Maryland has long been a solar-friendly state, and the Brighter Tomorrow Act, signed into law by Gov. Wes Moore last month, will expand access and adoption of solar energy. The legislation is both a supportive and forward-looking policy aimed at enhancing sustainability, economic growth and technological advancement within Maryland.
Some of the key takeaways from the act are:
- Creating the Small Solar Energy Generating System Incentive Program by the Maryland Public Service Commission (PSC). The program will allow eligible solar energy generating systems to generate solar renewable energy credits (SRECs), certified by the PSC, that have a compliance value of 150 percent of noncertified SRECs. The increase in compliance value will make it easier for electric suppliers to meet their solar targets and the solar carve out under the State Renewable Energy Portfolio Standard (RPS).
- Extending the duration of all renewable energy credits (RECs) for purposes of the RPS to five years from three years.
- Increasing the maximum generating capacity for specified net-metered facilities to 5 megawatts (MW).
- Requiring all Maryland counties and municipalities adopt SolarAPP+ or an equivalent tool by August 2025. SolarAPP+ is a web-based tool that standardizes and facilitates expedited permitting for solar and battery storage projects. To support the implementation, the Maryland Energy Administration (MEA) received $4.48 million from the U.S. Department of Energy (DOE).
- Establishing the Customer-Sited Solar Program in MEA to increase the number of new customer-sited solar energy generating systems and provide grants to eligible customer generators with installed systems.
- Forming a residential solar grant program, administered by MEA, where low-and-moderate-income households could receive as much as $7,500 for adopting solar energy generating systems.
- Establishing prevailing wage requirements for development of solar energy generating systems with a capacity of more than 1 MW.
- Creating new requirements for home improvement contracts for rooftop solar installations, including the installation of a barrier to prevent wildlife intrusion, damage to the system, and harm to the roof.
- Establishing and modifying solar property tax incentives, including extending and creating personal property tax exemptions for small-scale community solar projects and non-residential rooftop/parking canopy installations.
Moore announced last year the state had set a goal of 100% clean energy by 2035. With this targeted goal in mind, the state also passed a new community solar program allowing projects to exceed certain size limits if they’re built on specified site types, such as rooftops, brownfields or industrial areas. For developers and investors, it offers a unique blend of financial incentives, regulatory support and growth opportunities that can be too significant to ignore. By understanding and leveraging the provisions of this Act stakeholders can play a pivotal role in shaping Maryland’s energy future while achieving their own business objectives.
Opinions and conclusions in this post are solely those of the author unless otherwise indicated. The information contained in this blog is general in nature and is not offered and cannot be considered as legal advice for any particular situation. The author has provided the links referenced above for information purposes only and by doing so, does not adopt or incorporate the contents. Any federal tax advice provided in this communication is not intended or written by the author to be used, and cannot be used by the recipient, for the purpose of avoiding penalties which may be imposed on the recipient by the IRS. Please contact the author if you would like to receive written advice in a format which complies with IRS rules and may be relied upon to avoid penalties.
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