Maryland still has an income-qualified solar rebate, a battery rebate, two tax exemptions and a market for solar credits. The federal homeowner credit is gone for expenditures after December 31, 2025, according to the Internal Revenue Service (IRS).1 Each program has its own rules, and a rebate, a tax exemption and a utility bill credit are three different things.
Does Maryland have a state solar tax credit?
The state programs covered here are rebates and tax exemptions, not an income tax credit. The main rooftop purchase program is a rebate, the Maryland Solar Access Program (MSAP), run by the Maryland Energy Administration (MEA).2 Separately, state law exempts qualifying solar equipment from sales and use tax and qualifying solar property from real property tax.3,4
These benefits cover different costs. A rebate needs an application and an approval. A tax exemption changes how a purchase or a property is taxed. Neither covers the whole installation, and a tax professional can say whether any state credit applies to your return.
Here is the short list, as of October 25, 2026.
| Maryland incentive | What it is | Check first |
|---|---|---|
| MSAP solar rebate | Rebate for income-qualified homeowners; portal open to new applications2 | Household income, a contractor on MEA’s list, approval before installation |
| Residential and Commercial Energy Storage (RCES) rebate | Rebate for batteries; portal open to new applications5 | An approved reservation before installation, and which costs are eligible |
| Solar Renewable Energy Credits (SRECs) | Certificates you can sell; prices move6 | System certification, who owns the credits, selling terms |
| Existing net metering | Bill credits for exported power; the standard contract is offered first come, first served until the earlier of 3,000 megawatts statewide or July 1, 20277 | Which enrollment milestone your utility applies |
| Sales and use tax exemption | State exemption on solar energy equipment3 | Whether your equipment meets the statute’s definition |
| Real property tax exemption | State exemption for solar energy property, with a stated exception4 | Which property is covered (not the whole house) |
| County credits | Local property tax credits, where they exist8,9 | Whether the county credit is open or suspended |
Who qualifies for Maryland’s solar rebate?
MSAP serves income-eligible Maryland homeowners who work with a contractor from MEA’s Participating Contractor List. MEA must approve an upfront rebate reservation before installation.2 Income limits depend on household size, so check MEA’s current table before you sign anything that assumes the rebate.10 Meeting the limit is only the first test. Approval comes from MEA.
In its July 2026 funding announcement, MEA set the rebate at $750 per kilowatt of direct current solar capacity, capped at $7,500.11 The application deadline is 3:00 p.m. Eastern Time on May 31, 2027, as of October 25, 2026, and the portal can close sooner if requests exceed the budget.12 MEA posts how much of the budget has been requested and reserved on its program page, so look there for the current picture. An open portal is not a reservation, and no money is held for your property until MEA approves one.
Two limits catch people out. The announcement excludes systems eligible for District of Columbia SRECs, and it restricts repeat MEA solar incentives at the same property.13,14 A Maryland mailing address won’t answer the SREC question, because eligibility follows the electric feeder, and MEA’s announcement points applicants to a feeder map. For a fuller walk-through, see our guide to the Maryland Solar Access Program.
Does Maryland have a home battery rebate?
Yes. The Residential and Commercial Energy Storage (RCES) program pays a storage rebate, and MEA’s page shows it open as of October 25, 2026. An approved reservation has to come before installation.5 The older Maryland Energy Storage Income Tax Credit became inactive at the end of 2024 under state law.15 RCES has its own rules.
| Detail | RCES, fiscal year 2027 |
|---|---|
| Home rebate | Lesser of 30 percent of eligible total project cost or $5,00016 |
| Final payment | Follows documented actual costs; can’t exceed the reserved amount17 |
| Paired solar costs | Generally outside coverage unless reasonably necessary to install the storage18 |
| Deadline | 3:00 p.m. Eastern Time, May 31, 2027, earlier if funding runs out5 |
| Already installed? | Fails the upfront-reservation condition19 |
The full procedure is in our RCES battery rebate guide, and the battery storage service page describes Soleil Energy’s battery work.
