Incentives
With government and EPA pushing legislature to decrease pollution and institute more renewable energy sources, a plethora of incentives have been injected into this economy and all three levels - the county, state, and federal levels.
Each county has its own tax credit to incentivize solar panel installation. Depending on the county you live in and its regulations, the incentives can vary up to $5,000.
Prince George’s County – $5,000 Property Tax Credit
Howard County – $5,000 Property Tax Credit
With Maryland’s goal to make real 100% renewal energy by 2040, the Maryland Residential Clean Energy Grant Program provides $1,000 on systems smaller than 20kW.
The Federal Solar Tax Credit (Investment Tax Credit – ITC) allows you to write off 26% of the system’s cost from your income tax. This tax credit has now been extended through 2022 and will come down to 22% in 2023.
You will receive a full credit on your utility bill for extra electricity your system generates and returns back to the grid. This will allow you to use the extra energy you produced during times that your system is not generating such as at night or on a rainy or cloudy day.
You will not need to pay an additional tax on the increased value of your home due to solar panel installation.
Your purchase of the solar energy system will be tax free.
You will be able to sell each megawatt-hour of clean energy your system produces on the SREC market for anywhere between $10 to $77 depending on the market rate. This means that a 5kW system that produces 7MWh per year could generate $538 in income.