Maryland home battery rebate (RCES): how it works

The Residential and Commercial Energy Storage (RCES) program, also searched as the Maryland energy storage grant, pays a state rebate toward a grid-connected home battery. For fiscal year 2027, a home’s rebate is the lesser of 30 percent of total project cost or $5,000.¹ The Maryland Energy Administration (MEA) must approve a reservation before installation.²

Everything here comes from MEA’s program page and its fiscal year 2027 documents. MEA can change a rule, and when it does, MEA’s own documents are the ones to follow.

What does the rebate pay, and what counts toward it?

The rebate offsets part of what it costs to buy, install and connect a battery. “Total project cost” means purchase, installation and interconnection.¹ MEA’s fiscal year 2027 round is open as of October 25, 2026.³ The final rebate can come in below the reserved amount, never above it, and every award depends on money being available in the program’s fund.^4,5

Here is where the cap starts to matter. This is an illustrative calculation, run in October 2026 on the formula at ¹, not a quote for any home. On a $14,000 project, 30 percent is $4,200, so that’s the rebate.⁶ On a $20,000 project, 30 percent is $6,000, so the $5,000 cap holds it down.⁶ The two limits cross at a total project cost of about $16,667.⁶

The statute and MEA’s current documents use different names. The statute calls this the Energy Storage System Grant Program, and MEA’s fiscal year 2027 documents call it a rebate program.⁷ It’s one program with one set of rules.

MEA defines a grid-connected system as one with a physical link to the utility grid, either at the storage system or at the home or building.¹⁰

Why reserve first and install second?

MEA has to send a “Step 1 Approved” notice, with funding reserved, before installation. It won’t approve a rebate for a system installed earlier.² A signed contract is not a reservation, so don’t let the crew start until the notice arrives. The steps run in this order:

1. Sign the contract. The fully executed contract must be dated no earlier than 90 days before you submit Step 1.¹¹
2. Submit Step 1 in MyMEA, the state’s online portal. The application includes an Internal Revenue Service (IRS) Form W-9, proof that you own the property, the executed contract, manufacturer sheets showing the battery is certified by a Nationally Recognized Testing Laboratory, and a signed disclosures form.¹¹
3. Wait for Step 1 Approved. Installation can go ahead only after that notice.²
4. Install, then get the utility’s permission to operate (PTO). The PTO paperwork must be dated after the reservation date.¹²
5. Submit Step 2, the payment request. It needs the PTO paperwork, photos of the finished installation and proof that the contract’s financial obligations are met.¹²

Five time limits run alongside those steps.

1. 190 days before Step 1
2. 214 calendar days
3. 3180 calendar days after approval
4. 430 days before expiration
5. 5May 1, 2028

MEA may grant an extension for circumstances outside your control or for good cause shown.¹⁴ If the contract changes in any way, file a modification request before installation. A change of contractor, contract type, project location or payment recipient can require a new application.¹⁵

Who files: you or your installer?

Either can. MEA offers three participation options, and the option you pick also decides who receives the rebate. The prime contractor is the company that signs the battery contract and answers for its terms, and you can authorize that company, and no other entity, to apply for you.¹⁶

Under option 2, the contractor needs your permission to submit your tax identification number, plus enough security to handle it.¹⁶ You can direct payment to the prime contractor only, not to any other contractor.¹⁶ The eligible applicant is the property owner who buys and installs the system, and an individual or business that owns or pays for a system serving the property also qualifies. A third-party-owned system needs a contract stating that the third party owns it.¹⁷

Unlike the Maryland Solar Access Program, RCES has no published contractor list. MEA’s RCES documents describe contractor accounts in MyMEA and don’t mention one.¹⁸ That leaves who files and who gets paid to your contract, so settle both in writing before you sign.

Can you add a battery to solar you already have?

Yes, and the rebate covers the battery side of the project. Parts that connect storage to a solar array count. The array itself doesn’t, unless the storage installation reasonably needs the work.^8,9 The reservation still comes first, and the utility still has to grant PTO.^2,12

MEA’s disclosure form asks whether the battery is paired with solar and, if so, for the array’s direct-current capacity. It also asks who will get the PTO, you or the contractor.¹⁹ Settle those answers before the contract is signed.

