Maryland Solar Power: 2026 Costs, Incentives & Savings
Solar in Maryland
Maryland homeowners saw electricity prices climb 37% between 2020 and 2024 — and the state now ranks 10th in the nation for residential solar installations. It’s no surprise that more Marylanders are turning to solar to bring predictability and savings to their energy bills.
Whether you’re just starting to explore your options or ready to make the move, this guide to home solar panels covers everything you need to know about solar installation in Maryland — from how the process works to what you can expect to pay.
MARYLAND by the Numbers
- 10th Most residential solar in the United States
- 100k Households have installed solar panels
- 4.8 Average daily peak sun hours
- ~$93k Maryland average savings over 25 years
Maryland Solar Panel Cost
Wondering what solar actually costs in Maryland? This calculator uses real installation data from Palmetto customers across the state — from Baltimore to Bethesda, Annapolis to Frederick — to show you a personalized estimate. See both your estimated monthly lease payment through our LightReach program (no upfront cost required) and a cash purchase option side by side.
Lease Cash Purchase
- System Size: This system size is designed to offset approximately 100% of the average electricity usage for a home in Maryland.
- Recommended System: 10.25 kW Typical for your home size in MD
- Your Monthly Payment: Estimated monthly cost with LightReach: $124/mo
- Honestly as low as: $124/mo
Why Lease Solar?
Following the 2025 Big Beautiful Bill, the federal 30% solar tax credit is no longer available for cash purchases. With a LightReach lease, Palmetto owns the system and still qualifies for the commercial ITC — passing those savings through to you via lower monthly payments.
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Cost Breakdown
Your estimated investment:
- System Cost: $29,165
- Cost Per Watt: $2.85/W
- Final Cost: $29,165
Savings
Your total financial benefit:
- Monthly Savings: Average utility bill reduction: $212
- Payback Period: Break-even point: 10.0 years
- 25-Year Savings: $93,078
Palmetto Reviews
The process from beginning to the end of having our system installed was nothing but great! They answered all questions and were willing to update on everything that was going on during the process. It’s been a couple of months now since we’ve had the system installed and can tell a huge difference in our energy bill already.
- Zachery Umphrey - Lillington, North Carolina
- Van Guines - Richmond, Virginia: "I got my solar system a few months ago and have already seen a huge reduction in my power bill. Palmetto did a great job on my install and have been good to work with. I am looking forward to having no light bill at all one day as I reduce my carbon foot print. Solar is the new power source of the future and Palmetto Solar is the place to buy it."
- Darrell Martin - Beaver, Pennsylvania: "Palmetto Solar installed my solar panels and I have seen a significant energy cost decrease. To add to the review, the personnel I have worked with were amazing. They were informative, responsive, truly concerned about my experience, and answered all my questions throughout the entire process. If you are looking for Solar, I highly recommend Palmetto Solar."
Read More Reviews Calculate Your Savings
Key Takeaways
- Maryland electricity prices rose 37% since 2020, making solar a smart way to take control of your monthly energy costs.
- Leasing solar through Palmetto’s LightReach program means no upfront cost, no maintenance, and a 90% Production Guarantee.
- Maryland offers strong solar incentives — including rebates, tax exemptions, net metering, and SREC income — that can meaningfully reduce your costs.
Maryland Electricity Prices
Electricity in Maryland has gotten significantly more expensive — and that trend shows no signs of slowing down.
Maryland’s average residential electricity rate climbed from 13.1 cents per kWh in 2021 to 17.9 cents in 2024 — a 37% increase in just four years. That’s outpacing both inflation and the national average rate of 16.5 cents per kWh.
Solar panels help homeowners reduce how much electricity they draw from the grid. The more your system produces, the less you rely on utility rates that are largely outside your control.
With Palmetto’s LightReach program, homeowners can go solar with no upfront cost and a fixed monthly rate — so rising utility prices don’t have to be your problem. Palmetto owns, monitors, and maintains the system for you.
Price of Energy: Maryland vs National Average
| Year (2021-2024) | Maryland Rate | US Average |
|---|---|---|
| 2021 | 13.1¢ | 16.0¢ |
| 2022 | 13.7¢ | — |
| 2023 | 16.5¢ | — |
| 2024 | 17.9¢ | — |
Source: US Bureau of Labor Statistics, Energy Information Administration, Form 861
Maryland Area Utility Providers
Maryland’s electricity rates vary widely by utility. In 2023, rates ranged from 11.7¢ per kWh (Potomac Edison) to 18.4¢ (Delmarva Power), compared to a national average of 16.0¢ and a state average of 16.6¢.
- Delmarva Power: 18.4¢ (+15%)
- Pepco: 18.2¢ (+14%)
- BGE: 16.5¢ (~state average)
- SMECO: 14.1¢ (-12%)
- Potomac Edison: 11.7¢ (-27%)
The higher your rate, the more value each solar kilowatt-hour delivers. For many Maryland homeowners, Palmetto’s LightReach program — no upfront cost, with a 90% Production Guarantee and full maintenance included — makes solar a straightforward way to gain energy cost predictability.
