Maryland Solar Rebates and Incentives

Maryland Rebates and Incentives Summary

Maryland

Though small, Maryland has emerged as a leader in solar policy. In 2007, it passed the EmPOWERing Maryland Act, which required a reduction in the state’s overall energy use through efficiency and alternative power. State officials expect to meet the Act’s 15% goal by the end of this year. In 2012, the state enacted a goal of 2% solar capacity by 2020. Currently, the state ranks twelfth in the nation in installed solar capacity.

This push towards renewable energy is likely due to the fact that Maryland has some of the most expensive electricity prices in the country. Currently, the majority of its electricity is generated by coal and nuclear energy, and the small state must import approximately 30% of its electricity. Maryland’s solar policy has remained popular, with 2014 seeing a 95% increase in the amount of capital invested in solar energy production.

Solar makes sense as a renewable energy for Maryland because it gets an average of about 5 kilowatt hours per square meter of sunlight per day, which is plenty for installing a photovoltaic (PV) or other solar system. The state has adopted a diverse range of incentives for residential and commercial solar installation, making it likely that it will meet its policy goals.

Maryland Solar Power Financial Incentives

Financial Incentives


Solar Easements & Rights Laws

MD

Regulatory Policy

Solar/Wind Access Policy

01/01/2000

10/17/2014

Wood Heating Fuel Exemption

MD

Financial Incentive

Sales Tax Incentive

01/01/2000

10/15/2014

State Agency Loan Program

MD

Financial Incentive

Loan Program

01/01/2000

10/16/2014

Fuel Mix and Emissions Disclosure

MD

Regulatory Policy

Generation Disclosure

09/14/2001

10/17/2014

Jane E. Lawton Conservation Loan Program

MD

Financial Incentive

Loan Program

01/01/2000

10/16/2014

Local Option - Property Tax Credit for Renewables and Energy Conservation Devices

MD

Financial Incentive

Property Tax Incentive

01/01/2000

08/06/2015

Net Metering

MD

Regulatory Policy

Net Metering

01/01/2000

05/20/2015

Montgomery County - Green Power Purchasing

MD

Regulatory Policy

Green Power Purchasing

05/05/2005

08/03/2015

Clean Energy Procurement

MD

Regulatory Policy

Green Power Purchasing

05/14/2001

10/17/2014

Interconnection Standards

MD

Regulatory Policy

Interconnection

07/16/2002

05/20/2015

Residential Clean Energy Grant Program

MD

Financial Incentive

Rebate Program

05/20/2004

06/25/2015

Renewable Energy Portfolio Standard

MD

Regulatory Policy

Renewables Portfolio Standard

05/20/2004

02/10/2015

Appliance Energy Efficiency Standards

MD

Regulatory Policy

Appliance/Equipment Efficiency Standards

06/01/2006

10/17/2014

Clean Energy Production Tax Credit (Corporate)

MD

Financial Incentive

Corporate Tax Credit

06/27/2006

06/24/2015

Building Energy Code

MD

Regulatory Policy

Building Energy Code

07/21/2006

04/21/2015

Clean Energy Production Tax Credit (Personal)

