Benefits of Solar Energy
Solar energy provides several advantages that will enhance your home for years to come.
- Smaller power bills: Generating some or all of your own power will cut power costs long-term. Plus, some states provide net metering programs that allow you to sell your extra energy back to the grid, generating additional credits toward your energy bill.
- Better energy independence: Solar energy can keep your home running through blackouts and emergencies, giving you additional security. You can use your solar energy anytime with optional battery storage.
- Reduced carbon footprint: The sun is a highly abundant clean energy source, meaning you can lower or beat your home's dependence on fossil fuels.
What Solar Incentives Are Available to Baltimore Homeowners?
Governments and utility companies often reward homeowners for going solar. Here are some of the tax credits, rebates, or other programs you could qualify for.
Incentive Type: Rebate Program
Website: energy.maryland.govIncentive Amount:
PV: $1,000/project (flat per installation/household incentive)
SWH: $500/project (flat per installation/household incentive)
New GHC: $3,000/project
GHC Replacement: $500/project
Incentive Type: Solar Renewable Energy Credit Program
Website: psc.state.md.usIncentive Amount:
Varies based on market conditions
Incentive Type: Sales Tax Incentive
Incentive Amount:
100% exemption from sales and use tax
Incentive Type: Property Tax Incentive
Incentive Amount:
100% real property tax exemption for solar and wind energy property
Incentive Type: Rebate Program
Website: energy.maryland.govIncentive Amount:
Stick Burning Stove: $500
Pellet Burning Stove: $700
Incentive Type: Sales Tax Incentive
Incentive Amount:
100% exemption
Incentive Type: Property Tax Incentive
Incentive Amount:
50% of eligible costs
Incentive Type: Property Tax Incentive
Incentive Amount:
Varies
Incentive Type: Property Tax Incentive
Website: baltimorecountymd.govIncentive Amount:
Commercial: 10% - 80% of county real property taxes assessed for 3 - 5 years
Homes (LEED or NGBS): 40% - 100% of county real property taxes assessed for 3 - 5 years
Homes (Energy Improvements): varies, equal to the % of energy efficiency improvement over a baseline of existing home or the energy code for new homes
Incentive Type: Property Tax Incentive
Incentive Amount:
Varies by jurisdiction; credit may be available for up to 3 years.
Incentive Type: Rebate Program
Website: bgesmartenergy.comIncentive Amount:
Appliances & Recycling
Clothes Dryer (Electric): $50
Clothes Washer: $75 - $100
Hybrid Heat Pump Water Heater: $500
Pool Pump: $150 - $400
Refrigerator: $100
Dehumidifier: $30
Refrigerator or Freezer Recycling: $50, plus $25 bonus when recycling an old, working room A/C or dehumidifier at the same time
Room A/C or Dehumidifier Recycling (*May 20, 2017 only*): $25
Smart Thermostat: $100
Heating & Cooling
Air-Source Heat Pump: $400 - $650
Central A/C: $300 - $500
Gas Furnace: $250
Furnace Blower Motor: $50 - $100
Geothermal Heat Pump: $1,500
Lighting
Instant discounts vary by participating retailer; see program website
Incentive Type: Rebate Program
Website: bgesmartenergy.comIncentive Amount:
Appliances & Recycling
Clothes Dryer (Electric): $50
Clothes Washer: $75 - $100
Hybrid Heat Pump Water Heater: $500
Pool Pump: $150 - $400
Refrigerator: $100
Dehumidifier: $30
Refrigerator or Freezer Recycling: $50, plus $25 bonus when recycling an old, working room A/C or dehumidifier at the same time
Room A/C or Dehumidifier Recycling (*May 20, 2017 only*): $25
Smart Thermostat: $100
Heating & Cooling
Air-Source Heat Pump: $400 - $650
Central A/C: $300 - $500
Gas Furnace: $250
Furnace Blower Motor: $50 - $100
Geothermal Heat Pump: $1,500
Lighting
Instant discounts vary by participating retailer; see program website
Incentive Type: Rebate Program
Website: energy.maryland.govIncentive Amount:
Residential: $4,000/kW of normalized capacity at 11 m/s
Community: $1000/kW - $4000/kW, depending on the system capacity
Incentive Type: Personal Tax Credit
Website: ecowatch.comIncentive Amount:
30% federal tax credit for systems placed in service after 12/31/2021 and before 01/01/2033. Good for: solar water heat, solar photovoltaics, biomass, geothermal heat pumps, wind (small), fuel cells using renewable fuels.
