Financial Incentives

It’s never been a better time to go solar, thanks to an array of financial incentives. With a combination of tax credits and grants in your area, you can realize the dream of a solar home at ease. Here’s all you need to know:

Financial Incentives

For residential solar power system installations in Maryland, you can avail federal tax incentives of up to 30% net cost of the system. Further, under the Solar Energy Grant

Program, with a maximum cap of USD 10,000, you get:

  • USD 1.25/W for the first 2,000 W capacity
  • USD 0.50/W for 2,001-10,000 W capacity
  • USD 0.35/W for 10,001-20,000 W capacity

Further, here are the county-wise specifics on financial incentives:

Anne Arundel county

One-time property tax credit equivalent 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 of 50% of the total cost, up to USD 5,000.


Harford county

Property tax credit for residential solar and geothermal of 50% of the total system cost, up to USD 5,000 for PV and geothermal heating and up to USD 1,500 for a solar water heater.


Montgomery county

50% tax credit of the total cost up to USD 5,000 for a heating and electricity generating system and USD 1,500 for a hot water supply system.

Residential consumers receive a credit of 1 cent per 1 kWhr of clean energy purchased.


Prince George’s county

50% tax credit of the total cost up to USD 5,000 for a heating and cooling system, along with USD 1,500 for a hot water supply system.


Financial analysis

For a home in Maryland with an average monthly consumption of 750 KWh, a 5-kW solar power system can cut down the electricity bill by up to 80 percent.

System Life Cycle Analysis
Size of the Solar System (KW) 5
Approx. Annual Power Generated (KWhr) 6,300
Approx. Installed Cost of System $22,500
MD State Grant -$1,000
30% Federal TAX Credit (ITC) -$6,450
Approx. Cost to Customer $15,050
Utility Economics
Annual electricity cost savings for year 1 @ 14 cents/KWhr $882
Assuming 6% per annum utility rate increase for the next 10 years
Total electricity cost savings over 25 years $13,205
Maryland SREC Program
SRECs earned per year (1 MWhr = 1 SREC) 6.30
SRECs earned in 10 years 63.00
Net savings over 10 years $13,293
Net savings over 10 years $11,448
Greenhouse Gases Avoided
CO2 emission avoided in 30 years (Tons) 189
NOx emission avoided in 30 years (Lbs) 70
*SRECs based on current market value of $211/MWh

Washington DC is a very solar-friendly state. Combining great SREC prices with the new Federal Investment Tax Credit (ITC), you can cut down the cost of your solar electric system significantly.

For a home in Virginia with an average monthly consumption of 750 KWh, a 5-kW solar power system can result in total electricity cost savings worth USD 13,834 over 10 years.

System Life Cycle Analysis
System Type Grid - Tied
Size of the Solar System (KW) 5
Approx. Annual Power Generated (KWhr) 6,600
Approx. Installed Cost of System $20,000
30% Federal TAX Credit (ITC) -$6,000
Approx. Cost to Customer $14,000
Utility Economics
Annual electricity cost savings for year 1 @ 14 cents/KWhr $924
Assuming 6% per annum utility rate increase for the next 10 years
Total electricity cost savings over 10 years $13,834
SREC Program
SRECs earned per year (1 MWhr = 1 SREC) 6.60
SRECs earned in 10 years 66.00
Approximate earnings from SRECs $26,400
Net savings over 10 years $26,234
Greenhouse Gases Avoided
CO2 emission avoided in 30 years (Tons) 198
NOx emission avoided in 30 years (Lbs) 73

For residential solar power system installations in Virginia, you can avail cash rebate or income tax credit of up to 30% net cost of the system.

For a home in Virginia with an average monthly consumption of 750 KWh, a 5-kW solar power system can result in total electricity cost savings worth USD 9,432 over 25 years.

System Life Cycle Analysis
System Type Grid - Tied
Size of the Solar System (KW) 5
Approx. Annual Power Generated (KWhr) 6,300
Approx. Installed Cost of System $22,500
30% Federal TAX Credit (ITC) -$6,750
Approx. Cost to Customer $15,750
Utility Economics
Annual electricity cost savings for year 1 @ 10 cents/KWhr $630
Assuming 6% per annum utility rate increase for the next 10 years
Total electricity cost savings over 25 years $9,432
SREC Program
SRECs earned per year (1 MWhr = 1 SREC) 6.30
SRECs earned in 10 years 63.00
Approximate earnings from SRECs* $8,442
Net savings over 10 years $2,124
Greenhouse Gases Avoided
CO2 emission avoided in 30 years (Tons) 189
NOx emission avoided in 30 years (Lbs) 70
*SRECs based on current market value of $134/MWh

Costs

The cost of a solar electric system can vary significantly depending on the amount of power required. A home with a USD 50/month electric bill will require a completely different system than one with a USD 500/month electric bill. Therefore, the cost of a solar electric system can range anywhere between USD 10,000-100,0000.

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 you’d pay to the utility provider. Plus, you get to own the system, increase the value of your home, and insure yourself against rate hikes in the future.

Renewable Energy Credits (RECs)

Utility companies are required to generate a part of their power through a renewable source. This share is called the Renewable Portfolio Standard (RPS). Your utility provider can purchase the extra solar power you produce and give you Renewable Energy Credits (RECs). If your system produces a certain number of RECs in a year, it can be traded on the open market to help offset the system ownership costs.

Advantages of RECs

With RECS, you can:

  • Insure yourself from rising energy costs and blackouts
  • Benefit from government grants and tax credits
  • Use the net-metering law to cut down on out-of-pocket utility expenses
  • Minimize maintenance costs
  • Decrease your carbon footprint and help protect the planet

Energy independence

Did you know that over the last 3-4 years, residential electricity rates have increased by 30-60%? Most experts agree that the rates will continue to climb, at an even higher pace than inflation.

Here’s a history of Pepco electricity rates in the state of Maryland:

Year Electricity Rate Electricity Rate
1998 6.15
1999 6.35 3.25
2001 6.33 -0.31
2002 6.22 -0.74
2003 6.38 2.57
2004 7.46 16.93
2005 9.12 22.25
2006 11.24 23.25

Being an energy producer instead of a consumer, you can lock in power at a fraction of the current charges and protect yourself from rate hikes in the future. With a solar power system, you can not only free yourself from power uncertainties but also the instability of global energy markets.

Solar power is cheaper than utility power

Installing a solar power system is equivalent to prepaying for 40 years of power at a fraction of the cost you currently pay. The cost/unit of energy you pay now is higher than what you would pay with solar. As rates increase in the future, this difference will increase, leading to even more savings over the lifespan of your solar energy system.

Contact details

Contact Details

Find out if solar is right for you.

Contact us to get a free quote. contact@greenbrilliance.com