A Policy Timeline

Maryland Renewable Energy Policy and Programs

Executive summary

Maryland’s renewable policy has tightened in several waves, moving from a modest early Renewable Portfolio Standard (RPS) into today’s requirement that 52.5% of retail electricity sales be matched with eligible renewable attributes by 2030 (with separate carve‑outs, including solar). [1] The policy direction now extends beyond the RPS: Governor Wes Moore[2]’s Executive Order states a goal of 100% clean energy by 2035 and directs Maryland Energy Administration[3] to establish a framework for a clean electricity standard to reach 100% clean electricity by 2035. [4]

Three system realities help explain why Maryland keeps tightening targets and expanding/adjusting programs:

Maryland remains a structural net importer of electricity. In recent years, retail electricity sales have been ~57–62 TWh annually while in‑state net generation has been ~34–44 TWh, implying that roughly one‑third to nearly one‑half of the electricity serving Maryland load is supplied through the regional grid (net of imports/flows and losses). [5]

The in‑state generation mix changed materially: coal’s share of in‑state generation fell sharply while natural gas increased; nuclear remains a major anchor. [6]

Regional conditions have shifted fast. PJM Interconnection[7] has highlighted materially higher forecast load growth than in prior long‑term forecasts, reflecting electrification and data‑center growth pressures across the region. [8]

Against that backdrop, Maryland’s most homeowner‑relevant adoption mechanisms are:

Net energy metering (tariff/crediting rules), administered under state statute and Maryland Public Service Commission[9] oversight. [10]
SRECs (Solar Renewable Energy Credits), created by the solar carve‑out inside the RPS and monetized through PJM’s tracking system and compliance demand. [11]
MSAP (Maryland Solar Access Program), a newer income‑qualified grant program designed to reduce upfront cost barriers. [12]
“Maryland CARES” (commonly referring to the proposed Clean and Renewable Energy Standard framework debated in prior years) helps explain the broader policy direction: a shift from “renewables only” toward “clean electricity” targets and crediting structures—even when particular bills did not pass. [13]

RPS evolution and the 2035 clean energy goal

What Maryland’s RPS is, in one paragraph

Maryland’s RPS requires electricity suppliers to retire renewable energy credits (RECs) equal to a statutory percentage of their retail sales each year (or pay alternative compliance payments, ACPs, for any shortfall). [14] A REC represents the renewable attributes associated with one megawatt‑hour (MWh) of eligible generation and is tracked through a PJM‑administered system (GATS). [11] The “solar carve‑out” inside Tier 1 creates distinct demand for SRECs, which is the key policy‑created revenue stream specific to solar generation. [15]

RPS milestones and targets

The table below compresses the policy arc into the milestones that most directly changed targets, compliance value, or market design.

Year (effective / enacted)	Legal milestone (MD Chapters / action)	What changed (high level)	Target / implication
2004–2006	RPS enacted (implemented beginning 2006) [1]	Created the RPS framework and tiered eligibility. [1]	Established the trajectory that later laws repeatedly “ratcheted up.” [1]
2010–2012	Solar carve‑out enacted and later revised [1]	Created a dedicated solar requirement within Tier 1, making SRECs a compliance commodity with policy‑created demand. [14]	Increased the long‑run incentive to build solar that produces Maryland‑eligible SRECs. [15]
2017	Major overall RPS increase (Chapters 1 & 2 of 2017) [1]	Accelerated Tier 1 requirement compared to prior law. [1]	Contributed to the modern “tightening” narrative—policy moved sooner, not later. [1]
2019	Major overall increase (Chapter 757 of 2019) [14]	Pushed the post‑2019 trajectory to today’s structure: Tier 1 ramps toward 2030 levels and the solar carve‑out ramps toward 14.5% by 2030. [15]	52.5% total by 2030 (Tier 1 + Tier 2) and 14.5% solar by 2030 (solar carve‑out within Tier 1). [14]
2024	REC “shelf life” extended (Chapter 595 of 2024) [11]	Increased REC lifespan to five years, altering banking/flexibility. [11]	Can reduce year‑to‑year volatility somewhat by enabling more banking (depending on market behavior). [11]
2024	Executive Order on climate plan implementation [4]	Formally articulates “100% clean energy by 2035” as a state goal and directs a framework for a clean electricity standard by 2035. [4]	Establishes the 2035 endpoint as a planning directive, beyond the current statutory RPS endpoint. [4]
2025	Legislative updates reflected in DLS reference material [1]	DLS documents ongoing adjustments (e.g., eligibility definitions and provisions about ACP revenue uses). [1]	Signals continued “policy churn” rather than a frozen framework; relevant for program recency and site updates. [1]

