Solar payback in Maryland

Is solar worth it in Maryland?

Short answer for a typical Maryland home: a long payback — roughly 13.6 years to break even, with no federal credit left to claim. Run your own bill through the calculator below.

A home with rooftop solar panels in a regional residential setting
Illustrative rooftop solar scene. Your roof, shading and local utility determine the result.
Sun 4.2 hrs/day Electricity $0.18/kWh Typical payback ~13.6 yrs Federal credit ended December 31, 2025
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Data sources and assumptions

State assumptions last reviewed: . Rules can change; verify your utility and state program before signing a contract. Full methodology.

Maryland gets moderate sunshine — about 4.2 peak sun hours a day — and residential electricity runs around $0.18/kWh. For a typical $150-a-month power bill, that points to roughly a 8.2-kW system costing about $24,462 — with no federal tax credit, which ended for installations completed after December 31, 2025 — paying for itself in about 13.6 years and netting on the order of $36,903 over 25 years. Your own numbers will differ — the calculator above uses your real bill.

Maryland offers a state grant plus an active SREC market — now that the federal credit has ended, those carry the savings — and rates are above average — a combination that makes payback attractive despite middling sun.

What changes the math in Maryland

Maryland: the rules that actually decide your payback

Who your utility is, and why it matters

Baltimore Gas & Electric (BGE), Pepco Maryland, Delmarva Power, Potomac Edison, and a set of municipal and cooperative utilities split the state. Maryland's solar rules were historically among the most generous in the mid-Atlantic — and they are in the middle of a genuine transition.

What your exported power is worth

Maryland's 2026 legislation (HB 1532 / SB 843) eliminates the state's full 1:1 net-metering mandate and directs the Public Service Commission to develop a replacement program, expanding the aggregate cap from 3 GW to 6 GW with a new capacity-reservation system. The details of what replaces 1:1 are being written now — which makes the timing of your interconnection application genuinely consequential. Until the PSC's replacement rules take effect, existing net metering continues for those already interconnected.

The Maryland incentive layer

Maryland has no state income-tax credit for panels, but the SREC market pays real income: the state's renewable standard sustains certificate prices that have recently run well above $50 per SREC. Combined with whatever export structure the PSC settles on, the SREC stream is the durable half of Maryland's solar economics.

Battery and self-consumption

With the net-metering framework in flux, batteries are the hedge: they maximise self-consumption regardless of what export compensation looks like next year, and they carry the outage-resilience case for the state's storm-prone summers. A quote that assumes 1:1 net metering in perpetuity is assuming something the legislature just voted to end.

What to check on a Maryland quote

Programme and tariff detail above is summarised from Maryland Energy Administration — Residential Clean Energy Rebate and the MD SREC market. Last reviewed by SolarDime editorial. These rules change — confirm the current terms with your utility and the regulator before you sign.

Common questions

Is solar worth it in Maryland?

For a typical $150-a-month Maryland power bill, this calculator points to roughly a 13.6-year payback on a 8.2-kW system, using 4.2 peak sun hours a day and an electricity rate near $0.18/kWh. That is a directional estimate, not a quote — your roof, your utility's export rules and the spread between installer quotes all move it.

Does Maryland still have the 30% federal solar tax credit?

No. The federal Residential Clean Energy Credit (IRC §25D) ended for systems whose installation was completed after December 31, 2025, so a Maryland system finished today gets no federal credit and this calculator subtracts none. State, utility and local incentives are unaffected and can be entered by hand.

How is exported solar power credited in Maryland?

Maryland's 2026 legislation eliminates full 1:1 net metering and directs the PSC to build a replacement program (cap raised 3 GW to 6 GW). Existing systems continue under current rules; new interconnection terms depend on the PSC's implementation.

For Maryland solar companies

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