The Federal Tax Credit for Solar
The ITC, or the federal income tax credit for solar, is calculated to cover 30% of your installation cost. This amount is uncapped, and is a pure credit. There are no requirements or restrictions in qualifying for this credit. It applies to all grid-tied solar electric systems. You fill out the appropriate form on your federal tax return, and you’ll get your money as a refund. If you do not owe enough taxes to cover the full tax refund amount, you can roll over your credit to the following year and for the next 5 years.
Maryland Residential Clean Energy Grant Program
The current Maryland grant is $1,000 for systems up to 20kW in size. The Maryland Energy Administration (MEA) PV solar grants are available for both residents and small business owners.
Local Property Tax Credits
There county based incentives. These vary county to county and change all the time.
- AnneArundelCounty – Property tax credit of up to 50% of your total installation costs capped at $2,500.
- BaltimoreCounty — Property tax credit of up to 50% of your total installation costs, with the maximum credit available based on property taxes you pay.
- Harford County — Property tax credit of up to $2,500.
- Prince George’s County—Property tax credit of up to 50% of your total installation costs up to $5,000.
Maryland Solar Energy Renewable Certificates (SRECs)
Maryland residents receive SRECs for their electrical production. SRECs are sold to utility companies annually. One credit is issued for each 1,000 kilowatt hours your solar panels generate.