MEA doesn’t fund one battery twice. Its announcement says a system is ineligible if funding was secured or reserved for it, directly or indirectly, through the earlier Maryland tax credit, the fiscal year 2026 RCES round or another MEA energy program.²⁰

Program rules decide who qualifies. Ask any installer whether it files RCES applications and who receives the rebate. Soleil Energy’s battery storage page and FAQ describe adding storage to solar you already have, including systems it didn’t install.^21,22 For the technical side of a retrofit, see our guide to adding a battery to existing solar.

What happened to the old Maryland storage tax credit?

MEA lists the Maryland Energy Storage Income Tax Credit as inactive since the end of 2024 and no longer accepting applications.²³ RCES is a separate program, and MEA’s fiscal year 2027 documents call it a rebate, not a tax credit.⁷ Here is where each program stands.

MEA’s announcement makes a battery that was reserved under the earlier round ineligible for fiscal year 2027.²⁰

Will the money last until May 31, 2027?

Nobody can promise it. The deadline is 3:00 p.m. Eastern Time on May 31, 2027, but MEA’s page says the portal may close earlier if the budgeted funds are fully requested.²⁵ MEA anticipates up to $4 million from the Strategic Energy Investment Fund and may change the total.²⁶ Awards go to eligible applications in the order received.⁵

MEA keeps a funding table for the $4 million budget on its program page.²⁶ The table totals $4,000,000, the same as the anticipated fiscal year 2027 budget, though MEA still labels it “FY26.”²⁷

Share, as of October 19, 2026 (scale 0 to 100)

• Requested20.90 percent
• Reserved4.15 percent

View the data as a table

Measure of the budget	Share, as of October 19, 2026
Requested	20.90 percent
Reserved	4.15 percent

MEA updates those two numbers as applications come in. Check the page for the current figures before you plan around a reservation.²⁷

The fiscal year 2026 round shows how deadlines work. Its announcement set a June 5, 2026 deadline “or until budgeted funding is exhausted,” and MEA now says the round is closed to new applications.^23,24 May 31, 2027 is the latest the portal can stay open, and MEA can close it sooner.

What conditions apply after you sign?

An RCES rebate carries conditions beyond the reservation, and most surface only after the contract is signed. They cover how you get paid, who may do the work, how long MEA can inspect the site and when MEA can take the rebate back. All of them come from MEA’s fiscal year 2027 documents.

• Payment and tax. MEA typically mails a check, and you can choose direct deposit. Maryland may issue a 1099-G form, and the rebate may be taxable. MEA gives no tax advice. Have a tax professional check any tax credit, and ask whether the rebate itself is taxable to you.²⁸
• Paid in full. A purchased system must be paid in full before MEA approves payment. A financed one needs a fully executed financing agreement.¹²
• Site access. The recipient must make the project site available to MEA, on reasonable notice, for at least three years after payment.²⁹
• Rescission. MEA may rescind a rebate if any activity conflicts with the program terms.²⁹
• Attestations. Your application states that you reviewed MEA’s Fossil Fuel Policy and all program rules, and that the work follows applicable codes. A delinquent State debt can lead the Comptroller to intercept the payment.³⁰
• Certified work and codes. Staff and contractors on the project must hold all necessary Maryland certifications and licenses, and the work must follow applicable local, State and federal building codes.³¹
• Worker residence. For a project funded by the Strategic Energy Investment Fund, MEA checks that at least 80 percent of worksite workers live in Maryland or within 50 miles of its borders.³²

Does a rebate-funded battery join a utility virtual power plant?

Not automatically. A virtual power plant (VPP) is a group of home energy devices, batteries included, that work together to support the grid. MEA says utility VPP pilots are under development and not yet open for enrollment, and a grid-connected battery isn’t enrolled by default.³³

Before joining a pilot, MEA says, understand how often the battery may be used, how you’re paid and how participation could affect the energy left for backup power.³³ RCES applicants sign an acknowledgement that they received VPP information. MEA’s form also encourages customers of Baltimore Gas and Electric (BGE) or Pepco to consider a pilot when one opens.¹⁹ MEA may contact earlier RCES participants when pilots open.³³

What should the contract settle before you sign?

The contract date and the reservation order both matter, so get these answers into the contract itself, not just into conversation. They decide who files, who is paid, who requests utility permission and what happens if the reservation is denied.

