Maryland's Residential Clean Energy Grant Program, administered by the Maryland Energy Administration (MEA), provides financial incentives to homeowners that install solar water-heating, solar-electric (PV), geothermal heating and cooling systems, and burning stoves. In order to be eligible, the property must be the applicant's primary residence.

The current Clean Energy Grant Program provides incentives as follows:

Note: As of October 14, 2014, geothermal installations that are replacing an existing geothermal unit will no longer be eligible for the $3,000 grant. In order to receive this grant, homeowners must install an entirely new geothermal system with the accompanying loops or wells. Starting on this date, geothermal heat pump replacements will be eligible for a $500 grant.

Various amount of grant is also available to stick/pellet burning stoves satisfying certain emission requirements. Starting from November 14, 2013, only purchased solar photovoltaic systems are eligible to apply for the Residential CEGP Program. MEA no longer awards grants to third-party owned solar PV systems. 

Grants are awarded on a first-come, first-serve basis across technologies and are subject to change in amount based on funding. Grants are awarded after the completion of the project, and applications must be submitted to MEA within 12 months of completed installation​. Multiple projects on contiguous parcels of property will be considered one project. An eligible property may receive one grant per technology. MEA cannot offer grants to a property held in an irrevocable trust. Program's one-step application process requires participants to submit application form, final invoice, copies of inspection documents, photograph of installed system, and historical screening document. 

Participants must apply for certification as a qualifying solar facility from Maryland Public Service Commission (PSC) to obtain Solar Renewable Energy Credits (SRECs) produced by the system. SREC represent environmental attribute per 1 MWh of generated solar power. These SRECs can be traded as financial instruments to meet the RPS goals of the State. These SRECs can be sold in the market, which could help generate additional revenue to fund the solar PV system. Please visit the SREC DSIRE post for information about SREC market in Maryland. 

Note that these grants may be subtracted from adjusted gross income for state income tax purposes. In other words, program recipients do not have to pay state taxes on the amount of the grant received. See H.B. 590, enacted in May 2007. For applications and more information on the program, including a Q&A section, please see the program web site.