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MD – Residential

For the majority of our clients, the Solar Energy Grant Program is the most relevant and is listed first.


State Rebate Program

Net Metering

Local Rebate Program

Personal Tax Credit

Property Tax Incentive

Utility Rebate Program


Solar Energy Grant Program


State: Maryland
Incentive Type: State Rebate Program
Eligible Renewable/Other Technologies: Solar Water Heat, Solar Thermal Process Heat, Photovoltaics
Applicable Sectors: Commercial, Residential, Nonprofit, Local Government
Amount: Solar PV: $0.25 – $1.25/W DC
Solar Water Heating: 30% of the installed cost
Maximum Incentive: Solar PV: $10,000
Solar Water Heating: $2,000
Eligible System Size: Solar PV maximum: 20 kW;
Minimum sizes for both solar water heating and solar PV vary by sector (see below).
Equipment Requirements: Solar PV systems must meet applicable UL, IEEE, and NEC standards; solar thermal collectors must be SRCC OG-100 certified.
Installation Requirements: On-grid and off-grid PV systems are eligible; 70% of the annual solar path’s area must be shade-free throughout the year.
Program Budget: FY09: $2.01 M (combined solar and geothermal rebates, includes supplemental RGGI funding)
FY10: $5.8 M (combined solar, geothermal, and wind rebates, includes ARRA funding of $4.3 M)
Ownership of Renewable Energy Credits: Remains with project owner
Funding Source: Strategic Energy Investment Fund (SEIF); may be supplemented Federal Stimulus money or General Fund revenues
Expiration Date: When funds are exhausted; annual budget subject to appropriation
Web Site: http://energy.maryland.gov/incentives/residential/solargrants/ind
Date Enacted:
04/27/2004 (subsequently amended)
Date Effective:
01/01/2005
Summary:

Maryland’s Solar Energy Grant Program, administered by the Maryland Energy Administration (MEA), provides financial incentives to homeowners, businesses, local governments and non-profit organizations that install solar water-heating systems or solar-electric (PV) systems. Both grid-connected and off-grid PV systems are eligible for support. This program, which took effect in January 2005, replaced the state’s expired “Clean Energy Incentives” tax credit for solar-energy equipment. The first three rounds of program funding supported more than 200 projects.

The current Solar Energy Grant Program (effective for applications received on or after September 1, 2009) provides incentives as follows:

  • Solar water heating: lesser of $2,000 or 30% of the installed cost;
  • Solar PV: $1.25/W DC for first 2 kW; $0.75/W for next 6 kW; and $0.25/W for next 12 kW

Thus, the maximum rebate is $10,000 and systems must be 20 kW or less to qualify for a rebate.

Requirements for the minimum size of a system eligible for funding are as follows:

  • Solar water-heating systems for residential, school or public buildings: 20 square feet of collector area (or 1 kW equivalent)
  • Commercial solar water-heating systems: 40 square feet of collector area (or 2 kW equivalent)
  • Residential photovoltaic system: 500 watts (0.5 kW); on and off-grid systems are eligible
  • School, government and church solar-electric systems: 1 kW
  • Commercial photovoltaic systems: 2 kW

Applications will be accepted for any systems placed in service during the same calendar year in which the resident submits a grant application.

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 2010 (FY10) budget of $5.8 million for PV, solar thermal, wind, and geothermal rebates is funded entirely by the state Strategic Energy Investment Fund (SEIF) and American Recovery and Reinvestment Act (ARRA) proceeds. Click here to view the full FY10 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.


Contact:

  Public Information Officer – MEA
Maryland Energy Administration
1623 Forest Drive, Suite 300
Annapolis, MD 21403
Phone: (800) 723-6374
Phone 2: (410) 260-7655
E-Mail: meainfo@energy.state.md.us
Web Site: http://www.energy.state.md.us/

Maryland – Net Metering


State: Maryland
Incentive Type: Net Metering
Eligible Renewable/Other Technologies: Photovoltaics, Wind, Biomass, CHP/Cogeneration, Anaerobic Digestion
Applicable Sectors: Commercial, Industrial, Residential, Nonprofit, Schools, Local Government, State Government, Fed. Government, Agricultural, Institutional
Applicable Utilities: All utilities
System Capacity Limit: 2 MW
Aggregate Capacity Limit: 1,500 MW (~8% of peak demand)
Net Excess Generation: Credited to customer’s next bill at retail rate*; granted to utility at end of 12-month billing cycle
REC Ownership: Customer owns RECs
Meter Aggregation: Not addressed
Web Site: http://www.energy.maryland.gov/facts/renewable/netmetering.asp
Summary:

Maryland’s net-metering law has been expanded several times since it was originally enacted in 1997. In their current form, the rules apply to all utilities — investor-owned utilities (IOUs), electric cooperatives and municipal utilities. The most significant recent amendments (April 2007) raised the maximum capacity of all eligible systems from 200 kilowatts (kW) to two megawatts (MW). The same law also enhanced the state renewable portfolio standard (RPS).

