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Residential Solar Tax Credits

Not only do you save monthly by installing solar panels for your home, by choosing to own your solar power system you benefit from receiving solar tax credits as well as state incentives. However, to benefit from these incentives you must choose to own your system.

Federal Solar Tax Credit

  • Allows for a reduction in your income tax payable by 30 percent of the system cost

  • Tax credit allows homeowners to reduce the amount they pay to the federal government.
  • Leasing or entering into a residential PPA agreement will forfeit your incentives to the leasing company

Maryland State Solar Grant

  • Maryland homeowners will receive a flat grant of $1,000 for installing solar panels on their home.
  • To be eligible for the Maryland state solar grant the system must not be larger than 20kW.
  • Maryland homeowners are also eligible to claim a credit on their Maryland state income tax.
  • The tax credit depends on how much your solar energy system produces.
  • The rate is $0.0085 per kilowatt hour and a minimum credit of $1,000 per year.

SRECS (Solar Renewable Energy Credits)

  • It’s best to think of SRECS as a receipt of how much renewable energy your solar panels have produced in a given amount of time. Once your solar system produces 1,000 kilowatt hours, you will receive one solar renewable energy credit.
  • Once your solar system has been installed you can sell your solar renewable energy credits on an open SREC market. Again, like the Maryland State grant and solar tax credits you will only receive these incentives by choosing to own your solar power system.