Alternative Energy

Energy Conservation Real Property Tax Credit

The Energy Conservation Real Property Tax Credit helps eligible homeowners offset the cost of installing qualifying solar or geothermal energy systems on their principal residence.

The credit is applied to the County portion of your Prince George's County real property tax bill.

Credit Amount

Purchased Solar or Geothermal Systems

Eligible homeowners may receive the lesser of:

50% of eligible costs, or
$5,000 for a heating system
$1,500 for a hot water supply system

Leased Solar Systems or Solar Power Purchase Agreements (PPAs)

Eligible homeowners may receive the lesser of:

50% of eligible costs, or
$1,000, not to exceed the cost of the system.

Credit Carryover

If the credit exceeds your County property tax liability for the year, the unused balance may be carried forward for up to two additional tax years.

Eligibility Requirements

To qualify for the Energy Conservation Real Property Tax Credit, all of the following requirements must be met:

The property must be a residential structure located in Prince George's County.
Eligible costs must have been incurred within the 12 months before the initial application.
The system must meet national safety and performance standards established by a nationally recognized testing laboratory.
Applications must be submitted on the form provided by the Office of Finance.
Applicants must provide:
- A legal description of the property.
- Proof that the system has been properly installed.
- Any additional documentation requested by the Director of Finance.
Only one tax credit may be granted per residential household each tax year.

Eligible Energy Systems

Solar Energy Devices

Qualifying solar systems include those that:

Heat or cool a residential structure;
Generate electricity for use in the residence; or
Provide hot water for use in the residence.

Geothermal Energy Devices

Qualifying geothermal systems include those that:

Heat or cool a residential structure; or
Provide hot water for use in the residence.

Leasing and Solar Power Purchase Agreements (PPAs)

Homeowners may qualify even if the solar energy system is:

Leased; or
Financed through a Solar Power Purchase Agreement (PPA).

Applicants must submit a copy of the executed lease or power purchase agreement with the application.

Annual Funding Limits

Tax credits are awarded on a first-come, first-served basis after the Office of Finance receives a complete application.

Current annual funding limits are:

Credit Type	Annual Funding Cap
Purchased Solar or Geothermal Systems	$500,000
Leased Solar Systems / PPAs	$100,000

If funding has been exhausted, approved applications will be carried forward and awarded in the next available fiscal year(s) in the order received.

How to Apply

Applications must be submitted to:

Prince George's County Office of Finance
Treasury Division

Applications must include:

Completed application
Proof of installation
Documentation of eligible costs
Legal description of the property
Copy of the executed lease or Solar Power Purchase Agreement (if applicable)

Questions?

For additional information, please contact the Treasury Division.

Email: prop_tax_credits@co.pg.md.us

Customer Service: 301-952-4030

Legislative History

The current Energy Conservation Real Property Tax Credit reflects the following legislative changes:

Legislation	Change
CB-11-2008	Established the Energy Conservation Real Property Tax Credit for purchased solar and geothermal systems.
CB-5-2009	Expanded the definition of a qualifying solar energy device to include systems that generate electricity for residential use.
CB-77-2012	Expanded eligibility to leased solar systems and Solar Power Purchase Agreements (PPAs), established a separate lease/PPA credit, and limited one credit per household per tax year.
CB-28-2019	Increased the annual funding cap for purchased solar and geothermal systems from $250,000 to $500,000.

Apply for Property Tax Credit - Alternative Energy (PDF)

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