2026 · No Federal Tax Credit · NREL + EIA Data
Solar Panels in Maryland: Cost, Payback & ROI (2026)
Is solar still worth it in Maryland after the 30% federal tax credit expired? These pre-computed estimates use NREL PVWatts production data and current 16.2¢/kWh Maryland electricity rates for a typical home using 900 kWh/month.
Section 25D (30% federal solar tax credit) expired December 31, 2025
All numbers below reflect 2026 math with no federal residential credit. State incentives, where applicable, are noted in the section below.
Maryland Solar at a Glance
Based on a 900 kWh/month home ($146/mo electric bill at 16.2¢/kWh), 100% offset, no state rebate applied.
8.2 kW
For 900 kWh/month home
$24,136
At $2.95/W (LBNL 2024 avg)
12.3 years
Without state rebate
$1,750
Estimated annual savings
$55,951
Cumulative before rebate
$31,814
Savings minus system cost
16.2¢/kWh
above average vs. 16.0¢ U.S. avg · EIA 2025
1,320 kWh/kW/yr
moderate · 4.0 peak sun hrs/day · NREL PVWatts
Is Solar Worth It in Maryland in 2026?
Maryland's 16.2¢/kWh electricity rate and active SREC market make solar financially solid in most of the state. BGE, Pepco, and Delmarva Power territories have slightly different net metering rules, but retail-rate credits are the standard. The state's Residential Clean Energy Grant Program has provided direct rebates in past program years.
For a typical Maryland home consuming 900 kWh per month, our calculation shows a 8.2 kW system needed for 100% offset. At the current national average installed cost of $2.95/W (LBNL Tracking the Sun 2024), that's $24,136 gross before any state rebates. Year-one savings of $1,750 grow each year as electricity rates escalate — the model assumes 2.5%/year (EIA AEO 2024).
The 12.3 years payback period is moderate — within the national average range of 8–12 years. Over 25 years — the standard warranty period for most premium panels — a Maryland homeowner following this profile would save an estimated $55,951 total, for a net benefit of $31,814 after recovering the system cost.
Year-by-Year Savings Snapshot: First 10 Years
Based on 8.2 kW system, 0.5%/yr degradation, 2.5%/yr rate escalation, no state rebate.
| Year | Production (kWh) | Annual Savings | Cumulative |
|---|---|---|---|
| Year 1 | 10,800 | $1,750 | $1,750 |
| Year 2 | 10,746 | $1,784 | $3,534 |
| Year 3 | 10,692 | $1,820 | $5,354 |
| Year 4 | 10,639 | $1,856 | $7,210 |
| Year 5 | 10,586 | $1,893 | $9,103 |
| Year 6 | 10,533 | $1,931 | $11,033 |
| Year 7 | 10,480 | $1,969 | $13,002 |
| Year 8 | 10,428 | $2,008 | $15,010 |
| Year 9 | 10,375 | $2,048 | $17,058 |
| Year 10 | 10,324 | $2,089 | $19,147 |
System cost to recover: $24,136. Table shows savings without state rebate applied. Use the interactive calculator to enter your actual bill and any rebate.
Solar Incentives in Maryland (2026)
Maryland's SREC II Program provides an additional revenue stream for systems installed after June 2017. SREC prices have been stable in the $60–90 range in recent years.
- Maryland SREC II program (tradeable solar certificates)
- Maryland Clean Energy Grant Program (check current availability)
- Property tax exemption on added home value
- Sales tax exemption on solar
Incentive programs change frequently. Verify current offerings at dsireusa.org or directly with your utility before making any purchasing decision.
How We Calculate Maryland Solar ROI
These estimates use the same methodology as our interactive solar ROI calculator, applied to Maryland-specific data:
System cost
$2.95/W installed
LBNL Tracking the Sun 2024
Solar production
1,320 kWh/kW/yr
NREL PVWatts v8
Electricity rate
16.2¢/kWh
EIA Residential Rates 2025
Rate escalation
2.5%/year
EIA Annual Energy Outlook 2024
Panel degradation
0.5%/year
NREL (Jordan & Kurtz, median)
System lifetime
25 years
Standard warranty period
No Section 25D (federal residential solar credit) is included — it expired December 31, 2025. State incentives are not reflected in these pre-computed figures; use the interactive calculator to enter specific rebate amounts.
Calculate With Your Actual Numbers
The figures above use statewide averages. Enter your actual monthly bill, any Maryland rebate amounts, and your offset target in our interactive calculator for a personalized estimate.
Frequently Asked Questions — Solar in Maryland
Compare Other States
Estimates are based on NREL PVWatts v8 production data, EIA 2025 electricity rates, and LBNL 2024 installed cost benchmarks. Actual savings vary by roof pitch, shading, utility rate structure, and local permit costs. This is not financial advice. Consult a licensed solar installer before making any purchasing decision.