Solar Panels Cost $7.2k-$16k in Baltimore County, MD | November, 2024

Home and business owners in Maryland may take advantage of an annual sales tax holiday on new ENERGY STAR certified equipment appliances. The holiday lasts for three days each year, from the second Saturday in February to the third Monday of February. Eligible items include refrigerators, washers/dryers, boilers, dehumidifiers, furnaces, air conditioners, CFL/LED light bulbs, and smart thermostats. Solar water heaters and geothermal pumps are also listed, but these devices are totally exempt from sales/use taxes under a different law. Devices must be ENERGY STAR certified. While dryers and smart thermostats are listed under the tax code, they have stopped receiving or never have received ENERGY STAR certifications. As such, not all retailers may honor the tax holiday for these products. Additional information is available from the Maryland comptroller's website.

Both small businesses and nonprofit organizations in Baltimore County may apply for specialized financing on energy efficiency improvements through a public-private partnership. Loans can fund new windows, lighting, HVAC, insulation, and renewable energy systems including solar PV and CHP devices. Applicants will be considered for two financing tiers based on the nature of the desired improvements. Low-income housing managed by a nonprofit may also be eligible. Additional information is available from the Reinvestment Fund website.

Municipal/private utilities and electric cooperatives in Maryland are required to offer net metering contracts to their customers, with the objective of procuring renewable energy credits (RECs) and solar credits (SRECs) toward the renewable portfolio standard. Any solar, wind, geothermal, hydroelectric, CHP, and fuel cell qualifies up to a technology-specific maximum capacity, usually 2 megawatts. Under net metering, the utility will install a bidirectional meter to measure a system's net excess generation (NEG) sent back to the grid. They will pay the customer for this NEG at a fixed avoided-cost rate. Should generation exceed consumption for a given billing cycle, net metering credits will carry forward to subsequent cycles. Customers in net metering contracts must meet all interconnection standards, and they may be required to pay service charges for bidirectional meters or grid monitoring. Additional information is available from individual utilities.

Maryland's Conservation Loan Program is dedicated to the legacy of Jane E. Lawton. It succeeds and consolidates various community and economic development financing initiatives. Businesses, nonprofits, and local public institutions may apply for a revolving loan to make energy efficiency improvements or install new solar and geothermal equipment. Private institutions may borrow between $5,000 and $200,000 at 1% interest. There is no interest charged to public institutions. Repaid funds will immediately "revolve" to another borrower. Applicants should provide quantitative estimates of energy use reduction. Religious or fraternal institutions are not eligible. Additional information is available from the Maryland Energy Administration website.

Maryland's General Services Department has set various energy efficiency standards for new and existing state buildings and facilities. Usage and efficiency goals change periodically, but they are all based on the same starting benchmark from 1992. Current objectives require the state to reduce energy usage by 25% from the baseline. Toward this end, existing facilities must adopt certain energy use reduction habits and procure ENERGY STAR certified materials and appliances. New construction should be designed to comply with current energy efficiency objectives. Projects receiving state funding, such as those undertaken by public colleges and universities, should achieve a minimum of LEED Silver certification. Additional information is available from the Maryland Energy Authority website.

In Maryland, one solar renewable energy credit (SREC) is equal to one megawatt hour. Given the state's deregulated electrical market, the dollar value of credits is subject to market forces. Credits are tracked by a GATS system and expire after three years. Utilities may acquire SRECs through net metering and other tariff programs. Until a customer signs a net metering contract, they will be in ownership of the credits they generate. Should an owner be ineligible for these contracts, they may sell them at a state auction. Final sales govern future credit prices. Electric utilities must accumulate SRECs to satisfy their portion of the state's renewable portfolio standard and respective cut-outs. Should a utility fail to meet the standard threshold, it must pay an "alternative compliance fee" (SACP). As of 2023, SACP amount will be $50 per megawatt a utility is deficient.

Single-family homes and multi-unit residences in Baltimore County may be eligible for substantial property tax incentives if they meet certain green building standards. Credits apply to any building that meets or exceeds LEED Silver certification, NGBS Silver certification, or an equivalent nationally-recognized standard. Higher credit tiers are available for buildings exceeding the minimum standard. The credit amount is equal to a fixed percentage of the owner's total property tax liability for the year, up to 80% for a LEED Platinum or Emerald certified structure. However, the credit will expire after 3 - 5 claimed years. The county assessor reserves the right to request inspections or document reviews to confirm a taxpayer's attestations. Additional information is available from the county website.

Maryland businesses, local governments, and some nonprofit organizations may be entitled to rebates from the state Energy Administration on new solar and geothermal energy systems. The final rebate amount available to an applicant will depend on the type and capacity of their new equipment. Solar water heaters earn $20/square foot up to $12,000, while geothermal heaters earn a flat $3,000 for up to ten tons. New solar PV installations earn at least $1,000 with additional funds for capacity over 8 kW. To qualify for a rebate, the system must be interconnected to the state grid and follow state standards, including insurance and warranty minimums. All rebate funds are subject to federal and state taxes. Additional information is available from the Maryland Energy Administration website.

Special grants are available from the Maryland Energy Administration for property owners installing solar-powered hybrid/electric vehicle chargers within parking lots or structures in the state. Grant amounts depend on capacity; the current rate is $600 per rated kW of the panels. The maximum grant for a single project is $300,000. Qualifying lots/structures should be open at least five days per week. There should be a minimum of four charging units drawing from at least 75 kW of energy. The solar panels should be located above the lot and be interconnected to Maryland's deregulated grid under a net metering contract. Additional information is available from the MEA website.

The Maryland Energy Administration operates a residential grant program, "Residential CGEP", for homeowners installing new solar or geothermal water heating and HVAC systems. Grants may only be used for equipment to be installed at the applicant's primary place of residence. Leased equipment does not qualify. Incentive amount depends on the type of system being installed and its rated capacity. Certain limits apply to specific technologies. Geothermal systems must be completely new; in other words, they must not replace an existing heat pump. Interested homeowners should apply on the MEA website. The application form requires attached design plans and photos. For new solar systems, the form requires a solar facility certification number issued through the Maryland Public Service Commission as a prerequisite for net metering and SREC procurement.

Distributed generation and interconnection have been standardized by the Maryland Public Service Commission since 2009. Each energy system connected to the state's deregulated grid will be assigned into a numerical "level" based on rated capacity. Systems at each level must follow recognized standards such as those set by IEEE or UL. Interconnection fees and application review turnaround will depend on the system's level. Customers must carry at least minimum liability insurance coverage on their energy system, and they may be required to install disconnect switches or other safety features by their utility. However, they will own any renewable energy credits and solar carve-out credits they generate and may sell them to the utility at their discretion. Additional information is available from the PSC website.