Maryland Solar Incentives
Maryland offers a strong set of solar incentives in Maryland — from state rebates and tax exemptions to local county credits — that can meaningfully reduce the cost of going solar.
| Incentive | Type | Description | Source |
|---|---|---|---|
| Maryland Solar Access Program (MSAP) | Rebate | A state grant providing $750 per kilowatt of installed solar capacity, up to $7,500, for income-eligible Maryland homeowners. | Learn More |
| Maryland Solar Access Bridge Fund | Rebate | A 2026 state grant program designed to replace the financial value of the expired federal Residential Clean Energy Credit for qualifying Maryland homeowners who install solar. | Learn More |
| Maryland Residential and Commercial Energy Storage (RCES) Grant Program | Rebate | A state grant covering up to 30% of installed costs or $5,000 (residential) for grid-connected battery energy storage systems, replacing the former Maryland Energy Storage Income Tax Credit. | Learn More |
| Maryland Sales Tax Exemption for Solar Equipment | Sales Tax Exemption | Maryland exempts all solar energy equipment from the state’s 6% sales and use tax, reducing the upfront cost of a solar installation automatically at the point of sale. | Learn More |
| Maryland Property Tax Exemption for Solar Energy Equipment | Property Tax Exemption | Maryland provides a 100% statewide property tax exemption on the added home value from solar panel installations, so homeowners pay no additional property taxes after going solar. | Learn More |
| Maryland Net Metering Program | Net Metering | Maryland requires utilities to credit solar owners at the full retail electricity rate for excess power sent to the grid, with credits rolling over indefinitely and no forced annual cash-out. | Learn More |
| Maryland Solar Renewable Energy Certificates (SRECs) | SREC | Maryland solar owners earn one tradeable SREC for every megawatt-hour (MWh) of electricity their system generates, which can be sold to utilities for additional income. | Learn More |
| Maryland Community Solar Program | Rebate | Maryland’s permanent Community Solar Program allows renters, condo owners, and homeowners with unsuitable roofs to subscribe to a share of an off-site solar array and receive utility bill credits. | Learn More |
| Anne Arundel County Solar Property Tax Credit | Tax Credit | Anne Arundel County offers a one-time local property tax credit of up to $2,500 for residential solar energy system installations. | |
| Baltimore County Energy Conservation Devices Tax Credit | Tax Credit | Baltimore County provides a local property tax credit of up to $5,000 (or 50% of installation cost, whichever is less) for residential solar energy installations through its Energy Conservation Devices Tax Credit. | |
| Harford County Solar Property Tax Credit | Tax Credit | Harford County offers a property tax credit of up to $2,500 for residential and non-residential property owners who install solar energy systems for heating, cooling, water heating, or electricity generation. | |
| Prince George’s County Alternative Energy Tax Credit | Tax Credit | Prince George’s County offers a local tax credit of up to $5,000 for the installation of solar energy devices in residential structures. | |
| Montgomery County Green Bank Solar Financing | Rebate | The Montgomery County Green Bank offers low-interest solar loan financing, including 0% interest for the first 10 years for homes in Equity Emphasis Areas, making solar accessible to more county residents. |
Maryland Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Maryland’s mix of sunny summers, humid mid-Atlantic climate, and four distinct seasons creates varied solar production year-round — but don’t let cloudy winters fool you. A well-designed system still performs beautifully.
About the Data
This map shows average daily solar energy across Maryland based on historical data.
What Can the Average Maryland Solar System Power?
Summer Production (July)
- 48.1 kWh/day
In July, your 10 kW system could power:
- 3.6 average Maryland homes (15 kWh/day per home)
- or Run central AC for 18 hours AND power all other appliances
- or Fully charge 5.4 Tesla Model 3 electric vehicles
Winter Production (December)
- 24.8 kWh/day
In December, your 10 kW system could power:
- 2 average Maryland homes (15 kWh/day per home)
- or Keep your home heating system running for 15 hours
- or Fully charge 3 Tesla Model 3 electric vehicles
Annual Production
- 13930 kWh/year
Over a year, your 10 kW system could:
- Offset 10 tons of carbon dioxide emissions
- or Equal the environmental benefit of planting 175 trees
- or Save approximately $4,234 in electricity costs
Solar Installations in Maryland
We’ve mapped thousands of real solar installations across Maryland so you can see just how many of your neighbors have already made the switch. Explore the heatmap below to discover solar adoption in your community — from the suburbs of Baltimore to the shores of the Chesapeake. Your neighborhood might surprise you!
Go Solar with LightReach — No Upfront Cost
If you’re exploring solar in Maryland, a Power Purchase Agreement (PPA) is available through Palmetto’s LightReach program for customers of Baltimore Gas & Electric (BGE), Pepco, Potomac Edison, Delmarva Power, Southern Maryland Electric Cooperative (SMECO), and Choptank Electric Cooperative. With a PPA, you pay a set rate per kilowatt-hour (kWh) for the electricity your panels produce — rather than a fixed monthly amount.
Compared to paying cash upfront, a PPA through LightReach requires no upfront investment and no maintenance responsibilities. Since Palmetto Finance owns the system, we handle everything — from detailed solar mapping and design to permitting, installation, and ongoing maintenance — all at no cost to you. If your system doesn’t meet our 90% Production Guarantee, we’ll credit you the difference.
Frequently Asked Questions
Does Maryland have net metering?
Yes. Maryland requires all major utilities to credit residential solar customers at the full retail rate for excess power sent to the grid.
How much does it cost to go solar in Maryland?
With Palmetto’s LightReach lease, Maryland homeowners can go solar for as low as $124/month — with no upfront cost. Palmetto owns and maintains the system.
How does leasing solar work?
Palmetto’s LightReach is an all-inclusive solar lease program. One fixed monthly payment covers the system, installation, monitoring, maintenance, and a 90% Production Guarantee — with no upfront cost. For a typical 10.25 kW system in Maryland, the estimated monthly payment is approximately $124/month.
Do solar panels increase your home value in Maryland?
Yes — but only if you own the system outright, according to a Zillow study homes with solar panels sell for approximately 4.1% more than comparable homes without them.
Is solar worth it financially?
For most Maryland homeowners, solar can make strong financial sense — especially with electricity rates that have climbed 37% since 2020.