How solar works in Maryland in 2026
The federal tax credit changed
The 30% federal residential clean energy credit (Section 25D) ended for systems installed after December 31, 2025. If you buy a system outright or with a loan in 2026, you cannot claim it. With a lease or power purchase agreement the solar company owns the system and may still qualify for business credits, which can affect the price you are offered. Ask any provider how this applies to your quote.
Net metering, for now
Maryland utilities credit residential solar for power sent to the grid at the retail rate. For new systems this is scheduled to end by July 1, 2027, or sooner if the state reaches its net metering cap, so timing can matter.
Solar renewable energy credits
A Maryland system earns SRECs for the power it produces. Under the Brighter Tomorrow Act, some systems installed in the current window earn additional SREC value. Ask your installer whether yours qualifies.
State solar grants
The Maryland Energy Administration runs solar grant programs, currently focused on income-eligible households. Check eligibility and funding before you apply.
Community solar
Maryland's community solar program became permanent in 2025. Renters and homeowners with unsuitable roofs can subscribe to a local project and receive bill credits.
Utilities: BGE, Pepco, Delmarva Power and Potomac Edison.
Common questions
Is net metering ending in Maryland?
Retail net metering for new systems is scheduled to end by July 1, 2027, or earlier if a statewide cap is reached. Systems connected before then keep their terms.
Can renters in Maryland get solar?
Often, yes, through the permanent community solar program.
Official sources
- Maryland PSC: Community Solar Program
- Maryland Energy Administration
- IRS: Residential Clean Energy Credit
This guide is general information, not financial or tax advice. Program rules and rates change; confirm current terms with the program administrator or a tax professional.