Let’s be real. Most people that are looking to go solar think about the financial benefits and incentives. These incentives consist of various federal and state rebates and credits. And although they are definitely enticing, they can also be a little confusing. Here are some common questions we get:
- Will I get a tax credit?
- Will I be able to deduct this on my taxes?
- Am I eligible for any state rebates or incentives?
In this post, we’re going to answer these questions and fill you in on some options you may not have known when it comes to Maryland solar incentives.
What Solar Incentives Am I Eligible for?
You’ll be happy to know that there are some solar incentives available via the federal government and anyone in the country with a qualifying system is eligible! And then, of course, there are some incentives that are available on a state-by-state basis. In Maryland, for example, there are the Maryland Solar Rebate and the Maryland Solar Renewable Energy Credits (SREC).
What’s the Federal Solar Tax Credit?
This particular solar incentive is available to all solar panel installations in the country regardless of their size. Residential customers have to place their solar panel system in service by December 31, 2019, in order to benefit from a 30% tax credit. If you wait to go solar next year, you will still receive federal tax credit opportunities, although they will be lower. There are also tax credits available for businesses, but those systems must be put into place after December 31, 2019.
These federal incentives are only eligible if the system is purchased outright or have taken out a solar loan, not if you’re entering into a Power Purchase Agreement (PPA).
(When it comes to learning more about any potential tax credits or deductions that you may be eligible for, we always recommend that you speak with a CPA to get the most accurate information for your individual situation.)
What’s the Maryland Solar Rebate?
With the Maryland Solar Rebate program, solar customers are eligible for a grant of up to $1,000 to help offset the cost of the installation. In order to be eligible, the solar installation project must meet the following requirements:
- The property must be your owned primary Maryland residence.
- Multiple projects on contiguous parcels of property will be considered one project.
- An eligible property may receive one grant per technology. MEA cannot offer grants to a property held in an irrevocable trust.
- Applications must be submitted to MEA within 12 months of completed installation.
And Finally, There’s the Maryland Solar Renewable Energy Credits
This program, also known as SREC, provides energy credits to property owners with an eligible system. The credits are worth 1 credit per 1 megawatt-hour (1,000 kilowatts). Here’s an example:
If your system generates 4,000 kWh over the course of a year, you will receive 4 credits. These credits have a monetary value and can be sold or traded for value. It should be noted that the value of the credits does fluctuate.
Are you ready to go solar and take advantage of the incentives that Maryland (and the federal government) have available? Get your free quote today!