Property Tax Exemption for Solar and Wind Energy Systems

May 17, 2022


In May 2007, Maryland established a property tax exemption for residential solar energy systems. Under this law solar energy devices “installed to heat or cool a dwelling, generate electricity to be used in the dwelling, or provide hot water for use in the dwelling” were exempt from state -- but not local -- property taxes. However, in April 2008 H.B. 377 was enacted, repealing this exemption beginning July 1, 2008. In place of the rescinded exemption, H.B. 377 inserted another provision exempting solar photovoltaic (PV) and solar hot water systems from real property taxes. The exemption now applies equally to state and local real property taxes. In addition, by removing the term "dwelling" and replacing it with "structure", the revised exemption appears to no longer be limited to residential systems.

In May 2009 the exemption was amended yet again by H.B. 1171 to add "residential wind energy equipment" as an eligible technology. In order to qualify, equipment must be sited on residential property and produce electricity to be used in a structure on that property. The new law also revised the definition of eligible solar property to include devices that use "solar thermal electric energy" to generate electricity for use in a structure. A separate piece of legislation, S.B. 621, subsequently amended the definition of solar energy property to include property that generates electricity which is put on the electrical grid (e.g., as in a net metering arrangement). These new provisions took effect July 1, 2009.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Maryland
Incentive Type: Property Tax Incentive
Web Site:
Administrator: Maryland Department of Assessments and Taxation
Start Date:
Eligible Renewable/Other Technologies:
  • Solar Water Heat
  • Solar Thermal Electric
  • Solar Photovoltaics
  • Wind (All)
  • Wind (Small)
Incentive Amount: 100% real property tax exemption for solar and wind energy property


Name: Md Code: Property Tax §7-242
Date Enacted: 04/24/2008 (subsequently amended)
Effective Date: 07/01/2008


Organization: Department of Assessments and Taxation
Address: 300 W. Preston Street
Baltimore MD 21201-2395
Phone: (410) 767-1199

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.