The dollar amounts for grants issued by the Maryland Energy Administration (MEA) for qualifying solar electric systems have been posted and the program is poised to serve a greater number of homeowners in the state. The MEA is expected to publish new rules and a new scale for incentives by July if not beforehand.
The scale of grants is to retain the maximum grant amount at $10,000 per household from Fiscal Year 2009 (ending June 30, 2009). What is expected to change for Maryland homeowners and businesses who earned a place on the State’s wait list after November 30, 2008 is the amount of the grant per kilowatt (kW) of installed generating capacity. (One kilowatt equals 1,000 watts.)
Based on the latest information available and what is posted on MEA’s web site, the scale would break down this way:
- First 4 kilowatts $1,250 per kilowatt $5,000
- 4 – 8 kilowatts $1,000 per kilowatt $4,000
- 8 – 10 kilowatts $ 500 per kilowatt $1,000
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 with no limit on the dollar amount.
Examples of Typical Systems and the Federal and Incentives They Can Earn in Maryland
(There are different state incentives in Washington, DC and Delaware. Certain counties in Maryland also offer property tax credits of up to $5,000.)
System Size |
Approx. Costs
for Illustrative Purposes Only |
Maryland
Solar Grant |
Federal ITC* |
% Paid Back From These Two Incentives |
3.15 kilowatts |
$30,000 |
$ 3,900 |
$ 9,000 |
$12,900 / 43% |
5.40 kilowatts |
$50,000 |
$ 6,150 |
$15,000 |
$21,150 / 43% |
7.20 kilowatts |
$66,000 |
$ 7,950 |
$19,800 |
$27,750 / 42% |
* This credit may be deemed taxable income by Maryland and other states. Consult a tax advisor to determine what impact, if any, it could have on your tax obligations and withholdings.
Applications are being reviewed and placed in order on a new waitlist for Fiscal Year 2010 which begins July 1, 2009. The sooner you get on the wait list, the faster you can receive the grant you qualify for. Other rules may apply when they are finalized.
If you want to comment on these incentives, you can do so by sending an email to: meainfo@energy.state.md.us or calling 1-800-72ENERGY.
The wait list to be funded out of Fiscal Year 2009, which ends June 30, 2009 can be found here: http://www.energy.state.md.us/documents/SolarGrantWaitlist22309.pdf
The wait list to be funded out of Fiscal Year 2010, which begins July 1, 2009, can be found here:
http://www.energy.state.md.us/documents/FY10Waitlist3_20_09.pdf
For a similar breakdown in Washington, DC, go to our dedicated web page at:
http://www.standardsolar.com/dc