Maryland Solar Savings Calculator

Calculate Maryland solar costs, 2026 federal tax-credit status, statewide net metering, SREC revenue, payback period, and 25-year savings.

Maryland 2026 rules: No active state solar income tax credit. The federal Section 25D credit ended for systems placed in service after December 31, 2025. Maryland mandates retail-rate net metering for all electric utilities with monthly rollover. Registered systems can sell Maryland SRECs. County property tax credits vary; there is no statewide property tax exemption.

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Estimates only. Verify utility rates, net metering settlement terms, SREC prices, county credits, and federal tax status with your utility, installer, and tax professional.

What Is the Maryland Solar Savings Calculator?

The Maryland Solar Savings Calculator is a financial estimation tool that compares the cost of installing a residential solar system with the modeled value of electricity generated over 25 years.

The calculator estimates how much a Maryland solar installation costs, how much electricity it generates, when cumulative savings may recover the installation expense, and how much net savings could remain after 25 years. It uses your electric bill, system capacity, installation cost, export credit rate, and additional financial assumptions.

The tool separates solar electricity into energy consumed directly by the home and energy exported to the utility grid. It calculates the financial value of each using the entered electricity rates.

It also includes fields for federal and Maryland tax credits, upfront rebates, county property tax savings, annual utility fees, and SREC revenue. These amounts are based on user-entered assumptions rather than automatically verified benefits.

The results are estimates intended to help homeowners understand possible financial outcomes. They are not guaranteed returns or confirmed installation quotes.

How the Maryland Solar Savings Calculation Works

The calculator estimates installation costs, electricity production, annual savings, and long-term financial results. It uses a 25-year calculation period with fixed assumptions about solar panel degradation and changes in electricity prices.

1. Calculate the Gross Solar Installation Cost

The gross installation cost depends on the solar system’s capacity in kilowatts (kW) and the installed price per watt.

The factor of 1,000 converts kilowatts into watts.

For example, an 8 kW solar installation costing $3.10 per watt has a gross cost of:

8\times1{,}000\times\$3.10=\$24{,}800

2. Determine the Net Installation Cost

The calculator subtracts entered federal and Maryland credit amounts and upfront rebates from the gross installation cost.

\text{Net Cost}=\max\left(0,\ G-\frac{GF}{100}-\frac{GM}{100}-R\right)

In this formula:

G is the gross solar installation cost.
F is the entered federal credit percentage.
M is the entered Maryland state credit percentage.
R represents upfront rebates in dollars.

The net installation cost cannot fall below $0. Both tax-credit percentage fields and upfront rebates start at zero in the calculator’s 2026 setup.

County property tax credits and SREC revenue are not subtracted from the upfront cost. Instead, the calculator adds their entered annual amounts to yearly savings.

3. Estimate Annual Solar Electricity Production

The calculator assumes each kilowatt of installed solar capacity produces 1,250 kilowatt-hours (kWh) of electricity during the first year.

\text{Year 1 Production (kWh)}=\text{System Size (kW)}\times1{,}250

For an 8 kW installation:

8\times1{,}250=10{,}000\text{ kWh}

The calculator assumes electricity production decreases by 0.5% each year after the first year. This decline represents the model’s solar panel degradation assumption.

P_y=1{,}250\times S\times(0.995)^{y-1}

Here, P is annual electricity production, S is system capacity in kW, and y represents the modeled year.

The calculator divides annual production into 12 months using fixed monthly percentages. The percentages total 100% and assign different production levels throughout the year.

4. Estimate Household Electricity Consumption

The calculator estimates annual household electricity usage using the monthly electric bill and retail electricity price.

\text{Annual Usage (kWh)}=\frac{\text{Monthly Electric Bill}\times12}{\text{Electricity Rate (\$/kWh)}}

For example, a $140 monthly bill and an electricity rate of $0.155/kWh produce:

\frac{140\times12}{0.155}\approx10{,}839\text{ kWh}

The calculator distributes this estimated annual usage equally across 12 months. A positive electricity rate is necessary for a meaningful usage calculation because the formula divides by that value.

5. Calculate the Value of Solar Electricity

The calculator separates monthly solar production into electricity consumed directly by the home and electricity exported to the grid.

Directly consumed solar electricity is valued at the retail electricity rate. Exported electricity is valued at the entered export credit rate.

Monthly self-consumption is limited to the smaller of the selected self-consumption share of solar production or the household’s estimated monthly electricity usage. The remaining solar production is treated as exported electricity.

