Solar Power in Maryland: A Sunny Market for Homeowners
As the manufacturing and production costs of solar panels continue to plummet it makes more and more sense to consider home solar across the country. While it doesn’t see the long and hot days of California or Texas, Maryland has adopted policies and incentives that are making solar prices competitive with electricity purchased from most local utilities in the state (PEPCO and BGE customers take note).
The first of these incentives is the state’s solar rebate program. Under this program individuals installing solar systems less than 20 kW in size can benefit from a $1,000 rebate, although it’s crucial to note that installers must possess NABCEP certification, ensuring that the installation meets the highest industry standards – when going solar, it’s best to work with a qualified and proven installer. The Maryland Energy Administration has published the Maryland’s Consumers Guide to Solar to help residents with the process and avoid potential scams.
Maryland also provides a Sales and Use Tax Exemption for Renewable Energy Equipment to spare homeowners from paying sales tax on solar panels and related equipment. This, in addition to a 30% Investment Tax Credit (ITC) from the federal government, makes solar cost-competitive. With the typical homeowner in Maryland paying around 13% higher than the national average for electricity, investing in solar panels can quickly see a favorable ROI.
Homeowners who install a solar array sized to meet 100% of their energy needs can potentially pay off the upfront cost in as little as 5-6 years. The average payback period in Maryland, considering various factors, typically averages around 7 years. With the lifespan of solar panels being closer to 25 years, that leaves decades for homeowners to reap the benefits of their rooftop solar array as the sun keeps shining down to power their home.
So why hasn’t everyone “gone solar” if the economics are so rosy? While some caveats will determine how well-suited a roof is for capturing those rays (direction and tilt of the roof, shade vs sun, etc), for most people, it’s a matter of not having considered the cost/benefit. A solar array is an investment similar in cost to a car or a renovation – and that number can look scary for an addition most people don’t have any direct experience with. While almost everyone can attest to the feeling of walking into a neighbor’s newly renovated kitchen, or pulling up to the house with that new car smell, for many solar is unknown and untested. However, unlike a kitchen or that shiny new Tesla, home solar starts earning its keep the moment the utility company flips the switch to power your new system (usually 1-2 weeks after installation).
While some people may be unsure because they have no experience with solar, some may be wary because they’ve heard that solar power can be inefficient, damage roofs, or be a business space for bad actors. Fortunately, with the increased competition in the industry and more people getting into solar, customer reviews have become a meaningful way to vet companies for quality and credibility. Plus, with substantial gains in manufacturing and installation, home solar has come a long way since the days of early adopters and if working with an established company most homeowners find the process relatively painless (certainly way less intrusive and complicated than that home reno you’ve been thinking about).
The final hurdle for many is simply wondering if their home state gets enough sunlight to justify the project. While all good solar companies will provide the interested may-be-solar-owner with a projected cost/benefit analysis, a great solar company will also take your current or projected energy usage into account as well as the amount of sun that hits your roof. For this, historical weather data and tech come together to calculate the amount of energy your system will produce with all that valuable sunlight that’s currently bouncing off your home (and damaging your roofing tiles, by the way).
With all this in mind, the combination of state and federal incentives, decreasing solar panel costs, increasing solar panel efficiency, and competitive solar companies, investing in solar energy becomes an attractive and financially sound choice for homeowners. Not only does it contribute to a greener future, but it also provides substantial economic benefits in the form of reduced (or eliminated!) energy bills and increased home value. While the weatherman still might not be able to tell you exactly what day you should plan that family picnic, with solar it’s sunny days ahead.