Maryland: Clean Energy Grant Program - Residential Solar

Note: Effective November 1, 2011 rebates for PV systems are calculated as a flat incentive of $1,000 per system/customer. The overall Clean Energy Grant Program (which includes solar, geothermal, and wind energy incentives) has also been allocated $2.5 million in additional funds, bringing total Fiscal Year 2012 funding to $8.8 million.

Maryland's Residential Clean Energy Grant Program, administered by the Maryland Energy Administration (MEA), provides financial incentives to homeowners that install solar water-heating systems or solar-electric (PV) systems. Both grid-connected and off-grid PV systems are eligible for support.

The current Solar Energy Grant Program provides incentives as follows (effective for applications received on or after November 1, 2011):

• Solar water heating: lesser of $500 or 20% of the installed cost;
• Solar PV: $1,000 per system/household for systems of less than 20 kilowatts (kW)

Solar water-heating collectors must meet the Solar Rating and Certification Corporation's (SRCC) OG-100 Certification. PV system hardware must be in compliance with all applicable performance and safety standards, including: Underwriters Laboratories (UL) 1741, "Standard for Static Inverters and Charge Controllers for Use in Photovoltaic Systems" and UL 1703, "Standard for Safety: Flat-Plate Photovoltaic Modules and Panels." The system must be installed in compliance with applicable requirements of local electric codes and the National Electric Code (NEC). Utility interconnected (grid-tied) systems must be installed in compliance with IEEE Standard 929-2000, "Recommended Practice for Utility Interface of Photovoltaic Systems."

In the past, this program has been funded almost entirely by appropriations from the state's General Fund. However, more recently, appropriations have been supplemented by funds raised though carbon emission allowance auctions as part of the Regional Greenhouse Gas Initiative (RGGI) and by Federal economic stimulus money. The Fiscal Year 2012 (FY2012) budget of $8.8 million for PV, solar thermal, wind, and geothermal rebates. Click here to view the full FY2012 Clean Energy Program Book from the MEA. For applications and more information on the program, including a Q&A section, please see the program web site.

Note that these grants may be subtracted from adjusted gross income for state income tax purposes. In other words, program recipients do not have to pay state taxes on the amount of the grant received. See H.B. 590, enacted in May 2007.