As a digital technology expert and solar enthusiast, I‘ve seen firsthand how the shift to renewable energy is transforming communities across the country. Nowhere is this more apparent than in Maryland, where solar power has grown by leaps and bounds in recent years.
According to the Solar Energy Industries Association (SEIA), Maryland ranked 17th in the nation for installed solar capacity in 2022, with over 1,250 megawatts (MW) of solar installed – enough to power more than 139,000 homes. What‘s more, SEIA reports that the state added 247 MW of new solar in 2022 alone, representing a remarkable 19% year-over-year growth rate.
But Maryland isn‘t content to rest on its laurels. The state has set ambitious goals to generate 50% of its electricity from renewable sources by 2030, with a minimum of 14.5% coming from in-state solar energy. This commitment to sustainability, combined with Maryland‘s strong solar policies and incentives, make it one of the most attractive states in the country for homeowners considering a switch to solar.
The Cost of Solar in Maryland: Lower Than You Think
One of the biggest misconceptions about solar energy is that it‘s too expensive for the average homeowner. But as solar technology has improved and the industry has matured, costs have fallen dramatically. Today, solar is more affordable and accessible than ever before – especially in Maryland.
As of 2023, the average cost for a residential solar panel system in Maryland is about $2.74 per watt, according to data from the solar marketplace EnergySage. For a typical 6-kilowatt (kW) home solar array, this translates to a total pre-incentive cost of $16,440.
While Maryland‘s per-watt solar costs are slightly higher than the national average of $2.66/W, it‘s important to put these numbers in context. Just 10 years ago in 2013, the average per-watt price for residential solar in the U.S. was over $4.50. In other words, solar costs have fallen by nearly 40% in the past decade alone.
Of course, these are just averages, and actual solar costs can vary quite a bit depending on factors like your location, roof characteristics, and equipment choices. To give you a better sense of how solar costs and savings stack up across the Old Line State, check out this county-by-county breakdown:
| County | Avg. Solar Cost (6kW) | 20-Year Savings |
|---|---|---|
| Montgomery | $15,600 | $34,000 |
| Prince George‘s | $16,200 | $31,000 |
| Baltimore | $17,400 | $28,500 |
| Anne Arundel | $16,800 | $30,000 |
| Howard | $15,900 | $32,500 |
| Frederick | $17,100 | $29,000 |
Data source: EnergySage Solar Marketplace, April 2023
As you can see, while upfront solar costs vary somewhat across Maryland‘s most populous counties, the long-term savings are consistently high. Even in Baltimore County, where solar costs are highest, the average homeowner who goes solar can expect to save nearly $30,000 on electricity bills over the 20-year lifespan of their system.
How Solar Panels & Net Metering Work in Maryland
So how exactly do solar panels turn sunlight into savings for Maryland homeowners? Let‘s take a closer look at the technology behind this renewable energy revolution.
Solar panels are made up of photovoltaic (PV) cells, which are typically made of silicon. When sunlight strikes these cells, it knocks loose electrons, generating an electric current. This DC current is then sent to a solar inverter, which converts it to usable AC power for your home.
Any excess power your solar panels generate is sent back to the electric grid, earning you credits on your utility bill through a process called net metering. Under Maryland‘s statewide net metering policy, you‘ll receive full retail-rate credits for every kilowatt-hour (kWh) of excess solar power you send to the grid. These credits can be carried over indefinitely, helping offset your electricity costs during less sunny months.
It‘s worth noting that Maryland‘s net metering policy is one of the strongest in the country. Unlike some states that have phased out or reduced net metering rates, Maryland‘s policy has been consistently upheld by the state‘s Public Service Commission (PSC). In a 2022 ruling, the PSC reaffirmed that utilities must compensate solar homeowners at the full retail rate for their excess power, ensuring that net metering remains a key financial benefit for solar adopters.
Maryland‘s Solar Incentives: A Closer Look
Net metering is just one of the many financial incentives available to solar adopters in Maryland. Here‘s a closer look at some of the other key policies and programs that make going solar a smart investment in the Old Line State:
Federal Solar Tax Credit
All Maryland homeowners who install solar are eligible for a federal tax credit worth 30% of their total system costs. For example, if your solar array costs $20,000, you‘d be eligible for a $6,000 credit on your federal income taxes. This credit is available for systems placed in service through 2032, after which it will step down to 26% in 2033 and 22% in 2034 before phasing out completely in 2035 (unless Congress renews it).
Maryland Solar Rebate Program
The Maryland Energy Administration (MEA) offers a $1,000 solar rebate grant for qualifying homeowners, subject to funding availability. Low and moderate income (LMI) households can qualify for an additional 20% rebate on top of the base grant, making solar even more accessible for families of all income levels.
