ANNAPOLIS, Md. — Gov. Wes Moore announced a $2 million initiative Aug. 11 to reduce electricity costs and enhance grid resilience by subsidizing battery storage systems for Maryland residents and businesses. The Maryland Energy Administration shifted the program from tax credits to rebates to address evolving energy needs and promote clean technology adoption statewide.
The Residential and Commercial Energy Storage Program covers costs for purchasing and installing qualifying battery systems, allowing users to store electricity for peak demand or outages. This enables time-of-use savings by shifting consumption to lower-rate periods, potentially lowering monthly bills. Eligible applicants include residential property owners and commercial entities installing systems on their properties.
“While corporate greed continues to drive up energy costs for Marylanders, our administration is fighting to bring prices down,” said Gov. Moore. “When we invest in clean energy, we help expand supply. When we expand supply, we help rein in utility expenses for everyone. Together, we are making Maryland more affordable, more resilient, and more competitive — all at the same time.”
The Maryland battery storage program supports grid reliability and advances economic, clean energy and climate objectives. It replaces a prior tax credit structure, adapting to market changes and resident demands. Rebates are available on a noncompetitive basis, with applications due by 3 p.m. Eastern Time on June 5, 2026. Residential grants cap at $5,000, while commercial ones reach up to $75,000, depending on system size and costs.
Systems must meet safety standards, such as UL certification, and be installed by licensed professionals. When paired with rooftop solar, these batteries store locally generated power for use after dark or during disruptions, reducing fossil fuel dependence and maximizing investment returns.
“The latest consensus-backed science is telling us that climate change is making storms on average about 20% more severe, which presents real and growing challenges to grid reliability and resource adequacy,” said Maryland Energy Administration Director Paul G. Pinsky. “This new program will help support emergency preparedness and build resiliency for communities statewide, especially as extreme weather events become more frequent.”
The initiative aligns with Maryland’s push toward 100% clean electricity by 2035 under the Climate Solutions Now Act. Battery storage addresses grid strain from rising demand and weather events, which have increased in frequency. In 2024, Maryland experienced multiple severe storms, causing widespread outages and highlighting vulnerabilities.
For Southern Maryland residents, the Maryland battery storage program offers particular value amid local grid challenges. Areas like Calvert, Charles and St. Mary’s counties face heightened risks from coastal storms and hurricanes, with utilities such as Southern Maryland Electric Cooperative reporting frequent disruptions. Battery systems can provide backup power for essential needs, such as medical equipment or refrigeration, during blackouts that affected thousands in recent years.
Statewide, energy costs have risen due to factors including transmission fees and supply constraints. Average residential electricity rates in Maryland stood at about 15 cents per kilowatt-hour in 2024, above the national average. The Maryland battery storage program aims to mitigate this by encouraging distributed energy resources, which ease peak loads and defer costly infrastructure upgrades.
Previous iterations of the program, launched as tax credits in 2019, supported over 1,000 installations by 2024, primarily in urban areas. The switch to rebates simplifies access, as applicants receive upfront funds rather than post-tax benefits. Funding comes from the state’s Strategic Energy Investment Fund, bolstered by federal incentives under the Inflation Reduction Act.
Battery storage technology has advanced, with lithium-ion systems dominating installations for their efficiency and declining costs—down 89% since 2010. In Maryland, combining storage with solar qualifies for additional federal tax credits of up to 30% through 2032.
The program also fosters job growth in the clean energy sector, which employs over 100,000 Marylanders. Installers and manufacturers, including local firms, stand to benefit from increased demand.
In Southern Maryland, where rural grids are susceptible to tree falls and flooding, the Maryland battery storage program complements efforts like community solar projects. Recent grants under the Resilient Maryland Program have funded similar resilience hubs with solar and storage in counties statewide.
Experts note that widespread adoption could reduce statewide emissions by enabling more renewable integration. Maryland’s greenhouse gas reduction goals target 60% below 2006 levels by 2031. Battery storage plays a key role in stabilizing variable sources like wind and solar.
Applicants can find details on the Maryland Energy Administration website. The agency encourages early submissions, as funds are limited.
This launch follows other Moore administration actions, including $64 million in community energy upgrades announced earlier in August. Together, these efforts position Maryland as a leader in resilient, affordable energy.
The Maryland battery storage program reflects broader trends, with over 15 gigawatts of storage deployed nationwide by mid-2025.