Maryland is one of the stronger mid-Atlantic markets for residential solar in 2026. Our model puts typical payback near ~11 years even without modeling SREC income — comparable to neighboring Virginia and New Jersey.
The math comes from a combination most states don't have all at once: ~17.5¢/kWh retail electricity, full 1:1 retail net metering on the four major utilities, a flat $1,000 upfront cash grant from the Maryland Energy Administration (paid at install, not a tax credit), a state sales tax exemption, a property tax exemption, and an active SREC market that adds real income we don't model.
There are two notable absences. Maryland has no state income tax credit for solar panels — the "$10,000 Maryland solar credit" you might see online doesn't exist for panels (it appears to be confusion with the battery credit). And Maryland's battery storage credit/grant is real but currently closed: the FY2026 funding is exhausted and the application portal is shut to new applicants. Don't budget for it on a 2026 purchase.
What changed
The federal Residential Clean Energy Credit (§25D) — the 30% homeowner credit — was repealed for systems installed after December 31, 2025. For 2026 Maryland buyers, the federal credit on a purchased system is $0. The same applies to home batteries purchased outright. The §48E commercial credit (30%) still exists, but only for leased or third-party-owned systems — the lessor claims it, not you. Full federal context here.
This is worth flagging in Maryland specifically: a lot of MD-focused solar coverage still cites a live "30% federal credit," including on batteries. Both are out of date for 2026 residential purchases. If a quote shows 30% federal on either side, the math is wrong.
VERIFIED 2026-06 · irs.govNet metering: full retail 1:1 on the four IOUs
Maryland law requires BGE, Pepco, Delmarva, and SMECO to offer full retail-rate 1:1 net metering for residential solar.
- Self-consumed solar offsets your full retail rate (~17.5¢/kWh).
- Exports are credited at the same retail rate, 1:1.
- Credits roll over month-to-month with an annual true-up.
- This calculator models the BGE / Pepco residential case. Delmarva (Eastern Shore) and SMECO (Southern MD) follow the same 1:1 rule at their own retail rates.
Retail ~17.5¢/kWh — the actual driver
Maryland residential electricity averages ~17.5¢/kWh statewide and has risen about 37% since 2021. BGE runs roughly 14–16¢, Pepco roughly 15–17¢. That's well above the US average (~14–15¢) and roughly in the same range as New Jersey (~26¢ is higher; MD is below NJ but above the Carolinas, AZ, FL).
Under 1:1 net metering, that ~17.5¢ rate is the value of every kWh your system produces — whether you use it directly or send it to the grid. That's most of why MD payback runs ~11 years despite no federal credit and no state income tax credit on panels.
VERIFIED 2026-06 · eia.gov$1,000 MEA Residential Clean Energy Rebate — upfront, not a tax credit
This is Maryland's main state-level solar incentive for panels, and the most important distinction to get right.
The Maryland Energy Administration (MEA) Residential Clean Energy Rebate is a flat $1,000 cash grant for qualifying residential solar installations. The structure matters:
- Upfront cash discount, not a tax credit. It reduces your installed cost directly at the time of install, not your tax bill later. You don't need state tax liability to use it.
- Flat $1,000. Doesn't scale with system size — a 5 kW system and a 10 kW system both get $1,000.
- Apply via MEA after install. Your installer or the MEA paperwork handles it.
In the calculator above, you'll see the rebate shown as a MEA Clean Energy Rebate (upfront) line item that reduces gross cost to your displayed net cost. This is what makes Maryland's structure different from states like South Carolina, New York, or New Mexico — those rely on percentage-based state income tax credits; Maryland uses a flat cash discount.
SRECs — an income stream we don't model
Maryland has an active SREC market (Solar Renewable Energy Credits). Your system earns one SREC per MWh of production, and you sell them through a broker — for example, SRECTrade.
- Current prices: roughly ~$40–90 per SREC, depending on the broker, contract, and market timing.
- Lifetime SREC value is typically in the ~$3,000–4,000 range for a residential system over the program horizon.
- We don't model SREC revenue in the calculator because prices are volatile and would go stale.
If you sell your SRECs through a broker after install, your real return will be better than the calculator shows — meaningfully better, on the order of several thousand dollars over the system lifetime. Verify the current SREC price with a broker before deciding on system size.
What Maryland doesn't have — and what its battery credit actually is
No state income tax credit for solar panels. Maryland's solar incentive for panels is the upfront MEA grant above, not a percentage of cost as a tax credit. If you see a "$10,000 Maryland solar credit" in a quote, that's confusion — it doesn't exist for panels.
