2023 Solar Incentives Guide for Lexington Park, MD - Tax Credits & Rebates

In this guide, we'll cover the latest solar incentives and rebates available in Lexington Park.

You'll learn about:

  • Local & State Solar Incentives
  • Federal Tax Credits (Updated for 2023 and beyond)
  • Ways to optimize your solar investment

Solar installers are experts in maximizing your solar tax credits and rebates.
Get a free quote from one of our trusted Lexington Park solar installers to see how much you can save.

By EcoWatch Local Advisors

Data Analysis: James Savino

Ranking Methodology: Karsten Neumeister

Updated May 04, 2023

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We work with a panel of solar experts to create unbiased reviews that empower you to make the right choice for your home. No other site has covered renewables as long as us, which means we have more data and insider information than other sites. Our rankings are never affected by revenue or partnerships.

What Solar Tax Credits, Incentives, and Rebates are Available in Lexington Park?

Residential Clean Energy Rebate Program

Incentive Type:
Rebate Program
PV: $1,000/project (flat per installation/household incentive)
SWH: $500/project (flat per installation/household incentive)
New GHC: $3,000/project
GHC Replacement: $500/project

Solar Renewable Energy Certificates (SRECs)

Incentive Type:
Solar Renewable Energy Credit Program
Varies based on market conditions

Sales and Use Tax Exemption for Residential Solar and Wind Electricity Sales

Incentive Type:
Sales Tax Incentive
100% exemption from sales and use tax

Property Tax Exemption for Solar and Wind Energy Systems

Incentive Type:
Property Tax Incentive
100% real property tax exemption for solar and wind energy property

Clean-Burning Wood Stove Grant Program

Incentive Type:
Rebate Program
Stick Burning Stove: $500
Pellet Burning Stove: $700

Wood Heating Fuel Exemption

Incentive Type:
Sales Tax Incentive
100% exemption

Local Option - Property Tax Credit for High Performance Buildings

Incentive Type:
Property Tax Incentive
Varies

Local Option - Property Tax Credit for Renewables and Energy Conservation Devices

Incentive Type:
Property Tax Incentive
Varies by jurisdiction; credit may be available for up to 3 years.

Residential/Community Wind Grant Program

Incentive Type:
Rebate Program
Residential: $4,000/kW of normalized capacity at 11 m/s
Community: $1000/kW - $4000/kW, depending on the system capacity

SMECO - Residential Energy Efficiency Rebate Program

Incentive Type:
Rebate Program
Air-Source Heat Pump
Central A/C
Clothes Dryers: $50
Clothes Washer: $75 (Tier 2) - $100 (Tier 3)
Geothermal Heat Pump
Hybrid Heat Pump Water Heater: $500
LED Lighting: Up to $7/bulb
Ductless Mini Split Air-Source Heat Pump
Pool Pump: $400
Recycled Refrigerator/Freezer: $50
Recycled Dehumidifier: $25
Recycled Room A/C: $25
Refrigerator: $100
Smart Thermostat: $100

Federal Residential Renewable Energy Tax Credit

Incentive Type:
Personal Tax Credit
30% federal tax credit for systems placed in service after 12/31/2021 and before 01/01/2033. Good for: solar water heat, solar photovoltaics, biomass, geothermal heat pumps, wind (small), fuel cells using renewable fuels.

Source: https://www.dsireusa.org/


The phrase "solar incentives" includes a range of financial incentives designed to make installing and using solar panels more affordable. This is done to encourage people to switch to renewable energy. The incentives might include upfront discounts, cash back or monthly credits towards your utility bill. Some incentives are provided by the federal government, some by the state of Maryland and some by your utility company, county or municipality. Some solar incentives you might qualify for are:

  • Tax Exemptions: Your solar panels may qualify for exemptions on both sales and property tax. Sales tax exemptions come into effect at the time of purchase. Property tax exemptions let you ignore the value that solar panels add when calculating property taxes on your home.
  • Net Metering: Be sure to talk with your Lexington Park utility company about signing a net metering contract. This allows you to receive credit towards your utility bill every month for the value of excess energy your solar panels generate. You may receive either a dollar-for-dollar credit or a percentage of the value.
  • Tax Credits: Tax credits are dollar-for-dollar reductions in the amount of income tax that you owe the government. (A tax credit is different from a tax deduction.)
  • Solar Renewable Energy Certificate (SREC): SRECs are credits that can be sold to your utility company (or other buyers) for money that is generally considered part of your taxable income. Generally, you must meet a certain (small) threshold of energy production before your solar system qualifies for SRECs or other performance-based incentives. Incentives like these are normally handled by your state government.
  • Rebates: Rebates, or partial refunds after a purchase, are normally given prior to any solar tax credits being calculated. Solar rebates can be given by your local utility company, by your county or by your state.

