Solar panels in Maryland: cost, payback and the rules that matter
Maryland homes pay 21.3¢ per kWh for electricity, the 14th highest of 51, up 13.6% in a year. A typical home needs 21 panels. With no federal tax credit they pay for themselves in about 10.7 yrs.
Four facts that decide solar in Maryland
1. The sun. One kilowatt of panels makes about 1,322 kWh a year in the median Maryland city, from 1,303 in Frederick to 1,347 in Bowie.
2. The price of electricity. Every kWh your panels make is worth what you would otherwise pay: 21.3¢ in Maryland today.
3. What your utility pays for exports. Most Maryland utilities still credit exported solar close to the retail rate, but rules differ by utility and change often.
4. Incentives. The 30% federal Residential Clean Energy Credit (IRC §25D) ended for systems whose installation is completed after December 31, 2025 (One Big Beautiful Bill Act, P.L. We don't know of a statewide income-tax credit for home solar in Maryland.
Maryland's homes
2,362,928 households; 67.6% own their home. 1,492,736 owner-occupied single-family houses: the main market for rooftop solar. The median home was built in 1979; 44.1% heat with electricity.
ACS 2020–2024 5-year estimates, U.S. Census Bureau.
Plan a specific Maryland home
Solar in every Maryland city with 50,000+ people
| City | Sun hrs/day | kWh per kW | Best tilt | Typical kW | Payback (NM) | Payback (NB) | Solar ¢/kWh |
|---|---|---|---|---|---|---|---|
| Baltimore | 4.7 | 1,336 | 35° | 8.8 | 10.6 yrs | 17.5 yrs | 11.7 |
| Frederick | 4.6 | 1,303 | 36° | 8.8 | 10.8 yrs | 17.7 yrs | 12.0 |
| Gaithersburg | 4.7 | 1,319 | 35° | 8.8 | 10.7 yrs | 17.6 yrs | 11.8 |
| Rockville | 4.7 | 1,322 | 35° | 8.8 | 10.7 yrs | 17.5 yrs | 11.8 |
| Bowie | 4.7 | 1,347 | 35° | 8.4 | 10.5 yrs | 17.1 yrs | 11.6 |
NM = exports credited at retail (net metering); NB = exports at ~30% of retail (net billing). Systems sized to the Maryland average home. $3.00/W, cash, 25 years.
Rule changes that affect Maryland
All changes and deadlines →- Federal: In-service deadline for the lease/PPA solar credit · Tax credits
- Federal: National data: solar prices fell to a median $3.60 per watt · Prices
- Federal: Construction-start deadline passed for the lease/PPA credit · Tax credits
- Federal: The 30% homeowner solar tax credit is gone · Tax credits
Questions about solar in Maryland
How much do solar panels cost in Maryland?
A 8.8 kW system, the size the average Maryland home needs, costs about $22,000 to $33,000 before incentives in 2026.
Is solar worth it in Maryland?
In the median Maryland city, solar pays for itself in about 10.7 yrs if exported power earns the retail rate, or 17.5 yrs if it earns about 30% of retail. Most utilities here still offer some form of net metering; check yours.
Is there a solar tax credit in Maryland?
We know of no statewide income-tax credit for home solar in Maryland; utilities and cities sometimes offer rebates. The 30% federal credit ended for homeowner systems installed after December 31, 2025.
How many solar panels does a Maryland home need?
About 21 panels of 420 watts for the state-average 929 kWh a month. Sunnier cities need fewer: Bowie gets 1,347 kWh per kW a year, Frederick 1,303.