An MD solar panel program can help you install a sustainable energy system that fits your budget. The monthly savings on energy bills will eventually pay for the initial cost of solar panels and installation. And according to Energy Star, various state and federal incentives can make installation even more affordable and shorten the payback period.
Here is a look at MD solar panel program options and what you have to do to take advantage of them.
Federal Solar Panel Incentive Programs
The US Congress recently passed an extension on the nationwide solar panel tax credit. It provides a 30% credit when you file your taxes for the year that you installed your panels. This offer extends all the way to 2032, with reduced credits available through 2034.
The credit is available for residential systems you own or shares you purchase in a community solar project. However, the deal only applies to original installations. You cannot get the tax credit for upgrading an existing system.
State Solar Panel Incentive Programs
In addition to the federal tax credit, you can take advantage of state solar programs. These incentives are not offered by every state, but Maryland does have options that can help reduce the cost of installing solar panels.
One MD solar panel program involves renewable energy credits. A solar renewable energy credit (SREC) gets awarded to the system owner based on the amount of energy their panels produce. Each 1,000 kWh is worth 1 SREC credit. So, if your system produces 3,000 kWh of power per year, you will earn 3 credits, while a 5,000 kWh system brings 5 credits. The credits have monetary value, and you can trade or sell them.
At Solar-Verse, we can help you navigate the process of figuring out your system's energy production so that you can claim these SRECs.
Maryland has a 6% sales tax. However, solar panels and equipment for your system are not subject to this tariff.
More importantly, solar panels are exempt from property taxes, which typically become higher the more your home is worth. But even though a solar panel installation can add value to your home, in Maryland, your property tax assessment does not include the value added by the solar panels. This means the value of your home will increase, but your property taxes will not.
Finally, the Maryland Residential Clean Energy Rebate Program offers a rebate of up to $1,000 for new residential solar installations that are at least 1 kW. Again, we can help you provide the necessary documentation to apply for this credit.
Net Metering Incentives
In addition to one-time credits and rebates, you can enjoy ongoing savings on your utility bills with net metering, which is available for grid-connected systems.
During the day, when your solar panels are producing energy, any excess electricity is fed back into the power grid. You then receive credit for this energy production. You can use the credit to pay for electricity from the grid at night when your panels are not producing energy. Depending on your energy usage and the size of your system, you can reduce or eliminate your electrical bill.
Are Solar Panels Right for You?
At Solar-Verse, we can help you understand your MD solar panel program options and provide an assessment to help you determine if solar is right for you.
If you decide to move forward with the project after your free consultation with one of our experts, we can proceed with the installation process and help you take full advantage of the incentives available through the federal and state governments.
Get in touch today for a free consultation.