Solar Panel Cost in Maryland (2026): Price, Payback, Incentives

Q: How much do solar panels cost in Maryland?

At the state median installed price of $4.00 per watt (estimate), a 8.0 kW (estimate) system that covers a typical home's use costs about $32,000 (estimate) before incentives. Quotes vary with roof, equipment and installer.

Solar Panel Cost in Maryland

A typical Maryland home uses 929 kWh a month^[1] of electricity. Covering that with solar takes a system of about 8.0 kW est.^[1,2], which costs roughly $27,000 to $37,000 est.^[1,2,3] before incentives at the state's median installed price. With Maryland's average residential price of 21.31¢ per kWh^[4], our model puts payback at about 12 years est.^[1,2,3,4,5]. Your quote, roof and utility plan will move these numbers, so treat them as a starting point.

Maryland solar at a glance

Average electricity price21.31¢/kWh^[4]Jan–Aug 2026 average (preliminary)

Average home use929 kWh/mo^[1]2024 average

Solar output per kW1,392 kWh/yr^[2]PVWatts estimate for Baltimore

Median installed price$4.00/W^[3]Estimate, before incentives

Typical system8.0 kWSized to cover 100% of use

Typical price$32,000Estimate, before incentives

Year-1 savings$2,370Estimate

Payback12 yearsEstimate, cash purchase

Estimates use the inputs above and the assumptions in our methodology: Maryland net metering: exports credited at the retail rate (statewide rule; your utility's tariff may differ). Prices rise 2.5% a year; panels lose 0.5% a year.

Solar cost in Maryland by system size

Same assumptions as the typical home above; only the system size changes. Prices are the state median before incentives and include the incentives our calculator applies by default in Maryland.

Estimated cost, output and payback by system size in Maryland
System	Price before incentives^[3]	After incentives	kWh in year 1^[2]	Year-1 savings^[4]^[5]	Payback (years)
4 kW	$16,000	$16,000	5,570	$1,190	12
6 kW	$24,000	$24,000	8,350	$1,780	12
8 kW	$32,000	$32,000	11,140	$2,370	12
10 kW	$40,000	$40,000	13,920	$2,380	14
12 kW	$48,000	$48,000	16,700	$2,380	17

Incentives that lower the price in Maryland

Federal · tax creditEnding soon

Business credit for leased and PPA systems (48E)

Claimed by the system owner, not the homeowner; solar must begin construction by July 4, 2026 or be in service by December 31, 2027^[6]

If a company owns the panels on your roof (a lease or power purchase agreement), that company may claim the business clean electricity investment credit and can reflect it in your price. You cannot claim it yourself.

Who: Third-party-owned systems (leases and PPAs). Ask the provider whether the price assumes this credit.
Deadline: December 31, 2027
Checked: November 5, 2026

State · rebateAvailable

Maryland Solar Access Program (MSAP)

$750 per kW DC, up to $7,500 (FY27)^[7]

Maryland homeowners with household income at or below 150% of state median income by household size (e.g., $195,375 for a household of 4) who reserve the rebate before installation through a participating contractor; first-come first-served from a budget of up to $10 million, and the portal may close early.

Who: Maryland homeowners with household income at or below 150% of state median income by household size (e.g., $195,375 for a household of 4) who reserve the rebate before installation through a participating contractor; first-come first-served from a budget of up to $10 million, and the portal may close early.
Maximum: $7,500
Deadline: May 31, 2027
Checked: November 5, 2026

All Maryland incentives, including utility and local programs →

How Maryland utilities credit your solar

Maryland law (PUA 7-306) requires electric companies to offer net metering until statewide net-metered capacity reaches 3,000 MW; excess generation carries forward, and customers can take an annual payout (valued at the generation/commodity portion of the rate, not full retail) or, since 2023, accrue credits indefinitely. The PSC reported about 51% of the cap used as of mid-2025, and successor-program bills were pending in 2026.^[5]

We have not added every Maryland utility yet, so the estimates on this page use the state-level rule: Maryland net metering: exports credited at the retail rate (statewide rule; your utility's tariff may differ).

Full Maryland net metering and export-credit rules →

Next steps

Run the solar calculator with Maryland defaults and your own bill.
Maryland solar incentives
Maryland net metering and export credits
How to vet installers in Maryland
Spot solar sales red flags and compare financing before you sign.

Frequently asked questions

How much do solar panels cost in Maryland?

At the state median installed price of $4.00 per watt est.^[3], a 8.0 kW est.^[1,2] system that covers a typical home's use costs about $32,000 est.^[1,2,3] before incentives. Quotes vary with roof, equipment and installer.

How long does solar take to pay for itself in Maryland?

For a cash purchase at the state's average electricity price of 21.31¢ per kWh^[4], our model estimates about 12 years est.^[1,2,3,4,5]. Your utility's export credit and rate plan matter a lot; see the export-credit table above.

Is there still a federal solar tax credit?

Not for homeowners who buy. The Federal Residential Clean Energy Credit (25D)^[8] does not apply to systems whose installation is completed after December 31, 2025. Leased and PPA systems are different: the company that owns the system may still claim a business credit.