Governor Hogan has put in place the Clean and Renewable Energy Standards (CARES) legislation to reduce carbon emissions by 50% and eventually 100%. We have a tough road ahead of us to meet these standards and are falling further behind with every new home built in Maryland. We are at about 4% of the goal to reach 14.5% by 2028.. To incentivize homeowners to reach these goals and reduce air pollution Maryland and the Federal government have put in monetary encouragements to purchase solar panels.
First, is the 26% IRS tax credit that solar panel owners receive based on the total cost of the Solar array. This is added to your tax refund check for the year of installation and will no longer be available after 2022. Second, is the Maryland Energy Administration's $1,000 check for installing solar. Third, is the Solar Renewable Energy Credit (SREC) homeowners receive for every 1,000 kilowatts produced annually by a homeowner's solar array. In addition, your solar array produces free power from the abundance of energy the sun shines on your home reducing your utility cost to rent electricity.
The price for solar has dropped 70% in the last ten years and has never been more affordable. Financing with a 650 or better credit score allows for financing with no out of pocket money to install at low interest rates.
Unfortunately, only 1 in 5 homeowners we speak with qualify for solar. First, your solar electricity must be able to offset the fossil fuel electricity by 20%. Then your home must pass a 130 point inspection checking the structural and electrical. Some areas in Maryland have already maxed out the amount of renewable energy that can be put back on the grid determined by the size of the local electrical transformer .
Many Marylanders are unaware that they are paying to fund this program on the electric bill through taxes they pay monthly to the utility company.
Take action to see if you qualify with a free review of your electric usage and home's azimuth to determine if your home may qualify to reduce air pollution and save money. Those who own solar save thousands of dollars each year as costs for residential electricity has grown 6.1% since November 2020 according to the Energy Information Administration EIA.gov