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Benefits of Going Solar

According to the Department of Energy, financial returns and lower monthly utility bills are major incentives for going solar. A solar electric system provides an opportunity for anyone who is looking to reduce monthly utility bills and make a long-term, low-risk investment.

Increased Home Value

Solar panels are viewed as upgrades, like a renovated kitchen or a finished basement, so purchasing a solar energy system will likely increase your home’s value. Studies show that homeowners pay a premium for a solar home; one study by Lawrence Berkeley National Laboratory showed that on average, solar increased the value of a home by about $15,000. Although market factors like electricity rates and system size may impact the size of the premium, solar homes can sell for more than homes without PV. Learn more about solar and real estate.

Maryland

Maryland Solar Property & Use Tax Exemptions

Maryland solar energy systems that are used to heat or cool a structure, or provide hot water, are now exempt from both state and local real property taxes. The Maryland Property Tax Exemption for Solar and Wind Energy Systems applies to both commercial and residential properties. There is also a Maryland Sales and Use Tax Exemption for Residential Solar and Wind Electricity Sales.

Local Solar Tax Credits in Maryland

Maryland’s statewide push to go solar has motivated many Maryland counties to offer substantial tax credits for the installation of solar energy systems.

There are also $2,500 – $5,000 in local credits:

• Anne Arundel County Solar Tax Credits: One-time property tax credit of up to $2,500 for residential dwellings that utilize solar energy for heating and cooling, water heating, and generation of electricity. Applications must be received by June 1, 2021, to be considered for the tax year beginning July 1, 2021.
• Baltimore County Solar Tax Credits: Property Tax Credit up to $5,000 for property owners who use solar energy to use solar energy for heating and cooling, water heating, and energy generation. The credit applies to single and multi-family dwellings. Learn more at Baltimore County Government’s website  (Note: there is a waiting list for new applicants)
• Harford County Solar Tax Credits: Property tax credit of up to $2,500 for property owners who utilize solar energy for heating and cooling, water heating, and energy generation. The credit applies to residential and non-residential buildings. Learn more at Harford County’s Property Tax Credits web page.
• Prince George’s County Solar Tax Credits: Alternative Energy tax credit of up to $5,000 for installation or construction of solar energy devices in residential structures.

Federal Tax Credits for Maryland Residents

You don’t have to limit yourself to local or state incentives. You can also take part in a federal program through the Investment Tax Credit (ITC). You can qualify for this credit as a homeowner if you purchase your PV system fully with cash or through a solar loan. You claim the credit when you file your federal taxes for the year. This credit covers 30 percent of your system costs. You can see this is a good year to add solar because federal tax credits are available and they provide a huge deduction.

Maryland Solar Renewable Energy Certificates (SRECs)

Maryland residents who own solar systems have the option to earn hundreds of dollars every year by selling excess power back to the grid. We calculate how much excess energy you are likely to generate, and we will set up the automatic system to earn and sell your Solar Renewable Energy Certificates (SRECs). Click for more information on how MD SRECs work.

Net Metering in Maryland

Homeowners and commercial property owners can get credit on their electric bills for excess solar energy. The energy is added back to the grid, where it is available for use by other utility customers. For example, credits generated during the summer can offset higher electric bills during the winter months.

More Maryland Financial Incentives for Going Solar

In addition to the rebates and tax credits listed above, there are quite a few monetary and non-monetary Maryland solar incentives that residents are able to take advantage of.

• The Property Assessed Clean Energy Programs or PACE Program.
• Electricity rates in Maryland have increased by at least 78% since 2002. Switching to solar panels and solar energy protects you from this volatile market and saves thousands of dollars in long-term energy costs.
• Maryland is a sunlight-rich state. Weather tracking shows that Maryland receives substantially more sunlight than Germany, which leads the world in solar power.
• The National Solar Jobs Census reports that employment in the solar industry has grown by 170%, employing more than 250,000 workers.
• According to Energy.gov, homebuyers across the nation are willing to pay a premium of about 15% more for homes with solar panels.
• When you install solar power systems, you help combat greenhouse gas emissions, thus reducing our dependence on fossil fuels.
• Unlike non-renewable energy sources, solar energy is beneficial to our health.
• Solar energy systems don’t require water to generate energy, even during a drought or heatwave.
• Maryland has quadrupled its solar energy capacity since 2015.

