The Southern Maryland Electric Cooperative (SMECO) is a customer-owned organization. Homeowners in Maryland who invest in solar energy installations likely hope to reduce expenses, increase sustainability, and achieve energy independence. SMECO works in tandem with other benefits to help home and business owners maximize their benefits and coordinate with their existing programs.
This article explains SMECO’s benefits structure to help homeowners integrate solar energy installations into their cost-saving plans. Homeowners can maximize the value of their solar energy investments by knowing what to expect from the claims process.
What are the Benefits of SMECO Membership?
SMECO is a member-owned cooperative, meaning it operates differently from investor-owned utilities. As SMECO customers, homeowners become co-members who share benefits. This provides several benefits to homeowners with new or existing solar installations.
These benefits include financial incentives and exemptions, such as:
Federal Investment Tax Credit
The Federal Investment Tax Credit (ITC) is a tax credit for homeowners with solar installations. It currently equals 30% of the tax liability for solar investment. For homeowners, the credit can be applied to personal income taxes. The entity that finances the array can claim the credit for commercial businesses.
Property Tax Exemption
In Maryland, solar arrays are exempt from local property taxes, including state taxes. This means that homeowners can increase the value of their property and refinance or sell the home at a higher value without accruing additional taxes.
State Incentives
Maryland offers state grants to eligible homeowners to help reduce the initial cost of their solar arrays. These grants incentivize clean energy improvements through solar PV and water heating installations. Program due dates and eligibility requirements can change depending on available budgets and active legislation.
Currently, the Maryland Solar Access Program (MSAP) provides funding for eligible homeowners who plan to install solar arrays. Applications must be submitted by 3 p.m. ET June 13, 2025. Visit the Maryland Energy Administration’s site to learn more about income eligibility and approval. These programs have limited funding, so interested homeowners should apply soon to maximize their chances.
SMECO Credits
SMECO offers members solar credits through net metering. This service calculates the excess energy produced by residential and commercial solar panels. It reimburses the owner with a credit on their future bills. SMECO’s credits roll over between months to help homeowners maximize the benefit of their system’s energy output.
Home Energy Audits
SMECO offers members home energy audits and assessments to help them identify areas of improvement in their energy-saving strategies. Many homeowners waste power on inefficient appliances and pay unnecessary fees for peak usage times.
Energy Efficiency Rebates
Members can earn rebates for energy-efficient appliances by certifying them through SMECO. Appliances rated for energy efficiency use less power and put less strain on both power grids and solar energy systems.
Energy Independence
SMECO members experience greater energy independence. By approving their installations through their membership, their homes can safely connect to the grid, accumulate net metering credits, and maintain energy compliance through inspections. Though SMECO enforces eligibility requirements, many solar installers in Maryland have detailed knowledge of their procedures and help home and business owners maintain their eligibility.
Addressing Potential Drawbacks
Despite these benefits, home and business owners should be aware of potential drawbacks to SMECO memberships. The most prevalent drawback is the upfront cost of investing in an SMECO-eligible solar installation. Thankfully, rebates and investment credits can help with this upfront investment.
Additionally, homeowners must maintain SMECO’s interconnection, inspection, and approval standards, which can be a detailed process. This is why an experienced solar installer is a significant asset to homeowners using SMECO benefits to save on energy costs in 2025 and beyond.
Contact an Experienced Solar Installer to Maximize Energy Rebates in Maryland
SMECO offers members reliable incentives and cooperative support to home and business owners who hope to improve their energy habits, increase rebates, and maximize their home upgrade potential. By working with their team, owners in Maryland can turn their solar installations into long-term investments in sustainability and financial security.
However, while SMECO can offer project guidance, it does not source or install solar panel systems. Maryland homeowners should contact an experienced solar installer to guide them through SMECO’s membership policies and rebate process.
At Energy Select, our team of solar installers helps homeowners in Maryland maximize their benefits with their new solar installations. Contact our team today to learn how we work with SMECO members to help homeowners accumulate solar credits, apply for rebates, and more.