Incentives
Solar Tax Incentives
The federal residential solar tax credit (Section 25D) expired December 31, 2025. State and local incentives are still strong in DC and Maryland — this is the current landscape.
What's still on the table:
SRECs · MSAP · Tax Exemptions
DC and Maryland state and local programs
State & Local Solar Incentives
Federal Incentive Status (2026)
- Residential (Section 25D):Expired Dec 31, 2025
- Commercial (Section 48/48E):30% — begin construction by Jul 4, 2026
- Lease / PPA structures:May indirectly capture commercial credit
What this means for residential
A residential rooftop system installed in 2026 receives $0 in federal tax credit. The savings come from state and local programs covered below: Maryland SRECs and the Maryland Solar Access Program (MSAP), DC SRECs and Solar for All, sales and property tax exemptions, and net metering.
Always verify current federal program status with a qualified tax professional before relying on any incentive in your purchase decision.
Key Dates & Status (May 2026):
- Federal residential ITC (Section 25D): expired Dec 31, 2025. Systems installed in 2026 do not qualify.
- Commercial ITC (Section 48/48E): remains 30%, but commercial projects must begin construction before July 4, 2026 to qualify under current Treasury guidance.
- Maryland Solar Access Program (MSAP): FY26 application portal closed April 17, 2026 (funds exhausted). FY27 expected to launch summer 2026.
- SRECs: register through PJM-GATS at installation; income generated for 15 years after registration.
State & Local Incentives
With the federal residential ITC expired, state and local programs are where the real savings live. They stack across SRECs, exemptions, and grants.
Maryland Solar Access Program (MSAP)
Up to $7,500 grant
Income-eligible MEA grant ($750/kW). Aduu Solar is on MEA's Participating Contractor list. FY26 closed Apr 17, 2026; FY27 expected summer 2026.
Additional Benefits:
- SRECs: $40-$60 per certificate (Flett / Currents) plus 1.5x Brighter Tomorrow Act multiplier on installs Jul 2024 - Jan 2028
- Property Tax: Solar value excluded from MD assessments
- Net Metering: 1:1 retail credit for excess production
- MCGB Loan (Montgomery County): 2.99% APR for first 15 years on qualifying loans (Climate First Bank, income < $163,900)
Indicative 15-year SREC value (8 kW system):
$4,800-$10,800
Higher with the Brighter Tomorrow 1.5x multiplier on eligible new installs
Solar for All (DOEE)
$0 cost
No-cost solar for income-qualified DC households. Administered by DOEE with DCSEU, DC Green Bank, and City First Enterprises. Expanded April 2025 with a $62.45M EPA grant; rolling out to ~12,000 additional households over 5 years.
Additional Benefits:
- SRECs: ~$360-$440 per certificate (2026 vintage; 2026 SACP $440)
- Property Tax: Solar value excluded from DC assessments
- Net Metering: 1:1 retail credit through Pepco
- Permitting: DOB (formerly DCRA) building and electrical permits
Indicative 15-year SREC value (8 kW system):
$43,200-$52,800
8-12 SRECs/year × 15 years × ~$360-$440
Tax Exemptions
No state tax credit, but valuable exemptions
Available Benefits:
- Property Tax: 80% exemption for 5 years
- Sales Tax: Exemption on equipment purchase
- Net Metering: Excellent programs
- Dominion Energy: Select area incentives
Best For:
Homeowners stacking VA exemptions with utility net metering and select Dominion Energy programs
Solar Renewable Energy Certificates (SRECs)
What are SRECs?
When your solar system generates 1,000 kWh (1 MWh) of electricity, you earn 1 SREC that can be sold on the market. This creates an ongoing income stream for 15 years in addition to your electricity savings.
Maryland SREC Market
Source: Flett Exchange, Currents (Jan 2026). Multiplier per Brighter Tomorrow Act of 2024.
DC SREC Market
Source: Flett Exchange (Jan 2026, 2026 vintage). DC has one of the strongest SREC markets in the country.
