Maryland’s Energy tax credits for residential energy storage projects (think battery systems) were so popular in 2023 that the Maryland Energy Administration (MEA) stopped taking tax credit applications in August, anticipating the state would run out of designated funds well before the end of the year. Maryland’s lawmakers had agreed to set aside $750,000 in the 2023 tax year. Once the money was given out in tax credit certificates, that was it for the year.

The MEA was authorized to give out tax credits for 30% of the cost of an energy storage system — up to $5,000 in tax credits for a system installed in a residential property, and up to $150,000 for a system installed in a commercial property.

For many homeowners and businesses, these credits offered a big incentive to add energy storage components for a variety of reasons — to weather power outages, offset peak demand charges and establish energy stability for themselves.

The popularity of the tax credits this calendar year are a preview of 2024. Under Maryland law, the new year will replenish the Maryland Energy Storage Income Tax Credit fund back to its annual level of $750,000. That means homeowners and businesses can start adding energy storage and battery systems, and tap into the new pool of credits for 2024. The fund is set to run through the end of 2024, as long as the money holds out.

Maryland customers thinking of adding a battery storage system to tie into your solar panels should act early in 2024 to grab the state tax incentives while they last. mtvSolar is proud to serve customers all over Maryland and has the battery expertise to talk you through your options. Call us at 540-686-2052 to find out more.