Solar energy has become an increasingly viable option for homeowners and businesses to reduce their carbon footprint and lower energy costs.
Maryland’s Climate Pollution Reduction Plan sets a goal to reach 100% of the electricity consumed in our state to be clean by 2035. A part of this goal will be achieved through the deployment of grid-scale and rooftop solar panels. You can get involved in this transition to cleaner energy by investing in solar systems.
A Smart Investment For Your Home
Switching to solar energy for your home can significantly lower or even eliminate your monthly energy costs. The surplus energy your solar panels collect during the day can be credited to your bill. With federal tax incentives, the investment in solar can be recouped in 10-15 years. This is a substantial return on investment since solar panels typically last around 30 years, with some systems lasting even longer. Additionally, if you decide to sell your home, solar panels can enhance its resale value. Prospective buyers are often willing to pay more for homes equipped with solar systems.
Try out solar calculator tool to get estimates on energy production and potential savings
here.
Environmental Benefits
Solar panels offer several environmental benefits, including reducing greenhouse gas emissions, lowering air pollution, and conserving water, as they do not require cooling like traditional power plants. Investing in alternative clean energy systems like solar panels will help Maryland move away from reliance on fossil fuel based energy sources and make energy efficient appliances even more environmentally friendly. Prioritizing sustainable practices maximizes environmental benefits while minimizing ecological footprints for solar systems.
Learn more on how to recycle solar panels here.
Alternative Solar Panel Financing Options
There
are many financing options available to install a solar system in your home and begin reducing utility bills immediately.
Solar Lease: When you lease a solar energy system, the solar company owns and installs it at your home or business. You sign a contract to use the system and pay a fixed monthly fee for a certain period of time, which is typically 20 years to use the electricity it generates. Leasing offers a cost-effective way to access solar power and reduce your utility bills without upfront expenses.
Power Purchase Agreement: A Power Purchase Agreement, or “PPA,” is similar to a lease in that a solar project developer owns and installs the solar energy system on your home, but you purchase the power that the solar panels produce. This arrangement usually involves no initial costs and allows immediate savings.
To learn more about solar leasing vs power purchase agreement, click
here.
Investing in Solar: Other Options for Homeowners and Renters
There are other ways to invest in solar, whether you own your home or rent it.
Community solar
is a solar project or purchasing program where the benefits are shared by multiple people or groups in a specific area. This includes individuals, businesses, nonprofits, and other groups, and they are referred to as community solar “subscribers.” Typically, the solar panels are located off-site, and the energy they generate benefits the subscribers.
If you participate in a community solar program, you receive a credit on your electric bill for the electricity generated by your portion of the solar system. This is an excellent option for those who cannot install solar panels on their own roofs, such as renters, people who can't afford the upfront cost, or those whose roofs or electrical systems aren't suitable for solar panels.
Community solar may also make sense for homeowners whose home is heavily shaded or otherwise not ideal for solar.
Find a community solar project near you, click
here.
Incentives for Solar System Owners
Federal
| Name | Type | Eligibility | Details |
|---|
| Business Energy Investment Tax Credit (ITC) | Tax Credit | All | Provides a 30% tax credit for solar energy systems installed after December 31, 2019.
Applicable to both residential and commercial installations.
View Details |
| Modified Accelerated Cost-Recovery System (MACRS) | Corporate Depreciation | Businesses | Allows businesses to recover investments in solar technologies through depreciation deductions.
View Details |
State (Based on Available Funding)
| Name | Type | Eligibility | Details |
|---|
| Maryland's Renewable Energy Credits (RECs) Certification | Market-Based Financial Incentive | All | Maryland Renewable Energy Credits (RECs) can be sold or traded to meet the state's Renewable Portfolio Standard (RPS) compliance requirements.
View Application |
| Residential Clean Energy Grant Program | Rebate | Consumer | Up to $1,000 for clean energy systems installed at primary residences in Maryland.
View Details |
| Solar Energy Equity (SEE) Grant Program | Grant | Local Governments and Nonprofits | Grants for Maryland Counties, Municipalities, and nonprofit organizations to install solar PV systems on the homes of socioeconomically disadvantaged Marylanders.
View Details |
| Community Solar LMI-PPA Grant Program | Grant | Community Solar Subscriber Organizations | Grants to help develop more community solar installations to benefit Low-to-Moderate Income, Overburdened, and Underserved (LMIOU) communities.
View Details |
Registering For Solar Renewable Energy Credits (SRECs)
Registering for Solar Renewable Energy Credits (SRECs) allows you to earn some revenue by selling the environmental attributes of the solar energy your system produces. Each credit represents the environmental benefits of 1 megawatt-hour of solar electricity generated. By registering, you can participate in state renewable energy programs and sell your credits to utilities or other entities looking to meet renewable energy requirements. This can provide a financial return on your solar investment beyond just energy savings, making it a valuable incentive for solar system owners.
To learn more about how to register, click here.
Resources
Contact
Number: (410) 537-4000 or 1-800-72-ENERGY
Email: DLInfo_MEA@maryland.gov
