Solar Panels in Maryland: Costs, Incentives and Top Installers

State solar incentives, including tax credits and programs for renters, make it easier for Marylanders to go solar.

Maryland is a particularly solar-friendly state, with incentives and programs designed to help residents go solar.

If you live in Maryland, you likely pay more for your electricity than the average American. The good news: Maryland is super solar-friendly. The Old Line State offers many incentives and breaks for a solar panel purchase, along with other solar initiatives to help offset the rising cost of household energy.

The average monthly electricity consumption in Maryland is above the US average, resulting in an average monthly electric bill of about $154.90, according to CNET's sister publication SaveOnEnergy.

Installing solar could be a solution to help relieve costly home energy bills. Federal, state and local incentives are making solar panels most affordable.

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The Maryland Energy Administration offers grants to low-income households to help them go solar. "Adding these solar energy systems to homes across the state will help lower energy costs to some of the most economically vulnerable Marylanders," Mary Beth Tung, director of the MEA, said in a press release.

Maryland recently passed a bill becoming the 23rd state to adopt a "shared-access" community solar program. The new framework will replace the former community solar program that had a limiting cap of 580 megawatts.

Can solar panels save you money?

Interested in understanding the impact solar can have on your home? Enter some basic information below, and we’ll instantly provide a free estimate of your energy savings.

"As Maryland marches towards its goal of achieving 100% clean energy by 2035, the community solar program will increase the availability of solar energy, reduce costs for those who most need the cost savings, and create jobs and apprenticeships," Kim Coble, executive director of the Maryland League of Conservation Voters, said in a May 2023 press statement.

Here's what you'll need to know about going solar in Maryland.

Here's a look at the average cash price for a 5-kilowatt system before factoring in tax credits and incentives, according to data from FindEnergy.com.

While the cost of a solar panel system is high, there are various solar incentives and credits that can help make the system more affordable. Keep in mind that most solar incentives only apply if you own your system. Residents who lease their solar panels will not qualify for these incentives.

The residential clean energy credit is a federal solar tax incentive offering 30% of the cost of a solar system in a tax credit to consumers who install solar panels in 2022 and after. Previously known as the investment tax credit, this incentive was increased from 26% to 30% and extended in August 2022 when the Inflation Reduction Act passed.

There is no cap on how much you can claim with the residential clean energy credit, so you can receive 30% of the cost of your system no matter its size or price. You can apply by filling out IRS form 5695 (PDF). The IRS has provided instructions on how to fill out the form and submit the application. After the application is approved, you receive the 30% in credit when you file your tax return.

In addition to the federal solar tax credit, there are also state and local solar incentives in Maryland. The Database of Solar Incentives for Renewables and Efficiency provides a longer list of Maryland solar incentives. Here are a few that stand out.

There are nearly 200 solar panel companies operating in Maryland, according to SEIA. As residential solar continues to grow in popularity, the number of solar installers should increase to meet demand. More choices mean you have plenty of options when choosing a solar installer, but it can also mean sorting through a large number of options.

To help you narrow it all down, we've compiled a list of solar panel company standouts to consider.

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With a price-match guarantee and 25-year warranties, ADT Solar stands out as a strong national solar installer. The home security company bought Sunpro Solar in 2021 to enter the solar panel game, and it offers a wide variety of quality equipment such as Qcells, Silfab and Canadian Solar panels. ADT Solar also installs Tesla Powerwall and Enphase IQ batteries.

While ADT Solar offers a price match guarantee, making it competitive with any solar company you can find as you shop around, its own prices are not as transparent as some competitors.

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Palmetto is one of the country's largest solar installers, offering home solar systems you can buy or lease in Maryland. To maximize your savings long term, you would need to buy your system outright or finance it. If you lease your system or sign a power purchase agreement, you won't own your system, qualify for incentives and your savings will be lower in the long run.

Palmetto was founded in 2010 and installs Q Cells and REC Alpha Pure Black solar panels. It also offers Enphase microinverters and solar battery options. Solar panels from Palmetto have an efficiency rating above 19.8%, a 25-year performance guarantee and a minimum 12-year product warranty. This installer also offers a subscription service called Palmetto Protect, which monitors your solar system's performance and provides tiered levels of support if your system is underperforming or damaged.

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Serving all 50 states, SunPower Solar stands out in the market because it offers some of the most efficient solar panels available. The SunPower Equinox solar panel has an efficiency rating of up to 22.8%. The SunPower Equinox package includes solar panels from Maxeon, Enphase microinverters and mounting equipment. Maxeon and Enphase products are widely used in the industry and have a history of being high quality.

SunPower provides competitive warranty terms. Unlike most competitors, SunPower guarantees its panels will produce at 92% or more of their original capacity after 25 years. It also offers a battery warranty, which guarantees batteries will retain 70% charge after 10 years, a 12-year roofing warranty and 10-year warranty on its monitoring equipment.

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Tesla has become a household name in the solar industry since it broke in the market in 2016. The Tesla solar branch offers traditional solar panels and the Tesla Solar Roof. The specifications, warranty terms and price will depend on which option you choose.

The Tesla Solar Roof is the more expensive option and comes with a 25-year product warranty and a performance warranty at 95% capacity after five years and 85% after 25 years. Tesla's solar panels, however, have a lower price point than the Solar Roof. The panels are warrantied at 85% capacity after 25 years and have an efficiency rating of between 19.3% and 20.6%. Tesla also offers its Powerwall battery, which is one of the most popular solar batteries available.

Solar panels are difficult to put through hands-on testing, so our reviews are based on research on each company's offerings, focused on what we can measure. CNET's list of the best solar companies was selected based on the equipment the companies offered, their stated warranties and apparent commitments to customer service. Here's a detailed look at our selection methodology.

Read more: Want something smaller than a whole-home solar system? See our picks for the best portable solar panels and solar generators.

Choosing to invest in solar panels is a big investment, whether you purchase your system or lease it. It's important to consider whether solar is the right choice for your home. Some questions to ask yourself beforehand include:

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On average, solar panels last between 25 and 30 years. Over time, your solar panels' performance will decrease, which is why installers and manufacturers warranty a panel's efficiency and performance for a certain number of years. The lifespan of your solar panels will depend on the quality, climate and maintenance. If they are well-maintained and of good quality, they could last more than 30 years.

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Maryland has enough solar capacity installed to power roughly 200,519 homes, according to SEIA. Compared to other states, Maryland ranks 18th for solar generation.

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With a growing number of solar installers operating in Maryland, it can be tricky to narrow down your options. If you are searching for a Maryland solar installation company, we recommend getting quotes from multiple installers, reading customer testimonials and reviewing the warranty information for every product. You can use CNET's picks for top solar companies as a starting point.

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Updated on Jul 7, 2023

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