Federal Solar Tax Credit (ITC)
The Federal Solar Tax Credit, also known as the investment tax credit (ITC), allows you to deduct 26 percent of the cost of your solar energy system from your federal taxes.
USDA’s Rural Energy for America Program (REAP) provides guaranteed loan financing and grant funding (up to 25% of total project cost) to agricultural producers and rural small businesses for solar energy systems.
Under the Modified Accelerated Cost-Recovery System (MACRS), businesses may recover investments in certain property through depreciation deductions. A number of solar energy technologies are classified as five-year property.
Solar Renewable Energy Certificates (SRECs) are a solar incentive that allows system owners to sell energy certificates to their utility company. Owners earn one SREC for every 1,000 kilowatt hours (kWhs) produced by their solar panel system.
The Maryland Energy Administration (MEA) manages grants, loans, rebates, and tax incentives designed to help attain Maryland’s Goals in energy reduction, renewable energy, climate action, and green jobs.
Net metering allows owners of solar energy systems to receive full retail credit for any excess electricity their renewable energy systems generates.