If you've been putting off going solar, 2026 might feel like a strange time to finally pull the trigger. The 30% federal tax credit that made solar a no-brainer for over a decade has ended for homeowners who buy their systems outright, and headlines about a slowing solar market aren't helping anyone feel confident. So is this actually a good year to install solar, or should Maryland homeowners wait for the dust to settle?
What Changed, and Why It Matters
The federal Residential Clean Energy Credit officially expired for systems installed after December 31, 2025. That means homeowners purchasing a system with cash or a loan in 2026 no longer get the automatic 30% discount that used to make the payback period so attractive. It's a real change, and it's fair to feel a little less urgency than you might have a year ago.
But here's what most headlines leave out: the tax credit didn't disappear for everyone. Homeowners who go solar through a lease or Power Purchase Agreement (PPA) can still benefit indirectly, because the companies that own those systems remain eligible for a federal commercial credit through 2027. In practice, that often means little to no money down and immediate savings on your electric bill, without ever touching the now-expired homeowner credit.
Why Waiting Isn't Necessarily the Safe Choice
Electricity rates aren't standing still while you wait. Utility rate increases have been steady for years, and every year you delay is another year of paying full price for power instead of locking in predictable, often lower costs. On top of that, Maryland's net metering program, which credits solar owners at full retail rate for excess energy sent to the grid, is set to change by mid-2027. The incentive structure you can access today may not look the same twelve months from now.
There's also a local business case worth mentioning. For small businesses and non-profits considering commercial solar in Maryland, the commercial tax credit remains one of the strongest financial tools available in 2026, but it comes with a "begin construction" deadline that developers are racing to meet. That urgency doesn't really apply to residential leasing customers in the same way, which is good news if you're a homeowner who isn't ready to rush.
So, Rush or Wait?
The honest answer depends on how you plan to go solar. If you were counting on the 30% federal credit to make a cash purchase pencil out, it may be worth re-running the numbers with current incentives, including Maryland's state grant, property tax exemption, and SREC income, before deciding to wait. If a lease or PPA fits your situation, there's little reason to delay: you keep access to savings today without absorbing the risk of future incentive changes.
The smartest move isn't rushing or waiting blindly. It's understanding which incentives actually apply to your situation before you commit. That's exactly the kind of conversation our team is built for.
Comments