Virginia

If you’re a solar shopper in Virginia, you have many solar rebates and incentives available to reduce your solar installation costs:

Solar Renewable Energy Certificates (SRECs)

With the passing of the Virginia Clean Economy Act (VCEA), the state set a renewable portfolio standard that includes a stipulation to produce at least 1% percent of its electricity from solar resources – and you can get paid to help! Under this program, you can earn one SREC for each megawatt-hour (MWh) of clean electricity your panels produce. You can sell these SRECs to utilities and earn extra income for generating solar electricity.

The federal solar tax credit

Don’t forget about federal solar incentives! With the investment tax credit (ITC), now referred to as the Residential Clean Energy Credit for residential systems, you can reduce the cost of your PV solar energy system by 30 percent. Keep in mind that the ITC applies only to those who buy their PV system outright (either with a cash purchase or a solar loan), and that you must have enough income for the tax credit to be meaningful (unless you’re a tax-exempt entity, in which case you might be eligible for a direct payment).

The benefits of going solar in Virginia

Residential property tax exemption

All of the benefits of solar mean that installing a solar energy system on your home can increase your property value. That’s great news for homeowners who want to sell their property, but what about the impact of higher home value on your property taxes? Virginia has a law allowing localities to exempt or partially exempt solar from the property taxes residents pay. Note, however, that not all localities allow this exemption – currently only 30 do. If yours doesn't, you may wish to petition your Board of Supervisors to approve an ordinance to allow it.

Net metering in Virginia

When you sign up for net metering, you get credits on your electricity bill for every extra kilowatt-hour of solar electricity that you send back to the grid. When you need more electricity than your solar panels are producing, you can use your net metering credits to make up the difference – helping you to balance out your electricity production and use. Dominion Energy offers the top utility net metering program in Virginia.

Washington, DC

What are the best D.C. solar incentives?

Along with receiving utility bill credits for any excess solar electricity your panels generate, you will also be able to benefit from a couple other D.C. solar programs, including:

Solar Renewable Energy Certificates (SRECs)

D.C. has set a renewable portfolio standard goal to produce 5% percent of its electricity from solar resources in 2032, and you can get paid to help. Under this program, you are granted one D.C. SREC for each megawatt-hour (MWh) of clean electricity your panels produce, which you can then sell in the SREC market. In 2021, SRECs in DC sold for prices between $365 and $435 – higher than anywhere else in the country! On the lower end of that range, an 8 kilowatt system that generates 8 MWh annually would earn an extra $2,920 each year.

Low income residential solar

The Solar Advantage Plus Program is a truly incredible and unique incentive for eligible low-income D.C. residents. This first-come, first-served rebate program provides qualified applications with up to $10,000 to cover the full cost of a 3kW to 4kW solar system. Not only will participants own the system and the energy it produces, but they will also be able to cash in the SRECs discussed above.

Net metering in Washington D.C.

When you put solar panels on your roof, you want to make sure you get credit for all of the power your system generates. Luckily, Washington D.C. has a net metering policy that credits you for the extra electricity your system produces, and allows you to use those credits when your system doesn’t generate enough power. Pepco (Potomac Electric Power Company) offers the top utility net metering program in the D.C. area.

D.C.’s tax incentives for solar

Property tax exemptions

Thanks to the Solar Energy System and Cogeneration System Personal Property Tax Credit, you can also avoid paying any additional property taxes on the value you are adding to your house by installing that solar energy system.

The federal solar tax credit

Don’t forget about federal solar incentives! With the investment tax credit (ITC), now referred to as the Residential Clean Energy Credit for residential systems, you can reduce the cost of your PV solar energy system by 30 percent. Keep in mind that the ITC applies only to those who buy their PV system outright (either with a cash purchase or a solar loan), and that you must have enough income for the tax credit to be meaningful (unless you’re a tax-exempt entity, in which case you might be eligible for a direct payment).

Going Solar

Steps to go solar:

• Send us a full copy of you most recent energy bill.
• We will generate a proposal to show you all of your options with federal, state, and local incentives as applicable.
• Once the proposal is created, we will schedule an appointment to review the proposal.
• Choose the option that best suits your needs and you are all set.

If you are ready to go solar, complete the form below or call (240) 900 3208