Going Solar in Maryland
Maryland is at the forefront of sustainability initiatives, and has been for years. This isn’t surprising when you consider that one of its major cities—Baltimore—has gone so far as banning plastic bags and Styrofoam.
Maryland's Clean Energy Rebate Program
Maryland Clean Energy Rebate Program is a state program that provides rebates to homeowners and businesses who install solar. The State of Maryland provides Clean Energy Rebates through the Commercial Clean Energy Rebate Program (“C-CERP”) to businesses, nonprofits, local governments, and State of Maryland government agencies and departments that install clean energy systems on facilities located within the state.
Current Award Amount-
| 1-8 kW - DC | $1,000 |
| 8 - 108 kW - DC | $1,000 + $150/kW * (capacity - 8 kW) |
| 108.1 - 250 kW - DC |
$16,000 + $100/kW * (capacity - 108 kW), $20,000 maximum
|
| 250.1 - 375 kW - DC** |
$20,000 + $80/kW * (capacity-250 kW), $30,000 maximum
|
Type of Program: Non-competitive (first-come, first-served) - statewide.
Application Deadline: Applications will be accepted throughout the fiscal year (July 1, 2022 – June 30, 2023), however payment cannot be assured after funds run out.
Other Ways To Save
For businesses looking to install solar, there are many other incentives available in Maryland. The state offers rebates, C-PACE financing, net-metering credits, SRECs, and other programs that can help you save money on your energy bill and pay off your investment faster.
Federal Tax Credit
The Federal Tax Credit is a 30% tax credit on the cost of solar installation and is available for both residential and commercial properties alike. 30% of all solar energy costs are rebated back in the form of an income tax credit. This includes any costs incurred to enable or enhance your solar performance such as roof repairs, or tree removal. There is an IRS safe harbor provision that allows you to capture the previous year’s tax credit if the project is significantly constructed by the end of the year.
Accelerated Depreciation
While the useful life of a solar system is greater than 25 years, the IRS allows qualifying solar energy equipment a depreciation cost recovery period of five years. With the additional bonus depreciation, a typical system gets about 25% of the system cost back in the first year on top of the regular tax credit with more depreciation benefits coming over the next four years.
Maryland Solar Renewable Energy Credits (SRECs)
SRECs (pronounced S - REX), are your chance to take part in the renewable energy trade market. The Renewable Portfolio Standard (RPS) requires utilities to receive a portion of their electricity from renewable energy. This is managed through credits. For every 1,000 kWh (1 MWh) of electricity produced, you earn roughly 1 SREC. The value of an SREC is determined by supply and demand as well as fees imposed on utilities for not meeting solar energy targets. Currently in Maryland, the market value of one credit is about $77. SRECs (pronounced S - REX), are your chance to take part in the renewable energy trade market. The Renewable Portfolio Standard (RPS) requires utilities to receive a portion of their electricity from renewable energy. This is managed through credits. For every 1,000 kWh (1 MWh) of electricity produced, you earn roughly 1 SREC. The value of an SREC is determined by supply and demand as well as fees imposed on utilities for not meeting solar energy targets. Currently in Maryland, the market value of one credit is about $77.
FY23 Solar Canopy Grant Program
This program provides grant funding to support the installation of solar systems that provide multiple uses for land and water. The grant may be used for Solar Canopies on parking lots and parking garages, which include the installation of at least four (4) Level 2 or Level 3 electric vehicle chargers under or around the solar canopy. This program was previously known as the “Parking Lot Solar Photovoltaic Canopy with EV Chargers Grant Program” and as the “Solar Canopy Grant Program”. While solar canopies over parking lots and waterborne solar installations are specifically included, other dual use opportunities may be proposed for consideration.
Maryland Solar Renewable Energy Credits (SRECs)
SRECs (pronounced S - REX), are your chance to take part in the renewable energy trade market. The Renewable Portfolio Standard (RPS) requires utilities to receive a portion of their electricity from renewable energy. This is managed through credits. For every 1,000 kWh (1 MWh) of electricity produced, you earn roughly 1 SREC. The value of an SREC is determined by supply and demand as well as fees imposed on utilities for not meeting solar energy targets. Currently in Maryland, the market value of one credit is about $77.
Interested in learning more? EVunited can help.
At EVunited, we make it easy for you to get solar panels in Maryland. Our team of experts can help you determine if solar panels are right for you. We work with business owners in all parts of the state and our goal is to provide each customer with an affordable system that provides maximum savings over time.
We have a wide range of solar options for businesses, from traditional photovoltaic systems to more advanced battery storage solutions. If you're interested in learning more about how EVunited can help you save money on your electricity bill, schedule a consultation today!
Schedule Virtual Consultation
If you're interested in learning more about solar energy in Maryland, we'd be happy to help! A team member from EVunited will meet with you one-on-one to discuss your needs, goals and concerns. Schedule your virtual consultation today or click here to learn more!
