aryland helped blaze the trail for renewable energy adoption. This is due to early legislative mandates, such as a 2001 law stating 6% of electricity for government buildings must come from renewable energy sources. Today, over 130 solar companies are in operation, employing over 2000 people in the industry. There are a number of fantastic incentives for homeowners looking to buy or lease a solar energy system. Read on to weigh the pros and cons and find out if a solar energy system is right for you.
Grid Connected Solar Power Systems in Maryland (2012)
- Residential Solar Power Systems: 6.5 Megawatt
- Non-Residential Solar Power Systems: 42.8 Megawatt
- Utility: 30.4 Megawatt
- Total: 79.7 Megawatt
- Cumulative: 116.8 Megawatt
Maryland is rapidly expanding its capacity for solar power systems installation. Along with Arizona, Hawaii, Massachusetts, Nevada and North Carolina, Maryland’s capacity has more than doubled since 2011. In fact, the state is second only to Nevada for highest growth rate overall.
Cost of Electricity in Maryland
- Electricity Price: $0.15 per kWh
- Average Electricity Bill: $153.00
- Average Bill after Solar: $59
As you can see, a solar installation in Maryland can cut your monthly bill by almost two thirds. That is a significant sum to save every month. Keep in mind that the average monthly cost for a leased solar power system is about $38. But even with a leased system the monthly savings amount to $56. At these rates it will take about 4.5 years to amortize, should you choose to buy. In other states it can take over 10 years, so residents of Maryland certainly have an advantage.
Depending on your location, average solar radiation in Maryland is between 3 and 4 kilowatt per day in the northern part of the state, and between 4 and 5 Kilowatt per day in the south. The amounts represent an area of 1 square meter (10.76 square foot). With a yearly average of 213 sunny or partly sunny days, Maryland fares well for taking advantage of a solar energy system.
State Solar Incentives and Rebate Programs
- State Solar Tax Credit: $0.0085/kWh up to a maximum of $2.5 million worth of credits during a five-year period
- State Solar Rebate: $1000 flat rate per installation/household
- Property Tax Exemption: 100% exempt
- Sales Tax Exemption: 100% exempt
If you do decide to go ahead and purchase solar panels for your home, you’ll receive $1000 back, a rebate provided by the state. You’ll also get a break from any sales tax on your purchase - making it that much easier to invest in a solar energy system of your own. Some counties and cities in Maryland offer additional solar incentives. Check here for more information. In addition, the Federal Tax Credit also applies.
Solar Installers in Maryland
Home improvement contractors, subcontractors and salespeople are licensed and regulated by the Maryland Home Improvement Commission (MHIC). The best way to research solar installers is to look up their contractor license number in Maryland’s Home Improvement Public Query database to see what turns up.
MHIC maintains a “Wall of Shame” list of top ten home improvement scammers and you can find this list here. Alternatively, you can click to find reputable solar installers in Maryland.
Summary: Very Good Conditions for Solar Power Systems
Maryland is making it more and more convenient for homeowners to get set up with solar power. Though state tax credits could be improved, the combination of solar radiation and solar incentives can translate to significant savings. To calculate your costs and savings please use our Solar Calculator or contact solar installers in your area.
Solar Energy Fact Sheet: Maryland, © SolarContact.com