Join the conversation with fellow Maryland solar enthusiasts. Post questions, find support from others who have gone solar and connect with members of the grassroots solar movement.
The listserve is a great way to keep track of local developments around solar, including pending laws, incentives and changes in policy. Click here to find out more or join.
Federal and State Incentives
There are a few incentives offered at the federal, state and local level for solar in Maryland. Stay current on solar incentives in Maryland by clicking here.
- The Federal Tax Credit: The Federal Government offers a number of incentives for solar installation. 30% of the system’s purchased cost can be recovered as a tax credit for systems placed in service before the end of 2016. This is covered under section 25D of the IRS code. Learn more and check out the 5695 tax form on Residential Energy Credits. Here are some key pieces of the tax code to consider. (NOTE: The information on this page should not be construed as tax advice. We recommend you check with your tax advisor on this credit and tax preparation questions.)
- 25D(d)(2) Qualified solar electric property expenditure – The term ‘‘qualified solar electric property expenditure’’ means an expenditure for property which uses solar energy to generate electricity for use in a dwelling unit located in the United States and used as a residence by the taxpayer.
- 25D(e)(1) Labor costs – Expenditures for labor costs properly allocable to the onsite preparation, assembly, or original installation of the property described in subsection (d) and for piping or wiring to interconnect such property to the dwelling unit shall be taken into account for purposes of this section.
- 25D(e)(2) Solar panels – No expenditure relating to a solar panel or other property installed as a roof (or portion thereof) shall fail to be treated as property described in paragraph (1) or (2) of subsection (d) solely because it constitutes a structural component of the structure on which it is installed.
- 25D(e)(8) When expenditure made; amount of expenditure – (A) In general Except as provided in subparagraph (B), an expenditure with respect to an item shall be treated as made when the original installation of the item is completed. (B) Expenditures part of building construction In the case of an expenditure in connection with the construction or reconstruction of a structure, such expenditure shall be treated as made when the original use of the constructed or reconstructed structure by the taxpayer begins.
- Maryland Clean Energy Grant Program: The state provides residents with a grant of $1,000 for the installation of solar PV residential systems. To learn more about the grant and the application process, click here.
- County Incentives: Counties like Anne Arundel County, Baltimore, Harford and Prince George’s offer property tax credits for solar (PV) installations. Some are of up to 50% or the costs of the project or $5,000, although they are subject to waiting lists in some counties.
In states with Renewable Energy Portfolio Standards (RPS), utilities are required to obtain a certain portion of their electricity from renewable energy. This creates a market for renewable energy credits. Solar Renewable Energy Certificates (SRECs) are credits you receive for every 1,000 kWh of electricity produced by a solar energy system. Click here to learn more.
Net-metering allows you to offset the cost of the energy you consumer with the value of the solar energy you produce. Click here to learn more about net metering in Maryland.
Including solar in the value of your home
One of the most common questions we receive from homeowners about the solar installation process is “how will a solar purchase affect the value of my home?”
The answer is that purchasing solar can add value to your home, but the practice is not yet standard within the real estate appraisal community. However, the community is training its workforce to accommodate the growth of solar nationwide. The Appraisal Institute now offers training for real estate appraisers on how to appropriately assess the value solar and other energy efficiency measures add to a home. Make sure to request a real estate professional properly trained in evaluating the impact of solar when the time comes for your home to be appraised.
To learn more about how solar is increasingly being incorporated in real property valuation, click here. If you are a licensed real estate appraiser and would like to learn more about including the value of solar in your appraisals to remain at the cutting edge of your field, click here.
Other information about solar and the value of your home:
Overview of all things energy in Maryland: Maryland Clean Energy Center’s Energy 101 Guide