Maryland Solar Power Incentives

State Incentives

Maryland solar power rebates are mostly handled through the State. The rebate amount for photovoltaic systems is generous at a rate of $2,500 per kW of installed capacity, with a maximum of $10,000 available for any one system. The largest allowed system size is 20 kW and the smallest is 500 W.

Solar hot water systems are also eligible for rebates. For these, the rate is the lesser of 30% of the system cost or $3000.

This sounds great, but unfortunately the state has made only slightly over half a million dollars available for this program for the 2009 financial year and this funding is already exhausted. The state is still taking applications, but new ones are unlikely to be funded any time soon.

Tax Exemptions And Credits

Currently the Maryland state sales tax does not apply to solar energy equipment to be used to "heat or generate electricity in a structure". Pool heaters are unlikely to be tax exempt.

A better funded state initiative is the Clean Energy Production Tax Credit scheme. In this, residents are entitled to receive a state income tax credit to the tune of $0.85 per kWh for a period of five years after acceptance into the program. Details of the scheme are here. Note that you can only apply to this scheme up until the end of 2010, so if you're going solar in Maryland make sure to check this one out.

Some counties have property tax exemptions for solar power installations. These include Anne Arundel, Hartford, Howard, Montgomery and Prince George's counties. Contact your local county government to check what property tax exemptions you may be eligible for.

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