D_m=\min\left(P_m\times\frac{s}{100},\frac{U}{12}\right)

E_m=\max(0,P_m-D_m)

Here, D is directly consumed electricity, E is exported electricity, P is monthly solar production, s is the entered self-consumption percentage, and U is estimated annual household usage.

6. Calculate Annual Savings Including SREC Revenue

The calculator determines the value of self-used and exported electricity for each month. It adds those values for the year, subtracts annual utility solar fees, and adds entered county property tax savings and annual SREC revenue.

\text{Annual Savings}_y=\sum_{m=1}^{12}(D_{y,m}\times r_y+E_{y,m}\times e_y)-A+T+Q

In this formula:

D is directly consumed solar electricity in kWh.
E is exported solar electricity in kWh.
r is the retail electricity rate per kWh.
e is the entered export credit rate per kWh.
A is annual utility solar fees.
T is annual county property tax savings.
Q is annual SREC revenue.

The calculator applies the entered annual utility rate increase to both retail electricity prices and export credit rates. The annual utility fees, county property tax savings, and SREC revenue remain fixed at their entered dollar amounts throughout the model.

The SREC revenue field does not calculate how many certificates a system earns or predict future SREC prices. It simply adds the entered annual dollar amount to modeled savings each year.

7. Determine Payback and 25-Year Net Savings

The calculator adds annual financial savings over 25 years and subtracts the net installation cost.

\text{25-Year Net Savings}=\sum_{y=1}^{25}\text{Annual Savings}_y-\text{Net Cost}

The payback period is the first modeled year when cumulative annual savings equal or exceed the net installation cost.

The calculator reports payback in whole years. A net installation cost of $0 produces an “Immediate” result. If savings do not recover the cost within 25 years, the calculator displays “25+ Years.”

Worked Example: An 8 kW Maryland Solar Installation

Consider a hypothetical residential solar installation using the calculator’s default values:

Input	Example Value
Monthly electric bill	$140
Retail electricity rate	$0.155/kWh
System size	8 kW
Installed cost per watt	$3.10
Export credit rate	$0.155/kWh
Daytime self-consumption	30%
Annual utility rate increase	3.5%
Annual SREC revenue	$0
County property tax savings	$0
Tax credits, rebates, and annual fees	$0

The gross installation cost is $24,800. With no entered upfront incentives, the net installation cost is also $24,800.

Estimated first-year solar production is 10,000 kWh. With 30% self-consumption, 3,000 kWh is used directly and 7,000 kWh is exported under the model.

Because the initial retail and export rates are both $0.155/kWh, first-year electricity savings are:

(3{,}000\times0.155)+(7{,}000\times0.155)=\$1{,}550

The example includes no additional SREC revenue, county property tax savings, or annual utility fees. Therefore, total modeled savings in the first year are $1,550.

After applying the assumed 0.5% annual production decline and 3.5% electricity rate increase, cumulative savings reach approximately $56,382 over 25 years.

Subtracting the $24,800 net installation cost gives approximately $31,582 in 25-year net savings. The calculator identifies Year 14 as the payback year.

These results illustrate how the calculator works. They are not average Maryland savings figures or guaranteed outcomes for a specific home.

How to Use the Maryland Solar Savings Calculator

Follow these steps to estimate solar installation costs and potential long-term savings.

Enter your monthly electric bill. Provide your electricity expense in dollars. The starting value is $140.
Enter your electricity rate. Type the retail electricity price in dollars per kWh. The default is $0.155/kWh.
Enter the solar system size. Specify the proposed installation capacity in kW. The starting value is 8 kW.
Enter the installation cost per watt. Use an installation quote or hypothetical price. The default is $3.10 per watt.
Select your utility. Choose BGE, Pepco, Potomac Edison, or SMECO. The selected utility does not automatically change the mathematical calculation.
Enter your export credit rate. Specify the assumed compensation for exported electricity in dollars per kWh.
Adjust daytime self-consumption. Enter a percentage from 0% to 100%. The calculator starts at 30%.
Enter annual rate increases and utility fees. The annual rate increase defaults to 3.5%, and solar fees start at $0.
Review the battery option and incentives. The form includes a battery storage or high daytime self-use checkbox, federal and Maryland tax-credit fields, upfront rebates, and county property tax savings. The battery checkbox does not itself change the calculation.
Enter estimated annual SREC revenue. Provide an annual dollar amount if you want to include this revenue. The default is $0.
Click “Calculate Savings.” Review the net installation cost, estimated payback period, 25-year savings, and production results.
Click “Reset” to start again. This restores the default input values and hides the previous results.