How To Choose the Best Solar Company in Baltimore
Choosing a company is the first step toward a well-oiled and cost-efficient solar system. Here are some essential aspects to remember while searching for a solar provider.
Licensing and Training
A Maryland solar PV installation team must include a Home Improvement Commission-licensed contractor and a master electrician with at least seven years of experience. The contractor installs the panels, while the master electrician pulls permits and hooks the system up to the grid. If you're installing a solar water heater, your contracting team must include a master plumber for utility connections and permits. Solar companies can also earn certifications from trade groups and standards organizations. The most recognized ones in the industry come from the North American Board of Certified Energy Practitioners. Most company websites will prominently display earned credentials, but you should also ask your estimator for more information.
Cost of Solar Panels in Baltimore
Your photovoltaic panels' type will impact how much energy you can generate. Monocrystalline panels are among the highest quality and cost the most but perform the best. Polycrystalline panels offer you a budget panel with a traditional design, but at the cost of less power generation. Thin-film panels have a low cost and are excellent for non-traditional roofs, but aren't recommended for large home installations.
You can also add electric vehicle (EV) chargers and battery backup systems. These will increase your total installation cost, but they can enhance your solar system's efficiency. Not every solar provider offers these optional components, so look for a provider that installs them if it's a priority for you.
Most Baltimore homeowners opt for solar systems rated for five kilowatts (kW) of electrical capacity. These systems cost about $17,700 to set up, considering both parts and installation. You can find more specific solar cost information in the table.
Solar Panel Cost | Average Cost |
---|---|
Solar Monocrystalline | $1,187 |
Solar Polycrystalline | $926 |
Thin-Film | $541 |
Solar Battery | $760 |
Solar Home EV Charger | $2,848 |
Financing Solar Energy in Baltimore
Choosing the best financing solution will impact your overall solar system cost and possible savings. Common payment options include leases, loans, cash payments, and power purchase agreements. We advise paying with cash or using a solar loan for the highest return on investment (ROI). Cash payments require a hefty sum up-front, but you’ll pay the least long-term by avoiding interest. You’ll also have full ownership of your system and can apply for solar panel incentives to minimize your total costs. Solar loans are another solid option if you don’t want to make a big initial investment. You can pay for your system in installments while still benefiting from energy bill savings and solar incentives. However, you’ll pay more in total due to accruing interest. Solar leases allow you to pay a monthly rate to rent your panels, while a PPA lets you pay a fluctuating rate based on only the energy you use. We generally advise against these options since you won't own your system and are disqualified from solar incentives, but they might be appropriate in particular circumstances. Ask each provider you're considering about the financing options it offers. A salesperson can help you determine the most suitable option for your financial situation.
The table below lists the average payback periods for different capacities of solar systems in Baltimore.
A 26% federal solar tax credit applies to new home solar systems purchased through 2032. Extra incentives may be available through local governments, usually in the form of rebates and special financing programs.
Solar System Capacity | Estimated Payback period |
---|---|
1 kW | 2.9 years |
2 kW | 5.7 years |
5 kW | 14.3 years |
10 kW | 28.6 years |
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Frequently Asked Questions About Solar in Baltimore
How much money could I save by going solar in Baltimore?
Is solar energy widely available in Baltimore?
Should I expect a property value increase after going solar?
What can I do to calculate my home's solar potential?
What's the average solar system size in Baltimore?
What is the average payback period for Baltimore solar panels?
How can I boost my solar panels' performance?
- optimize the panels' position with your solar installer
- regularly clean your solar panels
- upgrade to a more efficient inverter trim or cut down trees in the way of your panels
- use energy-efficient appliances
How does "net metering" work, and do I need to participate?
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