants for rooftop solar, ground mounted solar, and solar canopies over parking or water.
The program has two tracks.
Track 1 serves small businesses, nonprofits, and veteran owned businesses. These applicants get higher rates. Non canopy systems receive $2,000 per kW DC or 90% of project cost, whichever is lower. Canopy systems receive $2,500 per kW DC or 90% of project cost.
Track 2 serves other businesses and organizations. Non canopy systems receive $1,700 per kW DC or 75% of project cost. Canopy systems receive $2,125 per kW DC or 75% of project cost.
Third party owned systems like leases or power purchase agreements also qualify. The rates are lower. Non canopy systems get $750 per kW DC. Canopy systems get $1,000 per kW DC.
Important limits:
- Maximum grant per property owner is $500,000
- Projects must be in low to moderate income or overburdened communities
- Canopy projects must meet EV ready standards
The application deadline for FY26 was February 11, 2026. Future rounds will open. Check the Maryland Energy Administration website for updates.
Eligible facilities under the commercial program
Many facility types qualify if located in an eligible area:
- Multi family dwellings with rent protections for two years
- Nonprofit facilities serving low income communities
- Hospitals and medical facilities
- Home offices owned by eligible residents
- Owner occupied agricultural businesses
- Retail businesses, warehouses, and hotels
All commercial facilities must agree to enable community resiliency during power outages. This means the solar system can provide backup power in emergencies.
Community solar for renters and non homeowners
Not everyone owns a roof. Community solar solves this problem.
Community Solar Low to Moderate Income Grant Program
The state awarded $17 million in grants for community solar projects. These projects serve income qualified Marylanders who rent or cannot install solar on their own property.
How community solar works. A large solar array is built on a landfill, brownfield, or other site. Households subscribe to a portion of the power. They receive credits on their electric bills.
For projects on landfills or brownfields, half the energy goes free to low income households. The other half comes at a 25% discount from the utility rate.
For projects not on landfills, 15% of the electricity goes to low income subscribers. Those subscribers save at least 12% on their bills. Many save over 20%.
Grant amounts range from 50,000to1 million for standard projects. Landfill or brownfield projects can receive up to $6 million.
Property tax incentives for nonresidential solar
Maryland offers a local option property tax credit for certain nonresidential solar projects.
The credit applies to solar systems built on:
- Brownfields
- Water retention ponds
- Quarries designated for industrial use
This is a local option program. Each county decides whether to offer the credit. Each county sets the credit amount and duration. Baltimore city has its own jurisdiction and can also offer the credit.
Check with your local county government to see if this credit exists where you plan to build.
The federal investment tax credit still applies
All maryland solar incentives work alongside the federal Investment Tax Credit. The federal credit covers 30% of your system cost. This credit applies to residential and commercial systems.
The 30% rate stays through 2032. It drops in 2033 and 2034 before expiring. The credit is not refundable but can carry forward to future tax years.
If you receive a state grant, the federal credit applies to the remaining cost after the grant. For commercial grants, you must notify the Maryland Energy Administration if you claim the federal credit. The state grant amount gets recalculated to avoid double reimbursement.
Energy storage incentives
Maryland had an energy storage income tax credit. It covered 30% of installation costs. Residential systems capped at $5,000. Commercial systems capped at $150,000.
That credit ended with tax year 2024. It is no longer available.
However, the Maryland Energy Storage System Grant Program launched in fiscal year 2026. This program replaces the old tax credit. It supports energy storage installations for homeowners, commercial organizations, and nonprofits. The program launched in summer 2025. Check the Maryland Energy Administration website for current funding opportunities.
What is not available anymore
Some old programs have ended or changed.
The Residential Clean Energy Rebate Program ended in late 2024. The Maryland Solar Access Program replaced it for low to moderate income homeowners.
The standalone Solar Energy Grant Program is no longer active. The Maryland Energy Administration does not currently award grants under that older program.
The Energy Storage Income Tax Credit ended with tax year 2024. The new grant program replaced it.
Upcoming legislation to watch
Two bills moving through the Maryland General Assembly could affect solar incentives.
SB 341 – Affordable Solar Act
This bill alters the renewable energy portfolio standard. It requires electric companies to purchase certain numbers of Solar Renewable Energy Credits. The bill would take effect October 1, 2026.
SB 683 – Solar Siting and Preservation Credit Act
This bill changes where solar can be built. It allows counties to count certain solar projects toward acreage limits in priority preservation areas. The bill also limits large ground mounted solar in residential zones. It would take effect October 1, 2026.
How to find and apply for incentives
The Maryland Energy Administration runs most programs. Each program has its own funding announcement. Deadlines vary.
Check these sources regularly.
The Maryland Energy Administration website lists all active programs. Subscribe to their email updates. Follow their social media for announcements.
For the federal tax credit, consult a tax professional. The credit applies when you file your federal taxes.
For local property tax credits, call your county tax assessor’s office.
FAQs
1. Does Maryland offer free solar panels for low income homeowners?
Maryland does not give away free panels directly. But the Residential Energy Equity Program gives grants to nonprofits and local governments. Those groups install solar on eligible homes at no cost to the resident. The Maryland Solar Access Program also helps low income homeowners afford solar.
2. Can I combine state grants with the federal tax credit?
Yes. The federal Investment Tax Credit applies to your system cost. State grants reduce your out of pocket cost. The federal credit applies to what you actually pay. For commercial grants, tell the state if you claim the federal credit. Your grant amount may be recalculated.
3. I rent my home. Can I get solar incentives?
You cannot install solar on a roof you do not own. But community solar works for renters. You subscribe to a share of a larger solar array. You receive credits on your electric bill. Low income renters can access discounted or free community solar through state grants.
4. What is the deadline to apply for commercial solar grants?
The FY26 Commercial and Canopy Solar Program deadline was February 11, 2026. New funding rounds open each fiscal year. Check the Maryland Energy Administration website for the next announcement. Apply early. These programs operate on a first come, first served basis.
5. Do I need a special contractor to qualify for incentives?
For residential programs, a certified professional must handle the work. The Residential Energy Equity Program requires a NABCEP certified PV Installation Professional for solar design and installation. For weatherization, a Building Performance Institute certified energy auditor must perform the audit. Always ask your contractor about their certifications before signing anything.
Summary
Maryland offers many solar incentives in 2026. Homeowners can access the Maryland Solar Access Program and Residential Energy Equity Program. Businesses qualify for the Commercial Solar Grant Program. Community solar serves renters and low income households. Property tax credits exist for certain nonresidential projects. The federal tax credit is still available. This guide covers each program, who qualifies, and how to apply.