Residents, businesses, schools or government entities with systems that generate electricity using solar, wind, biomass and CHP resources are eligible for net metering. The law permits outright ownership by the customer-generators as well as third-party ownership structures (e.g., leases and power purchase agreements). The provisions allowing for CHP systems (H.B. 1057) and certain third-party ownership structures (S.B. 981) were added in May 2009 effective July 1, 2009.

Other important details of Maryland’s net metering policy include:

  • Net metering is available statewide until the aggregate capacity of all net-metered systems reaches 1,500 MW. (The aggregate limit on net metering was 34.7 MW prior to the 2007 amendments.)
  • Net excess generation (NEG) is carried over at the utility’s retail rate* to the customer’s next bill for 12 months. Any NEG remaining in a customer’s account after a 12-month period is granted to the utility with no compensation for the customer.
  • Customers own and have title to all renewable-energy credits (REC) associated with electricity generation by net-metered systems.
  • For customers with facilities sized to produce energy in excess of the customer’s consumption, the Maryland Public Service Commission (PSC) must consider the capacity of a customer’s system when determining whether to require a customer to install a dual meter. (A dual meter may be required only if a customer sizes a system to generate electricity in excess of the customer’s consumption.)
  • The PSC must file with the Maryland General Assembly detailed annual reports (2009 Net Metering Report) describing the status of the state’s net-metering program.

Utilities must install a single, bi-directional meter at a customer’s facility (if necessary), and must offer net metering at no additional charge (including standby charges) or increased electricity rate. Customers with systems that meet all applicable safety and performance standards established by the National Electrical Code (NEC), the Institute of Electrical and Electronics Engineers (IEEE), Underwriters Laboratories (UL) and any other PSC requirements may not be required by utilities to install additional controls, to perform or pay for additional tests, or to purchase additional liability insurance.

The PSC is required to develop a credit formula for systems designed to generate more electricity than a customer consumes. The formula must exclude recovery of transmission and distribution costs, and provide that the credit may be calculated “using a method other than a kilowatt basis, including a method that allows a dollar-for-dollar offset of electricity supplied by the grid compared to electricity generated by the customer.”

*Note: Most utility tariffs adopted in response to this law appear to credit customer energy production at the retail purchase rate that includes all kWh-based charges. However, at present it appears that some utility net metering tariffs limit the value that the customer receives for generating electricity to rates that do not include all such kWh-based charges (e.g., per kWh charges for distribution service).


Contact:

  Jerry Hughes
Maryland Public Service Commission
6 St. Paul Street, 16th Floor
Baltimore, MD 21202
Phone: (410) 767-8114
Fax: (410) 333-6495
E-Mail: Jthughes@psc.state.md.us
Web Site: http://webapp.psc.state.md.us/Intranet/home.cfm
 
  Public Information Officer – MEA
Maryland Energy Administration
1623 Forest Drive, Suite 300
Annapolis, MD 21403
Phone: (800) 723-6374
Phone 2: (410) 260-7655
E-Mail: meainfo@energy.state.md.us
Web Site: http://www.energy.state.md.us/

Montgomery County – Clean Energy Rewards Program


State: Maryland
Incentive Type: Local Rebate Program
Eligible Renewable/Other Technologies: Photovoltaics, Wind, Biomass
Applicable Sectors: Commercial, Residential
Amount: $0.005 (0.5 cents) per kWh
Maximum Incentive: Residential: 20,000 kWh/year
Commercial: 400,000 kWh/year
Web Site: http://www.montgomerycountymd.gov/deptmpl.asp?url=/content/dep/re
Date Enacted:
03/08/2005
Date Effective:
06/18/2005
Date Enacted:
07/11/2006
Date Effective:
08/10/2006
Date Enacted:
10/14/2008
Summary:

Note: Due to high demand, all available funds have for this program have already been allocated. It is possible that new program participants will be able to receive awards if additional funding becomes available.

The Montgomery County Clean Energy Rewards program provides incentives to Montgomery County residents, businesses, non-profits, and congregations for purchasing clean energy through certified suppliers. Customers receive a credit of 0.5 cents per kWh ($0.005/kWh)* of clean energy used. The credit applies to purchases of up to 20,000 kWh per year for residential customers and 400,000 kWh per year for non-residential customers. In order to be eligible for a reward, participants must make a minimum clean energy purchase commitment of at least 50% of their annual electricity use. The incentives are distributed by suppliers and will appear as a credit on consumer’s monthly bills. The County’s Department of Environmental Protection, which administers the program, estimates that this credit should offset a significant portion of the incremental cost of clean energy. The exact level of savings depends on the relative costs of green energy products compared to standard utility price offerings.

A list of participating suppliers and descriptions of eligible products are available on the program’s website. The only electricity supplier providing Clean Energy Rewards eligible products is Washington Gas Energy Services. Consumers interested in the program may also purchase renewable energy certificates (RECs). The REC marketers providing eligible REC products are Clean Currents, Sterling Planet, and WindCurrent.

All suppliers and products marketed through the program are certified by DEP. Clean energy products must be generated within the U.S., tracked in a regional RTO or ISO system such as PJM GATS, WREGIS, M-RETS, etc., and composed of solar, wind, methane gas, and/or sustainable biomass. A total of $561,000 is available for rewards until through 2009. Consumers can learn more about the program through the website listed above.