How to Earn SRECs:
- 1.We register your system with PJM-GATS during installation
- 2.SRECs automatically generate as your system produces electricity
- 3.Choose an SREC aggregator or broker to sell your certificates
- 4.Receive quarterly or annual payments for 15 years
Build Your Incentive Plan with Real Project Data
We no longer publish sample-math calculators on this page because real solar economics depend on your roof geometry, utility usage profile, jurisdiction, and financing structure.
Instead, we provide project-specific line-item proposals that show how each applicable program affects your economics: state grants (where eligible), SREC registration, utility bill offset, and financing terms.
If you want a full projection, request a quote and we will share assumptions transparently before design approval.
How to Claim Your Incentives
- 1.Residential (Section 25D): credit expired Dec 31, 2025. No federal credit for 2026 residential installs.
- 2.Commercial (Section 48): 30% credit, must begin construction before July 4, 2026.
- 3.Lease / PPA: system owner (lessor) takes the commercial credit; you may see lower payments.
- 4.Verify current IRS guidance with a qualified tax professional before relying on any federal benefit.
- 1.Confirm MSAP income eligibility (limits scale by household size)
- 2.Apply via the MEA MyMEA portal when the FY27 window opens (anticipated summer 2026)
- 3.Receive grant up to $7,500 ($750 per kW) on a first-come, first-served basis
- 4.Aduu Solar handles the application end-to-end as an MSAP Participating Contractor
- 1.We handle PJM-GATS registration
- 2.Choose your SREC broker
- 3.SRECs auto-generate as you produce
- 4.Receive passive income payments
We handle the complex paperwork! Aduu Solar assists with SREC registration and can recommend reputable aggregators. We make claiming your incentives as easy as possible.
Incentive FAQs
The federal residential solar tax credit (Section 25D) expired December 31, 2025. Residential systems installed in 2026 do not receive a federal credit. The commercial solar tax credit (Section 48/48E) remains available at 30%, but commercial projects must begin construction before July 4, 2026 under current Treasury guidance. Solar lease and PPA structures, where a third party owns the system, may indirectly capture the commercial credit and pass savings to homeowners through lower monthly payments. Always verify current IRS guidance with a qualified tax professional.
Yes. State and local programs stack. Maryland residents can combine the state property tax exemption with SREC income (registered through PJM-GATS) and, if income-eligible, the Maryland Solar Access Program (MSAP) grant. DC residents can stack DC SRECs with the property tax exemption and, if income-eligible, Solar for All. Virginia residents stack the local-option property tax exemption with the sales tax exemption and 1:1 net metering credits.
SRECs are registered through PJM-GATS at installation; we handle the paperwork. MSAP uses the MEA online portal during open application windows (Aduu Solar is on MEA's official Participating Contractor list). VA sales tax exemption uses Form ST-11 or ST-11A at point of sale. Property tax exemptions are filed with your local commissioner of revenue (VA) or are automatic on assessment (MD/DC). The federal residential ITC is no longer available; for commercial leases/PPAs, the lessor handles the federal claim.
SRECs are tradable certificates earned when your solar system generates 1,000 kWh of electricity. In Maryland and DC, you can sell these certificates for additional income. Maryland SRECs currently trade $40-$60 each (Flett Exchange / Currents), with a 1.5x multiplier on systems installed July 2024 - January 2028 under the Brighter Tomorrow Act. DC SRECs trade much higher (see DC market data above). An 8 kW system generates 8-12 SRECs per year base; with the MD multiplier, that translates to up to ~18 effective SRECs annually.
Yes! Battery storage systems may qualify for state and local incentives when installed with solar panels. This means batteries like Tesla Powerwall, Enphase batteries, and others may be eligible for various incentive programs depending on your location.
The Maryland Solar Access Program (MSAP) provides grants up to $7,500 ($750 per kW) for income-eligible Maryland homeowners. For an average residential system, that's a meaningful share of the upfront cost. MSAP grants stack with SREC income and Maryland's property tax exemption. Aduu Solar is on MEA's official MSAP Participating Contractor list, so we can take you through the application step by step when the FY27 window opens (anticipated summer 2026).