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Solar Energy Progress

Maryland increased our Renewable Portfolio Standard (RPS) target of 25 % renewable energy by 2020 to 50 % by 2030. In 2019, Governor Larry Hogan proposed the Clean and Renewable Energy Standard (CARES) that sets the state on a path to 100% clean electricity by 2040 with zero carbon emissions. Read more about CARES here.

Renewable Portfolio Standard Goals

Maryland has quadrupled its solar energy capacity from 258 megawatts to 1,000 megawatts since 2015

Maryland has quadrupled our solar energy capacity from 258 megawatts to 1,000 megawatts. We are very proud of this milestone and the role that the State has played to help promote solar energy.

Maryland offers programs that support residential, commercial and community solar projects. The State offers solar grants to help residents, businesses, nonprofits and local government organizations.

The Maryland Clean Buildings Hub (the Hub), an initiative of the Maryland Energy Administration, empowers Maryland’s building owners to make well-informed energy investments in their properties by connecting them to financial, educational, and technical assistance. Sign-up for the Hub newsletter here. Have questions? Contact [email protected].

Resources

The Hub invites you to explore the materials below to help guide your next steps. Use these resources to help move your building decarbonization project forward with greater confidence.

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Incentives

Federal

The Federal Business Energy Investment Tax Credit allows 30% tax credit for installed solar energy systems placed in service after December 31, 2019.

The Modified Accelerated Cost-Recovery System (MACRS) allows businesses to recover investments in solar technologies through depreciation deductions as five-year property under the MACRS.
The Federal Residential Renewable Energy Tax Credit allows taxpayers to claim a credit of 30% of qualified expenditures for a solar energy system that serves a residence. Systems must be placed in service by December 31, 2019. Incentives are less after 2019.

Maryland

A Maryland-Eligible Renewable Energy Credit (REC) is equal to the environmental attributes associated with 1 megawatt-hour (1,000 kilowatt-hours) of energy generated by a qualified renewable energy system. For example, if a solar array produces 4,000 kWh over the course of a year, the system owner will receive 4 Solar RECs (SRECs). RECs are entirely separate from the energy generated by a renewable energy facility. RECs have monetary value and can be sold or traded to meet a supplier’s annual compliance obligations as part of Maryland’s Renewable Portfolio Standard (RPS).

Electricity suppliers must purchase and retire SRECs in order to meet their compliance obligations under the law, or pay a Solar Alternative Compliance Payment for any SREC purchase shortfalls. Monetary value from the sale of RECs is typically used to help drive down the cost of deploying renewable energy technologies. More information on how RECs work in the context of Maryland’s RPS can be found on the Public Service Commission's FAQ Page. The Maryland Public Service Commission (PSC) receives and reviews all applications for qualified renewable energy technologies.

Applications

Register your solar facility with the MD PSC only after completion and interconnection of your solar energy system. Solar installers typically help you navigate this process.
Instructions and applications to register your solar facility with the MD PSC can be found here: http://www.psc.state.md.us/electricity/solar-renewable-portfolio-standard-documents-rps/.
Once a state certification is provided by the PSC, system owners must then register their system in the PJM Interconnection’s Generator Attribute Trading System (GATS) within 30 days.

Additional Information

Frequently Asked Questions: http://www.psc.state.md.us/electricity/maryland-renewable-energy-portfolio-standard-program-frequently-asked-questions/
Information on Solar Renewable Energy Certificates (SREC):

SRECs have a useful life of three years.
SREC quantities for PV systems under 10 kW are calculated from PVWatts model estimates. For PV systems over 10 kW, SRECs are paid based on actual production.

PJM GATS offers helpful information on selling RECs, which can be found here, including:

How the REC owner can advertise his credits on the GATS Bulletin Board or check-out the Buyer's Bulletin Board for specific purchase requests.
How the REC owner can use an aggregator or broker to either purchase the RECs directly, or to assist the REC owner in finding a buyer.
Finally, the REC owner could use an auction or exchange platform to sell RECs.

Clean Energy Grants

MEA offers grants for clean energy systems installed at primary residences in Maryland through its Residential Clean Energy Grant Program
MEA offers grants for clean energy systems installed at businesses, local governments, and non-profits through its Commercial Clean Energy Grant Program

Clean Energy Production Tax Credit

For systems online before December 31, 2015, MEA’s Clean Energy Production Tax Credit offers Marylanders a state income tax credit for electricity generated by solar PV systems (over 20 kW) of 0.85 cents per kWh.
These credits can be claimed over a period of five years. Please visit MEA’s Production Tax Credit page for more information on the program.

For questions, contact us at (410) 537-4000 or 1-800-72-ENERGY or via email at [email protected]

Other

View all MEA incentives and the DSIRE Database for a complete synopsis of other incentives, e.g. from electric utilities, counties and municipalities.

Public/Private Partnerships

MEA actively engages with the local solar industry, e.g. through the MDV-SEIA, to improve compliance issues, to support target markets, to bring innovative technologies to Maryland, and to analyze policies that would further develop the solar market.

MEA’s Sunburst Program helped public building owners and managers add 8.8 MW of solar PV by 2012, primarily through streamlining the adoption of Power Purchase Agreements.

These innovative financing agreements allow non-tax paying entities to bring in private sector partners that can take advantage of Federal incentives and to install solar energy systems with no upfront costs and at very little risk.

MEA worked closely with the Department of General Services and the University System of Maryland to develop a solar RFP for state agencies and higher educational facilities.
Previously MEA’s Game Changer Program offered competitive grants for innovative clean energy generation projects that showcase innovative technologies that will help the State meet its RPS goals, encourage local economic development, and reduce greenhouse gases. Game Changers advanced to help fund the first US solar powered resiliency hub in September of 2018. Although this program is no longer active, it paved the way for MEA's Resiliency Hub Program which launched in late 2018.

Helpful Documents and Websites

Questions?

Contact us at (410) 537-4000 or 1-800-72-ENERGY or via email at [email protected]