Is Solar Worth It in Maryland in 2026?
Complete analysis of solar costs, incentives, net metering, and payback for Maryland homeowners — without the federal ITC.
Cost Per Watt
$3.30
installed
Electricity Rate
$0.150
per kWh
Payback (No ITC)
17 yr
current reality
Payback (With 30% ITC)
11.9 yr
hypothetical
25-Year ROI
47%
return on investment
Incentive Breakdown — Maryland
Available incentives for a typical 7kW residential solar system in Maryland
Federal ITC (25D)
ExpiredThe federal solar Investment Tax Credit expired on January 1, 2026. No federal credit available for new installations.
State Tax Credit
$1,000Maryland offers a Clean Energy Production Tax Credit of up to $1,000 for residential solar installations.
SREC Market
~$350/yrMaryland has an active SREC market with values around $50/SREC.
Property Tax Exemption
Solar system value excluded from property tax assessment
Sales Tax Exemption
No statewide sales tax exemption for solar
Low-Income Program
AvailableMaryland offers programs to help low-income households access solar energy.
Key Incentives: State tax credit worth $1,000; Property tax exemption for solar; SREC market value ~$350/year; Low-income solar program available.
Solar Math — With vs Without Federal ITC
Cost breakdown for a typical 7kW residential system in Maryland
2026 Reality (No Federal ITC)
- System Size
- 7 kW
- Cost per Watt
- $3.30/W
- Gross Cost
- $23,100
- Federal ITC
- $0
- Net Cost
- $23,100
- Annual Savings
- $1,357/yr
- Payback Period
- 17 years
Hypothetical (With 30% ITC)
- System Size
- 7 kW
- Cost per Watt
- $3.30/W
- Gross Cost
- $23,100
- Federal ITC (30%)
- -$6,930
- Net Cost
- $16,170
- Annual Savings
- $1,357/yr
- Payback Period
- 11.9 years
Impact: Without the federal ITC, Maryland homeowners face a 5.1-year longer payback period — paying $6,930 more out of pocket.
Net Metering Policy — Maryland
How Maryland compensates your excess solar production
Full retail rate net metering — you earn the same rate you pay for electricity. Best case for solar savings.
Maryland mandates net metering at full retail rate for systems up to 2 MW under PSC rules.
Cost Per Watt Benchmark — Maryland
Maryland Average
$3.30/W
National Average
$3.05/W
Typical 7kW System
$23,100
Maryland's average installed cost is above the national average of $3.05/W
Breakeven Timeline
Without the federal ITC, a typical 7kW system in Maryland breaks even in 17.0 years. With the former 30% ITC, payback would drop to 11.9 years.
Without Federal ITC
17
years to break even
With Former 30% ITC
11.9
years to break even
Production Details
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