MD

Financial Incentive

Personal Tax Credit

06/30/2006

05/22/2015

Energy Conservation in State Buildings

MD

Regulatory Policy

Energy Standards for Public Buildings

07/24/2006

10/17/2014

Local Option - Property Tax Credit for High Performance Buildings

MD

Financial Incentive

Property Tax Incentive

12/08/2006

07/28/2015

Property Tax Exemption for Solar and Wind Energy Systems

MD

Financial Incentive

Property Tax Incentive

05/24/2007

10/15/2014

Geothermal Heat Pump Grant Program

MD

Financial Incentive

Rebate Program

10/10/2007

10/16/2014

Windswept Grant Program

MD

Financial Incentive

Rebate Program

11/09/2007

06/24/2015

Harford County - Property Tax Credit for Solar and Geothermal Devices

MD

Financial Incentive

Property Tax Incentive

12/17/2007

05/13/2015

Rural Business Energy Efficiency Improvement Loan Program

MD

Financial Incentive

Loan Program

04/03/2008

10/16/2014

Anne Arundel County - Solar and Geothermal Equipment Property Tax Credits

MD

Financial Incentive

Property Tax Incentive

04/04/2008

05/13/2015

Sales and Use Tax Exemption for Renewable Energy Equipment

MD

Financial Incentive

Sales Tax Incentive

04/25/2008

10/15/2014

Prince George's County - Solar and Geothermal Residential Property Tax Credit

MD

Financial Incentive

Property Tax Incentive

10/30/2008

05/13/2015

Montgomery County - Residential Energy Conservation Property Tax Credit

MD

Financial Incentive

Property Tax Incentive

10/30/2008

07/28/2015

Bio-Heating Oil Tax Credit (Personal)

MD

Financial Incentive

Personal Tax Credit

01/12/2009

10/14/2014

Bio-Heating Oil Tax Credit (Corporate)

MD

Financial Incentive

Corporate Tax Credit

01/12/2009

10/14/2014

Montgomery County - High Performance Building Property Tax Credit

MD

Financial Incentive

Property Tax Incentive

02/04/2009

07/28/2015

Baltimore Gas & Electric Company (Electric) - Residential Energy Efficiency Rebate Program

MD

Financial Incentive

Rebate Program

02/26/2009

03/06/2015

Baltimore Gas & Electric Company (Electric) - Commercial Energy Efficiency Program

MD

Financial Incentive

Rebate Program

05/19/2009

03/06/2015

Local Option - Clean Energy Loan Program

MD

Financial Incentive

PACE Financing

07/15/2009

08/11/2015

Howard County - High Performance and Green Building Property Tax Credit

MD

Financial Incentive

Property Tax Incentive

07/24/2009

08/10/2015

SMECO - Residential Energy Efficiency Rebate Program

MD

Financial Incentive

Rebate Program

08/05/2009

02/27/2015

PEPCO - Commercial and Industrial Energy Efficiency Incentives Program

MD

Financial Incentive

Rebate Program

09/23/2009

07/28/2015

Delmarva Power - Commercial and Industrial Energy Savings Program

MD

Financial Incentive

Rebate Program

10/21/2009

06/19/2015

Delmarva Power - Residential Energy Efficiency Rebate Program

MD

Financial Incentive

Rebate Program

10/28/2009

03/02/2015

PEPCO - Residential Energy Efficiency Rebate Program

MD

Financial Incentive

Rebate Program

10/28/2009

03/02/2015

Commercial Clean Energy Grant Program

MD

Financial Incentive

Rebate Program

11/09/2009

06/24/2015

FirstEnergy (Potomac Edison) - Residential Energy Efficiency Rebate Program

MD

Financial Incentive

Rebate Program

01/26/2010

02/27/2015

FirstEnergy (Potomac Edison) - Commercial and Industrial Efficiency Rebate Program

MD

Financial Incentive

Rebate Program

01/26/2010

03/03/2015

EmPOWER Maryland Clean Energy Communities Grant Program

MD

Financial Incentive

Grant Program

04/26/2010

02/27/2015

SMECO - Non-Residential Energy Efficiency Rebate Program

MD

Financial Incentive

Rebate Program

07/26/2010

02/27/2015

Baltimore County - Property Tax Credit for High Performance Buildings and Homes

MD

Financial Incentive

Property Tax Incentive

09/15/2010

07/28/2015

Sales Tax Holiday for Energy-Efficient Appliances

MD

Financial Incentive

Sales Tax Incentive

10/26/2010

10/15/2014

PEPCO - Home Performance with ENERGY STAR Incentive Program

MD

Financial Incentive

Rebate Program

11/03/2009

03/02/2015

Delmarva Power - Home Performance with ENERGY STAR Incentive Program

MD

Financial Incentive

Rebate Program

11/03/2009

03/02/2015

Empower Maryland Efficiency Act

MD

Regulatory Policy

Energy Efficiency Resource Standard

12/20/2010

08/03/2015

Home Energy Loan Program

MD

Financial Incentive

Loan Program

01/05/2011

10/20/2014

Anne Arundel County - High Performance Dwelling Property Tax Credit

MD

Financial Incentive

Property Tax Incentive

01/28/2011

07/28/2015

Baltimore Gas & Electric Company (Gas) - Residential Energy Efficiency Rebate Program