(Notes: the RPS milestones are summarized from DLS and PSC documentation; net metering milestones are statutory and PSC‑reported.) [16]

Supply, demand, and grid context behind the tightening

What changed in Maryland’s electricity “balance sheet” (2015–2026)

The data show a consistent pattern: Maryland’s annual retail electricity sales are higher than annual in‑state net generation, so regional imports (net of exports/flows and adjusted for losses) are structurally important. [5] Just as important: Maryland’s electricity consumption growth has been relatively slow/flat in the last decade, with energy efficiency policies (including EmPOWER Maryland) contributing to reduced demand growth; however, regional forecasts and PPRP analysis flag emerging upward pressure from electrification and data‑center development. [17]

Below are web‑embeddable charts derived from U.S. Energy Information Administration[18] historical state data files (generation, sales, capacity) and (for 2025–2026) a baseline continuation using the Maryland utility sales forecast growth rate described in the PPRP consumption brief. [19]

Supply vs demand and net import dependence

From 2015–2024, Maryland retail sales were roughly ~57–62 TWh/year, while in‑state net generation was about ~34–44 TWh/year, implying sustained net import reliance. [20]
The 2018 dip in implied import dependence corresponds to a period when new in‑state natural‑gas generation materially increased in‑state output (visible in both generation totals and capacity figures). [19]
For 2025–2026, the baseline demand forecast shown is modest (consistent with the “~0.32%/year” sales growth rate cited for the ten‑year utility forecast), but PJM’s regional forecast has signaled higher growth rates than past forecasts—meaning Maryland’s “flat load” assumption is a risk factor rather than a certainty. [17]

In‑state generation mix shifts (a key driver of policy emphasis)

Maryland’s in‑state supply mix shifted dramatically. Using EIA historical state generation data, coal fell from roughly ~38% of in‑state generation in 2015 to single digits by 2024, while natural gas rose from the low teens to around ~40%; nuclear remains ~40% of in‑state generation. [20]
A grid with (a) high import dependence and (b) changing generation mix tends to be more sensitive to regional fuel price swings, congestion, and resource adequacy issues—exactly the set of conditions state planners cite when discussing reliability and price impacts for a net‑importing state. [17]

Capacity changes and constraints (why “just build more” is not instantaneous)

Net summer capacity shows the “plumbing” behind the generation mix change: coal capacity drops sharply across the period while natural gas capacity rises; solar capacity increases but remains smaller than thermal fleet capacity. [20]
Maryland’s PPRP analysis emphasizes that high import requirements make interregional transmission especially critical and that congestion/limits can raise prices when the system must rely on higher‑cost local supply resources. [21]

Why Maryland tightened the RPS and expanded distributed‑energy programs

Four drivers show up consistently across Maryland’s policy record and the regional grid context:

Emissions and statutory climate goals. The State’s climate framework includes goals like 60% GHG reduction by 2031 and net‑zero by 2045 (as reflected in the state executive order’s findings), and the order explicitly links those goals to a “clean energy by 2035” objective. [4]

Technology cost declines made higher targets more plausible in practice. National Renewable Energy Laboratory[22] documents large PV benchmark cost reductions over 2010–2024 (utility PV costs down ~83% in 2024 USD over that span), strengthening the case that more aggressive deployment targets can be met at lower cost than in the early RPS period. [23]

Federal incentives increased adoption capacity—though they have been volatile. The Inflation Reduction Act broadly extended/expanded clean‑energy tax credit structures (federal policy tailwind), but subsequent federal changes have created uncertainty, and Maryland policy messaging in 2026 explicitly references gaps caused by federal ITC cuts. [24] (Separately, IRS guidance pages should be checked at the time of an installation because eligibility windows can change; the IRS “Residential Clean Energy Credit” page is one relevant reference point.) [25]

Regional grid/load pressures (PJM) raise the value of local generation and demand‑side resources. PJM’s 2024 long‑term load forecast cites materially higher annual demand growth expectations than prior forecasts, which is directly relevant to a net‑importing state that depends on regional transmission and capacity expansion. [8]

Program mechanics and eligibility

This section focuses on how each mechanism works, who qualifies, what the value stream is, and what changed recently.

