Baltimore, MD Solar: 2026 Costs, Incentives & Savings

Solar Power in Baltimore

If you live in Baltimore and have watched your electric bill climb, you’re not imagining it. Maryland’s residential electricity prices have increased 37% from 2020 to 2024, leaving many homeowners searching for a smarter, more stable way to power their homes.

Baltimore is part of a growing movement—Maryland ranks 10th in the nation for residential solar installations. Curious how it all works? Our guide to home solar panels is a great place to start.

MARYLAND by the Numbers

10thMost residential solar in the United States

100Households have installed solar panels

4.8Avg peak sun hours per day

~$93kBaltimore average savings over 25 years

How Much Do Solar Panels Cost in Baltimore, MD?

See what solar really costs in Baltimore. This calculator uses real installation data from homes across the area—including Towson, Dundalk, Catonsville, and Glen Burnie—so your estimate reflects actual local projects, not guesswork. Enter a few details to explore what solar could look like for your home.

LeaseCash Purchase

Small HomeUp to 2,000 sq ft

Medium Home2,000-3,000 sq ft

Large HomeOver 3,000 sq ft

System Size

This system size is designed to offset approximately 100% of the average electricity usage for a home of this size in Maryland.

Recommended

System

10.25 kW

Your Monthly Payment

Estimated monthly cost with LightReach

$124/mo

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

Price per Watt

$2.85

Final

Cost

$29,165

Savings

Your total financial benefit

Monthly Savings

Average utility bill reduction

$213

Payback Period

Break-even point

9.8 years

25-Year

Savings

$93,079

Get Your Personalized Quote

Based on Palmetto Solar installations in Maryland. Current electricity rate: 17.9¢/kWh. Assumes 100% credit of retail rate.

Palmetto Reviews

I resisted going solar for years because of the cost of installation that many quoted when they came to my door. Someone finally came to my door from Palmetto and offered a solar plan that didn’t cost me a penny to install the solar at all. They looked at my power bill and told me how many panels they would install and that they would only bill me $83 a month. My wife and I did the math, and we said okay. After everything was installed and up and running, they sent me an email that said my monthly bill would only be $63 a month instead of the $83. I said, “Great”. Through the entire process they notified me of everything that was happening from them getting permits from the city, to installers coming out, etc. So far I’m very pleased with their service and the money I’m saving.

Steve Shaw
Maryland, Maryland

Palmetto Solar is a fantastic solar company to work with. They provide great communication every step of the way. Customer service is excellent! Keeping their customers fully informed of just how simple the solar install and payment set up is, plus keeping my expectations of the process very simple. They are available to speak to, which makes it easy to understand how things work once all is completed. I highly recommend Palmetto Solar.

Maria Margaritis
Virginia, Virginia

Made the right choice by selecting Palmetto Solar as a company to provide solar systems at my home. Since then my electric bill has completely gone down, saving me a lot of $$$. Thank you Palmetto for the great work your team did.

Ed Gar
Pennsylvania, Pennsylvania

Key Takeaways

• Baltimore electricity prices jumped 37% from 2020 to 2024, so generating your own solar power gives you more predictable, stable energy costs for years to come.
• Maryland’s state and local incentives make solar more affordable, including rebates, sales and property tax exemptions, and a new Bridge Fund replacing the expired federal credit.
• You can go solar with no upfront cost through a LightReach lease, where Palmetto owns and maintains the system while you enjoy lower monthly payments.

Baltimore Electricity Prices

If you live in Baltimore and feel like your electric bill keeps climbing, you’re not imagining it. The numbers back you up.

Maryland’s residential electricity prices rose from 13.1 cents per kWh in 2021 to 17.9 cents in 2024—a 37% jump. Maryland now sits above the U.S. average of 16.5 cents.

Solar installation in Baltimore offers a way to gain more control over these rising costs. By generating your own power, you rely less on the grid and shield yourself from unpredictable rate increases each year.

Over time, solar can bring more stability to what Baltimore homeowners spend on energy. As utility rates keep climbing, producing your own electricity helps make your monthly costs more predictable for years to come.

Price of Energy: Maryland vs National Average

0¢

10¢

20¢

30¢

13.7¢

13.1¢

15.0¢

14.5¢

16.0¢

16.6¢

16.5¢

17.9¢

2021
2022
2023
2024
US Average
Maryland

Baltimore Area Utility Providers

If you’re considering solar installation in Baltimore, it helps to know your electricity costs. Baltimore Gas and Electric (BGE) is the area’s main utility, charging about 16.5¢ per kWh in 2023—just above the national average of 16.0¢.

BGE’s rates sit close to Maryland’s 2023 state average of 16.6¢ per kWh. Grid upgrades, weather-driven demand, and regional supply costs all push local prices slightly higher than the national average.

With rates trending above the national average, many Baltimore homeowners look to solar panel installation for more predictable energy costs. Producing your own power can reduce how much electricity you buy from BGE each month.

Baltimore Utilities Electricity Rates

BGE

16.50¢

+3%

MD Average

16.60¢

+4%

US Average

16.0¢

—

Maryland Solar Incentives

Going solar in Baltimore is more affordable thanks to a range of solar incentives in Maryland that help offset your upfront installation costs.

