Sales and Use Tax Exemption for Residential Solar and Wind Electricity Sales

March 07, 2023


In May 2011 Maryland enacted legislation providing a sales and use tax exemption for sales of electricity from qualifying solar energy and residential wind energy equipment to residential customers. In order to qualify for the exemption, the sale of electricity must be for residential use on a property owned by a net metering eligible customer-generator. Maryland already exempted energy sales under residential or domestic rate schedules on file with the Maryland Public Service Commission (PSC) from the sales and use tax. The law therefore places sales/purchases of electricity under residential solar or wind retail power purchase agreements (PPAs) on a level playing field with customer purchases of electricity from the grid. The exemption took effect July 1, 2011.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Maryland
Incentive Type: Sales Tax Incentive
Web Site:
Administrator: Comptroller of Maryland
Start Date:
Eligible Renewable/Other Technologies:
  • Solar Photovoltaics
  • Wind (Small)
Incentive Amount: 100% exemption from sales and use tax
Maximum Incentive: None


Name: Md Code: General Tax §11-207(a)(5)
Date Enacted: 05/19/2011
Effective Date: 07/01/2011


Name: Information Specialist (Sales Tax) - Comptroller of Maryland
Annapolis MD 21411
Phone: (800) 638-2937

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.