top of page
Search

Solar Panel Cost in Maryland 2024


Solar Panel Cost in Maryland

As electricity prices continue to rise in Maryland, you might be thinking of ways to cut down on your electric bills. With solar panel costs averaging $3.03 per watt, you may wonder if it’s the best option for your energy needs. Although the upfront cost for your solar setup might be high, there are several ways to significantly reduce this expense and save money in the long run. 


Key Takeaways

  • Average solar panel cost in Maryland is $3.03 per watt.

  • Maryland provides generous incentives including a 30% federal tax credit, state rebates, and net metering, greatly reducing initial costs and enhancing savings. 

  • Various financing options are available, including solar loans, leases, and PPAs, catering to different financial needs and preferences. 

 

Solar Panel Cost in Maryland 2024

When it comes to installing solar panels in Maryland in 2024, you can expect to pay about  $3.03 per watt.  This translates to an average of $18,180 for a 6kW solar setup and reduces to about $12,726 after applying the 30% federal tax credit. 


The cost of solar panels can vary based on several factors, particularly the size and type of the system you choose. Larger systems, like a 10 kW setup, will cost more upfront—around $30,300 before incentives—but offer greater long-term savings and efficiency. The type of solar panels also affects the price; higher efficiency panels might cost more initially but can lead to greater energy savings over time.


Here's a simple breakdown of solar setup by size and average cost:

System size

Average Cost 

Average Cost (after federal tax credit)

3kW

$9,090

$6,363

5kW

$15,150

$10,605

7kW

$21,210

$14,847

9kW

$27,270

$19,089

11kW

$36,300

$25,410


Factors Influencing Solar Panel Cost in Maryland

  • System Size: The size of your solar system greatly impacts the overall cost. Larger systems generate more electricity and thus have higher upfront costs. For example, a 6 kW system is generally less expensive than a 10 kW system but might not cover all your energy needs if you have a larger home. 

  • Type of Panels: High-efficiency solar panels, while more expensive initially, can save you more money in the long run by generating more electricity per square foot. The type of solar panels you choose can significantly affect both performance and cost. 

  • Installation Costs: Installation costs can vary based on your property’s location and the complexity of the installation. In urban areas like Baltimore, installations might be more straightforward and less costly than in rural areas, where installers may need to travel further and navigate more challenging terrain. 

  • Geographical Considerations: Maryland's climate plays a role in solar panel costs. Heavy snowfall, high humidity, and varying sunlight exposure throughout the year can influence the type of panels and installation techniques best suited for your home. 

  • Additional Equipment and Materials: Beyond the panels themselves, you’ll need inverters to convert solar energy into usable electricity, mounting hardware to secure the panels, and possibly an upgraded electrical system to handle the new power load. These additional costs are crucial for a well-functioning solar system. 


Solar Incentives Available for Maryland Residents

When you decide to go solar in Maryland, you’ll be thrilled to find a variety of incentives that can substantially reduce your costs. 

  • Federal Tax Credit: The federal solar investment tax credit (ITC) lets you deduct 30% of your solar installation costs from your federal taxes. This significant credit applies to both residential and commercial systems, lowering your initial investment. 

  • Maryland Residential Clean Energy Rebate Program: Maryland offers a rebate of up to $1,000 for homeowners who install solar panels. This program helps to offset the upfront costs and make solar more affordable for residents.

  • Property Tax Exemption: The state exempts solar panel systems from property taxes. This means that the increased value of your home due to solar installation won’t hike your property tax bill.

  • Sales Tax Exemption: Solar equipment in Maryland is exempt from sales tax, saving you around 6% on your overall system cost.

  • Net Metering: Net metering allows you to feed excess electricity your solar panels generate back into the grid, earning you credits on your electricity bill. This can help offset future energy costs and lower your utility bills even more during months of high solar production.

  • Solar Renewable Energy Certificates (SRECs): For every megawatt-hour (MWh) of electricity your system generates, you earn one SREC. These certificates can be sold to utilities that need to meet renewable energy standards, providing you with additional income and making your solar investment even more attractive.


