Maryland Is Offering Incentives for Businesses To Invest in Solar Energy
The growing popularity of Maryland’s solar grant program demonstrates how dozens – and soon hundreds – of Maryland businesses see the value of investing in solar electric systems. The Maryland Energy Administration (MEA) published new rules and a new scale for incentives during the Summer of 2009.
The scale of grants retained the maximum grant amount at $10,000 per business from 2008. What changed is the amount of the grant per kilowatt (KW) of installed generating capacity. (One kilowatt equals 1,000 watts.) Based on what is posted on MEA’s web site, the scale breaks down this way:
- first 2,000 watts $1.25 per watt $2,500
- watts 2,001 - 8,000 $0.75 per watt $4,500
- watts 8,001 - 20,000 $0.25 per watt $3000
This grant scale has been set to complement the new and compelling Federal Investment Tax Credit (ITC) which earns solar buyers a tax credit (not a deduction) equal to 30% of the full installed system cost and the new Federal 30% grant.
Examples of Typical Systems and the Federal and Maryland Incentives They Can Earn
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System Size
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Approx. Costs
for Illustrative Purposes Only
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Maryland
Solar Grant
|
Federal ITC*
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% Paid Back From These Two Incentives
|
|
3.15 kilowatts
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$25,000
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$ 3,363
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$ 7,500
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$10,863 / 43%
|
|
5.40 kilowatts
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$35,000
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$ 5,050
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$10,500
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$15,550 / 44%
|
|
7.20 kilowatts
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$43,000
|
$ 6,400
|
$12,900
|
$19,300 / 45%
|
This credit may be deemed taxable income by Maryland and other states.
Applications are being reviewed and placed in order on a new waitlist for fiscal year 2010 which officially began July 1, 2009. The sooner you get on the wait list, the faster you can receive the grant you qualify for.
How the Program Funding Was Designed
The money from this program comes from the Regional Greenhouse Gas Initiative (or “RGGI - pronounced "Reggie") auctions of carbon emissions allowances and not from taxes and other traditional state proceeds. The auctions put a price on a ton of carbon dioxide emitted by power generators and other polluters.
Maryland is a part of a network of 10 states that participate in these auctions to help motivate utilities and industrial companies to reduce their carbon footprints. More information is online at www.rggi.org.
In addition to the Solar Grant Program, the MEA allocates the money from these RGGI funds for other energy-related programs.
Standard Solar Can Help You Maximize Your Maryland Solar Grant
Call us and we’ll estimate how much money you qualify for and help secure your grant as quickly as possible. Don’t hesitate to email or call us at 301-944-1200 and info@standardsolar.com.