Maryland Passes New Solar Legislation

April 11, 2024  Senate Bill 783 passed the Maryland legislature yesterday. 

The bill will increase the volume of SRECs per MWh generated for qualifying projects, while improving tax incentives.

A few details include:

• Certain solar projects will receive a 1.5x multiplier for SRECs generated (the prior version of the bill provided for up to 2x). The program is capped at 270 MWac for projects ranging in size from 20 kWac to 5 MWac.

• Among other things, to qualify, projects must be:

(1) placed in service between July 1st of this year and January 1, 2028; and

(2) installed either on a rooftop, carport or brownfield (the legislation does not mention floating solar, and ground-mounted solar projects are not eligible unless they are located on a brownfield site).

• For installations that are 1 MWac or larger, workers must be paid prevailing wages (which is already a requirement to qualify for the Federal Investment Tax Credit).

• The expiration period for SRECs increased from 3 years to 5 years.

• The bill creates a valuation and property tax exemption for non-residential solar projects installed on rooftops, or on carports in parking lots.

• For net metered projects, the legislation also increases the capacity cap from 2MWac to 5MWac for qualifying systems.

• By the end of this year, the Maryland Public Service Commission will determine additional eligibility requirements.