Maryland Solar
Understanding Solar in Maryland
Maryland’s commitment to renewable energy has made it an excellent location for homeowners and businesses to switch to solar power. With a unique combination of state-sponsored programs, financial incentives, and high solar irradiance levels, Maryland presents a compelling case for solar adoption.
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Maryland’s location and climate are conducive to solar energy production, with an average of about 200 sunny days per year, providing ample sunlight to power solar panel systems across the state efficiently.
How Solar Works
Solar panels convert solar energy into electricity. They work by absorbing the solar rays from the sun and then converting them to an electric current that is sent to your home or business. The solar power can be used instantly, saved for later use, or sold back to the grid depending on how you configure your solar system!
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The amount of solar energy solar panels can generate depends on the solar panel size and how much direct sunlight they are able to capture. The more solar electricity you use, the more solar power is used!
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In Maryland, solar panels work in a variety of different conditions and can be used any time, no matter what the weather is like outside! Solar panels in Maryland will generate power even if it's cloudy out or at night.
Your Home Solar Options
When it comes to solar power, your home is one of the best places for you to start. Solar panels in Maryland are a good way to generate renewable energy and save money over time!
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There are three main types of solar systems: stand-alone photovoltaic (PV) systems using string inverters or microinverters, grid-tied solar systems with battery backup inverters or without battery backup inverters, and off-grid photovoltaic (PV) systems.
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To help you make the best choice, it's important to understand all the different solar panel options available.
Solar energy is the newest way to lower your electricity bill. Here are three of the most popular options, explained in more detail below:
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Purchase a solar system (with cash or a loan) and own both the system and all the power it produces
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Lease a system, usually for a monthly rate, and own all the power it produces
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Enter a “power purchase agreement” (PPA) to buy (in price per kWh) the electricity the system produces
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Purchase
You're going solar! When you buy a system, you become the owner of the system and enjoy all the benefits from the electricity it produces. The cost of upkeep varies depending on your provider, but most residential solar systems require little to no maintenance, and some providers offer maintenance services on purchased systems.
Solar panels can be an expensive initial investment, but they are also an investment in the future. Solar panels can lower your utility bills and reduce environment-damaging emissions. And, in most jurisdictions, you can benefit from tax credits or other incentives that promote solar energy. If you do decide to sell your home, you may list the solar power system in the sale just like any other major home component.
Lease
In many markets, you can lease a solar system for a set time period. The solar company owns the system, leases it to you, and is responsible for maintaining it. You make monthly payments to the solar company at a specified rate for use of the system.
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Some solar vendors will allow you to get installation and equipment leasing at no up-front cost (“no money down”), though this doesn't mean the system is free. Some companies also offer customers a financing option that allows them to purchase the system after a specific timeframe. A third-party-owned system means the company that installed your solar panels owns them and you will enter into a power purchase or leasing agreement with the company in order to use the solar energy to offset your electricity cost. Make sure you ask questions about whether these agreements are transferable if you plan on selling your home in the future.
Power Purchase Agreement (PPA)
From a consumer’s perspective, a power purchase agreement (PPA) is very similar to a 30-year lease contract. Under the terms of the PPA, you pay for the units of electricity generated by your new solar system rather than leasing the entire system and paying an up-front fee regardless of how much energy it actually generates. A PPA is a contract between you and the company that owns the solar panels. The benefits to a PPA are similar to those of going solar under a lease agreement: no equipment costs, which reduces your upfront investment in the system and lowers or eliminates your monthly electricity bills.
A power purchase agreement, or P.P.A., is also a third-party ownership arrangement because the solar company owns the system; however, some companies give you the option to buy back the system after a certain period of time has passed. You’ve got options for when you sell your home, so make sure to ask about PPA fees at the time of installation.
Maryland Tax Credit
While there are no state-specific tax credits in Maryland, you can still take advantage of the 30% Federal Investment Tax Credit. The ITC requires that you deduct 30% of a PV system’s cost from your taxes. Although there is an upfront cost to buy any system, you will see immediate savings if your have the IRS prepare the next tax return.
The ITC was set to expire in 2016, but fortunately it has been renewed for an additional year. This extension is very helpful in motivating homeowners and businesses in the US that don't have solar PV systems.
