The Maryland Energy Administration last Friday announced (quietly) that it would reduce the amount of grant money available for the installation of solar home energy systems. As is typical in states that offer meaningful solar incentives, demand is at risk of outpacing supply, according to the Solar Energy Grant Program website:

The Maryland Energy Administration’s budget for its residential solar and geothermal grant programs has seen a near ten-fold increase over the last two years.  Fiscal year 2010 was a record funding year for MEA; supported by funds from the American Recovery and Reinvestment Act of 2009 (ARRA) as well as proceeds from the Regional Greenhouse Gas Initiative (RGGI), MEA was able to award grants to more than 2,000 Maryland residents and small business owners.

Demand for MEA’s residential Solar Enegy Grant Program remains high with several hundred applicants still awaiting grant approval  With the strong rate of incoming applications, MEA has now reserved all of its budgeted ARRA funds for its residential solar grant program. Out of a desire to extend our solar and geothermal grant programs beyond this fiscal year to continue reaching as many Marylanders as possible, MEA is announcing an update to the calculation of our Solar PV, Solar Hot Water grants.

What does this all mean? Maryland homeowners interested in going solar can count on the following incentive levels going forward:

• Solar photovoltaic (PV) systems: $500 per kilowatt (DC) of installed capacity
• Solar hot water systems: 20 percent of system costs or $1,500, whichever is lower

Stay tuned for more details on solar power projects in Maryland.