How much do solar panels cost in Maryland?
Installing residential solar panels can cost anywhere from $10,000 to $30,000 or more, although individual costs vary. Marylanders pay an average of $27,700 for their system before tax credits.
As for the low price, Dan of Germantown said it cost $21,000 to install, but he actually paid $13,000 after factoring in state and federal incentives. On a higher level, Valerie from Baltimore was offered $40,000 for the system (she decided to rent the panels). Yvonne of Marriottsville paid $50,000 for the solar panels and necessary roof and window upgrades.
Should you use solar panels in Maryland?
We've spoken to dozens of homeowners who have chosen solar in Maryland. Many people have told us about the significant savings on their energy bills after installing the panels. For some, the environmental benefits alone justify the switch to solar power.
Charles, of Forest Hill, said his monthly gas and electricity bills ranged from $358 to $158 a month. At best, you can eliminate bills almost entirely, like Laurel in Columbia.
"Right now, I'm happy to just pay the power company $8 for the connection," Laurel said.
According to Columbia's Frank, seasonality can affect system performance. "I've seen the benefits of solar in the summer, but not in the winter," Frank told us.
"Still Not Sure? Pros and Cons of Solar Energy.
Cost factors for converting to solar in Maryland
The amount you pay for a solar power system varies depending on the quality of the panels, the cost of permits, the condition of the roof, and more. Here's an overview of what to expect.
Your system size
The size of your system is a major factor in the total amount you pay. Not surprisingly, low-powered systems tend to cost less. The average size of solar systems in Maryland is 10 kilowatts (kW).
You can easily determine the size of system you need by finding the amount of electricity used over the past year in kilowatt hours (kWh) through your online energy bill dashboard.
Then divide the annual kWh by 1200 to find the required system size. For example, a typical home in Maryland uses 11,676 kWh per year. Using this formula, a typical home would need a 10 kW system.
Average cost by system size in Maryland
| 7 kilowatts | 8 kilowatts | 9 kilowatts | 10 kilowatts | 11 kilowatts | 12 kilowatts | 13 kilowatts | |
|---|---|---|---|---|---|---|---|
| Before the federal tax credit | US$19,390 | US$22,160 | US$24,930 | 27,700 US dollars | US$30,470 | US$33,240 | US$36,010 |
| After the federal tax credit | US$13,573 | US$15,512 | 17,451 US dollars | US$19,390 | US$21,329 | 23,268 US dollars | 25,207 US dollars |
| Estimated house size | 1300 m2. FOOT | 1500 m2. FOOT | 1700 m2. FOOT | 1900 m2. FOOT | 2100 m2. FOOT | 2300 m2. FOOT | 2500 m2. FOOT |
Source: Ecowatch
"WHAT'S THE DIFFERENCE? kW vs kWh
Cost of solar equipment.
Typically, the cost of your equipment will vary depending on the size of your system and the efficiency of the panels you choose. Solar panels in Maryland cost an average of about $2.77 per watt.
Solar panel efficiency is the ability of each panel to convert sunlight into electricity. The higher the efficiency, the fewer panels you will need, reducing the overall cost. However, solar power systems are not just about panels. Below are some average costs you can expect for panels and other equipment:
» COMPARISON: The most efficient solar panels
The condition of your roof
Quality solar panels should last 25 to 30 years, so your roof should last just as long. Otherwise you will have to pay to remove the panels, repair the roof and reinstall it. One resident we spoke to, Michael van Gambrills, said it costs $5,000 to remove and reinstall the panels to install the new roof.
This is an unpleasant and expensive process. If possible, avoid this by inspecting your roof before installing the solar panel.
» SHOULD I: Replace my roof before going solar?
How do you pay?
There are several ways to pay for solar if you can't pay cash. Solar loans are available to finance solar panels. Of course you will pay them back with interest. Other options include leasing solar equipment or entering into a power purchase agreement (PPA).
With leasing you basically rent your solar panels. With a PPA you lease the equipment and pay for the energy it produces.
Other cost factors
There may be some hidden costs associated with using solar energy that you may not even be aware of.
For example, solar panels require minimal maintenance. However, it is advisable to reserve some money for any repairs or replacement of components, as well as for periodic cleaning.
The cost of permits must also be considered. Most cities also require permits for solar installations.