MD

Financial Incentive

Rebate Program

02/26/2009

03/06/2015

Sales and Use Tax Exemption for Residential Solar and Wind Electricity Sales

MD

Financial Incentive

Sales Tax Incentive

06/03/2011

10/15/2014

Be SMART Home Efficiency Loan Program

MD

Financial Incentive

Loan Program

06/27/2011

10/15/2014

Be SMART Multi-Family Efficiency Loan Program

MD

Financial Incentive

Loan Program

06/28/2011

10/16/2014

Baltimore County - Property Tax Credit for Solar and Geothermal Devices

MD

Financial Incentive

Property Tax Incentive

11/07/2011

05/13/2015

Permits and Variances for Solar Panels, Calculation of Impervious Cover

MD

Regulatory Policy

Solar/Wind Permitting Standards

05/24/2012

10/17/2014

Clean-Burning Wood Stove Grant Program

MD

Financial Incentive

Rebate Program

09/13/2012

03/17/2014

EmPOWER Maryland Low Income Energy Efficiency Program

MD

Financial Incentive

Rebate Program

10/16/2012

10/16/2014

FirstEnergy (Potomac Edison) - Municipal and Street Lighting Program

MD

Financial Incentive

Rebate Program

11/14/2012

02/27/2015

Game Changer Competitive Grant Program

MD

Financial Incentive

Grant Program

10/02/2014

10/02/2014

EmPower Maryland CHP Grant Program

MD

Financial Incentive

Grant Program

11/20/2014

11/20/2014

Parking Lot Solar PV with EV Charger Grant Program

MD

Financial Incentive

Grant Program

12/04/2014

12/04/2014

Commercial and Industrial Grant Program

MD

Financial Incentive

Grant Program

01/06/2015

01/06/2015

Mathias Agricultural Energy Efficiency Grant program

MD

Financial Incentive

Grant Program

01/06/2015

01/06/2015

Solar Renewable Energy Certificates (SRECs)

MD

Financial Incentive

Solar Renewable Energy Credit Program

02/20/2015

04/27/2015

SMECO- Small Business/Non-Profit Solutions

MD

Financial Incentive

Rebate Program

02/27/2015

02/27/2015

MARBIDCO Rural Business Energy Efficiency Improvement Loan Fund

MD

Financial Incentive

Loan Program

03/06/2015

03/06/2015

DHCD- Multifamily Energy Efficiency and Housing Affordability Program

MD

Financial Incentive

Loan Program

07/21/2015

07/21/2015

Post-2015 Maryland Energy Efficiency Goals

MD

Regulatory Policy

Energy Efficiency Resource Standard

08/03/2015

08/03/2015

Business Energy Investment Tax Credit (ITC)

US

Financial Incentive

Corporate Tax Credit

03/15/2002

05/13/2015

Residential Energy Conservation Subsidy Exclusion (Personal)

US

Financial Incentive

Personal Tax Exemption

03/05/2002

02/16/2015

Modified Accelerated Cost-Recovery System (MACRS)

US

Financial Incentive

Corporate Depreciation

03/15/2002

12/23/2014

Residential Energy Conservation Subsidy Exclusion (Corporate)

US

Financial Incentive

Corporate Tax Exemption

03/05/2002

04/24/2015

Renewable Electricity Production Tax Credit (PTC)