These programs come in a few forms. State rebates like the Maryland Solar Access Program offer direct grants, while sales and property tax exemptions lower your costs automatically. Local tax credits add even more savings for county residents.

Maryland Solar Access Program (MSAP)

The Maryland Solar Access Program (MSAP), established under the Brighter Tomorrow Act of 2024, provides grants of $750 per kilowatt (kW) of installed DC solar capacity, up to a maximum of $7,500. For a typical 6–10 kW residential system, this translates to $4,500–$7,500 in direct grant funding. A total of $2,000,000 is available for FY 2026 through the Strategic Energy Investment Fund (SEIF), awarded on a first-come, first-served basis.

To be eligible, your home must be owner-occupied and used as your primary residence, and your household income must be at or below 150% of the Area Median Income (AMI). Installations must be performed by an MEA-approved contractor from the program’s participating contractor list. The application process is two-step: first submit an initial application to reserve funds, then confirm your system is fully installed and operational within 180 days of fund reservation.
Important status note: As of April 15, 2026, approximately 99% of MSAP funding has already been reserved. The application window closes on June 5, 2026, or when funds are exhausted — whichever comes first. Prospective applicants in Baltimore should check the MEA website immediately for current availability and watch for the FY 2027 program launch.

Maryland Solar Access Bridge Fund

The Maryland Solar Access Bridge Fund was created in 2026 to address the financial gap left by the early phase-out of the federal Residential Clean Energy Credit (Section 25D). With the federal solar tax credit no longer available for residential systems placed in service in 2026, this state grant approximates the value of that expired credit, helping to keep residential solar financially viable for Baltimore homeowners. Up to $7,800,000 in total funding is anticipated to be available through the Strategic Energy Investment Fund (SEIF).

Only households may apply directly — contractors may not apply on behalf of a household. This ensures the benefit flows directly to the homeowner. Applications are accepted on a first-come, first-served basis, and the deadline is May 31, 2026, or until budgeted funding is exhausted, whichever comes first.

Maryland Residential and Commercial Energy Storage (RCES) Grant Program

Launched in Fiscal Year 2026, the Maryland Residential and Commercial Energy Storage (RCES) Grant Program replaces the now-ended Maryland Energy Storage Income Tax Credit Program. It provides grants to support the installation of grid-connected battery energy storage systems (BESS) for both residential and commercial property owners. Residential applicants can receive the lesser of 30% of installed costs or $5,000, while commercial applicants may receive up to $150,000. A total of $2,000,000 is available for FY 2026 through the Strategic Energy Investment Fund (SEIF).

Important status note: As of mid-2026, total funding requests have exceeded the full FY 2026 program budget of $2,000,000, and the application portal is currently closed to new applicants. However, the FY 2027 program is anticipated to launch in summer 2026. Homeowners in Baltimore interested in this grant should monitor the MEA website for updates or contact the Energy Storage Team at EnergyStorage.MEA@Maryland.gov.

Maryland Sales Tax Exemption for Solar Equipment

Maryland law exempts solar energy equipment from the state’s 6% sales and use tax. This exemption applies to solar panels, inverters, racking, monitoring systems, and all associated hardware purchased for a residential solar installation. For the average Maryland solar system priced around $33,700, this exemption saves homeowners approximately $2,000–$2,100 right off the top.

One of the best features of this exemption is its simplicity: no application or paperwork is required. The savings are applied automatically at the point of sale by your solar installer or equipment supplier. There is no income limit, no program deadline, and no cap on the system size that qualifies.

This is a permanent, statewide exemption that applies to all Maryland residents, including homeowners in Baltimore, purchasing solar equipment, making it one of the most universally accessible solar incentives in the state. It effectively lowers the baseline cost of going solar for every Maryland homeowner, regardless of income or location.

Maryland Property Tax Exemption for Solar Energy Equipment

Under Maryland Tax-Property Article § 7-240, the added value that a solar energy system contributes to your home is fully exempt from state and local property tax assessments. This means that even though solar panels can increase your home’s market value by tens of thousands of dollars, your annual property tax bill will not increase as a result. The exemption covers solar panels, inverters, racking, monitoring systems, and all associated hardware.

This is a mandatory, statewide exemption — it applies in every Maryland county and municipality, including Baltimore, and you do not need to file a separate application to claim it. The exemption is built into state law and is automatically applied by the Maryland Department of Assessments and Taxation. Eligible technologies include solar PV panels, solar water heaters, and solar thermal electric systems.

For a typical Maryland solar installation, this exemption saves homeowners an estimated $160–$240 per year in property taxes, depending on your county’s effective tax rate. Over a 25-year system lifespan, that adds up to $4,000–$6,000 in cumulative savings — making this one of the most valuable long-term solar incentives in the state.

Baltimore Solar Irradiance

Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Understanding how seasons affect your solar system helps set realistic expectations for your investment.