Consumers generating electricity on their property using photovoltaics (PV) can also receive rewards from Montgomery County. Click here for more information on rewards for on-site renewable energy generation.

*County Resolution 16-737 enacted in October 2008 reduced the incentive level to $0.005/kWh for all customers from the prior levels of $0.01/kWh for residential customers and from $0.015/kWh for non-residential customers. The resolution also increased the maximum non-residential purchase from 100,000 kWh to 400,000 kWh.


Contact:

  Susan Kirby
Montgomery County Maryland
Department of Environmental Protection
255 Rockville Pike
Suite 120
Rockville, MD 20850
Phone: (240) 777-7700
E-Mail: Susan.Kirby@montgomerycountymd.gov
Web Site: http://www.montgomerycountymd.gov/deptmpl.asp?url=/Content/dep/index.asp

Clean Energy Production Tax Credit (Personal)


State: Maryland
Incentive Type: Personal Tax Credit
Eligible Renewable/Other Technologies: Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Geothermal Electric, Municipal Solid Waste, Co-firing, Anaerobic Digestion
Applicable Sectors: Commercial, Residential, Multi-Family Residential, Agricultural
Amount: $0.0085/kWh ($0.005/kWh for co-fired electricity)
Maximum Incentive: $2.5 million (total credit during five-year period)
Carryover Provisions: Remainder of credit carried forward to succeeding taxable years until credit is used or until expiration of the 10th taxable year after the taxable year in which the credit began
Web Site: http://energy.maryland.gov/incentives/allprograms/cep_taxcredit.a
Date Enacted:
2000 (subsequently amended)
Date Effective:
07/01/2000
Expiration Date
12/31/2010
Authority 2:
Date Effective:
02/26/2007
Expiration Date
12/31/2010
Summary:

Maryland offers a production tax credit for electricity generated by wind, geothermal energy, solar energy, hydropower, small irrigation power, municipal solid waste and biomass resources. Eligible biomass resources include anaerobic digestion, landfill gas, wastewater-treatment gas, and cellulosic material derived from forest-related resources (excluding old-growth timber and mill residues consisting of sawdust or wood shavings)*, from waste pallets and crates, or from agricultural sources. The list of eligible resources is generally the same as those eligible for the federal renewable electricity production tax credit (PTC), except the Maryland law contains added provisions related to biomass and biogas technologies.

To qualify, a facility that “primarily uses” eligible resources to generate electricity must (1) be placed in service on or after January 1, 2006, but before January 1, 2011, or (2) generate electricity from an eligible resource that is co-fired with coal and initially begins co-firing an eligible resource on or after January 1, 2006, but before January 1, 2011, regardless of when the original facility was placed in service.

An individual or corporation that applies for and receives certification from the Maryland Energy Administration (MEA) may claim a credit equal to 0.85 cents per kilowatt-hour ($0.0085/kWh) against the state income tax, for a five-year period, for electricity generated by eligible resources. The credit for electricity generated by co-firing is 0.5 cents per kilowatt-hour ($0.005/kWh). The electricity generated must be sold to an unrelated person during the taxable year. The MEA indicates that a net metering or interconnection agreement is sufficient documentation for this requirement.

Certificates issued by the Maryland Energy Administration will state the maximum amount of credit over a five-year period and the earliest tax year for which the credit may be claimed. The maximum amount of credit is based on estimated annual energy production during a five-year period, or $2.5 million. The sum of all credits statewide may not exceed $25 million. If the credit in any taxable year exceeds a taxpayer’s state income tax, the remainder of the credit may be carried forward and applied to succeeding taxable years until the credit is used or until the expiration of the 10th taxable year after the taxable year in which the credit began.

Applications for credit certificates will be approved on a first-come, first-served basis. Certificates will not be issued after December 31, 2010. If, over a three-year period, a taxpayer does not claim on average at least 10% of the maximum credit amount stated in the certificate, the Maryland Energy Administration may cancel part of the certificate. In October 2007 the first credit certificate approved under this program was awarded to a landfill methane gas project at the Baltimore County Eastern Sanitary Landfill. The 3 MW project is operated by Pepco Energy Services and the tax credit is valued at $770,661.

Information on certificate applications and other program rules is available from the program website link at the top of this page.

*Eligible mill residues include bark, chips, slabs, and edging, although slabs and edging are usually made into chips.


Contact:

  Chris Rice
Maryland Energy Administration
1623 Forest Drive, Suite 300
Annapolis, MD 21403
Phone: (410) 260-7207
Fax: (410) 974-2250
E-Mail: CRice@energy.state.md.us
Web Site: http://www.energy.state.md.us/

Anne Arundel County – Solar Energy Equipment Property Tax Credit


State: Maryland
Incentive Type: Property Tax Incentive
Eligible Renewable/Other Technologies: Solar Water Heat, Solar Space Heat, Photovoltaics
Applicable Sectors: Residential
Amount: 50% of the cost of materials and installation less any federal and state grants and state solar energy tax credits
Maximum Incentive: $2,500
Date Effective:
01/01/2007
Expiration Date
06/01/2012 (PV systems)
Summary:

Anne Arundel County offers a one-time credit from county property taxes on residential dwellings that use solar energy equipment for heating and cooling, water heating, and electricity generation. Photovoltaic (PV) systems were initially not eligible for the tax credit, but were added by legislation enacted in January 2009 (County Bill 81-08). Devices must be installed on or after January 1, 2007 in order to be eligible for the tax credit. Expenditures for solar pool heating are not eligible for Anne Arundel County’s solar energy tax credit.

