As a Maryland homeowner, you are likely invested in lowering your monthly energy bills. Amid planned and continuous price hikes by major utility providers such as BGE and Pepco, Maryland residents seek ways to qualify for benefits that can lower their overall utility costs. Solar energy credits are given to qualifying homeowners who switch to solar energy as an incentive to make Maryland’s energy production cleaner and more renewable.
For homeowners, these incentives represent a way to make money on solar installations in addition to their energy savings. As prices continue to rise, tracking and maximizing these energy credits will be necessary to decrease your monthly utility costs in Maryland. This guide reviews basic information on solar energy credits in Maryland to help owners track and maximize their monthly savings.
What is a Solar Energy Credit?
In Maryland, the term “solar energy credit” could refer to one of three programs that Maryland homeowners can utilize to lower their electricity costs. Here is a brief breakdown of each one:
- Residential Clean Energy Tax Credit: This federal program, formerly known as the ITC (investment tax credit), allows eligible Maryland homeowners to lower their initial solar panel costs by as much as 30%.
- Maryland Solar Access Program: This grant is offered to eligible Maryland homeowners who switch to solar installations. It is an incentive offered through CARES, the Clean and Renewable Energy Standard. This bill aims to lower Maryland’s carbon emissions.
- Renewable Energy Credits (RECs): The RPS (Renewable Portfolio Standard) established this program to encourage homeowners to switch to solar power by paying them credits based on the solar power they produce. Maryland is one of only a few states that offer homeowners these incentives.
Notably, the Maryland Residential Clean Energy Rebate was available to homeowners who applied before November 2024. This program was replaced by the more accessible Maryland Solar Access Program. If you applied to the previous program, you should reassess your eligibility for the new one by visiting the Maryland Energy Administration website.
Tracking Renewable Energy Credits (RECs)
Though these three incentives are available to eligible Maryland homeowners, the renewable energy credits (RECs) provided through the RPS can be tracked and maximized with the proper guidance. To do so, homeowners need to know how the credits are awarded and where they can be viewed.
How are Solar Energy Credits Awarded?
Renewable energy credits are awarded to homeowners for every 1,000 kWh of electricity they produce with solar installations. These credits must be sold within three years to get the financial benefit.
Supply and demand determine the value of RECs, which can be sold on a dedicated market or to utility companies to help them meet their renewable energy portfolio standards. However, homeowners can expect to earn around $56 per credit, with certain systems qualifying for 150% under new state subsidies. Maryland’s average system size of 13.24 KW is approximately $741 in annual savings.
Once approved, your solar installation is eligible to earn renewable energy credits as long as it remains active within Maryland and maintains its eligibility under certain guidelines (for example, solar-powered systems used to heat pools or hot tubs cannot qualify for RECs). However, if your installation falls within these state-guided requirements, you can start earning credits.
Where Can I View My Solar Energy Credits?
Electricity bills display the “reverse kWh,” which is the power pushed back to the grid from the home. However, this is not an accurate account of the home’s Solar Renewable Energy Credits. To view SRECs, homeowners will need to contact an SREC aggregator. These companies act as intermediaries between solar energy producers and the energy market.
At Energy Select, we partner our customers with SolSystems, the nation’s most popular SREC aggregator. They will have direct access to your system, enabling them to monitor power production and generate SRECs at a rate of one per 1,000 kWh of power produced. The proceeds go straight into the homeowner’s bank account when they sell the credit.
At Energy Select, our certified solar energy providers track solar incentives, including SRECs, to maximize their value and set up partnerships with experienced intermediaries such as SolSystems. While homeowners can tackle SREC management themselves, experienced intermediaries provide essential guidance to assure seamless sales and maximum value.
Contact Energy Select to Track and Maximize Your Renewable Energy Credits in Maryland
With rising electricity costs, many homeowners in Maryland have switched to partial or full solar power installations to reduce their energy output and save money each month. Solar energy credits offer a state-level incentive to homeowners to earn extra money depending on their system’s output. However, these credits can be difficult to track and maximize without professional guidance.
At Energy Select, our experienced team helps Maryland homeowners qualify for and track their solar energy credits. Our customizable solar energy solutions help homeowners maximize their output and qualify for solar energy credits.
Contact our team today to learn more about your solar energy output. Our team can help you calculate and track your solar energy credits to secure that you get the most out of your solar energy investment in 2025 and beyond.