• Who files Step 1, and under which of the three options?
• Who receives the rebate, and how does the contract price show it?
• Does the contract date fall within 90 days before Step 1?
• Will installation wait for the Step 1 Approved notice, in writing?
• Who requests PTO from the utility, and who tracks the 180-day clock?
• Does the contract list the battery’s manufacturer, model and testing-laboratory certification?
• Where does the contract describe the installation warranty, manufacturer warranties and maintenance duties? MEA’s disclosure form asks for these.¹⁹
• What happens to the contract if MEA denies the reservation or funds run out?

A proposal that only promises to “handle the rebate” hasn’t answered any of these. For what a battery can and can’t back up, see our whole-home battery backup guide.

To talk through a battery for your home, book a free assessment or call (301) 953-4140.

Solar savings and incentive eligibility depend on your roof, your usage, your utility, and your tax situation. Incentive programs change and some have limited funding. We are not tax advisors — we will review your bill with you and tell you what you may qualify for. Confirm any tax credit with a qualified tax professional.

Program rules decide who qualifies. Ask any installer whether it is on the program’s contractor list.

Sources (33)

1. MEA, FY27 RCES FOA, September 24, 2026, section 7.1 (same source as ²⁵); Maryland General Assembly, State Government Article section 9-2012(f), https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gsg&section=9-2012&enactments=false, current statute text; read October 25, 2026. ↩ ↩² ↩³ ↩⁴ ↩⁵

2. MEA, FY27 RCES FOA, September 24, 2026, sections 2 and 11.5 (same source as ²⁵); read October 25, 2026. ↩ ↩² ↩³ ↩⁴ ↩⁵

3. Maryland Energy Administration (MEA), Residential and Commercial Energy Storage Program, program page, FY27 program open, https://energy.maryland.gov/Pages/Energy-Storage-Grant-Program.aspx; current page, read October 25, 2026. ↩ ↩² ↩³ ↩⁴ ↩⁵ ↩⁶

4. MEA, FY27 RCES FOA, September 24, 2026, section 7.2 (same source as ²⁵); read October 25, 2026. ↩

5. MEA, FY27 RCES FOA, September 24, 2026, section 2 (same source as ²⁵); Maryland General Assembly, State Government Article section 9-2012(e) and (g), https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gsg&section=9-2012&enactments=false; read October 25, 2026. ↩ ↩²

6. Illustrative calculation, run October 25, 2026, using the formula sourced at ¹: 0.30 x $14,000 = $4,200; 0.30 x $20,000 = $6,000, capped at $5,000; $5,000 / 0.30 = $16,666.67. ↩ ↩² ↩³

7. Statute section 9-2012(b) (same source as ¹); MEA, FY27 RCES FOA, September 24, 2026, cover (same source as ²⁵); read October 25, 2026. ↩ ↩²

8. MEA, FY27 RCES FOA, September 24, 2026, section 9.1 (same source as ²⁵); read October 25, 2026. ↩ ↩² ↩³ ↩⁴

9. MEA, FY27 RCES FOA, September 24, 2026, sections 10.2.1 to 10.2.6 (same source as ²⁵); read October 25, 2026. ↩ ↩² ↩³ ↩⁴ ↩⁵ ↩⁶ ↩⁷

10. MEA, FY27 RCES FOA, September 24, 2026, section 4.2 (same source as ²⁵); read October 25, 2026. ↩

11. MEA, FY27 RCES FOA, September 24, 2026, sections 12.3 to 12.7 (same source as ²⁵); read October 25, 2026. ↩ ↩² ↩³

12. MEA, FY27 RCES FOA, September 24, 2026, sections 11.9 and 15.3 to 15.5 (same source as ²⁵); read October 25, 2026. ↩ ↩² ↩³ ↩⁴

13. MEA, FY27 RCES FOA, September 24, 2026, section 16.1.2 (same source as ²⁵); read October 25, 2026. ↩

14. MEA, FY27 RCES FOA, September 24, 2026, sections 11.6 and 13 (same source as ²⁵); read October 25, 2026. ↩ ↩² ↩³ ↩⁴

15. MEA, FY27 RCES FOA, September 24, 2026, section 14 (same source as ²⁵); read October 25, 2026. ↩

16. MEA, FY27 RCES FOA, September 24, 2026, sections 4.6 and 11.11 (same source as ²⁵); read October 25, 2026. ↩ ↩² ↩³ ↩⁴ ↩⁵ ↩⁶