Long-term Financial Benefits of Solar Panels in Maryland

Installing solar panels in Maryland offers a substantial return on investment (ROI). You can recoup your initial costs within 8 to 10 years, thanks to the combination of federal and state incentives, along with significant reductions in monthly electricity bills.


Solar panels can also  significantly increase your home's property value. Homes equipped with solar energy systems often sell for more than similar homes without solar panels. This is because buyers are attracted to the long-term savings on energy bills and the environmental benefits. In Maryland, the property tax exemption for solar panels ensures that this added value doesn’t translate into higher property taxes.


Beyond financial gains, solar panels offer significant environmental benefits. By reducing reliance on fossil fuels, solar energy helps decrease greenhouse gas emissions, contributing to a cleaner environment. Moreover, adopting solar power supports the growth of the renewable energy sector, which can create local jobs and stimulate economic growth in Maryland. Embracing solar energy not only cuts costs but also plays a crucial role in fostering a sustainable and prosperous community. 


Are Solar Panels Worth it in Maryland?


Solar Panel Cost in Maryland

Comparing Solar panel costs in Maryland with other states, Maryland’s solar panel prices are slightly above the national average of $3.01 per watt. This difference is partly due to higher energy consumption rates and the larger system sizes typically required in Maryland. Despite this, investing in solar panels is a smart move for Maryland residents because of the substantial long-term savings on electricity bills. With the average electricity rate in Maryland at about $0.17 per kilowatt-hour, switching to solar can drastically reduce or even eliminate your energy costs over time.


Moreover, Maryland offers generous incentives, including a 30% federal tax credit, state rebates, and a strong net metering policy, which lets you sell excess energy back to the grid at retail rates. These incentives significantly lower the initial investment and enhance your savings. Solar panels can also increase your property value by about 4.1%. Over the 25-year lifespan of most solar panels, the financial returns and environmental benefits make solar a wise and sustainable investment for Maryland residents.


Solar Financing Options in Maryland 

When you're ready to invest in solar panels for your Maryland home, understanding your financing options is crucial. There are several ways to finance your solar system, each with its own advantages and disadvantages.

  • Cash Purchase: Paying for your solar panel system with cash is the best way to maximize your savings. You won’t incur any interest, and you’ll own your system outright from day one, making you eligible for all available incentives and rebates. The main drawback is the substantial upfront cost which might be a significant financial burden for many homeowners. 

  • Solar Loans: Solar loans allow you to own your system without a hefty upfront payment. You make monthly payments over a set term, similar to a mortgage. This option lets you benefit from federal and state incentives, reducing your overall cost. Loans come with interest, which means you'll pay more over time compared to a cash purchase. Your credit score will also affect the interest rates available to you.

  • Solar Leases: Leases require little to no upfront cost and place the maintenance responsibilities on the solar company. You pay a fixed monthly rate to rent the system. Leasing disqualifies you from most incentives and does not increase your property value, as you do not own the system. If you decide to sell your home, you might have to pay off the lease or transfer it to the new owner, which can be complicated.

  • Power Purchase Agreements (PPAs): PPAs are similar to leases but you pay for the energy produced by the solar panels rather than renting the panels themselves. This can result in lower monthly payments compared to utility rates. Like leases, PPAs disqualify you from incentives and don’t offer ownership benefits. Your costs can also vary based on energy production and usage, and there may be annual price escalations. 


Getting a solar quote is essential for accurately understanding the specific costs and savings associated with solar installation for your home. A personalized quote considers your energy consumption, roof space, and the incentives you qualify for, giving you a clear picture of your potential savings. A professional consultation ensures you receive accurate cost estimates, navigate federal and state incentives effectively, and have a system designed to maximize efficiency and savings. To make an informed decision and optimize your investment, get a free detailed estimate today and take the first step towards a cost-effective and energy-efficient future.


FAQs About Solar In Maryland


What is the average cost of solar panels in Maryland?

The average cost of solar panels in Maryland is about $3.03 per watt. This means a typical 6 kW solar system would cost approximately $18,180 before incentives and about $12,726 after applying the 30% federal tax credit.

How much can I save with Maryland solar incentives?

Are there financing options available?


69 views0 comments

Comments


Click Below To Reach Out To Us

bottom of page