Baltimore’s humid summers, snowy winters, and mix of sunny and cloudy days all shape solar production. Even with seasonal changes, the right system captures plenty of energy year-round here.

Solar Production in Baltimore by Month

System Size:5 kW7 kW10 kW

Daylight Hours

Energy Production (kWh/day)

What Can Your Solar System Power?

Summer Production (July)

48.1 kWh/day

In July, your 10 kW system could power:

• 3.2 average homes (15 kWh/day per home)
• or Run central AC for 16 hours AND power all other appliances
• or Fully charge 4.8 Tesla Model 3 electric vehicles

Winter Production (December)

24.8 kWh/day

In December, your 10 kW system could power:

• 1.7 average homes (15 kWh/day per home)
• or Keep your home heating system running for 12 hours
• or Fully charge 2.5 Tesla Model 3 electric vehicles

Annual Production

13,930 kWh/year

Over a year, your 10 kW system could:

• Offset 10 tons of carbon dioxide emissions
• or Equal the environmental benefit of planting 167 trees

Solar Panel Systems in Baltimore

We mapped solar installations across Baltimore to show how many neighbors have made the switch. Explore the interactive heatmap below—click any hexagon to see how many homes in that area have gone solar. Discover the growing solar communities right here in your Baltimore neighborhood.

Solar Customers

304-3889

70-303

19-69

1-18

Leasing Solar Panels

Good news for Baltimore homeowners: a LightReach Power Purchase Agreement (PPA) is available through Baltimore Gas & Electric (BG&E). With a PPA, you skip the upfront cost and simply pay a set price for each kilowatt-hour your panels produce.

A PPA works a little differently than a lease. Instead of a fixed monthly bill, you pay per kWh, so your solar costs rise in sunny summer months and drop in winter. Over a full year, the savings usually even out to about the same as a lease.

Compared to paying cash, a PPA means no big investment and no maintenance worries—Palmetto owns and cares for the system. Want to weigh your choices? Our guide to buying or leasing solar can help.

Go solar without the investment

With LightReach, there are no investment costs to recoup, loan payments to manage, or maintenance needs to take on. As soon as your panels are active, your solar savings are too!

Frequently Asked Questions

Does Baltimore, MD have net metering?
Yes. Baltimore homes served by Baltimore Gas & Electric (BG&E) can take advantage of 1:1 net metering. This means the excess electricity your solar panels send to the grid earns credits at the full retail rate, helping offset the power you use when your system isn’t producing.

Any unused credits carry over month to month on a per-kWh basis. Each May, remaining credits are trued-up at a variable rate (about $0.05–$0.07/kWh), and your account resets to zero. Note that BG&E’s three time-of-use rate schedules are not eligible for net metering.

Do solar panels increase your home value in Baltimore, MD?
Yes, owned or purchased solar panels can increase your Baltimore home’s value. A Zillow study found homes with solar sell for about 4.1% more. In Maryland, that added value is also exempt from property tax.

This applies to systems you own, not leased or PPA systems like LightReach. With a lease, a buyer may need to assume the existing agreement, so resale works differently rather than adding direct value.

How much does it cost to go solar in Baltimore, MD?
Many Baltimore homeowners go solar with a LightReach lease, which requires no upfront cost. You pay one low, fixed monthly payment—starting around $124/mo for a medium home—while Palmetto owns and maintains the system.

If you prefer to buy, a cash purchase for a typical Baltimore home runs about $29,000. Note that the federal 30% tax credit is no longer available for residential cash purchases after the 2025 law change. See the calculator above for pricing by home size.

How does leasing solar work and what’s the approximate cost in Baltimore, MD?
With a LightReach solar lease from Palmetto, you pay no upfront cost. One simple monthly payment covers the panels, installation, monitoring, maintenance, and a protection program with a 90% Production Guarantee. In Baltimore, a typical 10.25 kW system runs about $124/month.

Because Palmetto owns the system, it claims the commercial 30% tax credit and passes those savings to you through lower payments. Since your lease is often less than your current electric bill, you can start saving from day one.

Does solar make sense in Baltimore, MD?
Yes, solar often makes sense in Baltimore. Maryland electricity prices climbed 37% from 2020 to 2024, so generating your own power adds stability. With 4.8 peak sun hours per day and state incentives like sales and property tax exemptions, homeowners can see meaningful savings over time.

Cost doesn’t have to be a barrier. Palmetto’s LightReach lease lets you go solar with no money down, so you can start saving from day one while Palmetto owns and maintains the system.

What’s the best solar company in Baltimore, MD?
At Palmetto, we combine national scale with a local focus, and we’ve completed 2,377 installations across Maryland since 2020. Baltimore homeowners work with our vetted local install network, backed by strong support and clear communication at every step.

We also offer some of the industry’s best financing options, including no-upfront-cost leasing through LightReach. To see if solar fits your Baltimore home, compare installers on experience, warranties, reviews, and financing before deciding.

Is solar worth it financially?
For many Baltimore homeowners, solar can be worth it because it replaces a rising utility bill with more predictable energy costs. With Maryland electricity prices up 37% from 2020 to 2024, generating your own power adds long-term stability.