The one-time tax credit is calculated as the lesser of the following:

  • 50% of the cost of materials and installation of the solar energy equipment, less the amount of federal and state grants and state solar energy tax credits; or
  • $2,500
It is important to note that the tax credit is credited from the taxes on the dwelling itself and not those levied on the land. Applications must be filed on or before June 1 of the year immediately preceding the year for which the credit is sought. Tax credit applications for PV systems must be filed before June 1, 2012, but no deadlines are specified for other eligible solar energy devices. Please contact the Anne Arundel County Office of Finance for tax credit applications and further information.

Contact:

  Customer Service – Anne Arundel County
Office of Finance
44 Calvert St.
Annapolis, MD 21404
Phone: (410) 222-1144
Fax: (410) 222-1151
E-Mail: custserv@aacounty.org
Web Site: http://www.co.anne-arundel.md.us/Finance/index.cfm

Harford County – Property Tax Credit for Solar and Geothermal Devices


State: Maryland
Incentive Type: Property Tax Incentive
Eligible Renewable/Other Technologies: Solar Water Heat, Solar Space Heat, Photovoltaics, Geothermal Electric, Geothermal Heat Pumps
Applicable Sectors: Commercial, Industrial, Residential, Agricultural
Amount: 100% of total real property taxes for one year
Maximum Incentive: $2,500
Eligible System Size: Devices must meet safety and performance standards set by a nationally recognized testing laboratory.
Web Site: http://www.harfordcountymd.gov/Downloads.cfm?FormID=969
Date Effective:
8/25/2006 (amendments 03/24/2008)
Summary:

Harford County offers a tax credit for real property taxes imposed on residential or nonresidential buildings or other structures that use solar or geothermal devices for heating, cooling, or generating electricity for on-site consumption. The credit amount is equal to one year of total real property taxes or $2,500, whichever is less. Total real property taxes include all real property taxes that would have been paid by the taxpayer for that year for the host building or structure, but not on the land. The original 2006 credit applied only to solar heating and cooling devices and had a limit of $1,000. The 2007 amendments added geothermal devices as an eligible technology, electricity generation as an eligible end-use, and increased the maximum credit to $2,500.

In order to qualify for a tax credit, devices must meet national safety and performance standards as set by a nationally recognized testing laboratory for that type of device. A one-time application must be submitted to the Harford County Director of Administration on or before October 1 prior to the taxable year for which the credit is sought. The total tax credits allowed for any one year may not exceed $150,000 and credits will be issued on a first-come, first-served basis. Subsequent applications will be carried over to succeeding years. Contact the Harford County Office of the Director of Administration for an application.


Contact:

  Anne Gessner
Harford County
Treasury Department
220 South Main Street
Bel Air, MD 21014
Phone: (410) 638-3326
Phone 2: (410) 879-2000
Fax: (410) 638-4101
E-Mail: afgessner@harfordcountymd.gov
Web Site: http://www.harfordcountymd.gov/

Howard County – Residential Solar and Geothermal Property Tax Credit


State: Maryland
Incentive Type: Property Tax Incentive
Eligible Renewable/Other Technologies: Solar Water Heat, Solar Space Heat, Photovoltaics, Geothermal Electric, Geothermal Heat Pumps
Applicable Sectors: Residential, Multi-Family Residential, Low-Income Residential
Amount: 50% of eligible costs
Maximum Incentive: $5,000 for an electric or heating system; $1,500 for a hot water supply system.
Credit may not exceed resident’s property tax liability; excess credit may be carried forward for 2 years.
Web Site: http://www.howardcountymd.gov/DOF/DOF_RealPropertyTaxInformation.
Date Enacted:
10/05/2006 (subsequently amended)
Date Effective:
07/01/2007
Summary:

Under the authority established by Maryland Property Tax Code § 9-203, Howard County allows county property owners to take a property tax credit for the installation of certain renewable energy devices. Real property owners may receive a property tax credit against the county property tax imposed on a residential structure that uses a solar or geothermal energy device. The amount of the tax credit is 50% of the eligible costs up to $5,000 for electricity generating or heat generating systems and $1,500 for a hot water supply system. These limits apply equally to both solar and geothermal devices. All equipment must meet safety and performance standards set by a nationally recognized laboratory for that kind of device.

The amount of credit applied in a tax year may not exceed the amount of property tax imposed for that year, but any amount not taken may be carried over for an additional two years. During a fiscal year, the total amount of all tax credits granted in the county is limited to $250,000. Eligible applicants should submit their applications on or before April 1st each year to receive a credit for the immediately following property tax year beginning on July 1st. Work must be completed in the 12 months prior to an application in order to be eligible for the tax credit. The program web site listed at the top of this page contains the application for the credit.

