Maryland Solar Power Facts in 2023
Solar panels in Maryland gain in popularity as the prices drop and the number of solar installers increases and the energy gets more expensive with recent developments in the energy sector. The Free State moves towards being energy-free as well, as it now ranks 17th in the USA by the total number of solar panels.
Significant solar incentives are likely to move the state even further up. It may take a while to catch giants in the field, such as solar panels in California and Solar Panels in Texas, but this state takes bold steps towards an energy-independent future.
Maryland homeowners can enjoy as many as 202 sunny days a year, just a bit below the national average of 205 sunny days. An average solar system is likely to pay off in as little as 7 years, so solar power is the power of choice for many new homeowners in the Free State. A home solar system can be seen on almost every new roof in the state, so read on to learn more about residential solar installations in the Old Line State.
Maryland Solar Energy Data
Maryland currently ranks 17th by the total capacity of solar panel installation. This is a very sharp jump, considering that the state ranked 26th back in 2020. Solar panels can produce enough green energy to power more than 150,000 MD homes. Currently, 4.41% of electricity produced in the state comes from solar panel installations.
The solar industry in the state also contributes to the economy and creates many new solar jobs. There are more than 200 solar companies working in the Free state. 15 of these are solar equipment manufacturers. Further 110 are solar installers and solar project developers and almost 80 other companies work in related industries.
The state of Maryland has made significant investments in solar panels and other solar solutions. With almost $3.6 Billion in solar investments, it can boast some notable solar installations and green energy exploitation that provided around 11% of power production in the state back in 2019.
Considering the ambitious Renewable Portfolio Standard that pushes the state towards 100% renewable by 2040 (10 years sooner than most US states), it is clear that significant solar incentives will drive the solar panels to cost even further down. Solar power in the state costs on average between $12,500 – $17,000 for a 5kW system and this average cost is pushed further down by federal and state incentives.
If you decide to go solar in Maryland, seek multiple solar quotes. Getting the best price on PV systems decreases the payoff time, takes care of your energy needs, and helps you save money. You can expect to save between $37,000 to $50,500 over a 20 year period with average energy consumption for the state. Furthermore, a good solar array will also protect you from power outages, especially if you combine it with a solar battery.
Maryland Solar Statistics
|Maryland National Ranking||17th|
|Solar Panels Installed(MW)||1,376 MW|
|Can Supply Power to: (No. of Homes)||+153,000|
|% of State's Electricity from Solar||4.41%|
|Solar Companies in the State||204 (15 Manufacturers, 110 Installers and Developers and 79 Others)|
|Solar Jobs Created||4,565|
|Total Solar Investment in the State||$3.6 Billion|
|Out of Pocket Cost for a 5kWh system||$12,500 - $17,000|
|Net 20-year savings||$37,000 - $50,500|
|Average Payback Period||7.5-10 years|
|Electricity Bill Offset for a 5kWh system||+ 75%|
|Number of Solar Installations||+ 76,000|
Source: Maryland Solar | SEIA
Notable Solar Installations in Maryland
The majority of the 76,000+ solar installations in the Free State are residential solar systems. Solar production is also present in the form of many large-scale solar projects which use the reduced cost of solar to create large-scale solar array farms across the state. Some of the most notable solar installations in Maryland are:
- Maryland Solar Farm – this large solar farm has the solar capacity of 20 MW – that is enough energy to power over 2,100 Free State homes,
- Elkton Solar in Elkton has the capacity of 1 MW – enough to power as many as 170 homes with green energy,
- Albertsons, has introduced energy-efficient solutions in their stores throughout the state,
- All Seasons Farm, has introduced solar panel installation on their objects to offset carbon footprint created,
- Delmarva Feed, has introduced solar panels to offset some of their energy consumption,
- IKEA – has a total solar capacity of 4 MW, more than enough for the entire facility or the equivalent for powering over 680 homes. Speak about solar savings!
Is it Worth it to Buy Solar Panels in Maryland?
Yes, buying solar panels in Maryland is worth it. The average cost of solar has dropped significantly in recent years. Since 2010, the price of a solar system per Watt DC has dropped by a whopping 80%, while a drop of 45% has taken place in the past 5 years only. Home solar was never cheaper in the US.
MD homeowners can now get a solar panel installation and create solar energy for as little as $12,500 – $17,000 for a 5 kW solar system. This is why it is important to always get the best solar quote you can since the prices vary significantly across the state. Solar panels’ worth of power is produced in as little as 7 years and the solar installers working in the Free State already have a lot of experience.
Solar panel installations can offset more than 75% of your total energy needs and bring you significant savings on your power bill. The more power you produce with your solar panels, the less you’ll pay for energy at the end of the month. A solar panel system also helps usher in an energy-independent future and gives you resiliency against a power outage.
Average Cost of Solar Energy Systems
The average cost of installing solar panels has dropped significantly in the past several years. Right now, an average Maryland homeowner can expect to pay as little as $2.84 per Watt of DC solar power installed. Homeowners who decide to install a larger solar system can expect to pay around $28,400 for a 10 kW system.
A system of this size can produce enough solar energy to offset even power bills for a larger household. A solar system of this size can also power smaller farms and even provide enough energy for your brand new EV. Every home solar system in this state is heavily subsidized by the government and the price drops even further when tax incentives, such as federal incentives are applied.
Solar Panel Energy Production in Maryland
Maryland had humble solar beginnings. Back in 2007, the total solar capacity in this state was only around 0.9 MW. A high price, few production facilities, and a lack of expertise all influenced solar production back then. However, already 3 years later, Maryland had around 12.8 MW of solar power installed.
