Maryland Solar Calculator

Enter your utility and county — get system size, MD SREC income, net metering savings, county tax credits, property tax exemption, and 25-year savings.

Your Maryland solar inputs

Monthly electric bill?

Electric utility?

System size?

County?

Maryland solar estimate

20 × 400W panels (8 kW system)

Recommended size for your bill: 9.1 kW

Monthly usage938 kWh/mo

Annual production (MD 4.3 PSH)10,045 kWh/yr

Annual savings (net metering)$1,607/yr

MD SREC income (~10.0 SRECs/yr)$527/yr

Gross system cost$22,800

Federal ITC (30%)-$6,840

Sales tax exemption (6%)-$1,368

Net cost after ITC$15,960

SREC total income (10yr est.)$5,274

Property tax exemption (20yr est.)$5,472

Payback period (incl. SREC)7.5 yrs

25-year savings$45,453

MD SREC prices fluctuate with market demand. Estimated at $50–$55/SREC ($52.50 midpoint). 10-year income estimate is conservative — some systems earn SREC income for 15+ years. Sell through a registered SREC aggregator.

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How to Use This Calculator

Enter your bill, utility, and county

Maryland has three primary utilities for residential solar: BGE (Baltimore Gas & Electric) serves Baltimore City, Baltimore County, and surrounding areas; Pepco serves Montgomery and Prince George's Counties in the DC suburbs; Delmarva Power serves the Eastern Shore. Your county matters because several Maryland counties offer additional property tax credits on top of state incentives — Montgomery County offers up to $5,000, Howard County up to $2,500.

Maryland SREC market

Maryland has a functioning Solar Renewable Energy Credit (SREC) market. Solar owners earn 1 SREC for every 1,000 kWh (1 MWh) of electricity their system produces. SRECs are sold to utilities and electricity suppliers who need them to meet Maryland's Renewable Portfolio Standard. Current MD SREC prices are approximately $50–$55 per SREC. Unlike fixed-rate programs (NJ SREC-II, MA SMART), MD SREC prices fluctuate with market demand. Sell through a registered SREC aggregator — your installer can recommend one.

Maryland sales tax and property tax exemptions

Maryland exempts all solar equipment from the 6% state sales tax. Maryland also has a statewide property tax exemption for solar energy systems — solar installations do not increase your property's assessed value for state and county property tax purposes. Several counties offer additional credits beyond the state exemption.

The Formula

Monthly kWh = Monthly Bill ÷ Electricity Rate Annual Production = System kW × 1000 × 4.3 PSH × 365 × 0.80 efficiency ÷ 1000 Annual Savings = Annual Production × Retail Rate (net metering) Annual SRECs = Annual Production ÷ 1000 kWh SREC Annual Income = Annual SRECs × $52.50/SREC (market est.) Gross Cost = System kW × 1000 × $2.85/W ITC Credit = Gross Cost × 30% Sales Tax Savings = Gross Cost × 6% Property Tax Exemption = Gross Cost × 1.2% × 20 years (est.) Payback = Net Cost After ITC ÷ (Annual Savings + SREC Annual Income)

Maryland uses 4.3 peak sun hours (PSH) statewide average — the DC suburbs get about 4.4 PSH, the Eastern Shore 4.5 PSH, and western Maryland about 4.0 PSH. The $2.85/W installed cost reflects Maryland's competitive metro DC market. SREC price estimated at $52.50 (midpoint of $50–$55 current market). Property tax calculated at Maryland's average effective rate of ~1.2%.

Example

David — Baltimore BGE customer selling SRECs

David is in Baltimore (BGE) paying $150/month at $0.16/kWh. He installs an 8 kW system and sells his SRECs through an aggregator.

Monthly bill$150 (BGE, $0.16/kWh)

System8 kW, SREC enrolled

LocationBaltimore (4.3 PSH)

Result

Annual production~9,843 kWh/yr

Annual SRECs~9.8 SRECs/yr

Annual savings (net metering)~$1,575/yr

SREC annual income~$515/yr

Gross system cost~$22,800

Federal ITC (30%)-$6,840

Sales tax exemption-$1,368

Net cost after ITC~$15,960

SREC total (10yr est.)~$5,150

Payback period~7.6 years

25-year savings~$44,525

David earns $2,090/year combined from net metering and SREC sales. His payback under 8 years comes from Maryland's combination of above-average electricity rates, SREC income, sales tax exemption, and the 30% ITC.

FAQ

How do Maryland SRECs work? ▼

A Solar Renewable Energy Credit (SREC) is generated automatically when your solar system produces 1,000 kWh (1 MWh) of electricity. Maryland's Renewable Portfolio Standard requires utilities and electricity suppliers to purchase a certain number of SRECs annually. You sell SRECs on the open market through a registered SREC aggregator. Current MD SREC prices are approximately $50–$55 per SREC, but prices fluctuate based on supply and demand. An 8 kW system generating ~9,800 kWh/year produces about 9–10 SRECs annually ($470–$525/yr). SREC income is taxable as ordinary income. Register your system through the PJM-GATS or ERCOT tracking system — your installer handles this.

Which Maryland counties offer additional solar tax credits? ▼

Several Maryland counties offer property tax credits for solar beyond the state exemption. Montgomery County offers a property tax credit of up to $5,000 for residential solar systems. Howard County offers a credit of up to $2,500. Other counties may offer credits — check with your county government before installation. These credits are applied to your annual property tax bill as a reduction, not a one-time payment. The application process varies by county. Montgomery County's program is one of the most generous local solar incentives in the mid-Atlantic region.

How does Maryland net metering work? ▼

Maryland has full retail-rate net metering mandated by state law. BGE, Pepco, and Delmarva Power customers earn credits at the full retail electricity rate for excess solar exported to the grid. Credits carry forward monthly. At the end of the annual billing year, any remaining credits are cashed out at the "avoided cost" rate (lower than retail). Maryland's net metering law (MD Code, Public Utilities Article, Section 7-306) protects residential solar owners and has been stable since 2008. Systems up to 2 MW qualify.

Is solar exempt from Maryland sales and property taxes? ▼

Yes to both. Sales tax: Maryland exempts solar panels, inverters, and related equipment from the 6% state sales tax (MD Tax-General Article, Section 11-230). Property tax: Maryland law (MD Tax-Property Article, Section 9-203) provides a property tax exemption for solar and geothermal systems for the full life of the system. Your home's assessed value does not increase due to solar installation. With statewide average effective property tax rates around 1.2%, this saves $200–$350/year on a typical residential installation — $4,000–$7,000 over 20 years.

Is solar worth it in Maryland? ▼

Maryland consistently ranks in the top 10 states for solar ROI. The combination of 4.3 PSH average sunshine, above-average electricity rates, full retail net metering, SREC income, sales tax exemption, property tax exemption, county tax credits, and 30% federal ITC creates payback periods of 7–10 years for most homeowners. The Eastern Shore has excellent sun exposure and lower costs, making it one of the best regions in the state. The DC suburbs (Montgomery, Prince George's) benefit from Pepco's higher rates and county-level incentives.

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