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

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

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 Severn 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 Severn?

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.

Baltimore Gas & Electric Company (Electric) - Residential Energy Efficiency Rebate Program

Incentive Type:
Rebate Program
Appliances & Recycling
Clothes Dryer (Electric): $50
Clothes Washer: $75 - $100
Hybrid Heat Pump Water Heater: $500
Pool Pump: $150 - $400
Refrigerator: $100
Dehumidifier: $30
Refrigerator or Freezer Recycling: $50, plus $25 bonus when recycling an old, working room A/C or dehumidifier at the same time
Room A/C or Dehumidifier Recycling (*May 20, 2017 only*): $25
Smart Thermostat: $100

Heating & Cooling
Air-Source Heat Pump: $400 - $650
Central A/C: $300 - $500
Gas Furnace: $250
Furnace Blower Motor: $50 - $100
Geothermal Heat Pump: $1,500

Lighting
Instant discounts vary by participating retailer; see program website

Baltimore Gas & Electric Company (Gas) - Residential Energy Efficiency Rebate Program

Incentive Type:
Rebate Program
Appliances & Recycling
Clothes Dryer (Electric): $50
Clothes Washer: $75 - $100
Hybrid Heat Pump Water Heater: $500
Pool Pump: $150 - $400
Refrigerator: $100
Dehumidifier: $30
Refrigerator or Freezer Recycling: $50, plus $25 bonus when recycling an old, working room A/C or dehumidifier at the same time
Room A/C or Dehumidifier Recycling (*May 20, 2017 only*): $25
Smart Thermostat: $100

Heating & Cooling
Air-Source Heat Pump: $400 - $650
Central A/C: $300 - $500
Gas Furnace: $250
Furnace Blower Motor: $50 - $100
Geothermal Heat Pump: $1,500

Lighting
Instant discounts vary by participating retailer; see program website

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

Anne Arundel County - Solar and Geothermal Equipment Property Tax Credits

Incentive Type:
Property Tax Incentive
50% of the cost of materials and installation less any federal and state grants and state solar energy tax credits

Anne Arundel County - High Performance Dwelling Property Tax Credit

Incentive Type:
Property Tax Incentive
LEED or NGBS Silver: 40% of property taxes for 5 years
LEED or NGBS Gold: 60% of real property taxes for 5 years
LEED Platinum or NGBS Emerald: 80% of real property taxes for 5 years

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/


Solar incentives are designed to make renewable energy usage more affordable through financial incentives for those who install solar panels on their homes. Various types of incentives, such as discounts, cash back or credit towards your monthly utility bill, may be available to you. Certain incentives may be provided via the Maryland government, by your utility company or by county or municipality, while others are federal. Some solar incentives you might qualify for are:

  • Tax Credits: These credits are dollar-for-dollar reductions (not deductions) in how much in taxes you owe the federal government.
  • Rebates: A solar rebate is a partial refund credited to your account after you've paid for your solar system. Rebates could be offered by your local utility company, your state or your county. The discount that rebates offer is normally applied to the price of solar panels before tax credits are calculated.
  • Tax Exemptions: Tax exemptions can come in two forms. First, there is sales tax exemption, applied when you purchase solar panels. The second is property tax exemption, which allows you to ignore the added value of your solar system when calculating property tax for your home.
  • Net Metering: You may be able to sign a net metering contract with your Severn utility company. This agreement may apply to all or a percentage of the excess electricity your solar panels generate. They will then deduct this value from your utility bill each month.
  • Solar Renewable Energy Certificate (SREC): SRECs and similar performance-based incentives may be available to you if your solar system produces more than a specified (typically small) amount of electricity. This category of incentives is normally handled by the state government. You can sell your SRECs to your utility company or other buyers, and the money you make is generally considered part of your taxable income.

Federal Solar Incentives

When you hear the term "solar incentives," federal incentives might be the first thing that comes to mind. The solar incentive that you may be most familiar with is the Federal Solar Investment Tax Credit (ITC), which provides a credit on your taxes equal to a certain percentage of your solar system's cost.

The ITC originally covered 30% of the cost of installing solar panels, although that number 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 equipment, accessories and labor. 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.

Reaching out to your local Severn solar panel installer is the best way to learn more about how the ITC applies to your situation.

In August 2022, the Inflation Reduction Act laid out new provisions for the ITC, now dubbed the Clean Energy Credit. Homeowners can now receive a credit equal to 30% of the total costs of solar system installation for projects that began after January 1, 2022 and will be finished by the end of 2032. This percentage will then decrease annually until the Clean Energy Credit expires in 2035. The expansion also makes it easier to get credit for energy storage systems, beginning in 2023.

More information about the new Inflation Reduction Act can be found here. Your local Severn solar panel installation expert is the best person to answer your questions regarding the new Clean Energy Credit and how it applies to you.

State & Local Solar Incentives

Some solar incentives may be provided by state and local governments. As with federal incentives, these could include rebates, tax credits and more. Incentives may be handled by your county or municipality, or by the state of Maryland. Some incentives may be available for only a limited time, while others are ongoing.

Next Steps for Installing Solar in Severn

You can apply for solar incentives from the Maryland government and the federal government, as well as from your local utility company. This increase in availability of solar initiatives over the last 15 years has helped increase solar adoption nationwide. Your local Severn solar panel installation company can help you learn more about which incentives you should apply for, and get you started on the path to switching to renewable energy today.

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 Severn, MD Solar Incentives FAQs

Can I get any financial incentives when I add solar panels to a vacation home, rental property or commercial property?

While we recommend getting in touch with your local solar installer and/or tax professional to better understand what solar incentives apply to you, many incentives apply to a second home, as long as it is in the United States and owned by you. There may be additional incentives available for commercial properties specifically, depending on the details.

How do I know if I qualify for specific solar incentives?

It's a good idea to talk to your local Severn solar installer for a better understanding of which incentives your project may qualify for. Typically, solar incentives apply to new solar panel systems installed on property you own (in the U.S.) within a specified date range. Some incentives, such as those offered by the government of Maryland, might have other requirements.

How much will solar panels save me annually on my electric bill in Severn?

Once you add solar panels to your house in Severn, you can expect to save about $781.87 per year, or about $14,855.62 over 20 years.

Who installs solar panel systems near me?

To find the best solar panel installation companies near you, take a look at our article on Severn's best solar panel companies.

What are some of the environmental benefits of switching to solar?

You can decrease your carbon footprint by 300 pounds of CO2 annually when you switch to solar panels. This adds up to approximately 6,000 pounds over 20 years. In addition, solar power is a renewable energy source, meaning that making the switch reduces the drain on our planet's resources.

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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