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Incentives/Policies for Renewables & Efficiency

Printable Version
Empower Maryland Efficiency Act   

Last DSIRE Review: 10/17/2014
Program Overview:
State: Maryland
Incentive Type: Energy Efficiency Resource Standard
Eligible Efficiency Technologies: Unspecified Technologies
Applicable Sectors: Utility, (Statewide Goal)
Electric Sales Reduction15% reduction in per capita energy consumption by 2015, compared to 2007 (includes 5% portion to be achieved independent of 10% utility obligation)
Electric Peak Demand Reduction15% reduction in per capita peak demand by 2015, compared to 2007
Natural Gas Sales ReductionN/A
Rate Impact ParametersNo specific limits
Web Site:
Authority 1:
Date Enacted:
Date Effective:
Md. Public Utility Companies Code ยง 7-211

In April 2008 Maryland enacted legislation setting a state goal of achieving a 15% reduction in per capita electricity consumption and 15% reduction in per capita peak demand by 2015, compared to 2007 levels. The legislation requires the Maryland Public Service Commission (PSC) to direct the state’s electric utilities to implement programs designed to achieve a 5% reduction in per capita electricity consumption by 2011 and a 10% reduction by 2015. The remainder of the overall goal of 15% is to be accomplished independently through other means. Utility targets for per capita peak demand reduction are set at 5% by 2011, 10% by 2013, and 15% by 2015, thus utilities are responsible for the full portion of the peak demand reduction target.

Utilities are required to consult with the Maryland Energy Administration (MEA) on program design and implementation every three years. The first consultation was required to take place by July 1, 2008. Utilities must also submit plans for achieving the specified energy consumption and peak demand reductions to the PSC every three years, with the first plan due by September 1, 2008. The PSC is tasked with evaluating the plans based on cost-effectiveness, rate impacts for each ratepayer class, job impacts, and environmental impacts. Utilities filed their second set of plans for the 2012 - 2014 compliance period during the summer of 2011 and the plans were approved by the PSC in December 2011.

The Maryland PSC issues annual reports on progress made towards meeting the standards. Most recent compliance reports are available in the Maryland Public Service Commission website, that can be accessed here. The Empower Maryland 2011 Compliance Report indicates that the utilities' collective per capital demand reduction and energy savings achievments met the 2011 targets, but that part of the savings is attributable to factors such as moderate weather and the economic downturn rather than utility programs. In fact, collective program energy savings generally fell well short of the 2011 goal, though the utilities were able to generate peak demand savings equivalent to 105% of the 2011 goal. Progress towards the targets also differed substantially from utility to utility.

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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.