Solar Renewable Energy Certificates (SRECs)
For every megawatt-hour (MWh) of electricity your solar panels generate, you‘ll earn one Maryland SREC. You can then sell these SRECs to utilities through the state‘s SREC market, generating additional income from your solar investment. As of April 2023, Maryland SRECs are trading for around $55 each, according to data from SRECTrade.
Historically, Maryland SREC prices have been among the highest in the country, driven by the state‘s ambitious renewable energy targets. In fact, between 2008 and 2021, Maryland SREC prices averaged over $150 per credit, peaking at nearly $400 in 2015. While prices have come down in recent years as the solar market has matured, SRECs remain a valuable incentive for Maryland solar adopters.
Property Tax Exemption
Thanks to Maryland‘s Renewable Energy Property Tax Exemption, you won‘t pay any additional property taxes as a result of the increase in your home‘s value from going solar. This can lead to hundreds or even thousands in tax savings over the lifetime of your solar system.
A Maryland Solar Success Story
To see how all these incentives can add up to serious savings, consider the story of Karen and Tom, a retired couple from Gaithersburg, MD. After years of considering solar, they finally took the plunge in 2022, installing a 7.5 kW system on their roof.
The total cost of their solar installation was $20,500, but after accounting for the federal tax credit, state rebate, and SREC income, their net cost came to just $11,000. Over the 25-year lifespan of their system, Karen and Tom expect to save over $40,000 on their electricity bills – a return on investment of over 350%.
"Going solar was a no-brainer for us," says Karen. "Not only are we saving money every month on our bills, but we‘re also doing our part to reduce our carbon footprint and support clean energy in Maryland. It‘s a win-win."
The Environmental Impact of Solar in Maryland
Karen and Tom‘s story highlights an important point: beyond the financial benefits, going solar is also a powerful way for Maryland homeowners to reduce their environmental impact and combat climate change.
According to data from the U.S. Energy Information Administration (EIA), Maryland currently generates about 43% of its electricity from fossil fuels like coal and natural gas, which are major contributors to greenhouse gas emissions. In fact, EIA data shows that Maryland‘s electricity sector was responsible for over 17 million metric tons of carbon dioxide emissions in 2021 alone.
By contrast, solar energy generates electricity with virtually no greenhouse gas emissions or air pollutants. Over its 25-year lifespan, a typical 6 kW home solar array in Maryland will offset over 200 tons of carbon dioxide – equivalent to planting more than 4,600 tree seedlings or taking 39 cars off the road for a year.
What‘s more, by reducing demand for grid power (especially during peak daytime hours), distributed solar can help alleviate strain on Maryland‘s aging power infrastructure, leading to greater energy resilience and reliability. This is especially important as the state faces increasing risks from extreme weather events linked to climate change.
How to Go Solar in Maryland
Ready to join the thousands of Maryland homeowners who are saving money and reducing their carbon footprint with solar? Here are some simple steps to get started:
-
Get multiple quotes: Reach out to reputable solar installers in your area and request detailed proposals. Look for companies with a strong track record, solid warranties, and positive customer reviews.
-
Compare your options: Review your solar proposals carefully, paying close attention to key factors like system size, equipment, financing, and estimated savings. Don‘t hesitate to ask questions and clarify anything you don‘t understand.
-
Secure financing: Decide whether you want to pay for your solar system upfront or finance it through a solar loan or lease. Many installers offer financing options with low or no upfront costs.
-
Schedule your installation: Once you‘ve chosen an installer and financing option, they‘ll handle all necessary permits and approvals to get your system installed. Most residential solar installations can be completed in just a few days.
-
Power on and save: After your system is installed and inspected, your installer will walk you through the process of turning it on and monitoring its performance. You‘ll start generating clean power – and savings – from day one!
The Future of Solar in Maryland
As a digital technology expert, I‘m convinced that solar energy will play a vital role in powering Maryland‘s future. With strong state policies, falling costs, and growing awareness of the climate crisis, the momentum behind renewable energy is unstoppable.
But don‘t just take my word for it. A recent report by the National Renewable Energy Laboratory (NREL) found that Maryland has the technical potential to generate over 30% of its electricity from rooftop solar alone. And a 2022 survey by the Yale Program on Climate Change Communication found that 84% of Marylanders support expanding solar energy in the state – one of the highest levels of support in the nation.
Of course, realizing this potential will require continued policy support and investment from state leaders. But with the cost of solar falling and the urgency of the climate crisis growing, I believe that a clean energy future for Maryland is not only possible, but inevitable.
So if you‘re a Maryland homeowner considering solar, know that you‘re not alone. You‘re part of a growing movement of individuals and communities who are taking control of their energy future and building a brighter, more sustainable tomorrow. And with the financial and environmental benefits of solar more compelling than ever, there‘s never been a better time to make the switch.
The sun is shining on Maryland – will you join the solar revolution?
