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Tax Credits and Rebates

Solar Power Tax Credits and Solar Rebates

Solar Energy Federal Tax Credit

Beginning January 1, 2011 through December 31, 2011, you may qualify for a tax credit of up to $500 on your 2011 federal income tax return. The “Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act” (H.R. 4853) gives homeowners the ability to receive:

  • 10% up to $200 for windows,
  • 10% up to $500 for doors,
  • 10% up to $500 on insulation and some roofs, and
  • 10% up to $300 on non-solar water heaters.

A $500 lifetime credit is available. Consult with a qualified tax adviser to confirm eligibility. Visit energystar.gov for more information.  Please note, not all ENERGY STAR® qualified products qualify for a tax credit.

  • Home improvement tax credit: 10% of cost of the home improvement, up to a maximum of $500.
  • Expiration: December 31, 2011
  • Eligibility: Must be on an existing home & your principal residence.   New construction and rentals don’t qualify.

Maryland Energy Administration – Maryland Home Performance Rebate

Starting January 20, 2011 Marylanders can save up to 50% on home energy efficiency upgrades.  The program, designed to bring Maryland closer to achieving its goal of reducing energy consumption by 15% by 2015, offers a 35% rebate (up to $3,100 total) toward qualifying home efficiency upgrades.  When combined with the existing utility-sponsored rebates of 15% off the cost of qualifying home efficiency upgrades, Marylanders are able to reduce the cost of upgrading their home by as much as half.

Eligible Improvements include:

  • $100 for energy audits
  • 35% up to $1,500 for whole-house air sealing
  • 35% up to $1,500 for attic insulation
  • 35% up to $1,500 for duct sealing or replacement
  • 35% up to $1,500 for wall insulation
  • 35% up to $1,500 for insulation (crawl space or basement)
  • 35% up to $1,500 for insulation (rim joist)

To qualify for rebates, the total job cost — including the cost of the audit — must be at least $1000.  These rebates are offered for a limited time.

PEPCO Incentives

Pepco’s Home Performance with ENERGY STAR® Program offers you a great chance to save energy, save money and be more comfortable in your home. A Participating Contractor will assess your home carefully. You’ll find out which areas would benefit from improvements related to energy efficiency.

The audit costs only $100 to the homeowner – the remainder is paid for by PEPCO.  And, by making recommended improvements you can enjoy energy savings and receive up to $1,200 in rebates from PEPCO.

The program is open to all homes smaller than 4,000 square feet with one air handler. Only PEPCO customers with central air conditioning and/or electric heating are eligible.

BGE Incentives

When you participate you’ll be eligible for up to $2,450 in rebates from BGE when making recommended home improvements.  Boost your home’s overall appeal while helping to reduce your energy use by up to 20% or more.

PEPCO and BGE rebates are in addition to the MEA rebate and are available for a limited time.  All rebates must be applied for separately.