Is Solar Worth It in Maryland in 2026?
Maryland sits at 39.2°N — not the sunniest state, but not a bad one either, with about 213 sunny or partly sunny days a year and solid production once you account for the angle of the sun this far north. A well-placed system here produces roughly 1,324 kWh per installed kilowatt per year around Baltimore. That's less than you'd get in Arizona or Florida, but Maryland makes up for it somewhere else: electricity prices. At 19.5 cents per kWh, Maryland homes pay well above the national average, and every cent you don't buy from BGE or Pepco is a cent your panels earned back faster.
2026 changed the federal math everywhere, and Maryland is no exception. The 30 percent federal tax credit that used to shave thousands off a new system ended for installs completed after December 31, 2025. What's left is a Maryland-specific mix: no sales tax on equipment, no property tax bump for the value panels add, and — unusually for most states — an SREC market that pays you separately for every megawatt-hour your system generates. Net metering is still full retail-rate today, but a new law has put a real clock on that deal. This page walks through Maryland's numbers so you can decide with your own bill in hand, not a sales pitch.
Maryland Electricity Prices Keep Climbing
Solar is a bet against future electricity prices — every kilowatt-hour your roof makes is one you don't buy from the grid. Maryland's trend makes that bet look better than in most states. Here's the last several decades, from federal EIA data.
Full Maryland electricity price data (1990–2025)
| Year | Maryland (¢/kWh) | US avg (¢/kWh) |
|---|---|---|
| 1990 | 7.2 | 7.8 |
| 1991 | 7.9 | 8.0 |
| 1992 | 8.0 | 8.2 |
| 1993 | 8.2 | 8.3 |
| 1994 | 8.4 | 8.4 |
| 1995 | 8.4 | 8.4 |
| 1996 | 8.3 | 8.4 |
| 1997 | 8.3 | 8.4 |
| 1998 | 8.4 | 8.3 |
| 1999 | 8.4 | 8.2 |
| 2000 | 8.0 | 8.2 |
| 2001 | 7.7 | 8.6 |
| 2002 | 7.7 | 8.4 |
| 2003 | 7.7 | 8.7 |
| 2004 | 7.8 | 9.0 |
| 2005 | 8.5 | 9.5 |
| 2006 | 9.7 | 10.4 |
| 2007 | 11.9 | 10.7 |
| 2008 | 13.8 | 11.3 |
| 2009 | 15.0 | 11.5 |
| 2010 | 14.3 | 11.5 |
| 2011 | 13.3 | 11.7 |
| 2012 | 12.8 | 11.9 |
| 2013 | 13.3 | 12.1 |
| 2014 | 13.6 | 12.5 |
| 2015 | 13.8 | 12.7 |
| 2016 | 14.2 | 12.6 |
| 2017 | 14.0 | 12.9 |
| 2018 | 13.3 | 12.9 |
| 2019 | 13.1 | 13.0 |
| 2020 | 13.0 | 13.2 |
| 2021 | 13.1 | 13.7 |
| 2022 | 14.5 | 15.0 |
| 2023 | 16.6 | 16.0 |
| 2024 | 17.9 | 16.5 |
| 2025 * | 19.5 | 17.3 |
Source: US EIA, average residential retail electricity price. Values in cents per kWh. * 2025 is preliminary.
Maryland residential rates have climbed roughly 130 percent since 2005 — one of the steeper increases on the East Coast — and the pace over just the last decade has run about 3.5 percent a year. Some of that traces back to Maryland's dependence on the regional PJM grid and its exposure to natural gas price swings; some traces to transmission and grid-modernization costs utilities pass through to ratepayers. Nobody can promise the line keeps climbing at exactly this rate, but a state that has more than doubled its residential rate in twenty years gives solar a real tailwind that a flatter-rate state doesn't have.
The Maryland Sun, Month by Month
Panels respond to how high the sun climbs and how long it stays up, not to air temperature. At 39.2°N, Maryland's winter sun sits noticeably lower than Florida's or Georgia's, which is part of why annual production per kilowatt trails the Sun Belt. But summer days run long, and the state's roughly 213 sunny/partly sunny days a year are enough to make solar pencil out when paired with Maryland's above-average rates.
Maryland monthly solar production data
| Month | kWh per installed kW |
|---|---|
| Jan | 93 |
| Feb | 103 |
| Mar | 120 |
| Apr | 124 |
| May | 126 |
| Jun | 122 |
| Jul | 127 |
| Aug | 122 |
| Sep | 109 |
| Oct | 105 |
| Nov | 92 |
| Dec | 82 |
| Year | 1324 |
Source: NREL PVWatts typical-year estimate (Baltimore), per installed kW at latitude tilt.
The practical takeaway: expect a wide swing between a strong June and a weak December — wider than what a Florida or Texas homeowner sees. Size your system around your annual usage, not your best month, and let net metering carry summer surplus into the darker months while it still pays full retail credit.