Federal Solar Incentives

When thinking about solar incentives, federal incentives might be the first thing that comes to mind. An incentive many people are likely familiar with is the Federal Solar Investment Tax Credit (ITC). This incentive is a tax credit for a specific percentage of your solar system's cost.

The ITC was originally for 30% of the total cost of installing solar panels, and has fluctuated slightly over the last few years between 26-30%. The percentage you qualify for will depend on when your solar system was installed. The total installation cost includes the panels themselves as well as the cost of accessories, labor and equipment. There is no maximum claim amount. The ITC applies to solar panels installed after January 1, 2006 on your primary or secondary residence. The residence must be in the United States and owned by you.

To best understand how the ITC may apply to you, contact your local Lexington Park solar panel installer and ask for more information.

The ITC was both renewed and expanded by the passage of the Inflation Reduction Act in August 2022. It's also now called the Clean Energy Credit. For solar systems installed between January 1, 2022 and December 31, 2032, homeowners may be eligible for a credit equal to 30% of the total cost. The percentage will then decrease annually until the Clean Energy Credit ends in 2035. Starting in 2023, it will also be easier to claim credits for energy storage systems under the new laws.

More information about the new Inflation Reduction Act can be found here. To best understand how the new Clean Energy Credit might apply to you, talk to your local Lexington Park solar installers.

State & Local Solar Incentives

Not all solar incentives are federal; rebates, tax credits and more might also be offered at the local or state level. Some incentives are ongoing, while others are offered for only a limited time. Your local incentives could come from the Maryland government, or from your specific county or municipality.

Next Steps for Installing Solar in Lexington Park

You can apply for and receive solar incentives from the federal government and the Maryland government, as well as from your local utility company. The growing availability of solar initiatives over the last 15 years has helped increase solar adoption nationwide. Contact your local solar panel installation expert today to learn more and to save the most money possible on solar panels for your Lexington Park home.

Best National Provider

SunPower

★★★★★
5.0

  • Most efficient panels on the market
  • National coverage
  • Cradle to Cradle sustainability certification
  • Great warranty coverage
  • Expensive
  • Customer service varies by local dealer

Best for Leasing

Sunrun

★★★★★
4.0

  • Expansive service area
  • Many financing options
  • Some reported issues with customer service
  • Some reported issues with door-to-door sales

Best Social Impact

Palmetto Solar

★★★★★
4.0

  • Expansive service area
  • Makes charitable contributions
  • Certified B Corp
  • No leases or PPAs
  • Quality of installation may vary by location

EcoWatch's Lexington Park, MD Solar Incentives FAQs

What if I want to add solar panels to a vacation home, rental property or commercial property? Can I still qualify for incentives?

Many solar incentives apply to a property located within the United States that you own; most secondary residences will fall into this category. There may be other solar incentives available for commercial properties, depending on the specifics. We recommend speaking with your local solar installer and/or tax professional to best understand what incentives apply to your specific situation.

How can I learn if I qualify for specific solar incentives?

It's best to speak with your local Lexington Park solar installer to get an understanding of which incentives your project will qualify for. Usually, solar incentives apply to new solar systems installed on a property you own (in the U.S.) between the dates specified by the incentive. Some incentives, like those provided by the Maryland government, may have other requirements.

Who installs solar panels near me?

To find the best solar panel installers near you, read our article on the top solar companies in Lexington Park.

What are some environmental benefits of adding solar panels to my home?

You can lower your carbon footprint by 300 pounds of CO2 a year when you install solar panels. This adds up to around 6,000 pounds over 20 years. Solar is also a renewable energy source, meaning that making the switch reduces the drain on our planet's resources.

Can I qualify for incentives both towards the initial cost of solar panels, and later as reimbursement?

The order that incentives will be applied in could vary depending on which incentives you are eligible for but in most cases yes, you can claim multiple types of incentives for your solar project. Get in touch with your solar installer or a local tax professional to confirm you are claiming all of the incentives you qualify for and applying them in the correct order.

Our goal is to reach as many people as we can with sensible solutions like solar energy. Our team of full-time local researchers collects solar price and installation data for every city in America then compiles it to create these digestible city guides. If you want to read our solar expert's opinion on the top solar companies featured here, follow this link.

Solar incentive research was conducted by Melissa Smith and Karsten Neumeister. Local data analysis was conducted by James Savino. See something we missed or could do better? Email the editor.

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