Maryland residential solar energy incentives

Clean energy production tax credit:

-This is a tax credit that is offered to residents of Maryland who generate power by using wind, solar energy, hydropower, geothermal energy, biomass resources, etc. Power generated must be sold to an unrelated person.
-The credit allows for $0.85 cents per kilowatt to be claimed against the state income tax.
-The maximum incentive is set at $2.5 million over a five year period.
-To be eligible, systems must be placed in service after December 31, 2005 and before January 1, 2011.
-Participants must apply for an Initial Credit Certificate through the Maryland Energy Administration.
Property tax exemption for solar and wind energy systems:
-Residential solar energy devices installed to heat or cool a structure, generate electricity or provide heat to be used in the structure are 100% exempt from property taxes.
-Eligible systems include photovoltaics, solar water heat, solar thermal electric and wind.

Clean energy rewards program – Montgomery County:

-Residents of Montgomery County receive a credit for purchasing up to $20,000 kilowatt hours per year of clean energy. The credit is $0.05 per kilowatt hour of clean energy used.
-To be eligible for this rewards program, residents must commit to purchase a minimum of 50% clean energy out of their annual electricity use.
-The credit will be distributed by suppliers and will show as a credit on the monthly bill of the customer.

Solar energy equipment property tax credit – Anne Arundel County

-Residents of Anne Arundel County who use solar energy equipment for the use of generating electricity, water heating (excluding solar pool heating), heating, and cooling are offered a one time credit of 50% of the cost of equipment and installation or $2,500, which ever is less.
-Equipment must be installed on or after January 1, 2007 to be eligible.

Property tax credit for solar and geothermal devices – Harford County:

-Residential buildings that use solar or geothermal devices which generate electricity, or are used for heating or cooling and have property taxes imposed on them are eligible for a property tax credit of 100% of the total real property taxes for one year.
-Maximum incentive amount is $2,500.
-Eligible renewable technologies much meet all national safety and performances standards.

Residential solar and geothermal property tax credit – Howard County:

-Residents of Howard County who have renewable energy devices installed on their property qualify for a property tax credit of 50% of eligible costs up to $5,000 for PV or heating systems and $1,500 for a hot water supply system.
-Credit may be carried over for 2 years but may not exceed resident’s property tax liability.

Residential energy conservation property tax credits – Montgomery County:

-Residential structures equipped with solar and geothermal devices in Montgomery County are eligible for a 50% tax credit and energy conservation devices are eligible for a 100% tax credit.
-All costs including equipment and installation are eligible for this tax credit.
-Maximum limit for water heating is $1,500, electricity generation and space heating is $5,000 and energy conservation is $250 per year.

Solar and geothermal residential property tax credit: Prince George’s County:

-Residential structures equipped with solar and geothermal devices in Prince George’s County are eligible for a 50% tax credit.
-All costs including equipment and installation are eligible for this tax credit.
-Maximum limit for water heating is $1,500, electricity generation and space heating is $5,000.

Sales and use tax exemption for renewable energy equipment:

-In the state of Maryland solar energy equipment and geothermal equipment are 100% exempt from state sales tax.

Solar energy grant program

-This program, through the Maryland Energy Administration, provides homeowners financial incentives to help with the cost of equipment and installation of solar water heating and solar electric systems.
-The incentives offered in the solar energy grant program are: $2,500 or 30% of the installed cost (which ever is less) for solar water heating and $1.25 per watt DC for the first 4 kilowatts, $1.00 per watt for the next 4 kilowatts and $0.50 per watt for the next 2 kilowatts for solar PV systems with a maximum incentive amount of $10,000.
-Equipment must meet all requirements and standards to qualify.

Residential renewable energy tax credit:

-This personal tax credit allows the taxpayer to claim a credit of 30% of all expenditures including labor costs and installation of qualified residential solar-electric systems, solar water heating systems or fuel cells. Small wind-energy systems and geothermal heat pumps can also be accredited for.
-Solar-electric systems and solar water heaters have a maximum incentive of $2,000 if placed in service before 2009. There is no maximum incentive for systems placed after 2008.
-The excess amount of the federal tax credit may be carried forward to the next taxable year if it exceeds tax liability.
-This can be carried forward until 2016, but after that, it is unknown if the unused credit will be able to be forwarded.

Residential energy conservation subsidy exclusion:

-This is a personal exemption of 100% of energy conservation subsidies provided by public utilities.
-The value of a purchase or installation of any energy conservation measure by a customer such as solar water heat, solar space heat or photovoltaics will not be included in the customer’s gross income.
-Customers of an electric utility company, who participate in the utility’s energy conservation program, may receive a rate reduction of electricity furnished or a nonrefundable credit against the purchase price of the electricity on each monthly electric bill.

Energy-efficient mortgages:

-This is a federal loan program where homeowners can use EEM (energy-efficient mortgages) to finance renewable energy technologies in a home.

Net metering:

-Net metering is available to residents who have renewable energy equipment such as solar, wind, geothermal, biomass or hydroelectric power that is capable of calculating the flow of electricity in two directions.
-The net excess generation is given to the customer at the utilities retail rate as a credit on the customer’s next bill.
-Maximum system capacity limit is 2 megawatts.
-Qualifying systems must meet all efficiency requirements.