Maryland
Incentives/Policies for Renewable Energy
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Last DSIRE Review: 07/01/2009
| Incentive Type: |
Net Metering |
| State: |
Maryland |
| Eligible Renewable/Other Technologies: |
Photovoltaics,
Wind,
Biomass,
CHP/Cogeneration,
Anaerobic Digestion
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| Applicable Sectors: |
Commercial,
Industrial,
Residential,
Nonprofit,
Schools,
Local Government,
State Government,
Fed. Government,
Agricultural,
Institutional
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| Applicable Utilities: | All utilities
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| System Capacity Limit: | 2 MW
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| Aggregate Capacity Limit: | 1,500 MW (~8% of peak demand)
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| Net Excess Generation: | Credited to customer's next bill at retail rate; granted to utility at end of 12-month billing cycle
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| REC Ownership: | Customer owns RECs
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| Meter Aggregation: | Not addressed
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Web Site: |
http://www.energy.maryland.gov/
facts/renewable/netmetering.asp
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Authority 1:
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Md. Public Utility Companies Code § 7-306
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| Date Enacted: | 1997 (subsequently amended) |
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Authority 2:
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S.B. 981
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| Date Enacted: | 05/07/2009 |
| Date Effective: | 07/01/2009 |
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Authority 3:
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H.B. 1057
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| Date Enacted: | 05/07/2009 |
| Date Effective: | 07/01/2009 |
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Summary:
Maryland’s net-metering law has been expanded several times since it was originally enacted in 1997. In their current form, the rules apply to all utilities -- investor-owned utilities (IOUs), electric cooperatives and municipal utilities. The most significant recent amendments (April 2007) raised the maximum capacity of all eligible systems from 200 kilowatts (kW) to two megawatts (MW). The same law also enhanced the state renewable portfolio standard (RPS).
Residents, businesses, schools or government entities with systems that generate electricity using solar, wind, biomass and CHP resources are eligible for net metering. The law permits outright ownership by the customer-generators as well as third-party ownership structures (e.g., leases and power purchase agreements). The provisions allowing for CHP systems (H.B. 1057) and certain third-party ownership structures (S.B. 981) were added in May 2009 effective July 1, 2009.
Other important details of Maryland's net metering policy include:- Net metering is available statewide until the aggregate capacity of all net-metered systems reaches 1,500 MW. (The aggregate limit on net metering was 34.7 MW prior to the 2007 amendments.)
- Net excess generation (NEG) is carried over at the utility's retail rate to the customer's next bill for 12 months. Any NEG remaining in a customer's account after a 12-month period is granted to the utility with no compensation for the customer.
- Customers own and have title to all renewable-energy credits (REC) associated with electricity generation by net-metered systems.
- For customers with facilities sized to produce energy in excess of the customer's consumption, the Maryland Public Service Commission (PSC) must consider the capacity of a customer's system when determining whether to require a customer to install a dual meter. (A dual meter may be required only if a customer sizes a system to generate electricity in excess of the customer’s consumption.)
- The PSC must file with the Maryland General Assembly detailed annual reports (2009 Net Metering Report) describing the status of the state's net-metering program.
Utilities must install a single, bi-directional meter at a customer's facility (if necessary), and must offer net metering at no additional charge (including standby charges) or increased electricity rate. Customers with systems that meet all applicable safety and performance standards established by the National Electrical Code (NEC), the Institute of Electrical and Electronics Engineers (IEEE), Underwriters Laboratories (UL) and any other PSC requirements may not be required by utilities to install additional controls, to perform or pay for additional tests, or to purchase additional liability insurance.
The PSC is required to develop a credit formula for systems designed to generate more electricity than a customer consumes. The formula must exclude recovery of transmission and distribution costs, and provide that the credit may be calculated "using a method other than a kilowatt basis, including a method that allows a dollar-for-dollar offset of electricity supplied by the grid compared to electricity generated by the customer."
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Please note: The information on the DSIRE web site provides an overview of incentives and other policies, but it should not be used as the only source of information when making purchasing decisions, investment decisions, tax decisions or other binding agreements. Please refer to the individual contact provided in each record to verify that a specific incentive or other policy is applicable to your specific project.
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