Maryland's solar picture in 2026 is one of the strongest on the East Coast. The state's SREC market pays $40–$60 per SREC, the CleanEnergy Rebate provides direct cash at installation, electricity rates average $0.195/kWh, and net metering is full retail. There's no state income tax credit specifically for solar — but the SREC revenue stream and high electricity rates more than compensate for homeowners willing to plan ahead.
Disclaimer: All cost and savings estimates use Lawrence Berkeley National Laboratory Tracking the Sun 2024 cost data and EIA Electric Power Monthly 2025 rate data. Section 25D residential solar credits expired December 31, 2025. Get at least three installer quotes before deciding.
Key Takeaways
- A typical 8 kW Maryland system costs ~$22,400 at $2.80/watt (LBNL 2024) — no federal 25D credit applies in 2026
- Maryland SRECs trade at ~$40–$60/SREC, adding $540–$810/year in revenue on a typical 8 kW system
- At $0.195/kWh average (EIA 2025), Maryland electricity rates are among the highest in the mid-Atlantic — improving ROI significantly
- Estimated payback: 8–11 years — competitive with high-credit states, driven by high rates and strong SREC market
Maryland Solar Costs in 2026
At $2.80/watt, Maryland is near the national median for installation costs. An 8 kW system — right-sized for a typical Maryland single-family home — costs approximately $22,400 before any incentives. With 4.5 peak sun hours per day averaged across the state, that system produces roughly 13,200 kWh annually.
At $0.195/kWh, Maryland's electricity rate is significantly above the national average. Each kWh of solar production saves $0.195 — far more than Ohio ($0.142/kWh) or Colorado ($0.142/kWh), and better than Virginia ($0.160/kWh) or Illinois ($0.171/kWh).
| System Size | Cost at $2.80/W | Annual Production (4.5 hrs) | Annual Savings at $0.195/kWh |
|---|---|---|---|
| 6 kW | $16,800 | ~9,900 kWh | ~$1,931 |
| 8 kW | $22,400 | ~13,200 kWh | ~$2,574 |
| 10 kW | $28,000 | ~16,500 kWh | ~$3,218 |
Maryland's SREC Market
Maryland's Solar Renewable Energy Credit (SREC) program is one of the more active on the East Coast. Maryland utilities must meet a solar carve-out under the Renewable Portfolio Standard, creating demand for Maryland SRECs — with prices ranging from approximately $40–$60 per SREC in recent years (1 SREC = 1 MWh of solar production).
For an 8 kW system producing 13.2 SRECs annually:
- At $40/SREC: $528/year in SREC revenue
- At $60/SREC: $792/year in SREC revenue
Unlike Illinois's fixed 15-year contract price, Maryland SRECs trade on an open market through brokers and aggregators. Prices can fluctuate with policy changes and market supply. Recent SRECs have held in the $40–$60 range, but there's no guarantee that continues.
Combined with net metering savings at $0.195/kWh, total annual benefits for a typical 8 kW Maryland system in the first few years can reach $3,100–$3,370/year, supporting payback in the 8–11 year range.
According to Lawrence Berkeley National Laboratory's Tracking the Sun 2024 report, Maryland's combination of above-average electricity rates and an active SREC market produces payback periods competitive with states that have direct income tax credits.
Maryland CleanEnergy Rebate
The Maryland CleanEnergy Rebate — administered by the Maryland Energy Administration (MEA) — has offered direct cash rebates of $1,000 for residential solar installations. The program has historically been funded on a first-come, first-served basis and subject to annual appropriations.
Check current availability directly with the Maryland Energy Administration — rebate availability and funding levels can change between program cycles. When available, this is a direct dollar reduction in your upfront system cost.
Net Metering in Maryland
Maryland's net metering law (Public Utilities Article § 7-306) requires BGE, Pepco, Delmarva Power, and Potomac Edison to offer full retail net metering for residential solar systems. Every exported kWh earns a credit at the full retail rate — approximately $0.195/kWh for BGE customers. Annual rollover of credits applies, allowing summer surplus to offset winter grid purchases.
This is materially better than states like California (NEM 3.0, ~$0.05–$0.08/kWh exports) or Arizona (APS, ~$0.07–$0.09/kWh exports). Maryland's full retail export credit, combined with SREC revenue, creates a strong financial foundation for residential solar.
What to Do Next
Confirm your utility and current electricity rate.
BGE, Pepco, Delmarva Power, and Potomac Edison each have different rate structures. BGE serves the Baltimore metro; Pepco serves the DC suburbs. Your specific rate — including any tiered pricing — determines your exact annual savings.
Check MEA’s CleanEnergy Rebate availability.
The Maryland Energy Administration’s rebate is funded annually and subject to exhaustion. Check current availability at energy.maryland.gov before finalizing your installation plans. Acting earlier in the program year improves your odds of receiving the rebate.
Ask installers about SREC aggregation and current market price.
Maryland installers typically offer SREC aggregation services or can connect you with a broker. Get the current spot price and forward contract options for Maryland SRECs. Build your financial case using the lower end of the recent $40–$60 range as your base case.
Get at least three competing quotes.
Maryland has a competitive solar installer market, particularly in the Baltimore–DC corridor. Multi-quote buyers save an average of 15–20% on system cost. Use EnergySage or SolarReviews to collect quotes without triggering repeated sales calls.
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Adding a heat pump too? The federal Section 25C credit (30%, up to $2,000 through 2032) stacks with Maryland solar savings. Our Heat Pump Calculator models combined savings at Maryland’s electricity rates.
Bottom Line
Maryland solar in 2026 delivers competitive payback — 8–11 years — without a state income tax credit. The combination of high electricity rates ($0.195/kWh), a strong SREC market ($40–$60/SREC), and full retail net metering creates an economics package that competes with states offering direct credits. The CleanEnergy Rebate, when funded, adds further value. Maryland homeowners in the Baltimore and DC suburbs are among the best-positioned in the eastern U.S. for solar ROI.
Related Guides
- Solar Panel Cost by State in 2026 — See how Maryland compares to every other state for costs and incentives.
- Is Solar Worth It in 2026? — National payback analysis to put Maryland’s numbers in context.
- Net Metering Guide 2026 — How Maryland’s net metering policy compares to other states.
- Home Solar Panels: The Complete 2026 Guide — Everything you need to know before getting your first solar quote.
