Maryland Solar Incentives: 2025 Overview

Maryland’s Residential Clean Energy Grant Program, administered by the Maryland Energy Administration (MEA), provides financial incentives to homeowners that install solar water-heating systems or solar-electric (PV) systems. Increasing the amount of renewable energy is one of the State’s key policy goals. The Maryland Energy Administration is tasked with achieving the state’s Renewable Portfolio Standard (RPS). Currently, the RPS requires that 20% of energy sold in Maryland in 2022 come from qualified renewable energy resources, with 2% coming from qualified solar resources.Grants are allocated on a first come/first served basis across technologies and are subject to change in amount and existence based on funding availability. A home owner may receive awards that aggregate up to the maximum award per technology per fiscal year (from July 1 of any given year through June 30 of the next).

A taxpayer may claim a credit of 30% of qualified expenditures, after deducting incentives, with no upper limit for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the “placed in service” date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The excess credit may be carried forward until 2019, but it is unclear whether the unused tax credit can be carried forward after then.

A taxpayer may claim a credit of 26% of qualified expenditures, after deducting incentives, with no upper limit for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the “placed in service” date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The excess credit may be carried forward until 2019, but it is unclear whether the unused tax credit can be carried forward after then.

A taxpayer may claim a credit of 22% of qualified expenditures, after deducting incentives, with no upper limit for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the “placed in service” date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The excess credit may be carried forward until 2019, but it is unclear whether the unused tax credit can be carried forward after then.

Maryland’s Residential Clean Energy Grant Program, administered by the Maryland Energy Administration (MEA), provides financial incentives to homeowners that install solar water-heating systems or solar-electric (PV) systems. Increasing the amount of renewable energy is one of the Stateâ??s key policy goals. The Maryland Energy Administration is tasked with achieving the stateâ??s Renewable Portfolio Standard (RPS). Currently, the RPS requires that 20% of energy sold in Maryland in 2022 come from qualified renewable energy resources, with 2% coming from qualified solar resources.Grants are allocated on a first come/first served basis across technologies and are subject to change in amount and existence based on funding availability. A home owner may receive awards that aggregate up to the maximum award per technology per fiscal year (from July 1 of any given year through June 30 of the next).

A taxpayer may claim a credit of 30% for the installation which was between 2022-2032 (Systems installed on or before December 31, 2019 were also eligible for a 30% tax credit), with no upper limit for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the placed in service date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home.

Anne Arundel County offers a one-time credit from county property taxes on residential dwellings that use solar and geothermal energy equipment for heating and cooling, and solar energy equipment for water heating and electricity generation.