Assumes 3%/yr rate increases, 0.5%/yr panel degradation and no federal tax credit (the 30% §25D credit ended for systems installed after Dec 31, 2025). How we calculate
Data approachEIA rates · NREL sun hours · 2026 federal policy · methodology
Updated October 4, 2026. Costs, prices and policy dates below were checked against the sources listed at the end of this guide.
An 8 kW solar system in Maryland costs about $20,600 installed in 2026 and saves roughly $1,970 in the first year at today’s 21 cents per kWh, a simple payback near 10.5 years before any SREC income. The 30% federal credit is gone for homeowner-owned systems installed after Dec 31, 2025, and Maryland’s full 1:1 net metering will close to new customers on July 1, 2027 or when statewide capacity reaches 3 GW, whichever comes first.
Electricity prices are the main reason the math works. The Maryland Public Service Commission reported that EIA corrected its March 2026 residential figure to 22.2 cents per kWh, up about 17% from a year earlier, and EnergySage’s August 2026 analysis of real Maryland utility bills puts the average at 21 cents per kWh. This guide uses 21 cents. Older figures near 15 cents (such as EIA’s 2024 all-sector average) understate what a Maryland household pays today.
This guide covers what Maryland homeowners pay in 2026, what happened to the federal credit, which state incentives remain, what the 2026 net metering law changes, and how to vet installers. Model figures use our standard savings model and the inputs on our Maryland solar data page.
💰 System Cost
How Much Do Solar Panels Cost in Maryland in 2026?
Maryland homeowners pay an average of about $2.58 per watt installed, which is $20,637 for an 8 kW system and $34,287 for the 13.29 kW average system quoted in the state, before incentives (EnergySage, updated Sep 25, 2026). The quote range for the 13.29 kW system runs from $29,144 to $39,430, or roughly $2.19 to $2.97 per watt. No federal credit comes off these prices for a 2026 installation.
Data visualization
Maryland solar cost by system size. An 8 kW system averages $20,637 at $2.58/W before incentives; no federal credit applies in 2026. Source: EnergySage Maryland solar cost data, Sep 2026.
Chart summary: Cost scales almost linearly with size because pricing is per watt: each added kilowatt costs about $2,580. The 8 kW reference system (highlighted) is $20,637. Maryland’s average quoted system is larger, 13.29 kW, because the average Maryland home on EnergySage uses about 1,356 kWh a month.
System size
Avg. installed cost (EnergySage MD)
Est. annual output*
Est. year-1 bill savings**
3 kW
$7,739
4,041 kWh
$738
5 kW
$12,898
6,734 kWh
$1,230
8 kW
$20,637
10,775 kWh
$1,969
10 kW
$25,796
13,468 kWh
$2,461
13.29 kW (state average)
$34,287
17,900 kWh
$3,270
*Model assumptions: 4.5 peak sun hours and an 0.82 system derate (about 1,347 kWh per kW per year). Check your own roof with NREL PVWatts.**Output × 21¢/kWh × 0.87 bill-offset factor, an assumption that fixed charges stay on the bill. Costs are before incentives.
Sizing example: an 8 kW system makes about 10,775 kWh a year, roughly 898 kWh a month. Maryland homes in EnergySage’s data use about 1,356 kWh a month, which is why the average quoted system is bigger. An EV adds load too: charging 3,000 kWh a year (an example figure) needs about 2.2 kW more, or five to six 400 W panels. To size to your own bills, use the solar system size calculator.
Financing changes monthly cash flow. As an illustration only (not a quote), a $20,637 loan at 7% costs about $212 a month over 12 years or about $160 a month over 20 years, compared with year-one bill savings of about $164 a month. Leases and PPAs avoid the upfront cost but you give up ownership benefits such as SRECs, and savings depend on the contract price. The solar lease vs buy calculator compares them.
Run the numbers for your state
The savings calculator loads your state's average electricity rate, sun hours and net-metering rule. Then enter your own bill and installer quote.
Free · No signup · Runs in your browser
🏛️ Federal Credit
Is There Still a Federal Solar Tax Credit in Maryland?
No, not for a homeowner who buys a system installed in 2026. The Residential Clean Energy Credit (§25D), which paid 30% of system cost, ended for expenditures made after Dec 31, 2025, and an expenditure counts as “made” when installation is complete. The One Big Beautiful Bill Act (Public Law 119-21, signed July 4, 2025) ended it, as explained in the IRS FAQs on the OBBB changes.
