Renewable Portfolio Standards
Maryland has stringent Renewable Portfolio Standards (RPS), which require that by the year 2022, 20% of all energy the public utilities offer must originate from sustainable sources such as wind, solar, biomass, and geothermal. Either the utilities meet the deadline or pay a fee. However, they can buy energy from their customers as well as produce it themselves. This is where home solar energy systems come in. Rather than paying the fee, utilities in strong RPS states offer good incentives to homeowners for going solar. Maryland offers many solar incentives to help it comply with its impressive RPS goals.
Net Metering Laws
Maryland offers net metering laws, a plus for homeowners with solar energy systems. Net metering laws provide rules for how solar power production is measured, and how the home’s surplus solar-generated power can be transferred to the grid. If your system produces more energy than you need, you sell the excess to the utility company. That amount of energy is deducted from your monthly bill or credited toward a future bill.
Maryland has strong Interconnection standards, which work hand-in-hand with net metering laws to make it easier for a solar power system to pay for itself. Interconnection standards are requirements for connecting solar and other electrical generation systems to the grid. These rules apply to both customers and utilities.
RPS Solar Carve-Out
Whereas RPS is about all sources of renewable energy, the solar carve-out is a goal just for solar power. Maryland’s solar carve-out is 2% by 2022, requiring that at least 2% of the energy generated in the state must come from the sun by that deadline.
State Electric Rates
Maryland’s electric rates put it in the top 25%. It makes financial sense to supplement your power needs with solar in states where electricity costs the most. Where power is cheap, solar is not as feasible.
Maryland homeowners who switch to solar are eligible for a $1,000 grant upon the installation of their panel system. Revolution Solar can help you combine this grant with all of the other credits and incentives into one low monthly payment.
State Tax Credits for Energy
Maryland offers state tax credits. You take the amount directly off your tax payment, rather than as a deduction from your taxable income. You can claim the credit for a primary residence and a vacation home, no matter whether it’s an existing structure or new construction.
Property Tax Exemptions for Energy
Maryland offers property tax exemptions for installed solar systems. A solar PV system can increase your home’s value, but the exemption means you won’t pay any more property tax on the value added. You keep paying the same property tax as if you hadn’t enhanced the home.
Performance-Based Incentives (PBIs)
Maryland offers incentives based on the actual metered performance of a home solar energy system. The state calls them Solar Power Performance Payments. They are cash payments based on the number of kilowatt-hours (kWh) or BTUs generated. The electricity produced is credited as Solar Renewable Energy Credits (SRECs).
Federal Solar Tax Credit
The ITC, also known as The Federal Investment Tax Credit, is also available to Maryland homeowners who purchase their solar panel system outright. This credit amounts to 26% of your solar system’s cost after deducting the value of your state rebates. But this one isn’t going to be around forever. ITC credits will drop as the years go on, so if you’re interested in going solar, it makes sense to do so now!