While the cost of physical solar panels has decreased in recent years, the overall cost of residential solar installation continues to rise due to inflation, tariffs, and material costs. However, energy costs are also rising. As a Maryland homeowner, you may have noticed rising energy bills from BGE, Pepco, and other major providers. Unfortunately, these increases are part of a planned multi-year increase that will continue to impact Maryland homeowners throughout the 2020s.
Given these changes, you may wonder whether solar panels are a good investment for your Maryland home. To help you make that decision, we compiled this list of the top five ways solar panels can reduce rising energy costs.
1. Solar Panels Use Energy More Efficiently
In 2024, Maryland homeowners with full solar installations offset an average of 88% of their electricity costs to their solar arrays. Once the installation is paid off, homeowners can offset their power grid requirements to their solar array with no additional costs beyond occasional maintenance.
Energy efficiency is the most well-known benefit of a residential solar installation. However, this is not the only reason that millions of homes have switched to solar energy in the last few years.
2. Solar Panel Arrays Resist Outages
Power grid outages can result in numerous unnecessary expenses and inconveniences, including lost food, medication, emergency supplies, and electronics. However, they can also result in additional energy costs, including the price of a potential surge, restoring the home to a normal temperature, and running generators and other emergency solutions while the power is down.
Solar panel arrays help homes resist potentially costly outages by getting them off the grid. Installations fitted with battery reserves can power the home for days while the rest of the area is still without power.
3. Solar Panels Resist Inflation
Yearly utility price hikes often outpace economic inflation since fuel prices and infrastructure costs put more pressure on utility providers. According to data collected by the EIA (Energy Information Administration), the average electricity cost in Maryland in December 2024 (18.15 cents per kWh) was 3.8% higher than it was in December 2023 (17.46 cents per kWh). With a national inflation rate of 2.9% for the same period, homeowners pay even more than the price of inflation in electricity hikes each year.
In comparison, solar energy is not subject to inflation. Homeowners pay the installation and maintenance costs, but by getting off the grid, they no longer have to shoulder the burden of yearly price hikes. This allows homeowners to protect their utility bills against future inflation while saving on electricity in the present.
4. Solar Panels Increase Home Value
The lifetime costs of relying on conventional power grids do not usually account for increases or decreases in home value. However, increasing your home value with solar panels will allow you to offset your energy costs in several ways:
- The federal government offers an Improvement Tax Credit (ITC) for homeowners who switch to solar to incentivize cleaner, more efficient energy production.
- Potential homebuyers prioritize the value of solar installations, allowing you to sell your home for a higher price if the time arises.
- A higher home value can result in better mortgage and policy negotiations, potentially allowing you to offset your energy costs with your lenders or insurers.
As the value of solar installations becomes better documented, they will continue to increase the value of the homes that invest in them.
5. Solar Panels are Eligible for State Energy Savings
Finally, Maryland homeowners can reduce their energy costs by using solar panel installations to qualify for state-sponsored energy conservation programs. The FY25 Maryland Solar Access Program gives eligible residents the aid they need to install solar panels.
The program is part of the Brighter Tomorrow Act of 2024, replacing outdated programs to improve Maryland homeowners’ access to clean solar energy. Additionally, the Renewable Energy Credit (REC) can help eligible homeowners lower their energy costs by subsidizing their solar arrays based on the power they generate.
Visit the Maryland Energy Administration website to learn more about your eligibility for these programs. They help homeowners reduce energy costs by supplementing their savings with extra incentives.
Contact Energy Select to Install Affordable Solar Panels in Your Maryland Home
Rising energy costs in Maryland have motivated thousands of homeowners to install solar panels. However, with inflation, materials, tariffs, and other costs continuing to drive up the price of solar installations, now is the time to invest in solar arrays and get ahead of rising costs.
At Energy Select, our experienced team prioritizes the needs of Maryland homeowners to provide affordable solar panel installations that can reduce their energy costs. Contact us today to learn how our solar panels can be customized for your particular situation to combat rising bills with cleaner, more effective energy solutions for the modern day.