This local option tax incentive is unique because it is applied in the form of a credit — not an exemption or exclusion, as in the case of most other property tax programs. The original 2006 legislation did not allow property owners to claim the tax credit for solar or geothermal electricity generating devices. These technologies were added as eligible in 2007.


Contact:

  Taxpayer Services – Energy Conservation Device Property Tax Credit
Howard County Government
Department of Finance
3430 Courthouse Drive
Ellicott City, MD 21043
Phone: (410) 313-3196
Web Site: http://www.howardcountymd.gov/

Montgomery County – Residential Energy Conservation Property Tax Credits


State: Maryland
Incentive Type: Property Tax Incentive
Eligible Efficiency Technologies: Equipment Insulation, Furnaces , Boilers, Heat pumps, Programmable Thermostats, Caulking/Weather-stripping, Building Insulation, Windows, Doors, Custom/Others pending approval
Eligible Renewable/Other Technologies: Solar Water Heat, Solar Space Heat, Photovoltaics, Geothermal Heat Pumps
Applicable Sectors: Residential
Amount: Solar and Geothermal Devices: 50% of eligible costs
Energy Conservation Devices: 100% of eligible costs
Maximum Incentive: Space Heating and Electricity Generation: (Solar and Geothermal): $5,000
Water Heating (Solar and Geothermal): $1,500
Energy Conservation: $250 per fiscal year
Web Site: http://www.montgomerycountymd.gov/deptmpl.asp?url=/content/dep/En
Date Enacted:
05/05/2008
Date Effective:
08/04/2008
Date Enacted:
03/13/2009
Date Effective:
01/27/2009 (retroactive)
Date Enacted:
12/10/2009
Date Effective:
12/10/2009
Summary:

Montgomery County offers property tax credits on residential, owner-occupied structures equipped with solar, geothermal, and energy conservation devices. Solar and geothermal systems that heat or cool a structure; provide hot water for a structure; or generate electricity for on-site use in a structure are eligible for a tax credit. Energy conservation devices include a variety of common energy efficiency related improvements but do not include standard household appliances such as washing machines or clothes dryers. All systems must meet performance and safety standards set by a nationally recognized testing laboratory. The tax credit is effective for all property tax years beginning after June 30, 2008.

The geothermal and solar property tax credit is equal to 50% of the cost of the system, up to $5,000 for heating, cooling systems, and electricity generating systems* and $1,500 for water heating systems. Residents may claim only one geothermal or solar energy tax credit per year. The tax credit for energy conservation devices is limited to the cost of the measure up to $250 per fiscal year. Eligible costs include parts, components and accessories necessary to operate the device as well as reasonable installation costs. Only costs incurred during the 12 months preceding a credit application are eligible for a tax credit.

The amount of the tax credit may not exceed the taxes imposed on the property during a fiscal year. Excess credits accrued during a year may be carried forward for up to two additional years. The total value of credits granted by the county during a fiscal year may not exceed $400,000 for solar and geothermal devices and $100,000 for energy conservation devices. In the event that applications during a fiscal year exceed this limit, a credit may be granted the following year or years in the order applications are received. Prior to Council Bill 39-09 enacted in December 2009, the credit limits were set at $250,000 annually for solar and geothermal devices and $250,000 annually for energy conservation devices.

Persons wishing to claim the credit must first obtain a certification for their system from the Montgomery County Department of Permitting Services. Applications for the tax credit are handled by the Montgomery County Department of Finance. Please see the program website for additional information on eligible measures and applications.

*The original law was silent on the maximum credit for electricity generating devices and cooling systems, but was clarified to be $5,000 by Council Bill 02-09. Although this change was not enacted until March 2009, it applies the $5,000 limit retroactively to applications filed on or after January 27, 2009.


Contact:

  Property Tax Information – Montgomery County
Department of Finance
Division of Treasury
255 Rockville Pike, Suite L-15
Rockville, MD 20850
Phone: (240) 777-8931
E-Mail: treasury@montgomerycountymd.gov
Web Site: http://www.montgomerycountymd.gov/govtmpl.asp?url=/content/finance/index.asp

Prince George’s County – Solar and Geothermal Residential Property Tax Credit


State: Maryland
Incentive Type: Property Tax Incentive
Eligible Renewable/Other Technologies: Solar Water Heat, Solar Space Heat, Photovoltaics, Geothermal Heat Pumps
Applicable Sectors: Residential
Amount: 50% of eligible costs
Maximum Incentive: Space Heating: $5,000
Water Heating: $1,500
Solar Electric (PV): Not specified
Date Enacted:
08/11/2008 (subsequently amended)
Date Effective:
09/26/2008
Summary:

In 2008 Prince George’s County enacted legislation offering a property tax credit on residential structures equipped with solar and geothermal systems. As originally devised, the credit could only be taken for systems used to heat and cool a structure or provide hot water for a structure. However, in April 2009 the county enacted additional legislation (Council Bill 05-2009) extending the property tax credit to solar-electric (PV) systems, effective May 22, 2009.