How do SRECs and net metering differ?
SRECs are certificates for the environmental attributes of the power your system makes. Net metering is the credit on your utility bill for power you send back to the grid. The Maryland Public Service Commission (PSC) handles solar certification.6 Selling credits and cutting your bill are separate transactions, so check who owns the SRECs under your contract before budgeting either.
For price context only, Flett Exchange, a broker, showed these sell-now quotes on October 25, 2026.
A broker quote is not what you’ll be paid after fees and contract terms. The certified price is also limited to systems that qualify under the PSC’s Small Solar Energy Generating System Incentive Program.22 Keep your certification paperwork and credit ownership terms with the rest of your project documents.
Net metering runs on its own enrollment clock. Under Chapter 353 of the 2026 Maryland laws (House Bill 1532), utilities offer the standard net metering contract or tariff first come, first served until the earlier of 3,000 megawatts statewide or July 1, 2027.7 The same law says a customer-generator that is under a net metering contract or tariff on July 1, 2027 stays eligible, subject to conditions in the statute.7
The statute doesn’t say which step puts a customer under the contract or tariff by that date. In June 2026, PSC staff filed proposed regulations in rulemaking RM56 with three competing versions of the test.23
| Version | Backed by | Requirement by July 1, 2027 |
|---|---|---|
| 1 | MEA, the Maryland Department of Transportation, Howard County, rooftop solar and community solar groups | Submit an interconnection application23 |
| 2 | Potomac Edison, PHI and BGE | Receive permission to operate from the utility23 |
| 3 | PSC staff | Execute an interconnection agreement23 |
As of October 25, 2026, the PSC’s docket lists comments through October 13, 2026 and no final rule.24 Until the PSC settles it, don’t assume an installation date secures your place, and ask your utility in writing which milestone it applies. The net metering deadline guide tracks the rule.
One more billing detail. Maryland’s net metering statute says that when your generation exceeds what you take from the grid in a month, you are billed only customer charges for that month.25 That means a bill can still arrive in a high-production month.
Which state tax exemptions cover solar equipment?
Tax-General section 11-230 exempts qualifying solar energy equipment from sales and use tax.3 Tax-Property section 7-242 separately exempts defined solar energy property from real property tax, subject to a stated exception.4 Each law covers the equipment or property as the statute defines it, so neither is a blanket exemption for a home.
The property tax provision opens with an exception that points to section 8-240, which deals with how a solar heating and cooling system is assessed compared with a conventional system.4 A county assessor or a tax professional can tell you how either section applies to your installation.
The statute defines solar energy equipment as equipment that uses solar energy to heat or cool a structure, generate electricity or provide hot water. It doesn’t mention batteries, so ask the Comptroller or a tax professional whether a battery sale is covered.3 A good proposal itemizes the solar equipment, the storage and the other electrical work, so each line can get its own tax question.
Do Maryland counties offer solar tax credits?
Some do, but local credits can close while old descriptions stay online. Start with the county finance office, which administers the credit, and confirm the terms in writing before you count on one. The two counties below show how different the answers can be.
| County | What its finance office says | Status |
|---|---|---|
| Montgomery | Property tax credit for solar and geothermal devices suspended effective November 8, 20118 | Suspended |
| Prince George’s | Energy Conservation Real Property Tax Credit: lesser of 50 percent of eligible costs or a listed cap, with a separate $1,000 cap for leases and power purchase agreements9 | Listed on the county page, with a waiting list |
The Montgomery page describes only the county credit. The state exemptions come from separate statutes.3,4,8
Prince George’s County’s page lists a $5,000 cap for a heating system and $1,500 for a hot water system.9 It states no separate cap for a rooftop system that generates electricity, so ask the county’s Office of Finance which cap applies to yours.9
As of October 25, 2026, the page says demand has produced a waiting list that “extends through Fiscal Year 2045,” so a new application would sit in a long queue.9 The county also decides who qualifies and how to apply. You can see which areas Soleil Energy works in on the service area page.
