Solar incentives and rebates in Maryland (2026): MSAP rebate, SRECs and tax breaks

Solar incentives in Maryland, as of November 2026, come down to five main pieces. There is a state rebate of $750 per kilowatt (up to $7,500) for income-eligible homeowners, a separate state battery rebate, solar renewable energy credits (SRECs) you can sell, and property and sales tax exemptions. Net metering is the fifth piece, and it closes to new customers on July 1, 2027, or sooner if a 3,000 MW statewide limit is reached. The federal 30% residential solar tax credit (25D) is not allowed for expenditures made after December 31, 2025, and a solar expenditure counts as made when installation is complete, so state programs and your bill savings now drive payback.

Key takeaways

• The Maryland Solar Access Program (MSAP) pays $750 per kW-DC, capped at $7,500. It is open to households under the income limits, such as $195,375 a year for a family of four. The FY27 application deadline is May 31, 2027.
• Systems of 20 kW or less placed in service between July 1, 2024 and January 1, 2028 can be certified to earn SRECs at 150% of normal compliance value for 15 years.
• Solar panels are exempt from state and local real property tax, and residential solar power sold under a PPA is exempt from sales tax.
• Under the Utility RELIEF Act of 2026, today's net metering contract stays open only until July 1, 2027, or until 3,000 MW is reached if that comes first. A successor program follows; its credit value had not been set as of November 2026.
• The federal 25D credit does not apply to Maryland systems whose installation is completed after December 31, 2025.

What solar incentives does Maryland offer in 2026?

Maryland has more homeowner solar support than most states. But most of it is tied to income limits, a capped budget or a deadline. Here is the overview as of November 2026.

Incentive	Who runs it	Value	Key limit or date
Maryland Solar Access Program (MSAP)	Maryland Energy Administration (MEA)	$750 per kW-DC, max $7,500	Income limits; apply by 3:00 PM ET, May 31, 2027
Residential and Commercial Energy Storage Program	MEA	Rebate set in the FY27 funding announcement	Reservation needed before install; deadline May 31, 2027
Small solar certified SRECs	Public Service Commission (PSC)	150% compliance value for 15 years	Placed in service July 1, 2024 to January 1, 2028
Property tax exemption	State law	Solar PV not added to assessed value	State and local real property taxes
Sales tax exemption on solar electricity	State law	No sales tax on residential PPA power	Residential, net-metering-eligible homes
Net metering	PSC and utilities	kWh credits for exports, used against later bills	Closes to new contracts July 1, 2027, or at 3,000 MW if sooner
Federal 25D credit	IRS	None for new systems	Not allowed for expenditures made (installation completed) after Dec. 31, 2025

The Maryland Solar Access Program rebate

MSAP was created by the Brighter Tomorrow Act of 2024 and is MEA's main solar rebate for homeowners. MEA opened the FY27 round on July 29, 2026, and expects to spend up to $10 million from the Strategic Energy Investment Fund.

How much you can get

The rebate is $750 per kilowatt of DC nameplate capacity, with a $7,500 maximum. A 10 kW-DC system reaches the cap. The final payment is based on the size that is actually installed and verified. It can be lower than the amount reserved, but not higher.

Who qualifies

Gross household income must be at or below MEA's FY27 limits. Examples:

• 1 person: $136,785
• 2 people: $156,375
• 4 people: $195,375
• 8 people: $257,910

The system must be on a home in Maryland owned by the eligible household. You can own the system outright or with a loan. A lease or power purchase agreement (PPA) is also allowed. The system must be Maryland SREC certified, or have a pending application. Portable or plug-in solar does not qualify.

Rules that trip people up

• Reserve first. MEA must approve your Step 1 reservation before installation. Systems installed before approval are not eligible.
• Use a listed contractor. Your installer must be on the FY27 MSAP Participating Contractor List when the reservation is submitted. MEA does not endorse any contractor on that list.
• Watch the contract date. The signed solar agreement must be dated after April 17, 2026, and no earlier than 90 days before your Step 1 application.
• Finish within 180 days. The reservation expires 180 days after approval. By then the system must be installed and have utility permission to operate, and the payment request must be in.

MEA's budget tracker, updated November 2, 2026, showed about 30% of FY27 funding requested and about 19% reserved. The portal can close early if requests use up the budget.