Who can still benefit:
2025 installations: if your system was completed by Dec 31, 2025, claim the credit on your 2025 return using Form 5695.
Carryforwards: unused §25D credit from earlier years can still carry forward.
Leases and PPAs: the company that owns the system may still claim the business credit (§48E) if construction began by July 4, 2026 or the system is placed in service by Dec 31, 2027. Any value reaches you only through the contract price; nothing is guaranteed.
Other owners: business- and nonprofit-owned systems follow different rules; ask a tax professional.
The §25C credit for heat pumps and insulation also ended after 2025, and homeowner-owned batteries installed in 2026 receive no federal credit. See our federal solar tax credit guide for more. This is general information, not tax advice; confirm your situation with a tax professional.
🏛️ State Incentives
What Maryland Solar Incentives Are Available in 2026?
Maryland’s remaining incentives are a means-tested state grant, SREC income, and two tax exemptions. Maryland does not offer a state income tax credit for residential solar, and the old flat rebate is gone.
Maryland Solar Access Program (MSAP): pays $750 per kW of DC capacity, up to $7,500, to income-eligible homeowners (Solar United Neighbors summarizes the limit as household income up to 150% of area median income; MEA publishes exact thresholds). Funding is first-come, first-served, you must apply before installation, and the work must go through an MEA-approved participating contractor. MEA opened its fiscal year 2027 programs in July 2026 with $10 million slated for MSAP. For an 8 kW system the grant would be $6,000.
Residential Clean Energy Grant: the $1,000 grant for solar PV concluded at the end of fiscal year 2025, according to Solar United Neighbors. Maryland also runs a separate residential energy storage grant; check MEA for current terms.
SRECs: one SREC is issued per 1,000 kWh generated, about 10 a year for an 8 kW system. Flett Exchange showed 2026 Maryland standard SRECs near $40 and “Certified” SRECs near $55 to $57.50. Certified status applies to new systems of 20 kW or less installed from July 1, 2024 to Jan 1, 2028, within capacity limits. At those quotes, ten SRECs are worth roughly $400 to $575 a year before broker fees. Prices move, so treat SRECs as upside, not a guarantee.
Sales tax exemption: solar energy equipment is exempt from Maryland’s 6% sales and use tax.
Property tax exemption: solar energy property is exempt from real property tax (Tax-Property §7-242), so the system does not raise your assessment.
Community solar: renters and homeowners with unsuitable roofs can subscribe for bill credits. Check DSIRE for current listings.
⚖️ Net Metering
Is Maryland Ending Net Metering in 2027?
Maryland is ending full 1:1 net metering for new customers, not for existing ones. Under the Utility RELIEF Act (HB 1532, Chapter 353, signed May 12, 2026), the current program stays open to new customers until July 1, 2027 or until statewide net-metered capacity reaches 3,000 MW, whichever comes first (Utility Dive; Maryland legislative analysis). The PSC must approve a successor program by Feb 1, 2027, to start July 1, 2027, and the law’s stated intent is lower compensation for new projects. The combined cap across both programs rises to 6,000 MW.
How today’s program works: surplus power you export is credited at the retail rate and rolls forward month to month. Maryland law lets customers either receive payment for leftover annual credit, valued at the supply (commodity) rate rather than full retail, or elect to accrue it indefinitely. Because fixed customer and some delivery charges stay on the bill, our model assumes a right-sized system offsets about 87% of its production value.
What new buyers should do:
Ask for the permission-to-operate (PTO) date. Your system is only net metered once the utility approves interconnection. One installer reports two to three months from contract to PTO, so a late-spring 2027 start can miss the cutoff.
Check the cap, not just the date. The law’s 3 GW trigger could arrive earlier; the Act directs the PSC to publish a net metering dashboard.
Confirm grandfathering in writing. Law-firm summaries say qualifying projects stay on current terms for the life of the system, but the exact milestone (application, interconnection or PTO) comes from the PSC and your utility, so get it from your installer in the contract.
Do not rush a bad deal. A cutoff is a reason to plan, not to overpay. Compare at least three quotes.
The Act also speeds up rooftop permitting: counties and municipalities must adopt automated solar permitting software by Aug 1, 2027, permit fees through that software are capped at $500 for rooftop systems under 20 kW AC, and utilities must complete meter disconnection and reconnection within 5 business days of a complete request. Our solar net metering calculator and net metering rules by state show how Maryland compares.
📈 Payback Period
How Long Does Solar Take to Pay Back in Maryland?
