04 Aug Maryland Solar Incentives and Rebates
Maryland’s Solar Photovoltaic Incentives and Rebates Make Going Solar Easy
Thanks to Maryland’s considerate solar photovoltaic rebates, installing some panels on the roof is easier than picking a few famous blue crabs in the state. Learn why in the beautiful state of Maryland, the plummeting cost of solar power has complemented excessive solar incentives.
Residential Clean Energy Grant Program of Maryland
This Maryland solar rebate program is very simple: if you install a solar photovoltaic system, Maryland will pay you $1,000. It’s that simple. Just make sure that your system is less than 20 kilowatts (kW), is in your primary residence, and your installer has the standard NABCEP certification.
Solar Renewable Energy Certificates (SREC) of Maryland
Maryland had established a renewable energy portfolio standard goal that 2.5% of its electricity will come from solar resources by 2020. Under this plan, they will award a Maryland SREC for every megawatt hour (MWh) of clean electricity produced by your panels, and you can then sell this electricity on the SREC market.
Net Metering of Maryland
Thanks to Net Metering policy of Maryland, for the extra electricity generated by the solar photovoltaic panels, you will get a full credit for the utility bill. When the amount of electricity you generate exceeds, the amount used, you can “bank” it with the utility, and then use it when the amount of electricity you need exceeds the amount of electricity generated by the panel. Pepco (Potomac Power Company) provides Maryland’s top utility network metering program.
Maryland Solar Photovoltaic Tax Benefits
As if the grant and credits previously explained were not enough, Maryland also compensates you a few tax breaks so you do not have to distress about your tax bills going up because of going solar. Thanks to the Property Tax Exemption for Solar and Wind Energy System, you will not have to pay any extra taxes on the raised value of your residence when you go solar in Maryland. The Sales and Tax Exemption for Renewable Energy Equipment makes your acquisition of your new solar photovoltaic energy system tax-free.
As if the above grants and credits are not enough, Maryland also provides you with some tax relief, so you don’t have to worry about increasing taxes and fees because of the use of solar photovoltaic energy. Because of the Property Tax Exemption for Solar and Wind Energy Systems, when you use solar energy in Maryland, you do not need to pay any additional taxes on the increased home value. Tax exemption for the sale and use of renewable energy equipment makes your purchase of a new solar photovoltaic system tax Free.
The Federal Solar Tax Credit of Maryland
Don’t forget the federal solar incentives! You can reduce the cost of photovoltaic solar systems by 26%. Keep in mind that Solar Investment Tax Credit (ITC) is only available to people who purchase photovoltaic systems directly (through cash purchases or solar loans), and you must have enough income to receive a meaningful tax credit.
Using the Federal Investment Tax Credit (ITC), you can claim up to 26% of the cost of solar photovoltaic as a federal tax credit. For most homeowners, ITC can help reduce battery costs by an additional $3,000 to $4,000.
Importantly, independent storage is currently not eligible for this tax credit: to apply for this incentive for the purchase of household batteries, you need to use on-site renewable energy (such as rooftop solar) to charge the batteries. If you have a residential solar panel system and you use electricity from the grid to charge the battery, you cannot use this credit.
Energy Storage Tax Credit of Maryland
Maryland is one of the few states in the United States that presently supports statewide backup storage tax credits for residential and business individuals who buy energy storage systems.
As a Maryland taxpayer, you can claim up to 30% of the energy storage system cost as a state income tax credit. This state’s credit limit for residential systems is about US$5,000, which is adequate to cover about one-third of the average cost of household battery systems. Commercial properties that install larger storage systems can receive up to $150,000 in credits.
Funding for this award is limited. Maryland can provide up to $750,000 in tax credits per year, and they grant these credits to eligible participants on a first-come, first-served basis.
Use self-generated solar energy to charge the batter? If so, you can save even more taxes because of the Federal Investment Tax Credit (ITC).