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Solar Incentives & Financing in Maryland

• Factsheet

September 17, 2025

• Sukrit Mishra

What type of solar incentives are available?

There are several types of financial incentives available that can help you go solar. This section primarily covers the solar incentives available in Maryland, but you can learn more about national solar incentives here.

Maryland-specific solar incentives

1. Residential Solar Incentives 

Maryland Solar Access Program (MSAP): Launched on July 21, 2025, MSAP offers up to $7,500 in grants ($750 per kW) for income-eligible homeowners earning up to 150% of the area median income. Awards are made on a first-come, first-served basis. 

For full eligibility details and application guidance, visit our blog here or contact the Maryland Energy Administration directly at SolarAccess.MEA@Maryland.gov.  

• Sales Tax Exemption: Solar equipment and installation remain exempt from Maryland’s ~6% sales tax.  

** Maryland Clean Energy Rebate: Concluded at the end of FY 2025 (around June 2025). Previously offered $1,000 for solar PV, $500 for solar water heating, and $3,000 for geothermal systems. 

2. Energy Storage Grants:

Maryland Residential & Commercial Energy Storage Grant Program (RCES) 

Program Overview 
Launched in Fiscal Year 2026, the RCES Program replaces the now‑ended Maryland Energy Storage Income Tax Credit Program. It supports the installation of grid‑connected battery energy storage systems (BESS) for both residential and commercial sectors across the state, aiming to improve grid reliability, increase energy resilience, and accelerate clean energy adoption. Grants are awarded on a non‑competitive, first‑come, first‑served basis.  

Program Budget 
A total of $2,000,000 is available for FY 2026, funded through the Strategic Energy Investment Fund (SEIF).  

Eligibility & Application Process 
Eligible applicants include: 

• Owners of residential or commercial properties installing a BESS; 

• “Third‑party owners” who finance or own the system on behalf of the property owner.  

Applications are submitted through a two‑step process: 

1. Initial Application: Submit application (including signed installation contract) via MyMEA Portal. 

2. Completion Submission: Once installation is complete, submit a Completion Certificate within 180 days to claim the grant. 

Grant Amounts 
Capped at the lesser of: 

• 30% of the total installed cost, 

• $5,000 for a residential BESS, or 

• $150,000 for a commercial BESS.  

Timeline 

• Applications are accepted through 3:00 PM ET on June 5, 2026, or until allocated funds are fully distributed.  

Key Reminders 

• The Income Tax Credit Program is officially inactive as of December 31, 2024; the RCES Program is its successor.  

• Applications with missing or incorrect documentation will be placed on standby, you’ll be notified and must submit corrections within 14 calendar days, or the application may be rejected.  

Contact Information 
For questions or assistance, reach out to MEA’s Energy Storage Team via EnergyStorage.MEA@Maryland.gov, or visit the FY 26 RCES Funding Opportunity Announcement on the MEA website. 

Maryland Solar Renewable Energy Credits

The value of Maryland Solar Renewable Energy Credits (SRECs) has varied over the last few years. Overall values have been steadily decreasing since 2015 due to an increase in solar installation leading to an oversaturated SREC market.

The state has worked to keep aggressive SREC standards, and the Renewable Portfolio Standards (RPS) may be revised in the near future. Without a revised and aggressive solar-specific mandate within the RPS, the market should bottom out around 2020. You can find the most up-to-date SREC market prices at SRECTrade.com.

Solar financing

For Montgomery County residents (Montgomery County Green Bank)

Climate First Bank – Montgomery County Solar Loan: In partnership with the Montgomery County Green Bank and fintech OneEthos, Climate First Bank offers a 30-year solar loan program exclusively for Montgomery County homeowners. 

• Introductory low rates: 0% interest for the first 10 years for those in Equity Emphasis Areas; 4.99% for other residents. Afterward, the rate resets to 7.99% for the remainder of the term. 

• No dealer fees or prepayment penalties, allowing borrowers to utilize tax credits freely or pay off their loans early without added cost. 

• Flexible financing: Includes the option to bundle solar, battery storage, roof replacements, or electrical upgrades in a single loan. 

• Proven success: The pilot has already issued over $3 million in loans within months of launch, with half serving Equity Emphasis Areas—demonstrating strong local demand. 

For program assistance, folks can reach MCGB at either info@mcgreenbank.org or 240-453-9000.  

PACE

Maryland does not have legislation that allows for residential Property Assessed Clean Energy (PACE) programs. However, commercial PACE is available. MD PACE, a statewide partnership between PACE Financial Servicing and the Maryland Clean Energy Center. Counties are also implementing PACE financing options.