Solar panels are certainly a large financial investment, but there are financial incentives in place to help lessen the burden on homeowners. First, the federal government offers a 26 percent solar panel tax credit for homeowners who invest in green energy infrastructure.
There are also many state incentives to help solar investors. Maryland offers a solar rebate program, which simply gives $1,000 back to anyone who installs a solar system on their home.
Next, the state of Maryland provides both a sales and use tax exemption and a property tax exemption so you won’t have to pay sales taxes on your solar panel purchase and won’t pay property taxes on the increase to your home’s value when you install the solar panels.
Finally, Maryland has a net metering policy that allows homeowners to receive full credit on their electricity bills for the excess solar power they generate.
Solar energy in Maryland may help lower your electric bills
Not only can you save money when you buy your solar panels, but you’ll also save on energy costs each and every month on electricity. Depending on the traditional electricity rate you pay, you could save upwards of $100 per month.
Let’s say you buy a residential solar system for $15,000. First, you get $3,900 back from the federal government’s 26 percent tax credit. Next, you’ll get $1,000 back for Maryland’s rebate program. Finally, you might save about $1,200 per year on electricity. With these savings, you would make a return on your investment after just 8.41 years.