Which incentives have ended?
The federal homeowner credit, Maryland’s storage income tax credit and the old residential solar rebate each ended on a different date, and the Solar Access Bridge Fund has closed to new applications.1,15,26,27 Older incentive lists often mix these in with current rebates, so check the administrator’s page before you treat any listed benefit as available.
| Closed benefit | What happened | What it means now |
|---|---|---|
| Federal Residential Clean Energy Credit | Ended for expenditures after December 31, 20251 | The IRS treats an expenditure as made when installation is completed, so paying early does not save the credit for a later installation1 |
| Maryland Energy Storage Income Tax Credit | MEA lists it as inactive as of the end of 2024 under state law15 | Look at the RCES rebate for a new storage project |
| Former residential solar rebate | The old $1,000 rebate’s final application window ended November 30, 202426 | Look at MSAP instead |
| Maryland Solar Access Bridge Fund | Closed to new applications on June 1, 202627 | Existing applicants can manage their applications; new applicants can’t count on it |
Unused federal credit from an earlier qualifying installation is a separate tax question. The IRS says excess unused credit can be carried forward.28 It cannot turn into a credit for an installation made after the cutoff. Our guide to the federal solar tax credit covers it in more detail.
How do you confirm eligibility before you sign?
Confirm eligibility before you use any incentive to compare proposals. Find out who administers the program, when the reservation has to be made, and who receives the payment. Keep the written approval with your contract. MEA requires an approved reservation before installation for both MSAP and RCES.2,5 Only the administrator’s decision settles what you qualify for, not a contractor’s estimate.
- Read the current MEA program page, then the household and property requirements. Check prior awards and any District of Columbia credit eligibility.
- For MSAP, confirm your contractor is on MEA’s participating list. For any program, find out who submits the application and who receives the payment.
- Get the reservation approved before installation, and read its expiration date and payment conditions.
- Ask your utility, such as Pepco or Baltimore Gas and Electric Company (BGE), which enrollment milestone governs net metering, and keep the answer in writing.
- Treat permits separately from incentive reservations. Montgomery County’s Department of Permitting Services, for example, issues residential solar permits and schedules inspections.29
- Have a tax professional review the exemptions, any earlier federal carryforward and your return. Confirm SREC ownership and selling charges separately.
Order matters most. Picture a household that meets MSAP’s income limit but installs before MEA approves a reservation: the missing approval sinks the rebate.2 A battery installed first fails the RCES upfront-reservation condition the same way.19 The example is hypothetical, but this is the step where real applications fall apart.
For a look at your roof and your bills, see Soleil Energy’s residential solar service and the solar FAQ.
Ask any installer whether it is on the program’s contractor list. Then book a free consultation or call (301) 953-4140.
Solar savings and incentive eligibility depend on your roof, your usage, your utility, and your tax situation. Incentive programs change and some have limited funding. We are not tax advisors — we will review your bill with you and tell you what you may qualify for. Confirm any tax credit with a qualified tax professional.
Program rules decide who qualifies. Ask any installer whether it is on the program’s contractor list.