The tax credit is equal to 50% of the cost of the system, up to $5,000 for heating and cooling systems and $1,500 for water heating systems. The 2009 legislation that expanded the tax credit to include PV is silent on monetary limits for electricity generating systems. Eligible costs include parts, components and accessories necessary to operate the device as well as reasonable installation costs. Only costs incurred during the 12 months preceding a credit application are eligible for a tax credit. All systems must meet performance and safety standards set by a nationally recognized testing laboratory.

The amount of the tax credit may not exceed the taxes imposed on the property during a fiscal year. Excess credits accrued during a year may be carried forward for up to two additional years. The total value of credits granted by the county during a fiscal year may not exceed $250,000. In the event that applications during a fiscal year exceed this limit, a credit may be granted the following year or years in the order applications are received. Applications for the tax credit will be handled by the Prince George’s County Office of Finance.


Contact:

  Property Tax Information – Prince George’s County
Office of Finance
Treasury Division
P.O. Box 17578
Baltimore , MD 21297-1578
Phone: (301) 952-5833
Web Site: http://www.co.pg.md.us/Government/AgencyIndex/Finance/index.asp

Property Tax Exemption for Solar and Wind Energy Systems


Last DSIRE Review: 05/22/2009
Program Overview:
State: Maryland
Incentive Type: Property Tax Incentive
Eligible Renewable/Other Technologies: Solar Water Heat, Solar Thermal Electric, Photovoltaics, Wind
Applicable Sectors: Commercial, Industrial, Residential
Amount: 100% property tax exemption for solar and wind energy property
Summary:

In May 2007, Maryland established a property tax exemption for residential solar energy systems. Under this law solar energy devices “installed to heat or cool a dwelling, generate electricity to be used in the dwelling, or provide hot water for use in the dwelling” were exempt from state — but not local — property taxes. However, in April 2008 H.B. 377 was enacted, repealing this exemption beginning July 1, 2008. In place of the rescinded exemption, H.B. 377 inserted another provision exempting solar photovoltaic (PV) and solar hot water systems from real property taxes. The exemption now applies equally to state and local real property taxes. In addition, by removing the term “dwelling” and replacing it with “structure”, the revised exemption appears to no longer be limited to residential systems.

In May 2009 the exemption was amended yet again by H.B. 1171 to add “residential wind energy equipment” as an eligible technology. In order to be qualify, equipment must be sited on residential property and produce electricity to be used in a structure on that property. The new law also revised the definition of eligible solar property to include devices that use “solar thermal electric energy” to generate electricity for use in a structure. A separate piece of legislation, S.B. 621, subsequently amended the definition of solar energy property to include property that generates electricity which is put on the electrical grid (e.g., as in a net metering arrangement). These new provisions will take effect July 1, 2009, the beginning of the next property tax year.

A separate provision of Maryland property tax law offers a special assessment for solar heating and cooling systems. Thus, solar hot water, PV, and wind energy systems are granted an exemption from real property taxes while solar and geothermal heating and cooling systems are granted a special assessment that makes their assessed value equivalent to a conventional system.


Contact:

  Henry Sikorski
Department of Assessments and Taxation
Real Property Valuation Division
300 W. Preston Street
Baltimore, MD 21201-2395
Phone: (410) 767-1199
E-Mail: hsikorski@dat.state.md.us
Web Site: http://www.dat.state.md.us/
 

Special Property Assessment for Renewable Heating & Cooling Systems


 
State: Maryland
Incentive Type: Property Tax Incentive
Eligible Renewable/Other Technologies: Solar Space Heat, Geothermal Heat Pumps
Applicable Sectors: Commercial, Industrial, Residential
Amount: Eligible property assessed at no more than the value of a conventional system
Web Site: http://www.dat.state.md.us/sdatweb/procedures/014070010.htm
Date Effective:
07/01/2008 (as amended)
Title 8 of Maryland’s property tax code allows for a state-wide special assessment provision for solar and geothermal heating and cooling systems. Under this provision, such systems are to be assessed at not more than the value of a conventional system for property tax purposes if no conventional system exists in the building. If a solar or geothermal heating and cooling system is installed in addition to a conventional system in a building, the combined system may be assessed at no more than the value of the conventional system — essentially a full exemption for the qualifying equipment.  
 
Geothermal heating and cooling systems were added as eligible for this incentive by H.B 377 (2008) for tax years beginning after June 30, 2008 (the property tax year begins on July 1st). The 2008 law also clarifies how different types of solar energy systems are treated for property tax purposes. As indicated above, solar heating and cooling systems are granted a special assessment that negates their increased value compared to conventional systems. Solar photovoltaic (PV) and solar hot water systems in contrast receive a full exemption from real property taxes under a separate provision in the tax code. Click here for more information on this exemption.
 