About 10.5 years for an 8 kW system costing $20,637 under today’s net metering, based on year-one bill savings of about $1,969, before SREC income or any state grant. Every number below is a model output from the inputs in this table, not a forecast of your bill.
Input
Value
Basis
System size
8.0 kW (20 × 400 W panels)
Reference size
Annual production
10,775 kWh (8 × 4.5 × 365 × 0.82)
Assumed 4.5 peak sun hours, 0.82 derate; verify with PVWatts
Retail rate
21¢/kWh
EnergySage bill data, Aug 2026; EIA corrected March 2026 value was 22.2¢
Bill-offset factor
0.87
Model assumption for fixed charges under 1:1 net metering
Installed cost
$20,637
EnergySage Maryland average, $2.58/W
Year-1 savings
~$1,969
10,775 × $0.21 × 0.87
Rate growth / degradation
3% / 0.5% a year
Model assumptions
Simple payback
~10.5 years
$20,637 ÷ $1,969
Payback with rate growth
~9.4 years
Same inputs, escalating savings
25-year bill savings
~$67,100
Sum of yearly savings
25-year net savings
~$46,500
Savings minus install cost; excludes SRECs and grants
Data visualization
8 kW Maryland system: cumulative net cash position over 25 years. The $20,637 marketplace-average case breaks even near year 9.4 and ends near +$46,500, with no SRECs or grants. Model: 10,775 kWh a year, 21 cents per kWh, 0.87 bill offset, 3% rate growth, 0.5% degradation. Sources: EnergySage and EIA-based rate data, 2026.
Chart summary: Each line starts at minus the system cost and climbs by the year’s bill savings. The marketplace-average case crosses zero at about year 9.4 and ends near +$46,500 after 25 years. The low-quote case ($2.19/W) breaks even near year 8.1 and the high-quote case ($2.97/W) near year 10.7, so price per watt shifts payback by roughly two and a half years across the quote range.
Scenario
Net cost
Simple payback
Payback with 3% rate growth
25-year net savings
Low quote, $2.19/W
$17,543
~8.9 years
~8.1 years
~$49,600
Marketplace average, $2.58/W
$20,637
~10.5 years
~9.4 years
~$46,500
High quote, $2.97/W
$23,735
~12.1 years
~10.7 years
~$43,400
Average cost, income-eligible with $6,000 MSAP grant
$14,637
~7.4 years
~6.9 years
~$52,500
Same production, rate and offset inputs as above; no SREC income. Low and high quotes scale EnergySage’s $29,144 to $39,430 range for a 13.29 kW system to 8 kW.
Table summary: Quote price is the biggest lever you control. The MSAP grant, if you qualify, cuts roughly three years off payback, and SRECs of about $400 to $575 a year would shorten every row further.
Over 25 years, a household using 10,775 kWh a year (about a $189 monthly bill, growing 3% a year) would pay roughly $82,500 for utility electricity. With solar, the install cost plus remaining bills total about $36,000, a net difference of about $46,500, or about $164 a month in year one. Panels degrading 0.5% a year still produce about 89% of original output in year 25.
What if new-customer credits are lower? The successor net metering rate is not set, so this sensitivity is illustrative, not a forecast. It shows how payback changes if solar earns a smaller share of the retail value of the electricity it makes.
Data visualization
Payback if solar earns less than full retail value. At 87% of retail the payback is 10.5 years; at 50% it stretches to 18.2 years. Illustrative only, because the Maryland PSC has not set the successor net metering rate. Source: GreenEnergyCalc model using EnergySage cost and EIA-based rates, 2026.
Chart summary: At today’s modeled 87%, payback is 10.5 years. If the share of retail value earned falls to 70%, it lengthens to 13.0 years; at 60%, 15.2 years; at 50%, 18.2 years. That spread is why the 2027 cutoff matters, and why a system sized for your usage and priced competitively holds up better than one that depends on high export credits.
Share of retail value earned
Year-1 savings
Simple payback
25-year net savings
100%
$2,263
9.1 years
~$56,500
87% (today’s model)
$1,969
10.5 years
~$46,500
70%
$1,584
13.0 years
~$33,400
60%
$1,358
15.2 years
~$25,600
50%
$1,131
18.2 years
~$17,900
Plug in your own quote with the solar payback calculator, or compare states in our payback period by state guide.
