Energy Storage Tax Credit

March 28, 2023


Maryland provides a tax credit to taxpayers who install energy storage systems in their residential or commercial property. The tax credit is 30 percent of the total installed costs of the system, up to $5,000 for residential property and $150,000 for commercial property. Taxpayers must apply to the Maryland Energy Administration (MEA) to receive a tax credit certificate, which then qualifies them for the tax credit. MEA will award up to $750,000 in energy storage tax credits each year on a first come, first served basis while funding is available. MEA is reserving $300,000 for residential taxpayers and $450,000 for commercial taxpayers. If either of the reserved funding allocations become oversubscribed, eligible applicants will be placed onto a wait list as long as funding remains in the other funding allocation. The reserved funding allocations by category will be removed on August 1, 2019, and tax credits will be assigned to eligible applicants on the waitlist in the order the eligible applications were received. Residential and commercial applicants placed onto the waitlist in a given tax year cannot be carried over to any future tax year.

See the website above for additional information and requirements.  

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Maryland
Incentive Type: Personal Tax Credit
Web Site:
Administrator: Maryland Energy Administration
Start Date:
Eligible Renewable/Other Technologies:
  • Lithium-ion
Incentive Amount: 30% of installed cost
Maximum Incentive: Residential: $5,000
Commercial: $150,000


This program has 2 incentives
Technologies: Lithium-ion
Sectors: Residential, Multifamily Residential
Parameters: The incentive is 30.00 % of cost, The incentive has a minimum of $5000.00
Technologies: Lithium-ion
Sectors: Commercial, Industrial, Agricultural
Parameters: The incentive is 30.00 % of cost, The incentive has a minimum of $150000.00


Name: MD Tax Code § 10-719
Name: H.B. 980
Date Enacted: 05/08/2020
Effective Date: 07/01/2020


Name: Public Information
Organization: Maryland Energy Administration
Phone: (410) 537-4000

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.