System size varies based on your roof size, electricity usage, and budget. (Our average home fits 7kW.) Example, not actual bulk purchase discount pricing
|System Size Range|
(Small row house)
|Market-Rate System cost before incentives||$9,750||$29,250|
|Bulk purchasing program discount||-$1,500||-$7,200|
|Initial upfront cost (after Co-op discount)||$7,350||$22,050|
|Electricity Bill Savings (in year 1) (read more)||-$465||-$1,395|
|30% Federal Tax Credit (read more)||-$2,205||-$6,615|
|Maryland Residential Clean Energy Grant||-$1,000||-$1,000|
|Solar Renewable Energy Credits (in year 1) (read more)||-$36||-$108|
|Total Cost (after one year)||$3,644||$11,755|
There are several low interest loans available to help homeowners afford the upfront cost of going solar. In general, the monthly electricity savings will be greater than the monthly loan payment. Many homeowners take out a home equity line of credit to cover the upfront cost of their system.
Another option is a lease or power purchase agreement (PPA). With a PPA, you don’t pay anything for the solar system and the system is owned by the company that installed it. You then sign a 15-20 year contract with the company, agreeing to buy the energy that the solar panels produce. Generally, the price you pay for your solar energy is less than the price you would have been paying your utility. The PPA may have an escalator that raises the electricity price by about 2-3% per year. This increase is expected, but not guaranteed, to be less than the increase in the BGE electricity prices. If you don’t have enough tax liability to take advantage of the tax credit, the PPA could be the perfect option for you.