» TIP: Get the best price for solar energy
Solar Incentives, Tax Credits and Deductions in Maryland
The federal Solar Investment Tax Credit (ITC) is the biggest factor driving down the cost of solar energy in Maryland. If you install a solar panel system on your home by the end of 2032, you will receive a federal income tax credit equal to 30% of the total cost of the system, including equipment, labor and permits. The loan will drop to 26% in 2033 and 22% in 2034.
The average cost of ICT in Maryland in 2023 will be $8,310.
Maryland also offers other tax exemptions and refunds. For example, homes equipped with solar panels may receive exemptions and exemptions from property taxes based on the value the solar equipment adds to your home.
Additionally, there is no sales tax on the purchase of your new solar system, and solar systems and solar water heaters are eligible for rebates through the Residential Clean Energy Rebate Program.
» Discover: Encouraging solar power in Maryland
Compare solar panel installation companies in Maryland
Compare the most popular solar companies available in Maryland below. Read our guide to finding the best solar companies to learn more.
| the power of the sun | Tesla Energy | sanran | Solar shop | ||||
|---|---|---|---|---|---|---|---|
| BASIC |  | the power of the sun | Read the reviews | Customer Rating 2,192 opinions2,192 opinions | Free quote | Payment options Cash, loans, rent | Collateral 25 years old |
| BASIC |  | Tesla Energy | Read the reviews | Customer rating 513 reviews513 reviews | Free quote | Payment options cash loan | Collateral 10-25 years |
| BASIC |  | sanran | Read the reviews | Customer evaluation | Free quote | Payment options Cash, loan, rent, APP | Collateral 10 years |
| BASIC |  | Solar shop | Read the reviews | Customer reviews 116 reviews116 reviews | Free quote | Payment options cash loan | Collateral vary |
Frequently asked questions
Can I get free solar panels in Maryland?
How are solar costs changing in Maryland?
According to the Solar Energy Association, the cost of solar energy in Maryland has dropped 43% over the past 10 years.
How much can I save with solar panels?
If paid in cash, the average 25-year solar savings in Maryland is $21,395. While you may not be able to completely eliminate your monthly energy bills, you can expect to offset them by 78% to 106%, according to EnergySage.
» Discover: Where saving solar energy is most effective
How does net metering work in Maryland?
When your solar system produces more power than you can use, you can sell it to your local power company through a process called net metering. In Maryland, power companies must purchase a portion of their electricity through solar panels. They pay for this by adding credit to your energy bill.
Is it cheaper to install solar panels yourself?
It's potentially cheaper since you avoid installation costs, but installing a DIY solar panel is difficult and risky if you don't know what you're doing. This is especially true for a large residential project.
» DIY solar panels: the pros and cons
end
Maryland has been named one of the 10 greenest states, and it's easy to see why. Although state solar system costs are slightly higher than other states, Maryland offers many incentives that typically reduce costs. Plus, you can save money for the next 25 years.
» GUIDE: Mounting solar panels
Solar Energy Costs: Maryland Compared to Neighboring States
| Initial cost* | ICT costs (30%) | Average cost per watt | Typical system dimensions | Recovery period ** | Estimated net savings over 25 years | |
|---|---|---|---|---|---|---|
| Maryland | 27,700 US dollars | 8310 US dollars | $2.77 | 10 kilowatts | 12 years old | US$21,395 |
| Delaware | 24,510 US dollars | 7353 dollars | $2.58 | 9.5 kilowatts | 12 years old | 29,016 US dollars |
| PA | 21,676 US dollars | 6503 dollars | $2.55 | 8.5 kilowatts | 10 years | 23,634 US dollars |
| West Virginia | US$29,040 | 8712 dollars | $2.64 | 11 kilowatts | 13 years | US$19,893 |
| Virginia | US$30,250 | 9075 dollars | $2.75 | 11 kilowatts | 12 years old | 21,692 US dollars |
| New Jersey | US$19,390 | 5817 US dollars | $2.77 | 7 kilowatts | 10 years | 23,806 US dollars |
*Before taking the federal investment tax credit (ITC); ** If paid in full in advance.
Article sources
- EcoWatch, "Solar Panel Costs in Maryland." From November 3, 2023
- Office of Energy Efficiency and Renewable Energy, "Homeowner's Guide to the Federal Solar Photovoltaic Tax Credit." From November 3, 2023
- Maryland Solar Association. From November 3, 2023
- DSIRE, Maryland Solar Energy Programs. From November 3, 2023
- EnergySage, "Maryland Solar Panels: Local Prices and Installation Data." From December 5, 2023
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