Sources (29)
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Internal Revenue Service, FAQs for modification of sections 25C, 25D, 25E, 30C, 30D, 45L, 45W and 179D under Public Law 119-21 (FS-2025-05), https://www.irs.gov/newsroom/faqs-for-modification-of-sections-25c-25d-25e-30c-30d-45l-45w-and-179d-under-public-law-119-21-139-stat-72-july-4-2025-commonly-known-as-the-one-big-beautiful-bill-obbb, August 21, 2025; page read October 25, 2026. ↩ ↩2 ↩3 ↩4
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Maryland Energy Administration (MEA), Maryland Solar Access Program, FY27, https://energy.maryland.gov/residential/Pages/incentives/Maryland-Solar-Access-Program.aspx, program announced July 29, 2026; current page, read October 25, 2026; FY27 Funding Opportunity Announcement section 2.1 (reservation approved before installation), July 29, 2026, https://energy.maryland.gov/residential/SiteAssets/Pages/incentives/Maryland-Solar-Access-Program/FY27%20MSAP%20Funding%20Opportunity%20Announcement%20-%20Issued%207.29.26%20v2.pdf, read October 25, 2026. ↩ ↩2 ↩3 ↩4 ↩5
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Maryland General Assembly, Tax-General section 11-230, https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtg§ion=11-230&enactments=false; current text, read October 25, 2026. ↩ ↩2 ↩3 ↩4 ↩5
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Maryland General Assembly, Tax-Property section 7-242, https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtp§ion=7-242&enactments=false, and section 8-240, https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtp§ion=8-240&enactments=false; current text, read October 25, 2026. ↩ ↩2 ↩3 ↩4 ↩5
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MEA, Residential and Commercial Energy Storage Program, FY27, https://energy.maryland.gov/Pages/Energy-Storage-Grant-Program.aspx; current page, read October 25, 2026. ↩ ↩2 ↩3 ↩4
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Maryland Public Service Commission (PSC), Solar Renewable Energy Certification, https://psc.maryland.gov/regulated-utilities/electricity/renewable-energy/solar-renewable-energy-certification/; current page, read October 25, 2026. ↩ ↩2
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Maryland General Assembly, Chapter 353, Laws of Maryland 2026 (House Bill 1532, Utility RELIEF Act), amending Public Utilities section 7-306(d) and (i), https://mgaleg.maryland.gov/2026RS/chapters_noln/Ch_353_hb1532E.pdf, 2026 session; read October 25, 2026. ↩ ↩2 ↩3
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Montgomery County Department of Finance, Property Tax Credit and Exemption Information, https://www.montgomerycountymd.gov/department-finance/taxes/county-taxes-tax-information/property-tax-credit-exemption-information; current page, read October 25, 2026; the solar and geothermal credit is shown as suspended effective November 8, 2011. ↩ ↩2 ↩3
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Prince George’s County Office of Finance, Energy Conservation Real Property Tax Credit (Alternative Energy), https://www.princegeorgescountymd.gov/departments-offices/finance/property-tax-credits/residential/alternative-energy; current page (undated), read October 25, 2026; it lists the waiting list “through Fiscal Year 2045.” Confirm current terms with the Office of Finance. ↩ ↩2 ↩3 ↩4 ↩5
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MEA, Maryland Solar Access Program, FY27 household income requirements, https://energy.maryland.gov/residential/Pages/incentives/Maryland-Solar-Access-Program.aspx; current page, read October 25, 2026. ↩
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MEA, FY27 Maryland Solar Access Program Funding Opportunity Announcement, section 7, https://energy.maryland.gov/residential/SiteAssets/Pages/incentives/Maryland-Solar-Access-Program/FY27%20MSAP%20Funding%20Opportunity%20Announcement%20-%20Issued%207.29.26%20v2.pdf, July 29, 2026; read October 25, 2026. ↩
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MEA, Maryland Solar Access Program, FY27 application deadline and portal status, https://energy.maryland.gov/residential/Pages/incentives/Maryland-Solar-Access-Program.aspx; current page, read October 25, 2026. ↩
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MEA, FY27 Maryland Solar Access Program Funding Opportunity Announcement, section 10.2.1, https://energy.maryland.gov/residential/SiteAssets/Pages/incentives/Maryland-Solar-Access-Program/FY27%20MSAP%20Funding%20Opportunity%20Announcement%20-%20Issued%207.29.26%20v2.pdf, July 29, 2026; read October 25, 2026. ↩
