Maryland

Maryland Net Metering

Program Type Net Metering
Technologies Photovoltaics
Amount Retail
Required Documentation up to 2 MW or 200% of baseline customer electricity usage; aggregate capacity of all net-metered systems capped at 1,500 MW                                                                          
Official Web Site http://www.delmarva.com/

Categorized as Small Generator Interconnection, Maryland’s net metering is expansive, applying to all utilities and all renewable source systems. The systems may be owned outright or owned by a third party. Utilities are required to offer rates that are non-discriminatory compared to non-net metering customers. Customers must usually pay a flat monthly customer charge, but are billed only for energy used netted against the amount generated. Net excess generation is carried over as a credit for twelve months, at which point it is paid to the customer at the commodity rate.

Recently, Maryland authorized a pilot program for community solar projects allowing for “virtual” net metering. These projects must have at least two subscribers and be sized at 2 MW or less. All customers (residential, commercial, etc.) can participate in the program. The community solar project must be located in the same service territory as the subscribers. Any third party may build, lease, or operate a project

Clean Energy Production Tax Credit

Program Type Personal Tax Credit
Technologies Solar Thermal Electric, Photovoltaics and other renewables
Amount $0.85 per kilowatt hour (kWh) produced
Required Documentation Initial Credit Certificate Application and net metering or interconnection agreement
Official Web Site http://energy.maryland.gov/business/Pages/Incentives/CleanEnergyTaxCredit.aspx

The Clean Energy Production Tax Credit allows property owners in Maryland to receive a state-income-tax break over a five-year period for qualifying renewable energy installations.

To qualify, the building must use the renewable energy as its primary energy source. And it must be placed in service between Jan. 1, 2006 and Jan. 1, 2016.

An individual or corporation that applies for and receives certification from the Maryland Energy Administration may claim a credit equal to 0.85 cents per kilowatt-hour ($0.0085/kWh) against the state income tax, for a five-year period, for electricity generated by eligible resources. To meet the minimum, the installation needs to produce 23.5 megawatt hours a year. An additional requirement is that electricity produced by the installation may not be sold to a relative during the tax year.

PACE Loan Program

Program Type Loan
Technologies Dependent on local government
Amount Up to $12,500 for energy efficiency and up to $30,000 for renewable energy installations
Required Documentation Must apply for eligibility with local government
Official Web Site http://energy.maryland.gov/

The Property-Assessed Clean Energy (PACE) program offers homeowners a chance to finance their solar power project by taking out a loan from the state or local government. Under PACE, local governments can issue bonds to create a funding pool for PACE applicants. The bond maturity period may be no longer than 40 years under the law. Local governments control the bond’s interest rates, payment intervals, sales terms, and conditions for early bond redemptions, among other issues.

Local governments specify property owner eligibility for the program. They also specify which technologies or energy efficiency projects are eligible under the loan program.

Loans may be up to $30,000 for a renewable energy project. Lesser amounts are allowed for other energy-efficiency projects. The loan is repaid by implementing a property tax assessment on the applicant’s land. While this is a state-backed program, the programs are developed by local governments.

The loans themselves are repaid through the property tax assessment and repayment is limited to the repayment amount, the amount needed to recover the cost of issuing bonds, financing loans, and administering the program. The assessment stays with the property if the owner sells it before the assessment is paid off. Property owners also must prove their ability to repay the loan through a process similar to the mortgage loan approval process.

Solar Energy Grant Program

Program Type Rebate
Technologies Solar Water Heat, Solar Thermal Process Heat, Photovoltaics
Amount

For systems up to 2 kW $1.25 per Watt, systems between 2 kW and 10 kW $0.50 per Watt, and systems between

10 kW and 20 kW $0.35 per Watt

Required Documentation

Application form, a reviewed and signed Solar Grant Program Terms and Conditions form, a signed cost estimate,

purchase order, or letter of intent from an installer

Official Web Site https://www.renewableenergysolar.net/benefits/economic-benefits/maryland-solar-incentives/

The Solar Energy Grant Program offers home and building owners a rebate of up to $1.25 per DC (direct current) watt of photovoltaics (PV) installed. Systems up to 2 kW receive the full $1.25 per kW. The incentive falls to $0.50 per Watt for systems between 2 kW and 10 kW. PV arrays between 10 kW and 20 kW will receive an incentive of $0.35 per Watt. The incentive tops out at $10,000. In addition, solar water heating systems are also eligible for a rebate of up to $2,000 or 30 percent of the system’s total cost. PV systems don’t have to be grid-tied to qualify for the incentive.

