Net Metering in Maryland

Net Metering

Only 30 ft tall kicks in at 6mph and at 12mph produces 36kw enough to power 30 average homes

Last Updated July 12, 2016

Program Overview

    • Implementing Sector:

      State

    • Category:

      Regulatory Policy

    • State:

      Maryland

    • Incentive Type:

      Net Metering

    • Eligible Renewable/Other Technologies:

      Solar Photovoltaics, Wind (All), Biomass, Combined Heat & Power, Fuel Cells using Non-Renewable Fuels, Wind (Small), Hydroelectric (Small), Anaerobic Digestion, Fuel Cells using Renewable Fuels

    • Applicable Sectors:

      Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government, Federal Government, Agricultural, Institutional

    • Applicable Utilities:

      All utilities

    • System Capacity Limit:

      2 MW (30 kW for micro-CHP); also limited to that needed to meet 200% of baseline customer electricity usage

    • Aggregate Capacity Limit:

      1,500 MW (~10% of 2014 peak demand)

    • Net Excess Generation:

      Credited to customer’s next bill at retail rate; reconciled annually in April at the commodity energy supply rate

    • Ownership of Renewable Energy Credits:

      Customer owns RECs

    • Meter Aggregation:

      Allowed for agricultural customers, non-profit organizations, and municipal governments or their affiliates

Summary

 NOTE: In June 2016, the Maryland Public Service Commission (PSC) voted to adopt final regulations for the Community Solar Pilot Program. The regulations were drafted in November 2015 pursuant to the Community Solar Pilot Program enacted by the state legislature in May 2015. The final regulations establish the pilot program with an emphasis on providing benefits for low and moderate income customers. This DSIRE post will be updated soon after the final regulations are posted in the Maryland Code

Maryland’s net-metering law has been expanded several times since it was originally enacted in 1997. In their current form, the rules apply to all utilities — investor-owned utilities (IOUs), electric cooperatives and municipal utilities. Residents, businesses, schools or government entities with systems that generate electricity using solar, wind, biomass, fuel cell, closed-conduit hydroelectric, and micro-CHP resources are eligible for net metering. The law permits outright ownership by the customer-generators as well as third-party ownership structures (e.g., leases and power purchase agreements). The provisions allowing for micro-CHP systems (H.B. 1057) and certain third-party ownership structures (S.B. 981) were added in May 2009 and took effect July 1, 2009. Net metering was extended to fuel cell electricity generation systems in May 2010 (H.B. 821) and closed-conduit hydroelectric facilities in April 2011 (S.B. 271).

Other important details of Maryland’s net metering policy include:

  • Net metering is available statewide until the aggregate capacity of all net-metered systems reaches 1,500 MW. This limit is approximately 10% of the peak demand in 2014. The aggregate limit on net metering was 34.7 MW prior to the 2007 amendments. The local utility may however limit the installation of distributed generation if the total generation in the network is beyond the threshold as provided in the State’s  interconnection rules.
  • System size is generally limited to 2 MW, except micro-CHP resources are limited to 30 kilowatts (kW). Systems must be primarily intended to offset all or a portion of a customer’s on-site energy requirements and are limited in size to that needed to meet 200% of the customer’s baseline annual electricity use.
  • Net excess generation (NEG) is generally carried over as a kilowatt-hour credit (i.e., at the retail rate) for 12 months. Compensation for any NEG remaining in a customer’s account after a 12-month period ending in April of each year is paid to the customer at the commodity energy supply rate.
  •  Customers own and have title to all renewable-energy credits (REC) associated with electricity generation by net-metered systems.
  • Meter aggregation (either physical or virtual) is permitted for customers that use electrical service for agriculture, as well as non-profit organizations and municipal governments or their affiliates.
  • The PSC must file with the Maryland General Assembly detailed annual reports (see 2014 Net Metering Report) describing the status of the state’s net-metering program.

Utilities must install a meter at a customer’s facility capable of measuring the flow of electricity in both direction (if necessary), and must offer net metering through a tariff or contract at non-discriminatory rates compared to those offered to customers that do not net meter. The net-metered customers are typically required to pay a monthly customer charge regardless of the amount of electricity generated. However the customers are billed only for the energy that they use, netted against the amount generated by the customer. SB 353 enacted in May 2015, allows a person or a company who is installing a solar generation facility on the customer’s property to submit application for interconnection with the electric distribution facility. While the solar installer might accept payment prior to the installation, they must refund the payment if the application for interconnection is denied.