Solar vs utility company · 25-year comparison
25-year totals: 3%/yr rate increases, 0.5%/yr degradation, no federal credit. Methodology
Pick a licensed installer whose quote shows price per watt, a verifiable production estimate, SREC handling, a permission-to-operate timeline and 2026-correct incentives. Maryland’s Home Improvement Commission (MHIC) licenses contractors who install solar panels, and the person who connects the system to your electrical panel or the grid needs an electrician’s license from the local jurisdiction. Check both on the Maryland Department of Labor’s licensing page.
When comparing quotes, focus on:
Price per watt: compare installed $/W on the same basis. Maryland’s marketplace average is $2.58/W, with quotes roughly $2.19 to $2.97/W.
Production estimate: cross-check kWh per year against NREL PVWatts for your address.
Net metering timeline: ask for the expected PTO date and what the contract says if the system misses the July 1, 2027 or 3 GW cutoff.
SRECs: who registers the system, who owns the SRECs, and what fees an aggregator charges.
Grant eligibility: if you may qualify for MSAP, use a participating contractor and apply before installation.
Warranties: get workmanship and equipment warranty terms in writing.
Equipment: string inverters suit unshaded roofs; microinverters or optimizers cost more but help with shading or complex layouts.
Policy assumptions: reject proposals that still subtract a 30% federal credit for a 2026 homeowner-owned installation.
If you plan to add an EV, include its charging load when sizing. Run your usage through the solar system size calculator first so you have an independent benchmark, and see how much solar panels cost in 2026 for national context.
Sources and Methodology
Model outputs use the inputs in the payback table and the formulas described in our methodology. Policy and price facts come from:
Prices, SREC quotes, grant funding and the PSC’s successor program can change; verify with MEA, the PSC and your installer before signing. This guide is general information, not tax, legal or financial advice.
Related calculators
Free tools for US homeowners — instant results, all 50 states.
EnergySage's Maryland marketplace data (updated Sep 2026) averages $2.58 per watt installed. That is about $20,637 for an 8 kW system and $34,287 for the 13.29 kW state-average system, before incentives. No federal credit applies to 2026 homeowner installs. Maryland exempts solar equipment from the 6% sales tax and from property tax.
Not for homeowners who buy a system installed in 2026. The 30% Residential Clean Energy Credit (§25D) ended for expenditures made after Dec 31, 2025, under Public Law 119-21. Systems completed in 2025 are claimed on the 2025 return (Form 5695). Leased or PPA systems may still benefit indirectly if the owner claims the business credit (§48E) and passes savings on.
The Maryland Solar Access Program pays $750 per kW, up to $7,500, to income-eligible homeowners who apply before installing. SRECs earn one certificate per MWh; 2026 market quotes were about $40 (standard) and $55 (certified, for eligible new systems up to 20 kW). Solar is exempt from sales and property tax. The $1,000 Residential Clean Energy Grant ended after fiscal year 2025.
Maryland is ending full 1:1 net metering for new customers. Under the Utility RELIEF Act (HB 1532, signed May 12, 2026), the current program stays open until July 1, 2027 or 3 GW of statewide capacity, whichever comes first. The PSC must approve a successor by Feb 1, 2027; it is intended to pay less. Confirm with your utility which milestone locks in current terms.
About 10.5 years for an 8 kW system costing $20,637, based on 10,775 kWh a year, 21 cents per kWh and 87% bill offset, before SRECs or grants. With 3% annual rate growth it is about 9.4 years. If new-customer credits fall to 60% of retail value, payback is roughly 15 years. Income-eligible homeowners with the $6,000 state grant reach about 7.4 years.
$189/month electric bill by state
System size and payback vary by electricity rate and sun hours — see your state.
21.3¢/kWh — Maryland average residential price. Source: EIA Electric Power Monthly, Table 5.6.B (year-to-date through July 2026), residential average retail price (July 2026) (EIA)
Solar production
4.5 peak sun hours/day × 0.82 system derate. Approximate state-average daily solar resource (peak sun hours) based on NREL solar resource data (NSRDB); not location-specific — use NREL PVWatts for an address-level estimate. (NREL PVWatts)
Installed price
$3.00 per watt before incentives. Blended 2026 US residential installed price used by this site; EnergySage marketplace reported about $2.60/W (mid-2026); full-market medians are higher.
Federal tax credit
$0 for homeowner-owned systems installed in 2026 — the 30% §25D credit ended Dec 31, 2025 (IRS)
Net metering
Full retail net metering — solar assumed to offset 87% of the bill. Maryland requires retail-rate net metering with an annual true-up.
Estimates only — not tax, legal or financial advice. Get at least three installer quotes and confirm incentives with your utility and a tax professional.