The Solar Dispatch

Maryland Policy

Maryland Solar Incentives: What's Left in 2026

The federal residential credit ended after December 31, 2025, which leaves the state-run Maryland Solar Access Program as the main rebate on the table. Here is what Maryland homeowners can still apply for, and the order the steps have to happen in.

By the Go Solar DMV news desk · Oct 20, 2026 · 4 min read

Maryland Solar Incentives: What's Left in 2026

Key facts

What Maryland solar incentives are available now?

The short answer to the Maryland solar incentives question in 2026 has two parts. First, the federal residential clean energy credit under Section 25D is over: the IRS lists the termination plainly, stating the credit will not be allowed for any expenditures made after December 31, 20251. Second, the state program is open. The Fiscal Year 2027 Maryland Solar Access Program opened on July 29, 2026, with FY27 program information and documents posted and the My MEA application portal accepting new applications as of that date6.

The statutory change is narrow and specific. Sec. 70506 amends 25D(h) so that the credit does not apply with respect to any expenditures made after December 31, 2025, where the earlier text had run the credit through property placed in service after December 31, 20342. The companion efficiency credit, 25C, ends for property placed in service after December 31, 2025, and the 30C alternative fuel vehicle refueling property credit terminates for property placed in service after June 30, 20261.

That shift is why the Maryland Energy Administration rebate now carries more weight in a homeowner's numbers than it did a year ago. If you want the state-by-state picture across the region, our Maryland solar incentives page tracks what applies here.

Maryland Solar Access Program: deadlines and how it works

The FY27 application deadline is 3:00 PM Eastern Time on May 31, 2027, submitted through the My MEA portal, but MEA notes the application portal may close earlier if budgeted funds are fully requested6. That early close is not hypothetical. For the prior round, a secondary source reports the FY26 program had a $12,000,000 budget and closed to new applications on April 17, 2026 after funding requests exceeded the budget8.

The sequence matters more than the deadline. The program uses a two-step application process7. Applicants must apply for an upfront rebate reservation and have that reservation approved by MEA before installation of the solar PV system, then request the rebate payment after installation and interconnection6. A homeowner who signs, installs and then applies has missed it. Nothing about the order is recoverable after the fact.

There are three participation paths. MEA posted separate Authorizations and Disclosures forms, all issued 7.29.26, covering solar system purchase (outright or with loan financing), lease agreements, and power purchase agreements6.

Who qualifies for the Maryland solar grant?

FY27 targets income-eligible households who contract with a contractor from the MSAP Participating Contractor List6. Eligible applicants are Maryland homeowners who meet the household income requirements defined in the Funding Opportunity Announcement, and third-party contractors who have authorization from a qualifying homeowner and are listed on the FY27 MSAP Participating Contractor List9.

MEA published Attachment B, guidance for calculating household annual gross income, issued 7.29.26, alongside the FOA9. Read that document before assuming you are over or under the line; the calculation method is the program's, not a general rule of thumb.

How much is the Maryland solar grant?

MEA's own FY27 materials point to a calculator rather than a flat figure. The posted documents include FOA Attachment D, the FY27 MSAP Maximum Offer Calculator, which is what determines the offer for a given project9.

A secondary guide reports the rebate as $750 per kW up to $7,500, with a 10 kW system earning the maximum $7,50010. We flag that as unconfirmed for FY27 because it does not come from MEA's FY27 documents. Run the calculator MEA posted and treat any round number you read elsewhere as a starting estimate only9.

Because the rebate reservation comes before installation, system size and the resulting offer need to be settled early. A roof score that establishes realistic production for your roof is useful groundwork before a Step 1 application goes in.

Choosing among Maryland solar companies: the contractor list

The participating contractor requirement exists for consumer protection. The FY27 FOA states that to ensure compliance with the MSAP Consumer Protection Policy, homeowners must use the participating-contractor channel7. The list is gatekept: the Participating Contractor List Application Form is closed, and MEA will review remaining submissions and update the list on a rolling basis through September 30, 20266.

Subcontracting is addressed directly. A participating contractor may employ solar installation subcontractors, and both the contractor and their installation subcontractors must be on the FY27 list at the time the Step 1 application is submitted11. Ask who is physically on your roof, not just whose name is on the proposal.

One practical note for homeowners who turn out not to be income-eligible: checking a company against MEA's FY27 list is still a state-run vetting step worth doing. Separately, MEA notes the FY27 Participating Contractor List has no bearing on eligibility of an existing FY26 or FY25 application6.

