Live in the Old Line State? Looking for backup power? Marylanders in Baltimore and beyond are saving thousands on taxes thanks to federal and state energy storage incentives.
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What storage incentives are available in Maryland?
Maryland is one of the only states in the country currently offering a statewide tax credit for home and business owners purchasing energy storage systems.
MD’s energy storage tax credit
As a Maryland taxpayer, you can claim up to 30 percent of the cost of your energy storage system as a credit towards your state income taxes. The state caps the credit at $5,000 for residential systems, enough to cover about one-third of the average cost of a home battery system. Commercial properties that install larger storage systems can claim a credit of up to $150,000.
Funding is limited for this incentive: MD can provide up to $750,000 in tax credits each year, and the credits are awarded to eligible participants on a first-come, first-served basis.
Maryland tax benefits for energy storage
Charging your battery with self-generated solar energy? If so, you can save even more on your taxes thanks to the federal investment tax credit (ITC).
The federal investment tax credit (ITC)
With the federal investment tax credit (ITC), you can claim up to 30 percent of the cost of your solar battery as a credit towards your federal taxes. For most homeowners, the ITC can help decrease the cost of a battery by an additional $3,000 to $4,000.
Importantly, standalone storage is not currently eligible for this credit – but it will be starting in 2023 thanks to the Inflation Reduction Act! To claim this incentive for the remainder of 2022, you need to charge your battery with an on-site renewable energy source (like rooftop solar). If you have a residential solar panel system and you charge your battery with electricity from the grid, you cannot take advantage of this credit right now.