What Solar Costs in Maryland in 2026
Most residential installs in Maryland run about $2.65 to $3.20 per watt before incentives, with current quotes clustering around $2.65 to $3.00. The panels are a fraction of that number — the rest is inverter, racking, labor, permitting, and the installer's margin. With the federal credit gone, the number an installer quotes you is very close to the number you'll actually pay.
| System Size | Typical 2026 Cost | Roughly Offsets | Fits |
|---|---|---|---|
| 5 kW | $13,250 to $16,000 | ~6,620 kWh/yr (~$108/mo at 19.5¢) | Smaller home, lower usage |
| 8 kW | $21,200 to $25,600 | ~10,600 kWh/yr (~$172/mo) | Average-to-larger home |
| 12 kW | $31,800 to $38,400 | ~15,900 kWh/yr (~$258/mo) | Large home, closer to Maryland's ~14 kW average system |
Maryland's reported average installed system is larger than many states' — around 14 kW — which puts a typical full install closer to $31,000 to $42,500 before any incentives. Maryland's sales tax exemption (below) is already baked into most installer quotes, so compare price per watt across at least three bids rather than assuming any one number is the "real" Maryland price.
Estimate Your Maryland Payback
The calculator below is set to Maryland's average electricity rate and typical Baltimore-area sun production. Enter your own monthly bill to see an estimated system size, payback period, and 25-year savings. Maryland rates have grown about 3.5 percent a year over the last decade — a reasonable starting point for the inflation field, though you can drag it higher or lower to test your own assumptions.
Maryland Solar Incentives in 2026
Here's what's gone, what survived, and what's genuinely Maryland-specific.
- Gone — the 30 percent federal credit: The federal Residential Clean Energy Credit ended for installations completed after December 31, 2025, with no phase-out. If a quote still nets out a 30 percent federal credit, the installer hasn't updated their numbers for 2026 — ask what else in the pitch is stale.
- Still here — sales tax exemption: Maryland Tax-General §11-230 exempts solar energy equipment (panels, inverters, racking, wiring, and installation hardware) from the state's 6 percent sales and use tax. It's applied automatically at purchase — no separate paperwork.
- Still here — property tax exclusion: Maryland Tax-Property §7-242 fully excludes qualifying residential solar equipment from your property assessment. Installing panels does not raise your assessed value or your property tax bill.
- SRECs — Maryland's real edge: Maryland's Renewable Portfolio Standard includes a solar carve-out, so utilities must buy Solar Renewable Energy Certificates to hit their targets. Your system earns one SREC per megawatt-hour generated, sellable on the open SREC market — typically $3,000 to $4,000 in cumulative value over a system's life, on top of your own bill savings. Prices float with the market; this is not a fixed rebate.
- Capped and likely unavailable — Maryland Solar Access Program (MSAP): A Maryland Energy Administration grant of $750 per kW DC, capped at $7,500, for income-eligible households (up to 150% of area median income). FY26 funding is nearly exhausted; treat it as waitlisted pending FY27 funding rather than money you can count on.
- Check locally — county tax credits: Anne Arundel County offers up to $2,500 and Baltimore County up to $5,000 in local energy conservation device credits, on top of the statewide exclusion. Ask your county's tax office what applies.
Net Metering in Maryland — and Its 2027 Deadline
Net metering credits you at the full retail rate for solar power your panels send back to the grid beyond what your home uses at that moment. Maryland's version, administered by the Maryland Public Service Commission and mandatory for BGE, Pepco, Delmarva, Potomac Edison, and SMECO, is genuinely generous: true 1:1 retail credit, and unused kWh credits now roll forward indefinitely — Maryland eliminated the old forced April cash-out at avoided-cost pricing.
But this program is not permanent, and the end date is now written into law. The Utility RELIEF Act of 2026 (HB1532) doubled the statewide net-metering cap from 3,000 MW to 6,000 MW and set a firm sunset: the current 1:1 program terminates July 1, 2027, or sooner if the new cap fills first. Systems already in the interconnection queue with a paid deposit are grandfathered even after that date. Afterward, the PSC must stand up a successor program for systems under 5 MW — expected to pay for grid value rather than full retail, at a materially lower rate. The PSC owes lawmakers a report with recommendations by December 15, 2026, but the replacement rate itself isn't set yet.
The practical read: install in 2026 and you get today's full 1:1 deal. Wait until 2028 to decide, and you may sign up under whatever replaces it — almost certainly worse for the homeowner. That's a real, dated reason to move, not vague pressure.
How to Go Solar in Maryland
Work through these in order before you sign anything.
- Pull your last 12 power bills and calculate your average monthly cost — at 19.5¢/kWh, even modest usage adds up fast.
- Confirm your roof faces south, east, or west with minimal shading; north-facing or heavily shaded roofs rarely pay off even at Maryland's high rates.
- Check your roof has at least 10 to 15 years of life left, or budget to replace it first — see our roofing guide for what to look for.
- Get at least three quotes, compare price per watt, equipment, and warranties, and confirm none of them still assume the 30 percent federal credit.
- Ask each installer to estimate your SREC income as a separate, conservative line item — not folded into a rosy payback number.
- If full retail net metering matters to your math, ask your installer how soon they can get you into the interconnection queue with a deposit, given the July 1, 2027 sunset on the current program.
- Confirm your electrical panel can support the new system — see our electrical guide for panel capacity basics.
For the fundamentals of how solar works, sizing, and buying versus leasing, read our main solar panels guide — this page focuses on what's specific to Maryland.
Sources
Figures on this page are 2026-current. Rates: US EIA, Electric Sales, Revenue, and Average Price (2025 values preliminary). Production estimates: NREL PVWatts. Net metering and the Utility RELIEF Act: Maryland PSC — Solar in Maryland and CCAN Action Fund summary of the Utility RELIEF Act. State tax exemptions: Maryland Tax-General §11-230 and Tax-Property §7-242. MSAP grant: Maryland Energy Administration — Maryland Solar Access Program. We review these figures every six months.