Details of Maryland Solar Incentives
Federal Solar Investment Tax Credit (ITC)
​In Maryland, homeowners looking to transition to clean energy can benefit from the Residential Clean Energy Credit, a significant financial incentive. This credit allows residents to deduct a portion of the cost of installing solar energy systems from their state tax liability, making the switch to renewable power more affordable and accessible. By reducing initial investment barriers, Maryland is bolstering its commitment to a greener future and empowering homeowners to contribute to a more sustainable environment while potentially increasing their property value.
Maryland Electricity Rates
Residents in Maryland face electric bills that are over 20% higher than the national average, but the journey to energy independence and cost control is within reach, thanks in part to Maryland's favorable solar incentives.
Kyanite Solar, as a prominent provider of residential solar and energy storage solutions in the U.S., is dedicated to empowering you to achieve energy autonomy and safeguard your home against power outages, all while maximizing the solar advantages available to you.
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Maryland Net Metering
Net metering serves as a valuable solar perk by providing solar panel owners with credits for the surplus power their systems generate. In the peak hours of sunlight, solar installations often produce more electricity than a home needs.
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Consider net metering as a virtual battery — it captures your system's extra energy, ensuring that every kilowatt-hour is utilized effectively.
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Maryland stands out by offering homeowners a net metering arrangement where surplus electricity fed back into the public grid earns credits at the full retail rate. This means significant savings on your electricity bills.
Unlike in many other states, where electric companies may offer reduced rates for purchased excess energy, Maryland's robust net metering policy mandates that utility companies credit homeowners on a one-for-one basis for the additional electricity they contribute, creating an optimal situation for those looking to invest in solar energy solutions.
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Cash Purchase VS Loan: What’s Best for Maryland Homeowners?
When it comes to funding your home solar installation, there are primarily three routes you can take: paying the full price upfront in cash, taking out a solar loan, or opting for a lease or power purchase agreement (PPA).
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For those who may not have the resources to pay for a system in full, solar financing methods like loans and leases can make acquiring a solar system more manageable by distributing the cost over a period. On Kyanite Solar marketplace, for instance, a typical solar panel system might cost around $25,000, excluding the cost of installation.
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Paying in cash or securing a solar loan are often the most financially advantageous strategies to implement solar power at your residence.
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The advantage of these options lies in their ability to confer system ownership either immediately or after the loan is paid off. With a cash purchase, the total cost is paid upfront, freeing you from future payments. Opting for a solar loan is akin to vehicle financing or a home mortgage—you'll make regular monthly installments over a term that typically spans 5 to 25 years.
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The third pathway, involving a lease or power purchase agreement (PPA), may not always be the wisest economic decision. Although they spread out the expense, these methods do not lead to system ownership after the contract ends. For instance, leasing a system at $100 monthly for 20 years culminates in a $24,000 expenditure on solar energy without system ownership, which is roughly equivalent to what it might cost if you purchased the system outright.
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Get your system size and battery details
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Find your solar cost and energy usage
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Learn about the incentives in your state
Helping customers make solar simple!
Get the most out of your new home solar system
Switch to solar power and start saving money right away
There are many benefits to switching over to solar energy including lower monthly bills, improved property value, and cleaner air. The solar panels in Maryland can help you live a more sustainable lifestyle while also lowering your carbon footprint by displacing emissions that would have been created from traditional power plants. Solar is an investment with the potential for significant returns on investment, so solar panels are quickly becoming a more affordable way to generate power!
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You may want solar installation costs depending upon your area--read more about that below--and you'll want to ask solar experts about solar panel efficiency so that you know how much power each solar cell produces and what the solar cells are made of.
For those looking to reduce their environmental footprint, solar installation is becoming more affordable with the help of government incentives and rebates. There are around 20 different types of tax credits for investments in renewable energy or any infrastructure project that directly reduces greenhouse gas emissions (such as wind farms). These tax benefits can be used by both individuals and corporations alike while also helping defer some upfront costs associated with installing a system such as labor expenses or expensive panels themselves.
For example, an individual might have difficulty paying $25K upfront on equipment worth $32K but they may qualify for a 30% federal investment credit which would lower the amount down to just under $21k! The Solar Energy Industry Association estimates that about half of all new homes will use this solar energy by 2022, so solar installation is becoming an increasingly popular option to go green!