Battery storage credit/grant — currently CLOSED. Maryland does have a real battery storage incentive on the books — 30% of battery cost, up to $5,000 (statute §10-719, now administered as the RCES grant program). It was a meaningful incentive when it ran.
As of June 2026 the FY2026 funding is exhausted and the application portal is closed to new applicants. Do not model this in your 2026 battery budget. It may reopen in a future fiscal year — check the Maryland Energy Administration before assuming any battery rebate dollars.
A separate but important point: this grant was always battery-only. It never covered solar panels.
Exemptions: 6% sales tax, property tax, plus county credits
Sales tax (6%). Maryland exempts solar equipment from the 6% state sales tax.
Property tax. The added home value from residential solar is exempt from Maryland property tax statewide.
Several counties stack additional local property tax credits. Anne Arundel, Baltimore, Montgomery, and others run their own local solar property tax credits on top of the statewide exemption. Amounts vary by county and we don't model them here. Ask your county assessor — these can add real value if you're in a participating jurisdiction.
Battery in Maryland
A home battery makes economic sense when the retail-export gap is large — you store solar that would have exported cheaply and use it instead of buying retail later. Under MD's 1:1 net metering, that gap is effectively zero, like Florida, Virginia, New Mexico, Colorado, Massachusetts, New Jersey, and New York legacy. On pure energy arbitrage, a battery in MD doesn't pay off.
Maryland's 30% / $5,000 RCES battery grant would materially change this — it's a strong battery incentive when funded. But its FY2026 funding is currently exhausted and the application portal is closed. Don't assume it. There's also no federal credit on the battery purchase in 2026 (§25D repealed for storage purchase).
If you want a battery in MD, the case is resilience (storms, grid outages), not export economics. Watch the RCES program status with the MEA — if FY2027 funding reopens and you qualify, the math changes meaningfully.
The honest picture
Maryland solar in 2026:
- Federal credit: $0. Not 30%. The "30% federal" still cited by some MD coverage — including on batteries — is repealed.
- No state income tax credit for solar panels. A "$10,000 MD solar credit" doesn't exist for panels.
- $1,000 MEA Residential Clean Energy Rebate: flat upfront cash discount at install. Modeled.
- Net metering: full retail 1:1 on BGE, Pepco, Delmarva, SMECO. Monthly rollover with annual true-up.
- Retail rate: ~17.5¢/kWh (BGE 14–16¢, Pepco 15–17¢), up ~37% since 2021.
- SREC market: ~$40–90 per SREC, lifetime ~$3,000–4,000. Not modeled. Your real return is likely better.
- Sales tax: 6% exempt.
- Property tax: statewide exemption on added value; several counties stack their own credits (Anne Arundel, Baltimore, Montgomery, etc.) — ask locally.
- Battery RCES grant (30% / $5,000): currently CLOSED. FY2026 funding exhausted, portal closed to new applicants. May reopen. Don't budget for it.
- Battery: weak on arbitrage (1:1 gap is ~0); RCES grant would change this when funded, but isn't right now. Resilience case only.
- Typical payback (no SREC): ~11 years. With SREC sold through a broker: meaningfully shorter.
Maryland's case for residential solar in 2026 is solid — a mid-Atlantic peer to Virginia and New Jersey, the two other strong neighbors. NJ runs a bit better because its SuSI ADI production payment is modeled directly and adds about $7k of lifetime income. MD's SREC income is comparable in scale but isn't modeled because of volatility, so the calculator number here is a floor, not the expected outcome. If MEA reopens the RCES battery grant in FY2027, the battery side of the math improves quickly.
Before you commit:
- Reject any quote that lists a "30% federal credit" — including on the battery. Repealed for 2026 purchases.
- Don't budget for a state income tax credit on panels. There isn't one.
- Don't budget for the $5,000 battery grant in 2026. Check the MEA before assuming it's available again.
- Confirm whether you're on BGE, Pepco, Delmarva, or SMECO — all 1:1, but at their own retail rates.
- Ask your installer about handling the $1,000 MEA grant paperwork after install — it should be part of their standard process.
- Ask your county assessor about local property tax credits stacking on top of the statewide exemption.
- Plan to sell SRECs through a broker like SRECTrade — that's the income the calculator doesn't show.
- Run the calculator with your actual ZIP and system size.
Estimates only — SREC prices and grant availability vary; battery grant funding may be exhausted. Verify with your utility, the MEA, and an SREC broker. This is not financial advice.