To qualify for the incentive, residential PV arrays must be at least 500 Watts. Solar hot water heating systems must be at least 20 square feet to qualify. The state accepts applications for any system that goes into operation during the year in which the building owner submits the grant application. If a building is more than 50 years old or in a historic district and the proposed installation is on the front of the building, than applicants must submit a Maryland Historical Trust Project Review form to the Maryland Historical Trust. The trust will evaluate the site and respond with how the applicant should proceed.

Maryland anticipates approving 100 grants a month through the end of fiscal year 2011 or until the funds are fully committed. The fiscal year 2010 budget includes $5.8 million for the rebate program and is funded by the Maryland Strategic Energy Investment Fund and ARRA money. The program was funded through federal stimulus money and appropriations from carbon emission allowance auctions, which is part of Maryland’s Regional Greenhouse Gas Initiative. The grants do not count as income for state tax purposes.

Maryland Rebates and Incentives Summary

Maryland

Though small, Maryland has emerged as a leader in solar policy. In 2007, it passed the EmPOWERing Maryland Act, which required a reduction in the state’s overall energy use through efficiency and alternative power. State officials expect to meet the Act’s 15% goal by the end of this year. In 2012, the state enacted a goal of 2% solar capacity by 2020. Currently, the state ranks twelfth in the nation in installed solar capacity.

This push towards renewable energy is likely due to the fact that Maryland has some of the most expensive electricity prices in the country. Currently, the majority of its electricity is generated by coal and nuclear energy, and the small state must import approximately 30% of its electricity. Maryland’s solar policy has remained popular, with 2014 seeing a 95% increase in the amount of capital invested in solar energy production.

Solar makes sense as a renewable energy for Maryland because it gets an average of about 5 kilowatt hours per square meter of sunlight per day, which is plenty for installing a photovoltaic (PV) or other solar system. The state has adopted a diverse range of incentives for residential and commercial solar installation, making it likely that it will meet its policy goals.

Maryland Solar Power Financial Incentives

Financial Incentives

Solar Easements & Rights Laws

MD

Regulatory Policy

Solar/Wind Access Policy

01/01/2000

10/17/2014

Wood Heating Fuel Exemption

MD

Financial Incentive

Sales Tax Incentive

01/01/2000

10/15/2014

State Agency Loan Program

MD

Financial Incentive

Loan Program

01/01/2000

10/16/2014

Fuel Mix and Emissions Disclosure

MD

Regulatory Policy

Generation Disclosure

09/14/2001

10/17/2014

Jane E. Lawton Conservation Loan Program

MD

Financial Incentive

Loan Program

01/01/2000

10/16/2014

Local Option - Property Tax Credit for Renewables and Energy Conservation Devices

MD

Financial Incentive

Property Tax Incentive

01/01/2000

08/06/2015

Net Metering

MD

Regulatory Policy

Net Metering

01/01/2000

05/20/2015

Montgomery County - Green Power Purchasing

MD

Regulatory Policy

Green Power Purchasing

05/05/2005

08/03/2015

Clean Energy Procurement

MD

Regulatory Policy

Green Power Purchasing

05/14/2001

10/17/2014

Interconnection Standards

MD

Regulatory Policy

Interconnection

07/16/2002

05/20/2015

Residential Clean Energy Grant Program

MD

Financial Incentive

Rebate Program

05/20/2004

06/25/2015

Renewable Energy Portfolio Standard

MD

Regulatory Policy

Renewables Portfolio Standard

05/20/2004

02/10/2015

Appliance Energy Efficiency Standards

MD

Regulatory Policy

Appliance/Equipment Efficiency Standards

06/01/2006

10/17/2014

Clean Energy Production Tax Credit (Corporate)

MD

Financial Incentive

Corporate Tax Credit

06/27/2006

06/24/2015

Building Energy Code

MD

Regulatory Policy

Building Energy Code

07/21/2006

04/21/2015

Clean Energy Production Tax Credit (Personal)

MD

Financial Incentive

Personal Tax Credit

06/30/2006

05/22/2015

Energy Conservation in State Buildings

MD

Regulatory Policy

Energy Standards for Public Buildings

07/24/2006

10/17/2014

Local Option - Property Tax Credit for High Performance Buildings

MD

Financial Incentive

Property Tax Incentive

12/08/2006

07/28/2015

Property Tax Exemption for Solar and Wind Energy Systems

MD

Financial Incentive

Property Tax Incentive

05/24/2007

10/15/2014

Geothermal Heat Pump Grant Program

MD

Financial Incentive

Rebate Program

10/10/2007

10/16/2014

Windswept Grant Program

MD

Financial Incentive

Rebate Program

11/09/2007

06/24/2015