Maryland · Tax exemption
MD Solar Property Tax Exemption
Removes a tax burden residential solar owners in Maryland would otherwise carry -- see what it covers, eligibility, and payback impact below.
- Full property tax cr…
- stated benefit
- Residential
- eligible customers
- 14.3 yr
- Maryland baseline payback
- 4
- other Maryland programs
What it means
In Maryland, a 6 kW system already pays back in about 14.3 years on ~$1,261/year of modeled savings, and the MD Solar Property Tax Exemption stacks on top of that, on top of any federal credit.
- Full property …
- stated benefit
- 14.3 yr
- baseline payback (pre-incentive)
- 5
- Maryland programs that stack
- full
- net-metering policy
Payback and savings are modeled from public NREL/EIA data; the program benefit is summarized from DSIRE and may change.
Program description
Maryland counties offer property tax credits for solar energy systems.
Program at a glance
- Program type
- Tax exemption
- Eligible customers
- Residential
- Stated benefit
- Full property tax credit
- State electricity rate
- 16¢/kWh
- Maryland solar score
- 29/100
How Maryland compares to the U.S. average
Why this incentive matters more (or less) here - Maryland's solar fundamentals against the national average.
Source: NREL irradiance and U.S. EIA rates; payback modeled by PlainSolarData. Bars are scaled to the larger of the two values per metric.
Solar's trajectory in Maryland
The market this incentive operates in: total installed solar capacity in Maryland reported to the EIA.
Maryland's solar incentive stack
How this tax exemption sits among Maryland's 4 tracked programs, by type
- Tax exemption
Tax exemption
1 programs
- Net metering
Net metering
1 programs
- Rebate
Rebate
1 programs
- SREC
SREC
1 programs
What this shows Maryland tracks 4 incentive types; 1 are tax exemptions like this one, removing a cost solar owners would otherwise carry, on top of the state's other program types.
How this incentive fits Maryland's solar picture
The MD Solar Property Tax Exemption removes a tax burden solar owners would otherwise carry, one of Maryland's DSIRE-tracked solar incentive programs. Eligibility is scoped to residential customers, with a stated benefit of Full property tax credit. DSIRE lists no scheduled sunset, though enabling legislation and appropriations can still be revised year to year.
That baseline is slower than most states, which raises the stakes for every incentive on the table. Maryland averages 4.5 kWh/m²/day of usable sunlight and residential rates of 16¢/kWh, producing an estimated 7,884 kWh/year and $1,261 of annual utility offset on a typical 6 kW system costing $18,000. That baseline already implies a 14.3-year simple payback and a 25-year modeled net of roughly $13,525 before this incentive - every dollar this tax exemption delivers compresses that payback further.
A handful of other levers are worth checking alongside this one. Maryland has 5 solar incentive programs indexed in DSIRE, including adjacent options like MD Net Metering, MD Residential Clean Energy Rebate, Maryland SREC Program. The state's net-metering policy is classified as full, which governs how excess generation is credited and often decides whether a given program is worth claiming for a specific household.
Your next step
- See Maryland's full solar profile, score, irradiance, rates, payback, and every program you can claim. Maryland solar data
- Run the savings calculator with your real bill to see how this incentive changes your own payback. ROI calculator
- Read how state and federal solar credits work together. Tax-credit guide
Estimates here are modeled from public data and are not financial advice; confirm program terms and your own eligibility before relying on a dollar figure.
Other Maryland incentives
Frequently asked questions
What is the MD Solar Property Tax Exemption?
How does the MD Solar Property Tax Exemption work?
Who is eligible for the MD Solar Property Tax Exemption?
How does this incentive affect solar ROI in Maryland?
Are there other solar incentives in Maryland?
Incentive data from the DSIRE (Database of State Incentives for Renewables & Efficiency); state solar economics from NREL and the U.S. EIA. See our methodology.