How Does Solar Power Work?

Solar power is a clean, efficient and environmentally conscious form of renewable energy that can provide power to your home, all year round. By installing photovoltaic (PV) solar panels, you will be able to convert sunlight into energy for your home.

Solar panels capture the energy from the sun, and then convert the DC (Direct Current) electricity from the panels into AC (Alternating Current) electricity to use in your home. Once the electricity is converted, it supplies power to your home's electrical panel.

Delivery of electricity from your local utility will continue uninterrupted, day and night. Only, during the day, you will be producing your own electricity. And, if your solar panels produce more power than you consume, any excess power is fed back into the local utility grid, supplying clean electricity to your community and potentially making you eligible to receive an incentive from the local utility.

Can I Go Solar?

A home solar system is a clean, efficient way to generate sustainable energy. When exploring your home solar options, some initial factors to consider are the home orientation, shading, and roof structure. The amount of energy generated from solar panels is directly dependent on the size of the system, which is limited by these factors.

The next set of factors to consider is your budget and any available federal, local and utility incentives. Even though supplying 100% of your home's electricity from solar panels is an option, most solar homes are actually "hybrids," with a portion of their electricity originating from panels and the remainder being supplemented by the local utility. While the amount of energy generated from solar panels is dependent on the size of the system and the factors of your home, a solar system can be within your budget with available incentives and flexible financing options.

Solar in Maryland?

Coming soon!

The Benefits of Home Solar Power

Solar energy is a clean, renewable energy source that allows you to reduce your environmental impact, increase your energy independence and lower your energy usage – all without making lifestyle sacrifices. By going solar, you are choosing an environmentally sustainable lifestyle that will have direct benefits for your family, your community and future generations.

Be a responsible consumer. Choose solar energy.

Sustainable energy generation helps reduce demand on the utility to produce electricity. Since utilities primarily utilize non-renewable generation sources, you will be helping to reduce our communal dependence on fossil fuels that are believed to contribute to global warming. Use our Solar Calculator to see how affordable solar energy can be.

Energy Independence

Home solar generation can have a considerable impact on your electricity demand and utility bill. For every watt-hour of electricity produced by the solar panels is one less watt-hour demanded from the utility, reducing your energy bill and dependence on the utility. Also, when your solar system generates more electricity than you consume, you will actually be supporting your community by sending excess generated power back into the utility grid. Based on historical energy price trends, the value of producing your own electricity would have increased over the past 10 years.

Be Good to the Environment

Click to enlargeHome solar is a sustainable, renewable source of energy that will help you significantly lessen your environmental impact. By generating sustainable energy, you are reducing electricity demand on the utility, thus helping to reduce our communal dependence on fossil fuels that are believed to contribute to global warming. Going solar is a sustainable, environmentally conscious lifestyle choice that can directly benefit your family and community.

Considering that solar panels have a life of more than 30 years, your choice will positively benefit the environment for decades. The chart to the right depicts the equivalent environmental impact that an average home solar power system can have over its functional life.

Increased Home Value

A home solar system is one of the few home improvements that have a conveyed value. By reducing electric demand from the utility and lowering your electric bills, solar panels may increase the value of your home. And, unlike most home improvements that depreciate in value with age, solar panels may increase in value over time if electricity prices rise.

According to a study published in The Appraisal Journal, a home's value is increased by $20 for every $1 reduction in annual energy savings. So, if you saved $1,000 per year, you'd increase your home value by $20,000. And, the U.S. Department of Energy's Office of Energy Efficiency & Renewable Energy claims that a home with a solar system may sell twice as fast as a home without solar.

Incentives and Flexible Financing Make Home Solar Affordable

The cost of a home solar system will vary depending on the size of your system installation. You have the option to choose a customized solar system that suits your home and your budget. Also, with the available federal, local and utility incentives that help offset the total purchase cost, a solar panel system can be within your budget. For a quick estimate on what a system for your home may cost, try our Solar Calculator.

You can make solar a real option with BGE HOME’s flexible financing options, which allow you to go solar without making a big upfront investment. Our convenient leasing options allow you to decide how much you want to invest, from $0 down to a simple one-time pay plan. Learn more about how affordable solar power can be with our flexible financing options.

