Maryland Financial incentives

Federal: (Residential Solar Tax Credit)
Federal Tax Incentives
30% of net cost of the system

Solar Energy Grant Program

Solar Photovoltaic:

$1.25/ watt for the first 2,000 watts of capacity
$0.50/ watt for watts 2,001 – 10,000
$0.35/ watt for watts 10,001 – 20,000

System must be under 20kW to be eligible; maximum grant amount is $10,000.

Financial Benefits

Local:

Anne Arundel County:
One time property tax credit equal to the net cost of the system, (total unit and installation cost minus any federal and state tax credits), up to the value of the property taxes on the building for one year.

Howard County:
(Property Tax Credit for Energy Conservation Devices)
Tax Credit
50% of the total cost up to $5,000

Harford County:
(Property tax credit for residential solar and geothermal)
Tax credit is equal to 50% of the total cost of the system up to $5,000 for PV and geothermal heating and up to $1,500 for solar water heat.

Montgomery County:
Tax Credit
50% of the total cost up the $5,000 for a heating and electricity generating system
$1,500 for a hot water supply system

Residential consumers receive a credit of 1 cent for each kilowatt-hour (kWh) of eligible clean energy purchased.

Prince George’s County:
Tax Credit
50% of the total cost up the $5,000 for a heating and cooling system
$1,500 for a hot water supply system

How much will it cost?

The cost of a solar electric system can vary significantly depending on the amount of power required. A home with a $50/month electric bill will require a completely different system than a home with a $500/month electric bill. For this reason, residential systems range in cost from $10k-100k.

Financing

Many homeowners finance their systems with funds from a home mortgage or home equity line of credit. Loan payments are frequently similar to or less than what a homeowner would pay the utility for power. Plus, the homeowner now owns a solar electric system that adds value to their property and protects them from future utility rate increases.

Property Value Increases

In addition to this direct return through utility savings, homeowners can also expect that their property resale value will increase substantially. An article in the Appraisal Journal (pdf) showed that property resale values will increase $20 for every $1 saved annually in electricity.

Financial analysis:

PV system Analysis:
For a home with a monthly consumption of 750 KWhr (Avg.), this system can offset 80% of homeowners electricity bill: