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Solar in Maryland
At 21.41¢ per kWh and 1392 kWh of production per kW each year, a household paying $200 a month needs a 7.57 kW system. Paid in cash, it returns its $19,833 cost in 8.7 yr.
Two prices, two answers
Payback 8.7 yr — at competitive quoted prices ($2.62/W, EnergySage 2026): net cost $19,833, 25-year net $46,763.
Payback 14.2 yr — at typical reported prices ($4.30/W, LBNL 2023): net cost $32,550, 25-year net $34,046.
The gap is methodology, not staleness: the first what you get if you shop around for competitive quotes; the second what the average buyer actually paid, as recorded in permit and incentive data. Every table below uses quoted prices. Why we show both.
By monthly bill
| Your bill | Use / yr | System | Panels | Net cost | Payback | 25-yr net (cash) | Lease, year 1 |
|---|---|---|---|---|---|---|---|
| $100/mo | 4,932 kWh | 3.54 kW | 9 | $9,283 | 9.3 yr | $18,937 | $317 |
| $150/mo | 7,735 kWh | 5.56 kW | 14 | $14,558 | 8.9 yr | $32,850 | $497 |
| $200/mo | 10,537 kWh | 7.57 kW | 19 | $19,833 | 8.7 yr | $46,763 | $677 |
| $300/mo | 16,142 kWh | 11.6 kW | 29 | $30,382 | 8.5 yr | $74,588 | $1,037 |
Cash, loan or lease — at $200 a month
| How you pay | 25-year net | Upfront | Year 1 | Payback / cash flow | Federal credit to you |
|---|---|---|---|---|---|
| Cash | $46,763 | $19,833 | $2,106 | 8.7 yr | $0 |
| Loan $154/mo · 6.99% APR · 20 yr | $29,721 | $0 | $262 | immediate (+$262 in year 1) | $0 |
| Lease / PPA | $18,997 | $0 | $677 | immediate (+$677 in year 1) | $0 |
The 30% federal credit goes to the system owner, not to you. It is reflected in the rate you are offered. The owner claims it at 30% under IRC 48E.
The inputs, and where they came from
| Input | Value | Source |
|---|---|---|
| Residential electricity rate | 21.41¢/kWh | U.S. EIA API v2, electricity/retail-sales, residential sector, 2026-07 |
| Specific yield | 1392 kWh/kW/yr | NLR (formerly NREL) PVWatts v8 API, 1 kW reference system (state:MD) |
| Installed cost | $2.62/W | EnergySage Marketplace real-quote average, as of Sep 2026; page updated 2026-08-28 · LBNL Tracking the Sun 2023 median: $4.3/W, reference only |
| Export compensation | full retail net metering · 100% | Monthly kilowatt-hour credits offset consumption at the retail rate. By default any balance still unused is settled each April at the generation or commodity portion of the rate, averaged over the previous 12 months; a 2023 law lets a customer instead roll credits forward indefinitely at full retail value. Systems may not exceed 2 MW. Full retail within the year. The April settlement rate applies only to a balance the customer never used, which a system sized to annual load largely avoids. Follows: All electric companies, under Maryland Public Utilities Article 7-306. Source, read 2026-09-05. |
| Federal credit, purchase | 0% | IRC 25D (expired) |
| Federal credit, third-party owner | 30% | IRC 48E (Clean Electricity Investment Credit) |
| State incentives | $0 | No upfront statewide credit or rebate for a typical owner-occupier (verified) |