Federal Incentives

The Federal Government provides a tax credit for the installation of a home solar system. Effective January 1, 2009 through December 31, 2016, purchasers of qualifying solar electric systems may claim up to 30% of the full cost of installing a system. The credit has no dollar limit. While preparing your personal taxes, you will need to complete a simple one page form to be eligible for the tax credit in the year your solar system was installed.

For more information, please visit www.energystar.gov.

Local government incentives have helped reduce the overall cost of purchasing a solar system. However, incentives are not guaranteed in the future and may decrease as installations continue to grow.

Local Incentives

Maryland Incentives

Maryland currently offers a state solar grant of $1,000 for systems up to 20kW in size. In the last year the Maryland Energy Administration (MEA) has awarded residential solar grants to more than 2,000 Maryland residents and small business owners.

Additionally, solar system installations in Maryland are exempt from sales tax and cannot increase the assessed value of your home for the purpose of property taxes. We will complete the paperwork for you and you will receive your payment 6-8 months after the solar installation is complete.

For more information, please visit www.energy.maryland.gov.

County Incentives

Local incentives are available in select Maryland counties. The Maryland counties that are currently offering incentives for installing a home solar system, in the form of property tax credits, are listed below. The benefit of a property tax credit is that you will always receive the full amount due, meaning you can carry any remaining credit forward until the full credit is exhausted.

For more information, please visit www.energy.maryland.gov.

Have a HOA? In Maryland You Can Still Go Solar

Maryland law prohibits homeowner associations from enacting or enforcing rules which significantly increase the cost of a home solar system or significantly decrease its efficiency. Therefore, your HOA cannot prevent you from installing a solar system. We have experience working alongside Maryland HOAs to ensure a smooth installation.

Utility Incentives

When you install a home solar PV system, the electricity produced by your solar panels can help you save in two ways. First, you will save by reducing your demand of electricity from your local utility. Second, if you purchase a solar system, you can further save by selling the positive environmental benefits of the electricity you produced, known as Solar Renewable Energy Credits (SRECs), to the utility.

Maryland law requires utilities to produce a percentage of their electricity using renewable sources, specifically sources such as solar energy. The utility can help meet this requirement by purchasing Solar Renewable Energy Credits (SRECs) from solar PV system owners. So, by installing solar panels and producing renewable energy, you may be eligible to receive an incentive from the local utility.

In Maryland, the percentage of required electricity generated from solar energy increases each year until it reaches 2.0% in 2022. The yearly solar requirements for Maryland are set forth below.

What are Your SRECs Worth?

SRECs may not have real value to you, but are very valuable to utility companies.

The amount of SRECs your home produces is based on the size of your solar system, not the amount of excess electricity you send back to the utility grid. We can assist you in registering your solar system and selling your SRECs for you to utility companies.

The buying and selling of SRECs is determined by market demand, which means prices for SRECs will vary depending upon availability. When you use our Solar Calculator for an estimate on a home solar installation, you will see the approximate value for SRECs.

Flexible Financing Options

Clean, efficient solar power is a real option for your home with BGE HOME’s flexible financing options. It’s simple, you choose a personalized solar system that matches your home and budget, and then you decide how much you want to invest, from $0 down to a simple one-time pay plan.

Our simple financing plans make solar an affordable option by significantly reducing the upfront costs of going solar. Since you are lowering your investment and not purchasing the panel system, the electricity savings of many solar leases can outweigh your initial investment within the very first year. Plus, each leased system is supported by an electricity production guarantee, comprehensive warranty and simple solutions if moving or replacing a roof. Contact us today for more information.

The Time to Go Solar is Now!

You’ve heard about solar energy for years. How someday it will be so efficient and affordable that everyone will want to switch. Well, that day is finally here. Let BGE HOME show you how smart solar energy can be.

A home solar panel system is a real option with available financial incentives and convenient financing options. Clean, efficient solar power is an easy way to supplement 40%-50% of your household electricity use, and reduce your electric bill month after month. Try our Solar Calculator to see how affordable solar energy can be for your home.