Solar Incentives for Maryland, Virginia, Pennsylvania, Delaware and DC
There are huge incentives for going solar today. You just need to find out how they work and how much!
All about incentives. Solar Brokers makes it easy.
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Federal Tax Credit
The Federal residential solar energy investment tax credit, or ITC, is a tax credit that can be claimed on federal income taxes for a percentage of the cost of a solar photovoltaic (PV) system.
The Federal ITC is now 30% of the total cost of the solar system. Contact us now to start taking advantage of all of the incentives today!
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State Incentives
Several states offer solar incentives in addition to the federal tax credit to encourage homeowners to install solar, including Maryland has a $1,000 clean energy grant. Delaware Delmarva Power has a huge incentive that if you live there you definitely need to look into solar.
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County Incentives
Several counties offer incentives which are typically in the form of a tax credit on your home. These incentives can be stacked on top of both the federal tax credit and state incentives. Anne Arundel County and Harford County, MD both have a $2,500 tax credit, and PG and Baltimore Counties both have $5,000. Call us for full details on how these work. We also make sure to assist with all of the paperwork to get these submitted.
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Utility Company Incentives
The main incentive that we get from the utility company is the ability to have net metering in all of the states that we offer solar, including all of them here in the Mid-Atlantic. Allowing for the excess solar production during the sunny day to make the meter go backwards, which then offers you a full retail credit to use during the evening when the solar is no longer working, or during those cloudier winter days. We can discuss the specifics on how net metering works with the new bi-directional meter that the utility installs as part of the process.
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Energy Grants
Several government entities offer energy grants. For example, Rural areas are eligible for grants to help farmers and small rural businesses obtain and install renewable energy systems. There are even extra incentives in areas that may be part of a coal community.
If you have a small commercial building that you own, you have to look into solar! Some of the incentives in Maryland are almost unbelievable with 5-year full paybacks of the entire system, and then another 30 years of free solar production from your electric generating machine! The Commercial clean energy grant in MD on average is worth around $10,000-$15,000 depending on the size of the system.
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SRECs
SRECs are Solar Renewable Energy Credits. These credits allow you to earn extra income when your system generates electricity. As a homeowner, you can earn one SREC for every megawatt-hour (MWh), or 1,000-kilowatt hours (kWhs), of electricity your solar panel system generates. For example, if your system makes 15,000 kwhs a year, this is 15 SRECs. If you are in a state like MD, VA, PA, NJ, MA and especially DC, this is just another add on bonus incentive!
Incentives
Buying a solar system for your rooftop or yard (ground mount/pergola) can provide you with large tax and cash back incentives. Incentives range widely in purpose, availability, and qualification requirements. To learn which incentives you qualify for, complete our solar quiz now and our team will reach out to talk through your options.
At the Solar Brokers, we pride ourselves on being up to date on incentives to provide you with the largest savings possible. We’ll guide you through all certificates, tax benefits, and grant programs available to you.
Incentives FAQs
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Several states offer grants for homeowners installing solar.
For example, when you install solar energy in Maryland, the state will pay the owners $1000 as part of the Maryland Clean Energy grant, as long as the installation took place at a primary main residence.
Delaware also has some great incentives for going solar. One program offers up to .60 cents per KW depending on which utility you are with. This incentive can reach up to $6,000 for a 10KW system!
All these programs can be combined with the Federal ITC incentive!
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The owner of the solar system will receive a Solar Renewable Energy Credit (SREC) for every megawatt-hour of energy produced by your solar system, The SREC will consist of a dollar value that can be sold at the market value.
For example, if your solar system generates 10,000 kWhs annually, this means you would receive 10 SRECs a year. SREC values range state to state. Current approximate values range from $40 in PA, $58 in MD and up to $400 per SREC in DC!
In SREC states, the Renewable Portfolio Standard (RPS) requires electricity suppliers to secure a portion of their electricity from solar generators. The value of an SREC is determined by market supply and demand. SRECs can be sold to electricity suppliers who have an obligation to meet solar RPS requirement.
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Net metering is a state policy that allows homeowners to receive full credit on their utility bills for any extra electricity that their system may produce.
For example if your home produces excess energy in the summer months, this extra energy will be recorded with your utility company. This additional energy credit can then be used in times when your system may not produce enough energy for your needs e.g. winter months.
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The Federal Investment Tax Credit (ITC), is a national solar incentive that allows homeowners to reduce the cost of their system by as much as 30% as long as they: purchase or finance the system, and meet the Federal tax requirements.
To calculate your federal ITC, multiply 30% by the cost of your solar system. For example, if your solar system costs $35,000, your federal ITC refund would be $10,500. This does not include any other tax refunds you may be receiving. The federal ITC can also be combined with other solar incentives.