Maryland businesses had access to the state’s commercial solar incentive in the FY2026 program, all of which has now been exhausted. The solar incentive had been granting up to $500,000 per property user for rooftop, ground, or canopy solar installations.
According to Maryland’s solar agency, a newly drafted plan for FY2027 is already on the way. The expected timeline for the new plan implementation is fall or summer 2026. The business owners and applicants are advised to stay prepared early on to avail the benefits of the solar plan without their application getting stuck in a long queue. To learn how Maryland commercial solar incentives can maximize the $500K grant in 2026, read till the end.
Explaining the $500,000 Cap
The $500,000 figure is not automatically guaranteed in full amount to each and every business. It is the maximum award grant amount that a business or organisation can receive. Hence, it is not automatically a guaranteed rebate payment. What award amount a certain business can claim depends on a few factors:
- The exact size and capacity of the project measured in kilowatts or direct current (kWDC)
- The installation type and structural setup of the system, such as rooftop, canopy, or ground-mounted.
- Whether the applicant is eligible for equitable access or not.
- The total comprehensive budget or cost of the project
- Whether the solar power system is purchased by the applicant or if it is a lease solar panel.
The program had experienced a significant budget overrun, where the initial $13 million budget was requested to expand up to a budget of $18.8 million. The applicants were awarded the grant on a first-come, first-served basis.
Understanding the Grant Calculations
The FY2026 incentive rates were a precise calculation of how much money a business could receive based on a mix of three things: who’s applying, who owns the system, and how the solar panels are installed. The grant was based on a dollar per kilowatt ($/kWDC) rate or a percentage of total cost, whichever was less for the applicant.
Equitable-Access Applicants (Applicant-Owned): This tier was the most highly supported, up to $2,000/kWDC for rooftop/ground systems or $2,500/kWDC for solar canopies, not to exceed 90% of the total project cost.
Commercial solar applicants (applicant-owned) received standard direct support of up to $1,700/kWDC for rooftop/ground systems or $2,125/kWDC for solar canopies, limited to 75% of total project cost.
Third-Party Owned Systems (Leases/PPAs): Flat rate regardless of applicant type
• Rooftop/Ground systems: $750/kWDC
• Solar Canopies: $1000/kWDC
• No percentage cost cap
To avoid over-funding, the state determines award amounts for applicant-owned systems by comparing the per-kilowatt rate to the percentage of cost of the project, and pays the lower of the two amounts. There is also a hard financial cap that states no individual property owner can receive more than an absolute maximum of $500,000, regardless of the size of the project or the overall project cost.
Details of Application and Projects
The program is intended to help eligible Maryland businesses, nonprofit organizations, and other eligible entities that are interested in developing solar energy projects in the state.
To qualify, the proposed solar installation generally had to be located in Maryland and demonstrate that it would serve a low- to moderate-income community or an identified overburdened or disadvantaged population. The program may provide enhanced incentives for certain applicants and types of projects. These were:
- Nonprofit organizations that met the program’s eligibility criteria.
- Maryland-certified small businesses that can provide the required certification and supporting documentation.
- Veteran-owned businesses that meet the relevant ownership requirements of the program.
- Projects that benefit disadvantaged or overburdened communities, particularly where the installation demonstrated broader community benefits.
Being a small business, however, did not guarantee a higher grant. The businesses or non-profits that will apply are required to submit all the appropriate documents and demonstrate how their specific project meets the incentive grant criteria.
The incentive amount can vary based on the project type, size, and location.
The funding was designed to support solar panels installed on business rooftops, warehouse-mounted sites, factories, parking-lot solar canopies, etcetera. Canopy projects usually received higher incentives than warehouse-mounted projects.
Small vs. Large Business Incentives
Small businesses are required to prepare documents such as electricity bills, business records, property and ownership details, company operating costs, etc., and check whether or not the particular business is eligible for a higher incentive.
For large businesses, the available funding might cover only part of a project. The businesses should focus on using the incentives where higher power consumption might be needed. Businesses should also check whether multiple properties can be eligible separately, FTI, utility programs, solar renewable energy credits, etc.
Conclusion
Maryland’s FY2026 commercial solar incentive enabled qualifying businesses and nonprofits to reduce the costs of rooftop, ground-mount, and canopy solar projects with up to $500,000 per property owner in grants. Now that the program’s funds have been allocated, companies should start preparing for the next 2027 cycle.
The grant amount depends on whether the operation is on a large scale or small, the location of the solar panels, the business structure, the solar installation type, and the cost of the project.
. If you are looking to explore the Maryland Solar Incentive for your business, then Solar Brokers USA is your one-stop site to connect with solar professionals and compare purchase, lease, and PPA options and prepare for the upcoming incentive opportunities.