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MEA, FY27 Maryland Solar Access Program Funding Opportunity Announcement, section 10.2.2, https://energy.maryland.gov/residential/SiteAssets/Pages/incentives/Maryland-Solar-Access-Program/FY27%20MSAP%20Funding%20Opportunity%20Announcement%20-%20Issued%207.29.26%20v2.pdf, July 29, 2026; read October 25, 2026. ↩
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MEA, Maryland Energy Storage Income Tax Credit, https://energy.maryland.gov/business/Pages/EnergyStorage.aspx; current page, read October 25, 2026. ↩ ↩2 ↩3
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MEA, FY27 Residential and Commercial Energy Storage Funding Opportunity Announcement, section 7, https://energy.maryland.gov/SiteAssets/Pages/EnergyStorage/FY27%20RCES%20Funding%20Opportunity%20Announcement%20-%20Issued%209.24.pdf, September 24, 2026; read October 25, 2026. ↩
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MEA, FY27 Residential and Commercial Energy Storage Funding Opportunity Announcement, section 7.2, https://energy.maryland.gov/SiteAssets/Pages/EnergyStorage/FY27%20RCES%20Funding%20Opportunity%20Announcement%20-%20Issued%209.24.pdf, September 24, 2026; read October 25, 2026. ↩
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MEA, FY27 Residential and Commercial Energy Storage Funding Opportunity Announcement, section 10.2.3, https://energy.maryland.gov/SiteAssets/Pages/EnergyStorage/FY27%20RCES%20Funding%20Opportunity%20Announcement%20-%20Issued%209.24.pdf, September 24, 2026; read October 25, 2026. ↩
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MEA, FY27 Residential and Commercial Energy Storage Funding Opportunity Announcement, section 10.2.5, https://energy.maryland.gov/SiteAssets/Pages/EnergyStorage/FY27%20RCES%20Funding%20Opportunity%20Announcement%20-%20Issued%209.24.pdf, September 24, 2026; read October 25, 2026. ↩ ↩2
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Flett Exchange, Maryland SREC Market Prices, https://www.flettexchange.com/markets/maryland/market-prices, broker quotes viewed October 25, 2026. ↩ ↩2 ↩3 ↩4 ↩5
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Flett Exchange, Maryland Certified SREC Market Prices, https://www.flettexchange.com/markets/maryland-certified/market-prices, broker quotes viewed October 25, 2026. ↩ ↩2
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Maryland PSC, SB 783 Fact Sheet and FAQs, https://psc.maryland.gov/wp-content/uploads/2026/04/New-SB783-Fact-Sheet-and-FAQs-042026.pptx.pdf, April 2026; read October 25, 2026. ↩
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Maryland PSC, Proposed Regulations, RM56 (COMAR 20.50.10), filed June 5, 2026, https://psc.maryland.gov/wp-content/uploads/2026/06/Proposed-Regulations-RM-56.pdf; read October 25, 2026. ↩ ↩2 ↩3 ↩4
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Maryland PSC, Rulemaking RM56 docket (latest filing dated October 13, 2026), https://webpscxb.pscmaryland.com/DMS/rm/RM56; read October 25, 2026. ↩
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Maryland General Assembly, Public Utilities section 7-306(f)(4), https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gpu§ion=7-306&enactments=false; current text, read October 25, 2026. ↩
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MEA, FY25 Clean Energy Rebate Program FAQs, https://energy.maryland.gov/residential/SiteAssets/Pages/incentives/CleanEnergyGrants/FY25%20CERP%20FAQs.pdf, September 16, 2024; read October 25, 2026. ↩ ↩2
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MEA, Maryland Solar Access Bridge Fund, https://energy.maryland.gov/Pages/SolarBridgeFund.aspx; current page, read October 25, 2026; shows the portal closed to new applications since June 1, 2026. ↩ ↩2
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Internal Revenue Service, Residential Clean Energy Credit, https://www.irs.gov/credits-deductions/residential-clean-energy-credit, page last reviewed or updated July 4, 2026; read October 25, 2026. ↩
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Montgomery County Department of Permitting Services, eSolar Residential Rooftop Solar Panels, https://www.montgomerycountymd.gov/department-permitting-services/all-permits/residential-permits/esolar-residential-rooftop-solar-panels; current page, read October 25, 2026. ↩