In 2015, this number went up and 349 MW of solar panels were in the state. By 2020, more than 3 times that amount was installed, so that the Free state could produce 1,288.7 MW of green energy. In 2021, 1,376.0 MW are operating, making Maryland one of the best states for solar installation. Solar installation costs, a high level of expertise, and green efforts have all contributed to the solar systems’ boom.
Maryland Solar Incentives, Rebates, and Tax Credits
Maryland was one of the early adopters of green energy. Their Renewable Portfolio Standard (RPS) mandates 50% renewable electricity by 2030 and 100% by 2040. This puts Maryland in the progressive basket of only seven other US states to have goals this strict and this binding. Investigate more into MD Solar Rebates and Tax Credits:
Federal Solar Investment Tax Credit
The Federal tax credit program allows any residential solar installation to receive up to 26% of their solar panels’ worth back in the form of a federal tax credit. This means that for every $1,000 you spend on solar equipment, you can get up to $260 back. The unused tax credits can be rolled over to the next fiscal year for up to ten years.
In 2023, this solar incentive drops to 22%, while from 2024 onwards, it goes down to 0% for residential projects and 10% for solar company investments. Make sure to grab your chance while you still can. Your photovoltaic system could easily cost you less than your year’s worth of rent.
Residential clean energy grant Program
The residential energy grant Program allows for an easy rebate for any home solar project. If your system is less than 20 kW in size, you can apply for this rebate. The state of MD will give you $1,000 just for installing a solar energy system on your rooftop.
Solar Renewable Energy Certificates (SREC)
Your solar installation can also make you some money. In Maryland, you get 1 SREC for every megawatt of electricity generated. You can sell these SRECs on the SREC market and make extra cash. Your home solar cost is likely to go down, as even 10 kW PV systems can produce around 13 MWh of energy per year.
If you sell these SRECs back to your energy company, you can expect your solar panels to have made you around $900 per year, one more added value to your solar panel system. The cost keeps going down.
Net-metering in Maryland allows your system to store excess energy in the MD power grid. At night or on cloudy days, when you spend more electricity than you consume, you get that energy back. At the end of the month, you only pay for the energy that you’ve spent on top of your production. Basically, you use your utility company as a solar battery. You can learn more about how a smart meter works.
Maryland Property Tax Exemption for Solar and Wind Energy Systems
An average solar system, depending on the system size, can increase the value of your property by up to $6,000 for every kW of solar installed. To incentivize people to keep pursuing solar as a viable energy source, Maryland stopped taking this added value when determining your property taxes. Even with solar panels, you pay the same amount for your property tax.
Sales and Use Tax Exemption for Renewable Energy Equipment
Sales Tax in MD is not applicable to solar equipment. You can expect to pay around 6% less for a solar system if it is bought and used in MD. This means further savings and a shorter pay-off period.
|The Cost of PV - 10kWh at an average of $2.84 per Watt of Solar Installed||$28,400|
|The Federal Solar Tax Credit @26% by the end of 2022||$7,384|
|Residential clean energy grant Program @$1,000||$1,000|
|SREC: 13 SRECs per year ($69.23 per SREC)||$900|
|Net-Metering Savings per year||$1,565.28|
|TOTAL system cost for a 10kWh home solar system at the end of year 1||$15,846.72|
|Years before a 10kWh system pays off if all Maryland solar incentives are taken||6.42 years|
Top Solar Companies in Maryland
Finding the best solar installer in MD can be a lot of work. There are over 200 companies working in MD alone. To find the best solar company, we’ve compiled a top 10 list of best MD solar installers. We paid attention to their experience and reviews among other factors, to give you the best of the best for your solar installation and parting with your utility bills.
- Ipsun Solar, multi-state
- Nova Solar, multi-state
- Solar SME, Inc., Multi-state
- Solar Energy World, Elkridge
- GreenBrilliance LLC, multi-state
- Sustainable Energy Systems LLC, Frederick
- Eco Solar Solutions, Elkton
- Celestial Solar Innovations, LLC, Frederick
- Sunlight-To-The Rescue, LLC, Silver Spring
- Lumina Solar, Baltimore
How can I get free solar panels in Maryland?
Constellation Energy offers solar panel installation at no cost for homeowners. The utility then charges lower rates to the customer than a regular utility and it maintains the system for a period of 20 years. There are other options for free solar panels in the Old Line State, such as PPA and lease options. Your solar installation in MD can come at almost no cost for you.
Which is the best solar inverter for home?
Many agree that MD solar power is best converted from DC to AC by means of a string solar inverter. This type of inverter is most commonly used in Europe, Australia, and Asia. You can always contact your utility and check what their recommendations on the best solar inverter for home use are.
How much is a monthly payment on solar?
In the Free State, you can expect to pay around $180.94 a month for your solar installation with a financing option. Bear in mind that most solar rebates are offered only for cash and solar loan payments and may not be applicable for solar PPA and solar leasing.
Can you stand on solar panel?
It is recommended that you do not step on your solar panel. You can if you have to since solar panels are rated to withstand hailstones, small branches, dust, and dirt on their surfaces. They are also lightweight, so they will not pose much weight on your rooftop.
Your solar panel installation in MD can significantly decrease your power bill, provide you with a stable energy supply and make you prone to any power outage that may hit your area. The average cost of a solar energy system has dropped in price over the last decade and significant tax credit options and other rebates bring this price even further down. Depending on your system size you can power anything from a small house to an entire factory with your PV system.
To make the best use of your PV system, check the average cost of a home solar system in your area and contact your utility company to find out about their net-metering rates. Your solar panel installation can bring a bright future to your rooftop today.