Solar Panel Costs and Savings in Maryland (2026 Guide)
Maryland has one of the better incentive stacks in our guides — and the most urgent deadline: legislation passed in April 2026 sunsets the state’s 1:1 net metering on July 1, 2027.
Maryland solar at a glance (July 2026)
| Metric | Figure |
|---|---|
| Avg. residential electricity rate | 22.07¢/kWh (EIA, April 2026) |
| Avg. peak sun hours | ~4.5 per day (NREL-based estimate) — best in our Northeast group |
| Typical installed cost | ~$2.40–$3.35 per watt before incentives (2026 national range) |
| Export compensation | Full retail 1:1 net metering — sunsets July 1, 2027 for new customers |
| Federal tax credit | None for purchases after Dec 31, 2025 (details) |
| State incentives | $1,000 flat rebate + SRECs ~$50–$90 + sales tax exemption |
The July 1, 2027 net metering sunset
Maryland currently credits exported solar one-to-one at retail rates, with unused credits reconciled annually in April at commodity supply rates. That changes: sweeping energy legislation passed April 13, 2026 sets July 1, 2027 as the sunset for the current net metering program. Customers interconnected before the deadline are expected to keep their terms under standard grandfathering practice; those after will be on whatever successor structure regulators define — historically, successors (like Illinois’s supply-only netting or Arizona’s net billing) have been meaningfully less generous.
Interconnection takes weeks to months after contract signing, so the practical deadline for deciding is well before mid-2027. This is the dominant fact in Maryland solar right now. See our net metering guide for what’s at stake in the structure.
The strongest SREC market in our guides
Maryland’s SRECs have recently traded at roughly $50–$90 per certificate — well above Pennsylvania’s ~$22 and in a different universe from Ohio’s ~$3. At one certificate per MWh, a typical 9–11 MWh/year home system earns $450–$900 annually at recent prices. SREC prices float with the market, so estimate conservatively, but even the low end materially shortens payback. Mechanics in our SREC guide.
The rebate and the rest
- Residential Clean Energy Rebate: a flat $1,000 from the Maryland Energy Administration for qualifying installed systems — a check, not a tax credit, so it doesn’t depend on your tax liability. Funding is annual; apply promptly after installation.
- Sales tax exemption on solar equipment.
- Maryland Solar Access Program: covers most or all of the cost for income-qualified homeowners (at or below 80% of area median income) — worth checking before assuming you need to finance.
Stacked with 22¢ electricity and the region’s best sun (~4.5 hours), Maryland’s fundamentals were already solid; the SREC income pushes it near the top of our Northeast group. Run your numbers with the calculator.
Bottom line
Maryland pairs a strong, layered incentive stack — $1,000 rebate, top-tier SREC prices, tax exemption — with the most consequential deadline in our guides: 1:1 net metering ends for new customers on July 1, 2027. Homeowners who interconnect before the sunset lock the old terms; after it, Maryland’s math will be rewritten. If solar is on your list at all, this is the state where waiting has the clearest cost.
Sources
Frequently Asked Questions
- Is Maryland's net metering really ending?
- The current 1:1 program is. Energy legislation passed in April 2026 set a sunset date of July 1, 2027 for Maryland's full retail net metering — customers interconnected before then are expected to keep their terms, while later customers will face a successor structure. If you want one-to-one net metering in Maryland, the window to interconnect is now measured in months.
- What direct incentives does Maryland offer in 2026?
- A flat $1,000 rebate through the Residential Clean Energy Rebate Program (Maryland Energy Administration), SREC income — recent trades roughly $50–$90 per certificate, among the strongest SREC prices in the country — plus sales tax exemption on the equipment. The federal residential credit ended December 31, 2025. Income-qualified homeowners may also access the Maryland Solar Access Program.
- How much can Maryland SRECs earn per year?
- One SREC per megawatt-hour generated. A typical home system producing 9–11 MWh annually earns roughly $450–$900 a year at recent Maryland prices of $50–$90 per certificate. Prices are market-based and fluctuate, so build estimates on the conservative end.