Disclaimer: This article is for educational purposes only and does not constitute professional tax or financial advice, as we are not financial advisors. Due to the evolving nature of the OBBB Act, this information is subject to change based on new legislation or updated IRS guidance. We strongly recommend consulting with a qualified professional before making any investment or tax-related decisions.
As utility providers in Maryland roll out planned rate increases, homeowners focus on energy savings and independence from the grid. Customers of major providers such as BGE and Pepco are seeking ways to offset these price increases through solar incentives. However, due to legislative changes, many incentives have been modified, removed, or replaced with new ones for FY26.
Covered in This Blog:
This blog reviews current legislative changes that Maryland residents should know about in 2026. We also review current incentives to help property owners with solar installations and to help those planning to install them in the coming year make the most of their investment.
The Current State of Energy Prices in Maryland
Maryland home and business owners have been dealing with utility rate increases for months, and many, especially those with BGE, have just received another hefty hike. On January 1, 2026, BGE raised gas rates by $0.042 and electric distribution costs by $0.001 as part of a planned series of increases to offset inflation, infrastructure, and material costs.
For Maryland residents, this adds to the 10% increase in their power bills they had already experienced since 2012. Passing on distribution costs to consumers to maintain profit margins is common, but many Marylanders question their ability to continue paying.
How Solar Installations Can Help
The exact savings that solar panel owners can experience depend on several factors in their situation, including:
- Power consumption
- System size
- Sunlight/shade coverage
- Roof angle, age, and orientation
- Utility provider rates
Studies by Berkeley Lab showed that installing a solar array increased the value of Maryland homes by an average of 2-3% in 2015. Today, similar studies show a 5-10% increase, with homes in Baltimore increasing by 7% in value according to the latest numbers, indicating that as solar’s viability has increased, consumer demand has risen as well.
By increasing the value of their homes, Marylanders have more financial resources to pay off their solar installations, improve their homes, and increase their economic resilience against utility increases.
What Are the Current Solar Incentives in Maryland?
In addition to lowering utility costs and increasing home values, solar arrays enable Marylanders to access grants and other incentives. Program eligibility can be complex due to federal and state legal changes and shifting economic conditions. However, this chart summarizes what Maryland homeowners need to know:
| Solar Incentive | Description |
| Solar Renewable Energy Credits (SRECs) | SRECs allow the owners of solar installations to generate clean power in the form of credits and trade them under the Renewable Portfolio Standard. These credits help providers meet their clean energy standards. |
| Maryland Solar Access Program (MSAP) | Income-eligible properties can access grants that help pay for their solar installations. |
| Maryland Residential Clean Energy Rebate Program | DISCONTINUED: This program used to provide a cash rebate for solar panel installation. Eligibility ended in November 2024. |
| Maryland Solar Sales Tax Exemption | The state of Maryland waives sales tax (6.0%) on new solar panels, incentivizing owners to invest in sustainable energy. |
| Solar Energy Equity Program (SEE) | DISCONTINUED: The See Program provided funding to nonprofit organizations through a competitive grant program that ended in 2025, shifting the state’s focus to the MSAP. |
Note: Law changes in Maryland often remove solar incentives from year to year. Review the current incentives before beginning installation, especially if your plans have taken longer than a fiscal year to materialize.
How Do Recent Maryland Laws Change the Incentives?
In addition to discontinued programs, new laws are changing solar incentives for Maryland homeowners and businesses.
Brighter Tomorrow Act: The Brighter Tomorrow Act was initially passed in 2024 and has been updated for FY26. This law mandates utility rate updates across Maryland territories, supporting the sustainable energy market for the foreseeable future.
This includes adding a 150% weighted increase to qualified SRECs when applied toward portfolio compliance, setting a maximum generating capacity (5 MW), and outlining the service dates of eligible systems (July 1, 2024, through January 1, 2028). You can read more about the legislation as it applies to the Maryland Solar Access Program by visiting the Maryland Energy Administration.
HB4/SB120: This energy law went into effect on October 1, 2025, and prohibits land use restrictions that increase solar installation costs by at least 5% or reduce the efficiency of systems by at least 10%. It also outlines the process by which property owners may document an unreasonable restriction on their solar panels, including an analysis by a certified solar installer.
Essential Takeaway
These laws may give property owners greater authority to install solar arrays and take advantage of state incentives. Yet, every year, these incentives are changed, discontinued, or replaced. Local solar installers familiar with Maryland laws and incentives help Maryland property owners reduce upfront costs and maximize their investments.
Contact Local Solar Installers to Learn More About Solar Incentives
Legal changes can impact your eligibility for solar incentives as well as the incentives themselves. For most property owners, Maryland’s legal environment is too complex to maneuver alone, which is why experienced local solar installers, familiar with recent legal changes, are a homeowner’s best resource for conducting thorough site assessments and assessing individual eligibility. At Energy Select, our team provides immediate price estimates so property owners have all the information they need, promptly.
Contact our team today and schedule a solar site assessment to learn more about the cost projections and benefits of your new solar installation, as well as any incentives that may apply to your situation.