 
Contact:

  Henry Sikorski
Department of Assessments and Taxation
Real Property Valuation Division
300 W. Preston Street
Baltimore, MD 21201-2395
Phone: (410) 767-1199
E-Mail: hsikorski@dat.state.md.us
Web Site: http://www.dat.state.md.us/

Allegheny Power – Residential Energy Efficiency Rebate Program


State: Maryland
Incentive Type: Utility Rebate Program
Eligible Efficiency Technologies: Clothes Washers, Dishwasher, Refrigerators, Lighting, Heat pumps, Air conditioners, Programmable Thermostats, Building Insulation
Applicable Sectors: Residential
Amount: Dishwasher: $25
Clothes Washer: $75
Clothes Dryer: $25
CFL’s: $1.50-$3.00
Programmable Thermostat: $25
Room AC: $25
Room AC Recycling: $25
Refrigerator: $50
Refrigerator Recycling: $35
Freezer: $25
Central AC: $100-$200
Heat Pump: $100-$200
Home Energy Audit: $40 or $180
Maximum Incentive: Room AC/Room AC Recycling: Limit 3
All Other Appliances: Limit 1 per household
Equipment Requirements: Dishwasher: Energy Star rated, annual energy usage of less than 324 kWh/year
Clothes Washer: Energy Star rated, minimum MEF 2.00 or energy usage of 200 kWh or less per year
Clothes Dryer: Must have drum moisture sensor
CFL’s/Programmable Thermostats: UPC labels from packages
Room AC: 10.8 EER
Refrigerator/Freezer: Only available when old unit recycled properly; old units must be between 10-30 cu. ft.
Central AC/Heat Pump: SEER 14 minimum
Web Site: http://www.alleghenypower.com/EngConserv/MD/WattWatchers/RebatesR
Summary:
Allegheny Power (AP) offers various rebate incentives to Maryland residential customers who are interested in upgrading to more energy efficient appliances. Rebates are available on washers, dryers, dish washers, CFL light bulbs, programmable thermostats, room ac units, central ac units, heat pumps, and various recycled appliances. Low cost energy audits are available through AP and help customers identify waste and inefficiency in the home. Check up audits cost only $40 while comprehensive audits cost $180. Electric heating customers participating in either audit program are eligible for a 15% rebate on further insulation measures. Most appliances are only eligible for one rebate per customer per year, however room ac units have a maximum limit of 3 per customer. All efficiency and equipment standards on the AP program website and booklet must be met in order to receive rebates. See program web site listed above for more information on eligible equipment and program guidelines. Customers are asked to allow six to eight weeks for processing.

Contact:

  Allegheny Power
800 Cabin Hill Drive
Greensburg, PA 15601-1689
Phone: (800) 255-3443
Web Site: http://www.alleghenypower.com/APHome.asp

Baltimore Gas & Electric Company (BGE) – Home Performance with Energy Star Incentive Program


State: Maryland
Incentive Type: Utility Rebate Program
Eligible Efficiency Technologies: Water Heaters, Lighting, Furnaces , Heat pumps, Air conditioners, Duct/Air sealing, Building Insulation
Applicable Sectors: Residential
Amount: Air sealing: 15% of cost
Duct Sealing or Replacement: $200
Attic Insulation: 15% of cost
Wall Insulation: 15% of cost
Central A/C: $175 – $350
Heat Pump: $200 – $400
Gas Furnace: $300 – $400
Gas Tankless Water Heater: 15% of cost
Efficient-Flow Shower Heads: 15% of cost
Water Heater Tank Wrap: 15% of cost
Pipe Insulation: 15% of cost
CFL’s: $0.50 per bulb
Maximum Incentive: Attic/Wall Insulation: $400
Gas Tankless Water Heater: $150
Efficient-Flow Showerheads: $10 per fixture
Water Heater Tank Wrap: $15 per wrap
Pipe Insulation: $10 per system
Equipment Requirements: Duct Sealing/Replacement: minimum of 50% duct leakage reduction
Attic Insulation: standards vary by type of insulated space
Wall Insulation: Minimum insulation R-13
Central A/C: Tier 1 ($175) minimum 14.5 SEER, 12 EER; Tier 2 ($400) minimum 15 SEER, 12.5 EER
Heat Pump: Tier 1 ($200) minimum 14 SEER, 11.5 EER, 8.5 HSPF; Tier 2 ($400) minimum 15 SEER, 12.5 EER, 8.5 HSPF
Gas Furnace: Tier 1 ($300) minimum 92% AFUE, Tier 2 ($400) minimum 92% AFUE with ECM or ICM
Gas Tankless Water Heater: Must be Energy Star
Efficient-Flow Showerheads: 1.8 gallons per minute
Water Heater Tank Wrap: Minimum R-6.7 tank wrap
Pipe Insulation: See program website
CFL’s: Must be Energy Star
Web Site: http://conservation.bgesmartenergy.com/residential/home-performan
Summary:
The Baltimore Gas & Electric Company offers the Home Performance with Energy Star Program that includes residential incentives for customers who have audits performed by participating contractors. This is a comprehensive, whole-house approach to improving comfort, energy efficiency and safety. An energy audit of homes will determine the most effective and appropriate energy saving measures for customers. In addition to energy savings and comfort, numerous incentives for energy efficient equipment and appliances are available for participating homes. Contractors are also encouraged to participate in the program. Please see qualified contractors and other important information on BG&E’s program website

Baltimore Gas & Electric Company (BGE) – Smart Energy Savers Residential Rebate Program


