Solar Incentives Available in Virginia and Maryland
SOLAR INCENTIVES IN VIRGINIA | INCENTIVE TYPE | DESCRIPTION | OCCURRENCE | ESTIMATED DOLLAR AMOUNT YOU CAN RECEIVE |
Federal Solar Investment Tax Credit (ITC) | Federal | Virginia homeowners are eligible for a credit on their federal tax returns worth 30% of the cost of their solar panel system | Will apply to your federal tax returns and will roll over for up to five years | On average, $9,075 in VA |
Virginia’s Solar Renewable Energy Credits (SREC) Program | State | Virginia’s SREC program allows homeowners to earn and sell energy credits for every 1,000 kilowatt-hours (1 megawatt-hour) they produce with their PV systems2 | One SREC is earned every time you generate 1,000 kilowatt-hour (kWh) of energy | $20-$50 per SREC (an average-sized system in VA will generate around 13.2 SRECs each year) |
Residential Property Tax Exemption for Solar in VA | State | Virginia’s property tax exemption prevents your property taxes from increasing as a result of going solar3 | Exempted annually on tax returns | N/A |
Net Metering in Virginia | State | Net metering programs offered by local utility companies — primarily Dominion Energy in Virginia — allow homeowners to sell excess energy back to their power provider | Monthly on electric bill | Up to the full cost of your electric bill each month |
SOLAR INCENTIVES IN MARYLAND | INCENTIVE TYPE | DESCRIPTION | OCCURRENCE | ESTIMATED DOLLAR AMOUNT YOU CAN RECEIVE |
Federal Solar Investment Tax Credit (ITC) | Federal | Residential solar panels or solar batteries purchased and installed by December 31, 2032, are eligible for a tax credit worth 30% of their home solar project cost. | One time: Credit is applied when you file your taxes during the year your system is installed. If credit is more significant than what you owe in taxes, credit can roll over up to five years. | Roughly $8,310 in tax credits for the average 10 kW system. |
Residential Clean Energy Rebate Program | State | Homeowners are eligible for a $1,000 payment after installing a solar energy system of at least 1 kW. For installing solar water heating systems, homeowners can claim a $500 rebate. | One time: Payment is given after solar installation. | $1,000 for a solar system and $500 for a solar water heater. |
Solar Sales Tax Exemption | State | To reduce the upfront costs of going solar, Maryland waives sales tax on all solar equipment. | One time: Tax is avoided when you purchase your solar panel system. | With a sales tax rate of 6% in Maryland, the average savings is around $1,600.4 |
Solar Property Tax Exemption | State | The value added to your home by the solar installation will not raise your property taxes in Maryland. | Ongoing: Your solar panel system won’t be included in your home’s assessed value where property taxes are concerned. | Varies based on home value, with average annual savings of around $4,200 based on a 1.06% property tax rate.5 |
Net metering | Local | Maryland has a statewide net metering program that allows you to sell excess solar energy back to the grid in exchange for credits that can go toward any future utility bills. | Ongoing: Your net billing credits will be applied to your monthly electricity bills. | It varies depending on how much excess energy your solar panels produce and which utility provider you have. |
Local incentives | Local | Certain Maryland counties offer additional incentives for solar, geothermal and other energy-efficiency upgrades. | Varies | Varies |
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