US

Financial Incentive

Corporate Tax Credit

03/11/2002

04/13/2015

Energy-Efficient Mortgages

US

Financial Incentive

Loan Program

03/21/2002

06/24/2015

USDA - Rural Energy for America Program (REAP) Grants

US

Financial Incentive

Grant Program

04/09/2003

08/25/2015

Tribal Energy Program Grant

US

Financial Incentive

Grant Program

05/01/2003

07/31/2015

Green Power Purchasing Goal for Federal Government

US

Regulatory Policy

Green Power Purchasing

02/19/2004

03/20/2015

Residential Renewable Energy Tax Credit

US

Financial Incentive

Personal Tax Credit

08/10/2005

05/13/2015

Energy-Efficient Commercial Buildings Tax Deduction

US

Financial Incentive

Corporate Tax Deduction

01/10/2006

12/22/2014

Energy-Efficient New Homes Tax Credit for Home Builders

US

Financial Incentive

Corporate Tax Credit

01/10/2006

12/20/2014

Residential Energy Efficiency Tax Credit

US

Financial Incentive

Personal Tax Credit

01/10/2006

12/22/2014

Energy Goals and Standards for Federal Government

US

Regulatory Policy

Energy Standards for Public Buildings

06/19/2006

06/21/2015

Federal Appliance Standards

US

Regulatory Policy

Appliance/Equipment Efficiency Standards

06/30/2006

05/21/2015

Clean Renewable Energy Bonds (CREBs)

US

Financial Incentive

Loan Program

05/02/2006

04/16/2015

USDA - Rural Energy for America Program (REAP) Loan Guarantees

US

Financial Incentive

Loan Program

04/09/2003

12/09/2014

Interconnection Standards for Small Generators

US

Regulatory Policy

Interconnection

10/30/2007

03/16/2015

U.S. Department of Energy - Loan Guarantee Program

US

Financial Incentive

Loan Program

09/12/2008

11/20/2014

Qualified Energy Conservation Bonds (QECBs)

US

Financial Incentive

Loan Program

10/23/2008

03/20/2015

USDA - High Energy Cost Grant Program

US

Financial Incentive

Grant Program

09/27/2010

11/20/2014

USDA - Biorefinery Assistance Program

US

Financial Incentive

Loan Program

10/04/2012

05/22/2015

USDA - Repowering Assistance Biorefinery Program

US

Financial Incentive

Grant Program

10/08/2012

02/06/2015

FHA PowerSaver Loan Program

US

Financial Incentive

Loan Program

12/04/2014

12/04/2014

USDA - Rural Energy for America Program (REAP) Energy Audit and Renewable Energy Development Assistance (EA/REDA) Program

US

Financial Incentive

Grant Program

02/18/2015

02/19/2015

Low Income Home Energy Assistance Program (LIHEAP)

US

Financial Incentive

Grant Program

03/16/2015

03/16/2015

Weatherization Assistance Program (WAP)

US

Financial Incentive

Grant Program

03/31/2015

03/31/2015

Fannie Mae Green Initiative- Loan Program

US

Financial Incentive

Loan Program

05/28/2015

07/13/2015

Clean Energy Production Tax Credit

Program Type Personal Tax Credit
Technologies Solar Thermal Electric, Photovoltaics and other renewables
Amount $0.85 per kilowatt hour (kWh) produced
Required Documentation Initial Credit Certificate Application and net metering or interconnection agreement
Official Web Site http://energy.maryland.gov/incentives/allprograms/cep_taxcredit.a

The Clean Energy Production Tax Credit allows property owners in Maryland to receive a state-income-tax break over a five-year period for qualifying renewable energy installations.

To qualify, the building must use the renewable energy as its primary energy source. And it must be placed in service between Jan. 1, 2006 and Jan. 1, 2016.

An individual or corporation that applies for and receives certification from the Maryland Energy Administration may claim a credit equal to 0.85 cents per kilowatt-hour ($0.0085/kWh) against the state income tax, for a five-year period, for electricity generated by eligible resources. To meet the minimum, the installation needs to produce 23.5 megawatt hours a year. An additional requirement is that electricity produced by the installation may not be sold to a relative during the tax year.