The main outputs are Payback Period and 25-Year Net Savings. The payback period identifies when modeled savings recover the net installation cost. The 25-year result shows cumulative modeled savings after subtracting that cost.

Understanding Your Maryland Solar Savings Results

The calculator displays financial, electricity production, and environmental estimates. Each result measures a different part of the modeled installation.

Gross System Cost and Net Cost

Gross System Cost represents the calculated installation price before deductions. Federal Credit, State Credit, and Rebates show the entered incentive amounts. Net Cost represents the remaining installation cost after those deductions, with a minimum of $0.

Annual SREC Revenue

If you enter an annual SREC revenue amount greater than zero, the calculator displays an additional row labeled “Annual SREC Revenue.”

This amount is also added to each year’s modeled financial savings. The calculator does not automatically determine SREC registration, eligibility, certificate quantity, or market prices.

Payback Period

Payback Period identifies the first whole modeled year when cumulative financial savings recover the net system cost.

A progress meter compares the payback timeline with the calculator’s 25-year calculation period. The model does not calculate an exact break-even date or month.

25-Year Net Savings

This figure is the cumulative financial benefit after subtracting the net installation cost. A positive value means modeled savings exceed the initial net cost over 25 years.

A negative value means cumulative savings have not fully recovered the installation cost during that period. The result is displayed in U.S. dollars, rounded to whole dollars.

Year 1 Production and Annual Usage

Year 1 Production shows estimated first-year solar electricity generation in kWh. Annual Usage shows estimated household electricity consumption calculated from your monthly bill and retail electricity rate.

System Size is displayed to one decimal place in kW, while production and usage quantities are displayed as whole kWh.

Solar Offset Percentage

Solar Offset compares estimated first-year solar electricity production with annual household electricity usage.

\text{Solar Offset (\%)}=\frac{\text{Year 1 Production}}{\text{Annual Usage}}\times100

For the default example, 10,000 kWh divided by approximately 10,839 kWh produces a displayed solar offset of 92%.

This percentage represents a comparison of total generation and consumption. It does not mean that the household directly consumes 92% of its solar electricity. The displayed offset can exceed 100% if estimated production is greater than annual usage.

25-Year CO2 Offset

The calculator estimates the carbon dioxide offset from cumulative solar electricity production using a fixed conversion factor of 0.45 tons per 1,000 kWh.

\text{CO2 Offset (tons)}=\frac{\text{25-Year Production (kWh)}}{1{,}000}\times0.45

For the default scenario, the calculator estimates approximately 106.0 tons of CO2 offset over 25 years.

This is a simplified environmental estimate. The calculation does not account for changing electricity generation sources or actual emissions conditions over time.

Important Note About the Year 1 Result Labels

Three displayed result labels in the current calculator do not match the values supplied by its underlying calculation code.

The rows labeled “Year 1 Self-Use kWh” and “Year 1 Export kWh” display values from Year 25 rather than Year 1. The row labeled “Net Year 1 Savings” displays the positive portion of the 25-year net savings result, or $0 when that result is negative.

With the default inputs, these rows display approximately 2,660 kWh, 6,207 kWh, and $31,582. The underlying first-year figures are 3,000 kWh directly used, 7,000 kWh exported, and $1,550 in modeled financial savings.

The separate Payback Period, 25-Year Net Savings, and Year 1 Production outputs follow their corresponding calculations.

Factors That Affect Solar Savings in Maryland

Solar System Size and Installation Price

A larger solar installation increases estimated electricity production. It also increases gross installation cost when the installed price per watt remains the same.

The calculator starts with an 8 kW system and a $3.10-per-watt installation price. Both values can be changed to evaluate different hypothetical projects.

Electricity Rates and Net Metering

The calculator values directly consumed solar electricity at the retail electricity rate and exported electricity at the entered export credit rate.

The calculator’s Maryland guidance describes retail-rate net metering with monthly credit rollover. However, the financial formula uses the manually entered export credit rate. It does not separately calculate monthly rollover balances or annual credit settlements.

Selecting BGE, Pepco, Potomac Edison, or SMECO does not automatically change the export rate or apply a utility-specific tariff.

Use the export credit rate applicable to your situation and verify billing terms with your electricity provider.

Daytime Self-Consumption

Daytime self-consumption determines how much modeled solar electricity is valued at the retail rate instead of the export rate.