17. MEA, FY27 RCES FOA, September 24, 2026, sections 4.5 and 11.10 (same source as ²⁵); Maryland General Assembly, State Government Article section 9-2012(a)(2), https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gsg&section=9-2012&enactments=false; read October 25, 2026. ↩

18. MEA, FY27 RCES FOA, September 24, 2026, section 18.2.2.1.2 (same source as ²⁵); read October 25, 2026. ↩

19. MEA, FOA Attachment A1: FY27 RCES Authorizations & Disclosures Form, Energy Storage System Purchase, issued September 23, 2026, https://energy.maryland.gov/SiteAssets/Pages/EnergyStorage/FOA%20Attachment%20A1%20-%20FY27%20RCES%20Authorizations%20-%20Cash%20or%20Loan%20%281%29.pdf, sections 1 and 3; read October 25, 2026. ↩ ↩² ↩³

20. MEA, FY27 RCES FOA, September 24, 2026, section 10.2.1 (same source as ²⁵); read October 25, 2026. ↩ ↩²

21. Soleil Energy, Battery Storage & Retrofits, service page; current page, read October 25, 2026. ↩

22. Soleil Energy, Frequently Asked Questions, FAQ page; current page, read October 25, 2026. ↩

23. MEA, Maryland Energy Storage Income Tax Credit, program page, https://energy.maryland.gov/business/Pages/EnergyStorage.aspx; current page, read October 25, 2026; MEA, FY26 Maryland Residential and Commercial Energy Storage Grant Program funding opportunity announcement (listed on MEA’s page as “RCES FOA V4 2.10.2026”), https://energy.maryland.gov/SiteAssets/Pages/Energy-Storage-Grant-Program/RCES%20FOA%20V4%202.10.2026%20.pdf, February 10, 2026; read October 25, 2026. ↩ ↩² ↩³ ↩⁴

24. Same source as ³, fiscal year 2026 section; read October 25, 2026. ↩ ↩²

25. Same source as ³; also MEA, FY27 Residential and Commercial Energy Storage (RCES) Program Funding Opportunity Announcement (FOA), September 24, 2026, https://energy.maryland.gov/SiteAssets/Pages/EnergyStorage/FY27%20RCES%20Funding%20Opportunity%20Announcement%20-%20Issued%209.24.pdf, cover and section 3; read October 25, 2026. ↩ ↩² ↩³ ↩⁴ ↩⁵ ↩⁶ ↩⁷ ↩⁸ ↩⁹ ↩¹⁰ ↩¹¹ ↩¹² ↩¹³ ↩¹⁴ ↩¹⁵ ↩¹⁶ ↩¹⁷ ↩¹⁸ ↩¹⁹ ↩²⁰ ↩²¹ ↩²² ↩²³ ↩²⁴ ↩²⁵

26. Same source as ²⁵, FOA section 6, and ³; read October 25, 2026. ↩ ↩²

27. Same source as ³, funding table, last updated October 19, 2026; page read October 25, 2026. ↩ ↩² ↩³ ↩⁴

28. MEA, FY27 RCES FOA, September 24, 2026, section 17 (same source as ²⁵); read October 25, 2026. ↩

29. MEA, FY27 RCES FOA, September 24, 2026, sections 19.1 and 19.12 (same source as ²⁵); read October 25, 2026. ↩ ↩²

30. MEA, FY27 RCES FOA, September 24, 2026, sections 12.2 and 15.2 (same source as ²⁵); read October 25, 2026. ↩

31. MEA, FY27 RCES FOA, September 24, 2026, sections 19.4.1.1 and 19.4.2 (same source as ²⁵); read October 25, 2026. ↩

32. MEA, FY27 RCES FOA, September 24, 2026, section 19.9 (same source as ²⁵); read October 25, 2026. ↩

33. MEA, Attachment C: Information about Virtual Power Plant (VPP) pilots under development in Maryland, issued September 24, 2026, https://energy.maryland.gov/SiteAssets/Pages/EnergyStorage/Attachment%20C_%20Information%20about%20Virtual%20Power%20Plant%20%28VPP%29%20pilots%20under%20development%20in%20Maryland_accessible%20%20-%20Issued%209.23.pdf; read October 25, 2026. ↩ ↩² ↩³