The separate battery storage rebate

MEA's Residential and Commercial Energy Storage Program is open for FY27 through the My MEA portal. The deadline is 3:00 PM Eastern on May 31, 2027. MEA expects a budget of up to $4 million from the Strategic Energy Investment Fund. The portal can close early if the budget is fully requested, so check MEA's tracker before you buy.

Like MSAP, you need an upfront reservation before the battery is installed. Rebate amounts and full rules are in the FY27 funding announcement issued September 24, 2026, so read it or ask your installer to show you the current figure. MEA's FY27 notice of upcoming programs says that, starting in FY27, it will prioritize funding for batteries that join utility-run virtual power plant pilots. Those pilots pay owners for supporting the grid during high-demand periods.

SRECs: selling credits from your Maryland solar panels

Maryland's renewable portfolio standard requires electricity suppliers to get a set share of their power from solar each year. That demand is what gives solar renewable energy credits (SRECs) their value. Each megawatt-hour your panels produce can become an SREC that you can sell.

The Small Solar Energy Generating System Incentive Program adds a bonus for newer systems. Under Public Utilities Article § 7-709.1:

• Systems of 20 kW or less are eligible. Larger systems qualify only in set cases, such as rooftops, parking canopies or aggregate net metering.
• The system must be placed in service between July 1, 2024 and January 1, 2028.
• Certified SRECs carry a 150% compliance value for 15 years after certification.
• The one-time certification fee is up to $50 for systems under 20 kW.
• Statewide capacity for systems under 20 kW is capped at 300 MW.

You apply to the PSC with your interconnection agreement. SREC prices are set by the market and change over time, so ask any broker or installer for a current, written quote rather than a projected price.

Maryland solar tax exemptions

Property tax

Under a 2008 law (H.B. 377), solar photovoltaic and solar hot water systems are exempt from both state and local real property taxes. Adding panels should not raise your property tax bill because of the solar equipment itself.

Sales tax

Maryland exempts from sales tax electricity sold from qualifying solar equipment for residential use on a property owned by a net-metering-eligible customer, according to an MEA Solar Task Force summary (August 2023). In plain terms, a home on a solar PPA does not pay sales tax on that solar power, just as households do not pay it on grid electricity.

Net metering and the 2027 deadline

Net metering is often worth more than any rebate. Maryland utilities credit your exports against later usage. Any excess left at the end of the 12-month period that ends in April is paid at the generation (commodity) portion of the rate, according to the PSC. Since October 1, 2023, you can instead choose to accrue credits indefinitely.

The Utility RELIEF Act (House Bill 1532, 2026) changes the timeline. The standard net metering contract is available until 3,000 MW statewide is reached or July 1, 2027, whichever comes first. The PSC must approve a successor program framework by February 1, 2027, to start July 1, 2027. Customers under a net metering contract on July 1, 2027 keep it until an event such as repowering, adding capacity, a new interconnection agreement or decommissioning. The PSC's proposed regulations offer three options for the milestone a new system must reach by July 1, 2027: a submitted interconnection application, permission to operate, or a signed interconnection agreement. We found no final decision as of early November 2026. If you are going solar in 2026 or early 2027, ask your installer for a realistic interconnection timeline in writing. Our guide to net metering in Maryland has the details.

How to apply for Maryland solar incentives

1. Check your income against the MSAP limits before you sign anything.
2. Get more than one quote. If you want MSAP, use contractors on MEA's list. Run each offer through our solar quote checker.
3. Reserve the rebates. Submit Step 1 for MSAP and, if adding a battery, for the storage rebate, through the My MEA portal. You, your contractor, or your contractor on your behalf can apply.
4. Install and interconnect. Get utility permission to operate within the 180-day reservation window.
5. Request payment (Step 2), and apply to the PSC for SREC certification.

Is solar still worth it in Maryland without the federal credit?

For a household under the income limits, a $7,500 rebate plus SRECs and tax exemptions can fill much of the gap left by the end of the federal credit. Above the limits, payback depends on your system price, your utility rate and how much you produce. Timing matters too: systems that miss the July 2027 net metering cutoff will fall under a successor program whose credit value had not been set as of November 2026. Check your area's production estimates on our Maryland solar panels page and your current price per kWh on our Maryland electricity rates page.

Next steps

Confirm your income eligibility, collect quotes from several contractors, and check the current MEA budget status before you sign. Then use our solar panel calculator to estimate production and bill savings for your home.