Federal Investment Tax Credit 2009-2016

Effective January 1, 2009 through December 31, 2016, purchases of qualifying solar electric systems may claim up to 30% of the full cost of installing a system, including making changes or improvements in roofs to which solar panel arrays are to be installed. Unlike the previous Federal Investment Tax Credit (ITC), the expanded credit has no dollar limit to how big the credit can be.

If you have questions about the Federal ITC, we recommend you contact a tax professional. Or you can start with this FAQ page researched and written by our industry’s national trade association: Federal Investment Tax Credit 2009-2016 FAQs (pdf).

Maryland Solar Grant Program FY 2011

(*Updated June 1, 2010)  The Maryland Solar Grant program has changed to mesh with the expanded Federal Investment Tax Credit. The scale of grants retains the previous, maximum grant amount at $10,000 per household from Fiscal Year 2010. What has changed is the amount of the grant per kilowatt (kW) of installed generating capacity. (One kilowatt equals 1,000 watts.)

Based on the information readily available from the Maryland Energy Administration, the scale breaks down this way:

  • first 2,000 watts                  $1.25 per watt                     $2,500
  • watts 2,001 – 10,000          $0.50 per watt                     $4,000
  • watts 10,001 – 20,000        $0.35 per watt                     $3,500

Examples of Typical Systems and the Federal and Maryland Incentives They Can Earn

 System Size

Approx. Costs
for Illustrative Purposes Only

 Maryland
Solar Grant*

 Federal ITC

 % Paid Back From These Two Incentives

 3.15 kilowatts

$25,000

$ 3,075

$ 7,500

$10,575 / 42%

5.40 kilowatts

$35,000

$ 4,200

$10,500

$14,700 / 42%

7.20 kilowatts

$43,000

$ 5,100

$12,900

$18,000 / 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 the Fiscal Year 2011 waitlist, which begins July 1. The sooner you get on the wait list, the faster you can receive the grant you qualify for.

Standard Solar Can Help You Maximize Your Federal Investment Tax Credit and Your Maryland Solar Grant

Combine the Federal Investment Tax Credit, the Maryland Solar Grant, Solar Renewable Energy Credit income, and monthly utility savings and your solar investment can pay for itself within a matter of years leaving you with positive cash flow and a solid return on your investment.  Call us at 301-944-1200 or request a personal solar site assessment and we’ll estimate how much money you qualify for.