Solar Panels Cost

Solar Panel Cost in Maryland (2026): Prices, Savings and Rules

Last reviewed: October 30, 2026. Prices, rates and rules change. Every figure below links to its source.

This guide explains solar panel cost Maryland homeowners may see, using the state average installed price of $2.55 per watt (EnergySage Maryland cost data (average, before incentives), October 2026) before incentives. At that price a 7 kW system costs about $17,900. Homeowners who buy a system in 2026 get no federal tax credit, but Maryland exempts solar equipment from sales and property tax and offers a state rebate to many households (see below).

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Solar panel cost Maryland: compare typical system sizes

Installers price systems by the watt, so the size you need drives the total. At the average price above:

System size Estimated installed cost
5 kW about $12,800
7 kW about $17,900
9 kW about $23,000
11 kW about $28,100

EnergySage reports a range of $28,870 to $39,060 for a 13.3 kW system in Maryland, which is about $2.17 to $2.94 per watt. Real quotes vary with your roof, equipment, permitting and the company. Compare quotes in dollars per watt (total price ÷ system watts) so different system sizes line up.

No federal tax credit for buyers in 2026

The 30% federal credit for homeowners (Section 25D) ended for systems placed in service after December 31, 2025 (Solar.com). If you buy with cash or a loan, do not subtract 30% from any quote. Companies that own a system on your roof (a lease) can still claim a business credit; see our lease vs. buy guide.

Maryland Solar Access Program rebate

The Maryland Energy Administration’s FY27 Maryland Solar Access Program pays $750 per kW of panels (DC), up to $7,500, to income-eligible homeowners who use a participating contractor. The income limits are fairly high: $195,375 a year for a household of four, for example. You must get a rebate reservation approved before installation. The program runs first come, first served until May 31, 2027, or until its $10 million budget is used up. Either you or the contractor can apply; if the contractor collects the rebate, it should show up as a lower price on your contract.

Maryland’s electricity rate

The average Maryland residential rate was 21.40¢ per kWh (U.S. EIA, Electric Power Monthly (residential average price), updated automatically, August 2026). Each kWh your panels make saves you that much only when it replaces power you would have bought, so payback depends heavily on your own bill. Use the rate printed on your bill in the calculator if you can.

Net metering in Maryland

Maryland law (Public Utilities Article § 7-306) requires full net metering. Your net metering tariff must have the same energy rates, rate structure and monthly charges as it would without solar, and the utility may not add demand, standby, customer or minimum charges because you have solar. In a month when you use more than you make, you pay for the net power. In a month when you make more, you pay only customer charges and the extra carries forward as a credit.

You choose how to handle leftover credits:

  • Annual payout. Credits build up for up to 12 months. Each spring, after the billing cycle that ends before the end of April, the utility pays you for any leftover credits at the average generation (supply) part of your rate.
  • Indefinite carryover. Credits keep carrying forward with no yearly cutoff, and the utility pays you for any left when you close your account. This option is not available from cooperatives or city utilities.

Net metering is open first come, first served until 3,000 megawatts are connected statewide. The Public Service Commission’s November 2025 report counted about 1,537 MW installed, about half the cap, but noted that pending community solar projects alone would nearly fill it. Bills in the 2026 session to create a successor program (Senate Bill 966 and House Bill 1476) did not pass. If you are planning solar, ask your installer how close the cap is when you apply.

Maryland sales and property tax

Solar energy equipment is exempt from Maryland sales and use tax (Tax-General § 11-230). Electricity from home solar used in a home owned by a net metering customer is also exempt (§ 11-207).

Solar energy property is not subject to Maryland real property tax (Tax-Property § 7-242), so adding panels should not raise your property tax assessment.

HOAs and solar in Maryland

Maryland law (Real Property § 2-119) bars deeds, covenants, and condominium or homeowners association rules from putting unreasonable limits on solar on a roof or exterior wall you own or have exclusive use of. A restriction is unreasonable if it raises the installation cost by at least 5% or cuts the system’s expected output by at least 10%. To show that, you must give the association documentation prepared by an independent solar designer who is NABCEP-certified or has designed at least 30 systems in the past 3 years. An association can still prohibit or limit solar on common areas or common elements. Get approval in writing before you sign an installation contract.

Storms, roofs and insurance

  • Ask each installer about the wind and snow load ratings of the panels and racking, and confirm the job will be permitted and inspected.
  • If your roof is near the end of its life, price a re-roof first. Removing and reinstalling panels later adds cost.
  • Call your homeowners insurer before you sign to ask how solar affects your coverage and premium.

Questions to ask every installer

  • What is the price per watt, and what exactly is included (permits, monitoring, roof work, electrical upgrades)?
  • Which panels and inverters, and what are the product and workmanship warranties?
  • How did you estimate my production, and how did you account for shade?
  • Are you a participating contractor in the Maryland Solar Access Program, and who applies for and keeps the rebate?
  • Which net metering credit option does your savings estimate assume, annual payout or indefinite carryover?
  • Which Maryland and local licenses and permits apply, and who does the installation: your crew or a subcontractor?

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Sources

Maryland solar cost questions

How much do solar panels cost in Maryland?

The average installed price of home solar in Maryland is $2.55 per watt (EnergySage Maryland cost data (average, before incentives), October 2026), before any incentives. Real quotes vary with your roof, equipment, permitting and the installer. The system-size table above shows typical totals.

Is solar worth it in Maryland?

It depends on your own bill and rate. Maryland’s average residential rate was 21.40¢ per kWh (U.S. EIA, Electric Power Monthly (residential average price), updated automatically, August 2026), and full net metering means power you send to the grid offsets power you buy later. No sales or property tax on the equipment, plus the state rebate for eligible households, also helps. Enter the rate printed on your own bill in our calculator to see a closer estimate for your home.

Is there still a federal tax credit for solar in Maryland?

No. The 30% federal credit for homeowners under Section 25D ended for systems placed in service after December 31, 2025, so a Maryland homeowner buying in 2026 should not subtract 30% from any quote. Income-eligible homeowners can apply for the state’s $750-per-kW rebate, up to $7,500.

Does Maryland have net metering?

Yes. Extra power carries forward as a credit, and you choose either an annual spring payout at the supply rate or indefinite carryover with a payout when you close your account. It is open until 3,000 MW are connected statewide.

Can my HOA ban solar panels in Maryland?

Not on a roof or exterior wall you own or have exclusive use of. Real Property § 2-119 bars unreasonable limits, meaning rules that raise cost by 5% or more or cut output by 10% or more. Associations can still limit solar on common areas.