Maryland battery incentives: the tax credit is inactive

If you have read that Maryland pays back 30% of a battery installation up to $5,000 through an income tax credit, check the date on that page. MEA's own page marks the Maryland Energy Storage Income Tax Credit as an INACTIVE PROGRAM and states it is no longer accepting applications as of the end of calendar year 2024 per state law, with MEA providing grants for eligible energy storage systems under its FY26 Residential and Commercial Energy Storage Grant Program instead12. MEA also describes redesigning its storage offerings and acknowledges a funding gap from January 2025 until the start of fiscal year 202612.

At least one 2026-dated guide still says MEA offers the Energy Storage Income Tax Credit at 30% of installation costs up to $5,000, which contradicts MEA's site15. Part of the confusion traces to the 2024 session, where SB 970 would have extended the energy storage income tax credit for two additional tax years through tax year 2026 and delayed the start of the MEA grant program by two years to January 1, 2027, with HB 1214 described identically1314. Those are fiscal notes on proposed legislation, not law. Do not plan a battery purchase around the credit.

On the replacement grant, a secondary source reports amounts capped at the lesser of 30% of total installed cost, $5,000 for a residential battery system, or $150,000 for a commercial system16. If storage is part of your plan, our equipment page covers how panels, inverters and batteries fit together.

Questions people ask

Is there still a 30% federal solar tax credit in 2026?

No. The IRS states the residential clean energy credit under Section 25D will not be allowed for any expenditures made after December 31, 20251. The amendment removed the prior end date of property placed in service after December 31, 20342.

I signed in 2025 but my system finished in 2026. Does it qualify?

Sources point the same direction. One analysis notes Section 25D turns on the placed-in-service date, not the contract or payment date, so a system first operational in 2026 falls outside it5. Another frames an expenditure as generally treated as made when the original installation is completed, meaning paying before December 31, 2025 does not preserve the credit if installation finished afterward4.

Can I carry forward an unused 2025 credit?

Sources disagree. One tax-practice page states unused credits can no longer be carried forward3, while another says expiration does not automatically erase a credit generated in a prior year and that unused Residential Clean Energy Credit amounts may be carried forward to reduce tax owed in future years4. Ask a tax professional, not an installer.

Do I have to apply to the Maryland Solar Access Program before installing?

Yes. Applicants must apply for an upfront rebate reservation and have it approved by MEA before installation of the solar PV system, then request the rebate payment after installation and interconnection6. To start the conversation on sizing and eligibility, you can get qualified first.

Does the program cover leases and power purchase agreements?

MEA posted separate Authorizations and Disclosures forms, all issued 7.29.26, for solar system purchase (outright or loan financing), lease agreements, and power purchase agreements6.

Sources

  1. FAQs for modification of sections 25C, 25D, 25E, 30C, 30D, 45L, 45W, AND 179D under Public Law 119-21, 139 Stat. 72 (July 4, 2025), commonly known as the One, Big, Beautiful Bill (OBBB) - irs.gov
  2. Home energy tax credits after 2025: 25C, 25D and 30C - howhouseworks.com
  3. Last Call for Green Energy Tax Credits: What You Need to Know Before They Expire - mmbaccounting.com
  4. Residential Clean Energy Credit 2026 Explained - Anker SOLIX US - ankersolix.com
  5. Clean Energy Tax Credits After OBBBA - ietaxattorney.com
  6. Maryland Solar Access Program - energy.maryland.gov
  7. Funding Opportunity Announcement (FOA) FY27 Maryland Solar Access Program - energy.maryland.gov
  8. Solar Incentives in Maryland (June 2026): Tax Credits, Rebates & Net Metering - solarincentivesbystate.com
  9. MSAP Details - mea.maryland.gov
  10. Maryland Solar Incentives 2026 - marylandsolarguide.com
  11. Attachment C2: Maryland Solar Access Program Authorizations & Disclosures Form - energy.maryland.gov
  12. Maryland Energy Storage Income Tax Credit - energy.maryland.gov
  13. SB 970 Department of Legislative Services Maryland General Assembly - mgaleg.maryland.gov
  14. HB 1214 Department of Legislative Services Maryland General Assembly - mgaleg.maryland.gov
  15. Maryland Solar Incentives, Tax Credits & Rebates (2026 Guide) - thisoldhouse.com
  16. Solar Incentives & Financing in Maryland - Solar United Neighbors - solarunitedneighbors.org
  17. 2026 Maryland Solar Incentives, Tax Credits, Rebates (And More) - ecowatch.com
  18. Guide to Maryland Solar Incentives & Tax Credits in 2026 - solarreviews.com
  19. Maryland Energy Relief Credit - firstenergycorp.com
  20. Maryland Solar Incentives, Tax Credits & Rebates 2026 - energysage.com

See what solar can do for your home · Check your roof score