Maryland Net Metering

Program Type Net Metering
Technologies Photovoltaics
Amount Retail
Required Documentation up to 2 MW or 200% of baseline customer electricity usage; aggregate capacity of all net-metered systems capped at 1,500 MW                                                                          
Official Web Site http://webapp.psc.state.md.us/intranet/ElectricInfo/home_new.cfm

Categorized as Small generator Interconnection, Maryland’s net metering is expansive, applying to all utilities and all renewable source systems. The systems may be owned outright or owned by a third party. Utilities are required to offer rates that are non-discriminatory compared to non-net metering customers. Customers must usually pay a flat monthly customer charge, but are billed only for energy used netted against the amount generated. Net excess generation is carried over as a credit for twelve months, at which point it is paid to the customer at the commodity rate.

Recently, Maryland authorized a pilot program for community solar projects allowing for “virtual” net metering. These projects must have at least two subscribers and be sized at 2 MW or less. All customers (residential, commercial, etc) can participate in the program. The community solar project must be located in the same service territory as the subscribers. Any third party may build, lease, or operate a project

PACE Loan Program

Program Type Loan
Technologies Dependent on local government
Amount Up to $12,500 for energy efficiency and up to $30,000 for renewable energy installations
Required Documentation Must apply for eligibility with local government
Official Web Site http://energy.maryland.gov/incentives/residential/PaceInitiative.asp

The Property-Assessed Clean Energy (PACE) program offers homeowners a chance to finance their solar power project by taking out a loan from the state or local government. Under PACE, local governments can issue bonds to create a funding pool for PACE applicants. The bond maturity period may be no longer than 40 years under the law. Local governments control the bond’s interest rates, payment intervals, sales terms, and conditions for early bond redemptions, among other issues.

Local governments specify property owner eligibility for the program. They also specify which technologies or energy efficiency projects are eligible under the loan program..

Loans may be up to $30,000 for a renewable energy project. Lesser amounts are allowed for other energy-efficiency projects. The loan is repaid by implementing a property tax assessment on the applicant’s land. While this is a state-backed program, the programs are developed by local governments.

The loans themselves are repaid through the property tax assessment and repayment is limited to the repayment amount, the amount needed to recover the cost of issuing bonds, financing loans, and administering the program. The assessment stays with the property if the owner sells it before the assessment is paid off. Property owners also must prove their ability to repay the loan through a process similar to the mortgage loan approval process.

Solar Energy Grant Program

Program Type Rebate
Technologies Solar Water Heat, Solar Thermal Process Heat, Photovoltaics
Amount

For systems up to 2 kW $1.25 per Watt, systems between 2 kW and 10 kW $0.50 per Watt, and systems between

10 kW and 20 kW $0.35 per Watt

Required Documentation

Application form, a reviewed and signed Solar Grant Program Terms and Conditions form, a signed cost estimate,

purchase order, or letter of intent from an installer

Official Web Site http://energy.maryland.gov/incentives/residential/solargrants/ind

The Solar Energy Grant Program offers home and building owners a rebate of up to $1.25 per DC (direct current) watt of photovoltaics (PV) installed. Systems up to 2 kW receive the full $1.25 per kW. The incentive falls to $0.50 per Watt for systems between 2 kW and 10 kW. PV arrays between 10 kW and 20 kW will receive an incentive of $0.35 per Watt. The incentive tops out at $10,000. In addition, solar water heating systems are also eligible for a rebate of up to $2,000 or 30 percent of the system’s total cost. PV systems don’t have to be grid-tied to qualify for the incentive.

To qualify for the incentive, residential PV arrays must be at least 500 Watts. Solar hot water heating systems must be at least 20 square feet to qualify. The state accepts applications for any system that goes into operation during the year in which the building owner submits the grant application. If a building is more than 50 years old or in a historic district and the proposed installation is on the front of the building, than applicants must submit a Maryland Historical Trust Project Review form to the Maryland Historical Trust. The trust will evaluate the site and respond with how the applicant should proceed.

Maryland anticipates approving 100 grants a month through the end of fiscal year 2011 or until the funds are fully committed. The fiscal year 2010 budget includes $5.8 million for the rebate program and is funded by the Maryland Strategic Energy Investment Fund and ARRA money. The program was funded through federal stimulus money and appropriations from carbon emission allowance auctions, which is part of Maryland’s Regional Greenhouse Gas Initiative. The grants do not count as income for state tax purposes.

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