Net energy metering

How it works. Net energy metering is defined as measuring the difference between electricity supplied by the utility and electricity generated by an eligible customer‑generator and fed back to the grid over a billing period. [26]

Who qualifies. An “eligible customer–generator” includes a customer who owns/leases/uses a third party for a solar (and other eligible) generating facility that is located on the customer’s premises or contiguous property, interconnected and operated in parallel with the utility’s system, and intended primarily to offset the customer’s electricity requirements. [26]

Crediting rules. Statute requires the net‑metering tariff to be identical in energy rates, rate structure, and monthly charges to the non‑net‑metered tariff, and prohibits adding new charges (e.g., demand/standby charges) that raise minimum monthly charges above the class baseline. [26] If monthly consumption exceeds generation, the customer pays for net energy supplied; if generation exceeds supply, the customer is billed only customer charges for that month. [26]

Net excess generation settlement. If generation exceeds consumption, the customer may accrue net excess generation (historically up to a 12‑month period ending before the end of April) with a statutorily defined valuation for any remaining balance; more recently, certain customers may elect to accrue net excess generation indefinitely (with payment upon account closure and a PSC‑established valuation method for the indefinite‑accrual case). [10]

Capacity limits and statewide cap. Individual system size is generally capped at 2 MW for net metering (with 5 MW allowed for community solar net‑metering), and the statewide net‑metering participation cap is 3,000 MW of rated generating capacity. [27]

Recent changes you should flag on the site.
The 2025 PSC net metering report highlights that SB 143 (effective Oct 1, 2023) allows eligible customer‑generators to elect indefinite accrual of net excess generation (rather than annual payout each year). [28]
It also summarizes the current statewide cap and the installed capacity picture: as of June 30, 2025, net‑metered capacity totaled about 1,321 MW (not including installed community solar capacity), and installed community solar capacity was reported separately. [29]

SRECs and the solar carve‑out

What an SREC is. Under Maryland’s RPS, a REC represents the renewable attributes of one MWh of eligible generation; solar generation produces SRECs that can be sold separately from electricity. [11]

Where it is tracked and traded. Maryland uses PJM’s generation attributes tracking system (GATS) to track ownership, transfers, and retirements of RECs/SRECs for compliance purposes. [11]

Who/what is eligible (solar‑specific). The PSC RPS report notes that certain resource types—including solar—must meet Maryland‑specific interconnection requirements to be eligible within the Maryland RPS framework. [11]

Why it exists and what it does. The solar carve‑out creates compliance demand for SRECs, which creates a revenue stream for solar projects and a procurement obligation (or ACP liability) for suppliers. [15]

Key price signals (ACP/SACP). Maryland publishes an ACP schedule by tier. For solar, the PSC report lists solar ACP levels (e.g., $60/MWh in 2024; $55 in 2025; $45 in 2026; declining thereafter). [11]

Recent “market reality” that matters for homeowners. The PSC report summarizes that 2024 saw very large ACPs and notes that REC prices can exceed Maryland ACPs in tight markets (e.g., due to broader regional demand and relative ACP levels in neighboring states). [11]

MSAP and related Maryland Energy Administration grant programs

What MSAP is. The Maryland Solar Access Program (MSAP) is a grant program administered by the Maryland Energy Administration that provides installation grants for solar PV on residential properties for income‑qualified residents. [30]

Grant size. MSAP grants are based on system size at $750/kW, up to a maximum $7,500 grant per household (as described in the MSAP program FAQ and FOA materials). [12]

Eligibility mechanics. MSAP is income‑qualified and requires adherence to program rules, including use of a participating contractor list and submission timing requirements (apply before installation; program rules also specify executed contract date requirements and completion timing). [12]

Operational “gotchas” you should present clearly. The FAQ explicitly notes that MSAP grants must be applied for before installation, that executed contracts must meet timing requirements, and that installations must be completed within a specified period after reservation (with the timeline tied to the governing act referenced in the FAQ). [31]

“Maryland Cares” in the policy landscape

Why you may see the term. In Maryland energy policy discussions, “CARES” typically refers to proposals for a Clean and Renewable Energy Standard that would broaden or redesign the crediting framework beyond the traditional “renewables only” RPS approach. [32]

