Solar Panel Cost in Maryland (2026 Estimate)

BySunMetricLab Editorial Team·Independent solar research and calculators

Data last updated September 10, 2026 · ranks #27 of 50 states for modeled payback

Maryland averages about 4.4 peak sun hours a day (below the national average) with an approximate residential electricity rate near 17¢/kWh, in the mid-range nationally. In the model used here, an 8 kW system in Maryland produces roughly 10,280 kWh a year and trims about $1,700 off annual electricity costs, paying back its net cost in about 10.7 years. That is a middle-of-the-pack payback, so whether solar is worth it in Maryland often comes down to your specific rate, roof, and any state or utility incentives.

Estimated system cost and payback in Maryland

Costs assume roughly $3.35/watt installed for Maryland; the net column applies a 30% federal credit for comparison with quotes that include it. Savings and payback use the state's sun hours and rate above.

The 30% federal Residential Clean Energy Credit ended for systems paid for after December 31, 2025 under the 2025 federal budget law. Net-after-credit figures apply only if you still qualify (for example a 2025 expenditure, or a leased system where the installer passes a credit through). Confirm with a tax professional.

What moves the numbers in Maryland

Two inputs drive most of the difference between states: how much sun a system sees and what each offset kilowatt-hour is worth. Maryland's 4.4 sun hours set production, and its roughly 17¢/kWh rate sets what that production saves. The bigger unknowns are your roof, shading, and how your utility compensates exported power, since a lower export rate can pull real savings below the retail-rate figure above.

Net metering and export credits in Maryland

Maryland still offers full retail net metering to homeowners at all of its regulated utilities, with exports credited kilowatt-hour for kilowatt-hour and carried forward from month to month. Each April, any accumulated surplus is paid out at the utility's commodity energy rate, roughly the supply portion of your bill rather than the full retail price, so a system sized to about a year's usage captures the most value. The statewide program cap was raised to 3,000 megawatts, well above current enrollment, so capacity is not a near-term concern.

Legislation passed in 2024 broadened net metering aggregation, letting a customer apply credits from a system on one property to other accounts they hold in the same utility territory, and the Public Service Commission has been implementing the associated rule changes. Maryland also allows virtual net metering through community solar, which the General Assembly made permanent in 2023. The rules are more stable than in most states, but verify the current interconnection and aggregation details with your utility, since PSC dockets on distributed generation remain active.

Maryland solar incentives beyond the federal credit

Maryland offers more state-level help than most Mid-Atlantic states. The Maryland Energy Administration's Residential Clean Energy Rebate Program has paid a flat $1,000 for qualifying rooftop solar systems, subject to annual funding and application windows that can close early, so apply promptly after installation. Solar renewable energy certificates (SRECs) provide ongoing income: the state renewable portfolio standard includes a solar carve-out, and homeowners can sell one SREC for every megawatt-hour produced, at prices that have ranged widely and should be checked before you estimate revenue.

Solar equipment is exempt from the state sales tax and from state property tax, and several counties, including Anne Arundel, Baltimore, Harford and Prince George's, have offered their own property tax credits. The Maryland Solar Access Program adds grants for low-to-moderate income households; program details and budgets change each fiscal year, so confirm with MEA.

Utilities and rate plans in Maryland

Baltimore Gas and Electric serves Baltimore and central Maryland, Pepco covers Montgomery and Prince George's counties, Delmarva Power serves the Eastern Shore, Potomac Edison (FirstEnergy) covers western Maryland, and the Southern Maryland Electric Cooperative serves the counties south of Washington, with Choptank Electric Cooperative and a few municipal utilities covering the rest. Maryland is a retail choice state, so supply comes either from the utility's standard offer service or a third-party supplier while the utility handles delivery. Standard residential tariffs are flat-rate with a modest fixed charge and no demand charges, and BGE and Pepco offer optional time-of-use plans; because net metering credits the full retail rate, savings track directly with the combined supply and delivery price, which has risen substantially in recent years.