Maryland has recently enacted key legislation that has boosted the local solar market.
In 2019, the state revised its renewable portfolio standard (RPS) and set specific solar carve outs. This led to incentive programs that have greatly benefited the state’s solar industry today. The DG+ Maryland Solar Report provides an overview of the solar policies that have shaped Maryland’s onsite and community solar markets.
Maryland was one of the early adopters of the RPS, enacting its legislation in 2004. The state has since then updated and increased its RPS goals. In 2019, Senate Bill 516 extended the RPS target to 50% by 2030 and increased the solar carveout to 14.5% by 2030. The RPS applies to investor-owned utilities, local governments, and retail suppliers.
In order to meet the state’s RPS and solar-carve out goals, electric suppliers must purchase SRECs. In Maryland, an SREC represents 1 megawatt-hour (MWh) of electricity generation from a qualifying solar facility. The price of a single SREC varies, as it depends on demand and supply in the market. SRECs are valid for three years after they are purchased.
In addition to the RPS revision, the most notable recent solar legislation is community solar. In 2017, the Maryland Public Service Commission implemented a seven-year community solar pilot program. with a statewide capacity of 418 MW. Of this, 125 MW must be allocated towards projects that directly benefit low-and-moderate-income customers. Lastly, the capacity of individual projects cannot exceed 2 MW.
Major developers have entered the state since the enactment of the community solar pilot program. As of Q3 2021, SGC Power is the frontrunner with 12.3% market share and 13 projects in the state. This is followed by TPE Maryland with 9.6% market share and 10 community solar projects, and ForeFront Power with 5.4% market share and 7 projects.
Maryland continues to commit its resources towards solar development. The Maryland Energy Administration is awarding $1,000,000 in grants during fiscal year 2022 for new solar parking canopies. In 2021, the administration has so far awarded $1.6 million in grants for similar purposes.
Why market research?
As local markets change dynamically and policies remain difficult to navigate, clean energy organizations are currently forced to choose between the overwhelming flow of free information and high-priced market intelligence subscriptions that are often too expensive for small- and medium-sized firms.
At DG+, we provide succinct information that cuts through the noise and gets to the point. Reports include details on current events, opportunities and challenges, policy summaries, pricing analysis, and market share data.
Maryland Solar Market Report
The DG+ Maryland Solar Report provides an overview of state incentives, estimated PPA pricing, and market share data on leading solar developers and installers.