Resources > Solar Incentives & Financing in Maryland

Solar Incentives & Financing in Maryland

• Factsheet

May 7, 2024

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

The Maryland Energy Administration offers Maryland Clean Energy Grants for residential and commercial projects. Residential grants of $1,000/project (taxable) are awarded on a first-come, first-served basis for primary residences that are not located in a historic district. The amount granted is subject to change. Commercial grants are sized by the kilowatt.

Solar Photovoltaic (PV)

• Installed capacity range: 1-20 kW
• Flat award: $1,000/project

Solar Water Heating

• Installed capacity range: 10-100 sq. ft.
• Flat award: $500/project

Geothermal Heating & Cooling (GHC)

• Installed capacity range: 1-10 tons
• Flat award: $3,000/project

Source: DSIRE

Several Maryland counties offer property tax credits as well. The funding for these property tax credits is often over-subscribed with backlogs of several years. Check with your county for specifics on funding availability. Counties with property tax credits include Prince George’s, Baltimore County, Harford, and Anne Arundel.

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

Maryland 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.

Montgomery County Green Bank

The Montgomery County Green Bank is a publicly-chartered nonprofit dedicated to accelerating affordable energy efficiency and clean energy investment in Montgomery County, MD. They partner with the private sector to build a more diverse, equitable, and inclusively prosperous, resilient, sustainable, and healthy community. Their work supports Montgomery County’s goal to reduce its greenhouse gas emissions. The Green Bank has two loan products available to homeowners installing solar:

1. Renewable Energy Financing – This program is open to any single family homes, townhomes, and condominiums in Montgomery County.
2. Access Solar Financing – This program offers income-qualified households in Montgomery County two (own and rent options) exclusive, flexible financing options for solar PV installed on their home.