If the retail rate is higher than the export credit, increasing direct consumption can raise estimated savings, subject to household electricity usage.

The battery storage or high daytime self-use checkbox does not automatically increase the self-consumption percentage or calculate battery costs. Change the numeric self-consumption field to test a different assumption.

SREC Revenue

Solar Renewable Energy Certificates represent qualifying renewable electricity generation. Depending on program requirements, eligible solar system owners may be able to receive revenue from certificate sales.

The calculator’s Maryland guidance identifies an SREC market for registered systems. Its Annual SREC Revenue field allows you to enter a dollar amount that is added to modeled savings each year.

For example, entering $400 adds $400 to each year’s modeled savings, totaling $10,000 over 25 years before considering any other changes in the calculation.

This does not mean a system will earn $400 annually. Actual SREC revenue may vary with certificate eligibility, generation, market prices, and other factors. The calculator does not adjust SREC revenue for these changes.

County Property Tax Credits and Upfront Incentives

The calculator includes a County Property Tax Credit field measured in dollars per year. The entered amount is added to annual financial savings throughout the 25-year model.

The calculator’s 2026 guidance describes county property tax credits as varying by jurisdiction. The calculator does not determine whether a specific property qualifies.

Federal and Maryland credit percentages and upfront rebates are treated differently. These amounts reduce the calculated net installation cost rather than increasing annual savings.

The calculator’s 2026 notes state that the residential Section 25D credit ended for systems placed in service after December 31, 2025, and identify no active Maryland state solar income tax credit. Both credit percentage fields therefore start at 0%.

Tax benefits and eligibility should be verified before entering nonzero incentives. The calculator applies entered percentages mathematically but does not determine legal eligibility.

Electricity Price Growth and Solar Degradation

The calculator increases retail electricity rates and export credit rates by the entered annual utility rate increase percentage. The starting assumption is 3.5% annually.

At the same time, it reduces annual solar electricity production by 0.5%. These assumptions affect financial savings over the calculation period.

They are fixed modeling assumptions, not guarantees of future electricity prices or equipment performance.

Expenses Not Separately Included

The calculator includes entered annual utility solar fees but does not separately calculate solar loan interest, financing payments, maintenance expenses, battery replacement, or other equipment replacement costs.

These expenses can affect actual financial outcomes. For a more realistic estimate, review the complete project cost and any ongoing expenses not represented by the calculator’s inputs.

Frequently Asked Questions

How much money can solar panels save in Maryland?

Estimated savings depend on installation costs, electricity prices, system size, export credits, and additional financial assumptions. With its default 8 kW scenario, the calculator produces approximately $31,582 in modeled 25-year net savings. This is a hypothetical result based on the calculator’s assumptions, not a statewide average or guaranteed savings amount.

How long does it take for solar panels to pay for themselves in Maryland?

The calculator identifies the first modeled year when cumulative savings equal or exceed the net installation cost. Using its default values, payback occurs in Year 14. Your estimated payback period may change with installation costs, utility rates, SREC revenue, incentives, and other entered values.

Does the calculator include Maryland net metering?

The calculator accounts for exported solar electricity using the manually entered export credit rate. It includes utility selections for BGE, Pepco, Potomac Edison, and SMECO, but those selections do not automatically apply different tariffs. Monthly credit rollover and annual settlement arrangements are not separately calculated.

Can I include Maryland SREC revenue in my solar savings estimate?

Yes. The calculator includes an Annual SREC Revenue field. Any entered amount is added to each year’s modeled savings. However, the tool does not estimate certificate production, verify program registration, or predict future SREC market prices. Enter a revenue assumption only after considering the terms that apply to your system.

Can I include county property tax credits?

Yes. The calculator includes a County Property Tax Credit field measured in dollars per year. The entered amount increases modeled annual savings. The field starts at $0, and the calculator does not automatically determine county eligibility or calculate the actual credit available for a particular property.

Why can the solar offset percentage exceed 100%?

Solar Offset compares estimated first-year solar electricity generation with estimated annual household electricity consumption. If production is greater than usage, the ratio exceeds 100%. This does not mean all solar electricity is consumed directly or that the household will have no electricity charges.

Is the Maryland solar savings estimate guaranteed?

No. The result is an estimate based on fixed production assumptions and the financial values entered. Actual savings may differ because of weather, shading, electricity rates, utility billing rules, installation costs, taxes, maintenance, and SREC market conditions. Use the calculator for financial scenario planning rather than as a guaranteed investment return.

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Maryland Solar Savings Calculator