How it functions conceptually (even if not enacted). The concept is a credit‑based standard that can include a broader set of “clean” resources (often including nuclear and certain high‑efficiency or low‑carbon resources) compared to an RPS. [33]

Why it matters for a homeowner‑facing site. Even when not enacted, CARES‑type proposals signal where policy may go: from “RPS tiers + carve‑outs” toward a “clean electricity standard” aligned with a 2035 endpoint—an approach now echoed directly in the 2035 clean electricity framework directive in the 2024 Executive Order. [34]

Program impacts on adoption and homeowner economics

Adoption signals in the data

Net metering capacity growth is not theoretical; the PSC’s net metering reports show steady year‑over‑year expansion. For example, as of June 30, 2025, net‑metered capacity was reported at roughly 1,321 MW, and the 2023 report noted installed capacity around 1,022 MW as of June 30, 2023—evidence of continued acceleration. [35]

Maryland’s PPRP materials also highlight that much distributed solar is not fully captured in some CPCN‑based datasets and points readers to the PSC net metering reports for net‑metered solar capacity inventories. [36]

Economics: what each program does to household cash flow

The table below frames each mechanism as a cash‑flow lever. Numbers are illustrative and depend on system size, production, tariff design, aggregator fees, and (for SRECs) market prices.

Mechanism	Household value stream	How it shows up financially	What moves the value most
Net metering	Bill offset for kWh produced (net of usage) [26]	Reduces billed net kWh; if net generation exceeds consumption in a billing period, net excess can be accrued under rules in statute. [10]	Retail rate levels, load shape vs production, annual net excess settlement choice (annual vs indefinite accrual where allowed). [10]
SRECs	Commodity revenue (1 SREC ≈ 1 MWh solar) [11]	Sold into compliance/voluntary markets; monetizes solar’s policy‑recognized attributes. [11]	Solar carve‑out targets, market supply, ACP level (price ceiling signal), transaction/aggregator terms. [11]
MSAP	Upfront capex reduction (grant) [12]	Reduces installed cost via a grant sized per kW (income‑qualified). [12]	Household eligibility, contractor compliance, program funding availability and timing windows. [12]
CARES (proposal concept)	Not a direct household payment	Impacts incentive shape through what counts as “clean,” how credits are issued, and whether solar retains carve‑outs. [13]	Whether enacted and at what target; interactions with a 2035 clean‑electricity standard framework. [37]

Quantifying two important pieces: SREC revenue and systemwide compliance cost

SREC revenue magnitude. The PSC 2025 RPS report provides average REC costs by category and year, including an average solar REC cost for 2024 (shown alongside Tier 1 and Tier 2 values). [11] If a household‑scale system produces ~10 MWh/year, it would generate ~10 SRECs/year (before any aggregator fees), so an average‑price year can translate into hundreds of dollars per year in gross SREC value. [11] (This is intentionally framed as “order of magnitude,” because SREC prices vary and transaction structures differ across vendors and aggregators.) [11]

RPS compliance cost magnitude (why policymakers track ACPs). The PSC 2025 RPS report shows total REC/ACP costs, including unusually large ACP expenditures in 2024. [11] When you compare the report’s 2024 compliance cost totals to Maryland’s 2024 retail sales (59,018,688 MWh in the EIA state profile), the result is on the order of ~1 cent/kWh as a rough scale benchmark if those costs were allocated across all retail sales. [38] (This is a back‑of‑the‑envelope scaling exercise, not a rate‑design statement; actual recovery differs by supplier type and tariff structure.) [38]

How rising retail prices fit into adoption pressure

Electricity procurement prices are volatile over time and differ by utility territory; one publicly posted dataset of Maryland utility variable pricing shows large swings and a higher price regime post‑2021 compared to mid‑2010s baselines. [39] This matters because net metering value scales with the retail price of displaced kWh: higher retail prices generally increase the bill‑offset value of customer‑sited generation (all else equal). [40]

Source links

Below are direct source links (primary/official where possible). Citations throughout the report point to these sources.

