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Maryland solar, wind and geothermal tax exemptions open

Administered by Maryland law (Tax-General 11-230 and Tax-Property 7-242), applied by sellers and local assessors.

Maryland law exempts the sale of solar energy equipment, residential wind equipment and geothermal ground-loop equipment from sales and use tax, and keeps residential solar and wind equipment off the real property tax. Both come from state law, not from a program with a budget that can run out.

source · verified 3 October 2026 · amounts in US dollars

What it pays

Maryland's exemptions
ExemptionWhat it coversLaw
Sales and use taxSales of geothermal equipment (ground loop heating and cooling), residential wind equipment and solar energy equipmentTax-General 11-230
Real property taxResidential wind energy equipment, and solar energy property that makes electricity for the building or the grid, or hot waterTax-Property 7-242
Sales tax on solar powerElectricity from residential solar or wind equipment used by an eligible customer-generatorTax-General 11-207

Solar energy equipment excludes equipment that is part of a nonsolar energy system. The property tax exemption carries an exception in Tax-Property 8-240.

Who is eligible

who
Buyers of qualifying equipment for Maryland homes; owners of residential solar or wind equipment.
geothermal
Equipment that uses ground loop technology to heat and cool a structure; air-source heat pumps are not named.
solar
Equipment that uses solar energy to heat or cool a structure, generate electricity for it or the grid, or provide hot water.
federal
The federal Residential Clean Energy Credit ended for systems placed in service after 31 December 2025.

Where the application goes

The sales tax exemption applies at the sale, so ask your installer to apply it; ask your local assessment office about the property tax.

Where the application goes
If this is youApply here
Sales tax lawmgaleg.maryland.gov
Property tax lawmgaleg.maryland.gov

The thing most pages get wrong

Maryland's sales tax break is often described as a solar exemption. The law also exempts geothermal equipment that uses ground loop technology to heat and cool a home, and residential wind equipment.

The geothermal rebate has ended

MEA's $3,000 geothermal rebate closed after its final year, fiscal 2026; the sales tax exemption remains in law.

Low-income solar

Households up to 150% of state median income can also get $750 per kilowatt, up to $7,500, from the Maryland Solar Access Program.

Sources