MEA - Solar

Solar Energy Progress

Solar Energy Progress Pie Chart

RPS Goals


Maryland’s Renewable Portfolio Standard (RPS)requires that 2% of the state’s energy come from solar, or about 1,200 MW, by 2020. The solar RPS goal for 2013 was 136.5 MW. As of late December 2013, Maryland had ~ 158 MW of installed capacity (according to PJM GATS reports), broken out by these market sector scales illustrated by this chart: For ​more information on specific solar energy projects, see MEA’s Smart Energy Investment Map.

Incentives

 

Federal

The Federal Business Energy Investment Tax Credit allows 30% tax credit for installed solar energy systems placed in service after December 31, 2016.

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

Clean Energy Grants

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 regarding the Clean Energy Production Tax Credit, contact Chris Rice at chris.rice@maryland.gov​ or by phone at (410) 260-7207.

Other

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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.
  • MEA’s Game Changer Program offers 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.

In 2013 and 2014, MEA is working closely with the solar industry to reduce the permitting and inspection “soft costs” of installing solar, strategic and responsible siting of larger solar installations, intermodal pricing related to wheeling, and other issues that will contribute to continued and predictable growth of the solar market in Maryland.

Helpful Documents and Websites

Questions?

 

Contact Clean Energy Program Manager Marta Tomic via email at marta.tomic@maryland.gov or phone at 410-260-2608.​

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