​POLICY: Floating solar, brownfield developments get incentive boost with new Maryland law

A new law signed by Maryland Gov. Wes Moore will allow solar projects on retention ponds and brownfield sites to qualify for a popular incentive program they’ve previously been left out of.

House Bill 1111, filed by Del. David Fraser-Hidalgo, D-15, makes floating solar energy systems with generating capacities between 20 kWh and 5 MW located on or over water retention ponds, quarries, or brownfields eligible for the state’s Small Solar Energy Generating System Incentive Program.

The Solar Energy Generating System Incentive Program allows solar facilities to generate certified SRECs with a compliance value of 150% for electricity suppliers to put toward meeting the solar carve-out for the State Renewable Energy Portfolio Standard (RPS). The program, administered by the Maryland Public Service Commission, was established in 2024 under Maryland’s Brighter Tomorrow Act.

According to Maryland law, the total amount of in-state generating capacity for certified systems under the program may not exceed 300 MW for systems with a generating capacity of less than 20 kWh and 270 MW for systems with a generating capacity between 20 kWh and 5 MW.

House Bill 1111 also exempts nonresidential solar energy generating systems that are floating systems or that are constructed on brownfields from valuation or state or local property tax. The new law goes into effect July 1.

NPM queue data identifies 49 pre-operational solar projects in Maryland 5 MW or less.

The new law compliments a slew of other solar and renewable energy related laws Moore signed to end the session, including the so-called Renewable Energy Certainty Act, which established statewide siting standards for new solar projects.

Moving off distributed generation specifically, the governor also signed the Next Generation Energy Act, cross-filed as SB 937 and HB 1035, which expands procurement for new energy in the state, including nuclear power, among other things.

On the residential side, the cross-filed HB 4 and SB 120 reduces the types of restrictions community associations can impose on residents planning to install rooftop or open-space solar on their land.

 

*This story was originally published exclusively for NPM US subscribers.

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