State: Maryland
Incentive Type: Utility Rebate Program
Eligible Efficiency Technologies: Clothes Washers, Refrigerators, Lighting
Applicable Sectors: Residential
Amount: Clothes Washers: $50
Refrigerators: $50
Refrigerator/Freezer Recycling: $50
Room Air Conditioners: $25
CFLs: In-store discount of up to 60%
Maximum Incentive: Appliances: One rebate per each appliance type per household
CFLs: 25 bulbs per customer
Equipment Requirements: All appliances and CFLs must be Energy Star rated
Web Site: http://www.bgesmartenergy.com/
Summary:
The Baltimore Gas & Electric Company (BGE) offers the Smart Energy Savers Program for its residential customers to improve the energy efficiency of their homes. Rebates are available for Energy Star clothes washers, refrigerators, freezers and CFLs. The appliance rebate application is located on the program website, and must be mailed in (accompanied by the sales receipt) within 60 days of equipment purchase date. Please consult program list of qualifying products for items before making purchase. The CFL rebates are given in the form of a marked-down price at participating retailers. A list of participating retailers is located on the program website.

Contact:

  BGE Smart Residential Energy Savers Program
c/o ICF International
7125 Thomas Edison Drive, Suite 100
Columbia , MD 21046
Phone: (443) 718-4900
Phone 2: (877) 685-7377
Fax: (410) 290-0754
E-Mail: residential@bgesmartenergy.com
Web Site: http://www.bgesmartenergy.com/

Delmarva Power – Residential Energy Efficient Appliance Rebate Program


State: Maryland
Incentive Type: Utility Rebate Program
Eligible Efficiency Technologies: Refrigerators, Water Heaters, Air conditioners
Applicable Sectors: Residential
Amount: Refrigerator: $50
Room A/C: $25
Water Heater: $20
Maximum Incentive: Refrigerator: $50
Room A/C:$125 (5 rebates)
Water Heater: $20
Equipment Requirements: Refrigerator and Room A/C: Must be Energy Star
Water Heater: Must have Efficiency Factor of at least 0.93
Web Site: http://www.delmarva.com/energy/conservation/appliance/default.asp

Summary:

Delmarva Power offers appliance rebates to its residential customers who purchase select energy efficient products. Rebates are available on refrigerators, room a/c units, and water heaters. Refrigerators and a/c units must be Energy Star qualified and water heaters must have an Efficiency Factor of at least 0.93. Rebates are available to Delmarva Maryland customers on qualifying purchases at any retail store. Rebate applications must include account number, original sales receipt, and must be received within 60 days of purchase. For more information on this program see the program website listed above or the Appliance Rebate Application.

PEPCO – Residential Energy Efficient Appliance Rebate Program


State: Maryland
Incentive Type: Utility Rebate Program
Eligible Efficiency Technologies: Refrigerators, Water Heaters, Air conditioners
Applicable Sectors: Residential
Amount: Refrigerator: $50
Room A/C: $25
Water Heater: $20
Maximum Incentive: Refrigerator: $50
Room A/C:$125 (5 rebates)
Water Heater: $20
Equipment Requirements: Refrigerator and Room A/C: Must be Energy Star
Water Heater: Must have Efficiency Factor of at least 0.93
Web Site: http://www.pepco.com/energy/conservation/appliance/default.aspx
Summary:
Pepco offers appliance rebates to its residential Maryland customers who purchase select energy efficient products. Rebates are available on refrigerators, room a/c units, and water heaters. Refrigerators and a/c units must be Energy Star qualified and water heaters must have an Efficiency Factor of at least 0.93 to receive rebate. Rebates are available to Pepco Maryland customers on qualifying purchases at any retail store. Rebate applications must include account number, original sales receipt, and must be received within 60 days of purchase. For more information on this program see the program web site listed above or the Appliance Rebate Application.

Contact:

  Pepco
Energy Star Rebate Processing Center
7515 Mission Drive
Lanham, MD 20706
Phone: (800) 353-5798
Phone 2: (202) 833-7500
Web Site: http://www.pepco.com/contact/

SMECO – PowerWise Residential Energy Efficiency Rebate Program


State: Maryland
Incentive Type: Utility Rebate Program
Eligible Efficiency Technologies: Programmable Thermostats, Duct/Air sealing, Building Insulation
Applicable Sectors: Residential
Amount: Rebate amounts vary, up to $250
Web Site: http://www.smeco.com/customer/powerwise/index.html
Summary:
SMECO’s PowerWise program helps residential customers save energy by weatherizing their homes and installing items that help conserve energy. Customers pay a minimal fee to receive an energy audit, weatherization services, and energy-efficient items. Rebates are offered for the installation of insulation, pool pump timers, and thermostats. For any home with an electric water heater, SMECO will install tank and pipe insulation, faucet aerators, and water-saving shower heads. If the home is all-electric, air-sealing may also be included if necessary. The PowerWise program offers three separate packages that offer different services depending on what type of heating system the home has. Customers should check the website to see which package they qualify for and to fill out the PowerWise program enrollment form.

Contact:

  SMECO PowerWise Program
Southern Maryland Electric Cooperative
15035 Burnt Store Road
P.O. Box 1937
Hughesville, MD 20637-1937
Phone: (888) 440-3311