DLS – Introduction to the Renewable Energy Portfolio Standard (Sep 2025)
https://dls.maryland.gov/pubs/prod/NatRes/IntroductiontotheRenewableEnergyPortfolioStandard.pdf

Maryland PSC – 2025 RPS Report (data year 2024)
https://www.psc.state.md.us/wp-content/uploads/2026/01/2025-RPS-Report.pdf

Maryland General Assembly – Public Utilities §7-306 (Net Energy Metering statute text)
https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gpu&section=7-306

Maryland PSC – 2025 Net Metering Report
https://www.psc.state.md.us/wp-content/uploads/2025-Net-Metering-Report-4.pdf

Maryland Governor’s Office – Executive Order 01.01.2024.19 (2035 clean energy goal; clean electricity standard framework directive)
https://governor.maryland.gov/Lists/ExecutiveOrders/Attachments/52/EO%2001.01.2024.19%20Leadership%20by%20State%20Government-%20Implementing%20Maryland%27s%20Climate%20Pollution%20Reduction%20Plan_Accessible.pdf

MEA – MSAP FOA (FY26) (grant rules and program mechanics)
https://energy.maryland.gov/residential/SiteAssets/Pages/incentives/Maryland-Solar-Access-Program/FY26%20MSAP%20FOA.pdf

MEA – MSAP FAQ (FY25) (timing, $/kW, completion window)
https://energy.maryland.gov/residential/SiteAssets/Pages/incentives/Maryland-Solar-Access-Program/MSAP%20FAQ%20%282024.12.10%29.pdf

EIA – Historical State Electricity Data (generation, capacity, sales data files)
https://www.eia.gov/electricity/data/state/

EIA – Maryland Electricity Profile (2024 release)
https://www.eia.gov/electricity/state/maryland/

PJM – 2024 Long-Term Load Forecast summary
https://insidelines.pjm.com/pjm-publishes-2024-long-term-load-forecast/

NREL – PV cost reductions study (benchmark cost declines)
https://docs.nrel.gov/docs/fy25osti/92536.pdf

IRS – Residential Clean Energy Credit
https://www.irs.gov/credits-deductions/residential-clean-energy-credit

StateWise Energy (Maryland variable pricing historical rates dataset)
https://statewiseenergy.com/wp-content/uploads/2025/07/August_2025_SWE_ELEC_MD_Utility-Variable-Pricing-Historical-Rates.pdf

[1] [13] [14] [16] [34] https://dls.maryland.gov/pubs/prod/NatRes/IntroductiontotheRenewableEnergyPortfolioStandard.pdf

https://dls.maryland.gov/pubs/prod/NatRes/IntroductiontotheRenewableEnergyPortfolioStandard.pdf

[2] [7] [11] [15] [38] psc.state.md.us

https://www.psc.state.md.us/wp-content/uploads/2026/01/2025-RPS-Report.pdf

[3] [28] [29] [35] [43] psc.state.md.us

https://www.psc.state.md.us/wp-content/uploads/2025-Net-Metering-Report-4.pdf

[4] [37] https://governor.maryland.gov/Lists/ExecutiveOrders/Attachments/52/EO%2001.01.2024.19%20Leadership%20by%20State%20Government-%20Implementing%20Maryland%27s%20Climate%20Pollution%20Reduction%20Plan_Accessible.pdf

https://governor.maryland.gov/Lists/ExecutiveOrders/Attachments/52/EO%2001.01.2024.19%20Leadership%20by%20State%20Government-%20Implementing%20Maryland%27s%20Climate%20Pollution%20Reduction%20Plan_Accessible.pdf

[5] [6] [19] [20] [22] https://www.eia.gov/electricity/data/state/

https://www.eia.gov/electricity/data/state/

[8] https://insidelines.pjm.com/pjm-publishes-2024-long-term-load-forecast/

https://insidelines.pjm.com/pjm-publishes-2024-long-term-load-forecast/

[9] [12] [31] https://energy.maryland.gov/residential/SiteAssets/Pages/incentives/Maryland-Solar-Access-Program/MSAP%20FAQ%20%282024.12.10%29.pdf

https://energy.maryland.gov/residential/SiteAssets/Pages/incentives/Maryland-Solar-Access-Program/MSAP%20FAQ%20%282024.12.10%29.pdf

[10] [26] [27] [40] [42] Laws – Statute Text

https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gpu&section=7-306

[17] [18] [21] [41] https://dnr.maryland.gov/pprp/Documents/Maryland-Electricity-Consumption_Oct2024.pdf

https://dnr.maryland.gov/pprp/Documents/Maryland-Electricity-Consumption_Oct2024.pdf

[23] https://docs.nrel.gov/docs/fy25osti/92536.pdf