Maryland has several incentive programs for home solar panel systems and enjoys decent sunshine throughout the year, but is solar power a good investment for your home? In this article, we’ll discuss the average cost of solar panels in Maryland and the main factors that affect the prices. We’ll also cover the main incentives available when switching to solar in Old Line State, which include a rebate program and solar tax exemptions.
We’ve given you an idea of ââthe average costs below, but to know exactly how much it would cost to install a solar power system on your roof, you’ll need to get a free quote from a solar installer near you. To get started right away, you can use this tool or fill out the form below to be matched with a local certified solar company.
How Much Do Solar Panels Cost in Maryland?
Maryland has slightly higher than average solar energy costs, but the prices are not unreasonably high. Based on our market research and data from top brands, we found that the average cost of solar panels in Maryland is $ 2.77 per watt. The U.S. average is $ 2.66 per watt, which means Maryland’s solar costs are 4% higher than the national average.
Based on this information, you can expect to pay around $ 13,867 for a 5kW solar home system in Maryland. However, once you factor in the federal solar tax credit, the net price for a system of this size drops to $ 10,261. The following table provides the typical cost of some common solar system sizes in Maryland:
|Solar panel system size||Cost of solar panels in Maryland||Cost after federal tax credit|
|5kW||$ 13,867||$ 10,261|
|6kW||$ 16,640||$ 12,314|
|7kW||$ 19,413||$ 14,366|
|8kW||$ 22,187||$ 16,418|
|9kW||$ 24,960||$ 18,470|
|10kW||$ 27,733||$ 20,523|
Just keep in mind that these are averages and costs can vary widely depending on a number of variables. The best recommendation we can give is to contact a professional solar installer for an accurate design and quote.
What Determines the Cost of Solar Panels in Maryland?
When you go for solar power, the most important factor that determines the cost of your system is your energy use and the number of solar panels you need. Larger homes tend to need more solar panels, but this isn’t always the case. For example, a small house with older appliances may use more electricity than a large house with newer, energy-efficient appliances.
The cost of a solar home system also depends on what you want to achieve. If you just want to reduce your electricity bills, you can use solar panels on their own to offset some of your consumption. On the other hand, if you want a source of electricity that will be available day and night, you will also need to install a solar battery system.
The cost of switching to solar power also depends on the brands of equipment you choose, how you decide to finance your system, and the installation company hired for the job. Let’s see how these factors affect the price of your solar PV system.
There are many brands of solar panels and inverters, and each offers different features. For example, some solar power manufacturers focus on making affordable products, while others offer the most efficient solar panels at higher prices. The prices of the system also depend on the type of solar panels used: monocrystalline panels have higher powers and efficiencies than polycrystalline panels of the same size, but they also have higher prices.
The cost of a solar home system also increases if you add more features. For example, if you want a home battery like the Tesla Powerwall or LG Chem RESU, and an advanced monitoring system to track your energy, expect higher installation costs.
Whatever solar equipment you choose, make sure you get a solid warranty. At the bare minimum, you’ll want solar panels with a 10-year product warranty, which is considered the industry standard. However, you can also find brands offering 25 year warranty coverage.
The total amount paid for your home solar system also depends on how you decide to fund the project. There are three main options: a cash purchase, a solar loan, and a lease or PPA.
|Solar financing method||Advantages||The inconvenients|
|Cash purchase||+ This will result in the lowest cost, as you pay the full price in advance||– You will have to pay a large sum of money all at once (over $ 10,000 for a 5kW solar system in Maryland)|
|Solar loan||+ Allows you to split the investment into smaller payments + You can use your savings on your utility bill to pay off the loan||– You have to pay interest, which increases the overall costs of your solar system|
|Solar rental or electricity purchase contract (PPA)||+ The panels will be installed on your roof at no cost to you||– You will still have to pay to access the energy produced by the panels – The installer owns the system, which means that you cannot claim any solar incentive|
The all-inclusive price of a residential solar system includes not only the equipment, but also the skilled labor. This means that the cost of solar panels in Maryland will vary depending on the installation company you choose, even if you are using the same panels or other components. We recommend that you compare multiple solar quotes instead of going with the first available option. This way you can be sure to get a good deal.
But should we call on a local installer or a recognized national company? There are pros and cons for each:
- Local installers may have lower prices because they have to travel a shorter distance and their overhead is reduced. They also offer the advantage of being nearby in case you need technical assistance.
- National installers can get discounts for purchasing equipment in bulk, and many have local offices or certified technicians who can help if you need help and are away from company headquarters.
In the case of Maryland, we strongly recommend that you seek a solar installer with technicians certified by the North American Board of Certified Energy Practitioners, or NABCEP. This is a mandatory requirement for any of the solar incentive programs available in the state.
You can connect with a pre-selected installer in your area using this tool or by filling out the form below.
Maryland Solar Incentives
Maryland offers several incentives that improve your return on investment when you choose solar power. The following table summarizes the main features of each program, and we also have a dedicated article where you can learn more about Maryland’s solar incentives.
|Maryland Solar Incentive||How it affects the cost of solar panels in Maryland|
|Renewable energy credits||In Maryland, solar power systems earn a Solar Renewable Energy Credit (SREC) for every 1,000 kWh of electricity they produce.
At the end of 2021, Maryland’s SRECs were trading at around $ 78 each. That means you get an additional 7.8 cents per kilowatt hour on top of your savings on your electric bill.
|Residential Clean Energy Subsidy Program||Maryland has a rebate program of $ 1,000 for any approved solar power system with a capacity of at least 1 kW. You must hire a NABCEP certified installer to benefit from this benefit.|
|Tax exemptions||Solar home systems in Maryland are exempt from state 6% sales tax, and the increase in the value of your home after the panels are installed is exempt from property tax assessments.|
|Net count||Maryland has a favorable net metering policy for solar home systems. You get full credit for any excess electricity you send back to the local power grid, and the credit can be carried over to the next month.|
|Local solar incentives||Smaller programs may be available from some utility companies or municipalities. Before going solar, do some quick research on your area to make sure you don’t miss a thing.|
|Federal solar tax credit||The United States offers a federal solar investment tax credit worth 26% of your installation costs. This benefit can be applied in addition to local incentives.|
FAQ: Cost of Solar Panels in Maryland
How much does it cost to install solar panels in Maryland?
The average cost of solar panels in Maryland is $ 2.77 per watt. You can expect to pay $ 10,261 for a 5kW solar system installation after subtracting the federal tax credit, and keep in mind that you may also qualify for a rebate of $ 1,000 per install. state intermediary.
Do solar panels make sense in Maryland?
In Maryland, you can earn Solar Renewable Energy Credits (SRECs) which represent additional cash flow beyond your savings on your electric bill, and the state also has a favorable net metering policy. Plus, there is a local rebate program that offers $ 1,000 up front when you opt for solar power, and you are exempt from sales and property taxes.
These incentives certainly help solar power make sense in Maryland, but the value of a solar panel installation for your home will depend on a number of factors. We recommend that you book a free consultation with an installer near you to learn more about your home’s solar viability.
Are solar panels free in Maryland?
Currently, no program offers free solar panels in Maryland, but your initial cost is reduced thanks to the local rebate program and several tax deductions. If an installation company offers you “free solar panels,” it is probably a marketing tactic to get you to sign a solar lease or power purchase agreement (PPA).
Leonardo David is an electromechanical engineer, MBA, energy consultant and technical writer. His energy and solar efficiency consulting experience spans industries such as banking, textile manufacturing, plastics processing, pharmaceuticals, education, food processing, fast food, real estate and retail. detail. He has also been writing articles on energy and engineering related topics since 2015.