Virtual Net Metering

HB 1087 enacted on May 2015 authorizes the Public Service Commission (PSC) to establish a three year pilot program for community solar projects in the State. Community solar projects must be sized 2 MW or less, and must have at least 2 subscribers. Customers of all rates classes including residential, commercial, and people in leases properties can participate in the community solar project. Value of electricity generated by the solar system is credited to its subscribers through virtual net-metering. Individual subscriber may not receive credit for more than 200% of the subscriber’s baseline annual usage. Individual subscriptions are capped at 200 kW, and must be less than 60% of the total subscription of the particular community solar system.

Community solar energy system must be located in the same electric service territory as its subscribers. Any unsubscribed electricity from the community solar projects is sold to the electric company at the electric company’s avoided cost. The legislation allows any third party to finance, build or operate a community solar project. The PSC is required to adopt regulations to implement the pilot program before May 15, 2016. The PSC must also in consultation with the Maryland Energy Administration convene a stakeholder workgroup to study the benefits and costs of the pilot program and make recommendations on the advisability of establishing a permanent program by July 1, 2019. Total solar capacity installed under this pilot program shall count towards the total state net-metering cap of 1,500 MW.

Customers with systems that meet all applicable safety and performance standards established by the National Electrical Code (NEC), the Institute of Electrical and Electronics Engineers (IEEE), Underwriters Laboratories (UL) and any other PSC requirements may not be required by utilities to install additional controls, to perform or pay for additional tests, or to purchase additional liability insurance.

Authorities

    • Date Enacted:
      1997 (subsequently amended)

    • Date Enacted:
      08/16/2011

    • Effective Date:
      02/20/2012 (most recent amendments)

    • Date Enacted:
      05/12/2015

    • Effective Date:
      07/01/2015

    • Date Enacted:
      05/12/2015

    • Effective Date:
      10/01/2015

Contact

Memos

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    • 07/12/2016 by Achyut Shrestha

      H.B. 440 enacted on May 2016 amends the net metering regulations by requiring electric companies to issue final approval within 20 days of completion of the installation process and submission of paperwork. It requires electric companies to interconnect at least 90% of the installation processes completed during the year.

    • 11/20/2015 by Achyut Shrestha

      In November 2015 the MD Public Service Commission published its draft regulations on how the Community Solar Pilot Program would be implemented in the State. The pilot community solar program was enacted by the state legislature in May 2015. Public comments on the proposed regulations are due by Demeber 4, 2015.  More information is available at the admin docket RM56.  On February 2016, the MD PUC published final regulations to establish community solar pilot program with emphasis on providing benefits for low and moderate income customers. The regulations will be published in the Maryland Register and will receive public comments for 30 days after its initial publication

    • 05/20/2015 by Achyut Shrestha
      2015 legislative session in Maryland enacted two bills HB 1087, and SB 353 that made changes to the State’s netmetering and interconnection policies. HB 1087 (same as SB 398) establishes three year Community Solar Pilot program in the State. SB 353 requires the solar installer to refund the prior payment to the customer if the application for interconnection is denied.

    • 04/21/2015 by Achyut Shrestha

      SB 353 passed on April 2015 allows a person or a company who is installing a solar generation facility on the customer’s property to submit application for interconnection with the electric distribution facility. While the solar installer might accept payment prior to the installation, they must refund the payment if the application for interconnection is denied. The bill is currently presented to the Governor for approval.

  • 04/21/2015 by Achyut Shrestha

    HB 1087 passed on April 2015 authorizes the Public Service Commission (PSC) to establish a three year pilot program for community solar projects in the State. The bill is currently presented to the Governor for approval.

36KW Wind Turbine, Power Produced Each Month

The charts below gives a rough estimate of the power produced each month by Change Wind Corporations 36KW Helical Wind Turbine, and by a rough estimate I mean, the wind changes daily and your not going to get a wind to blow steadily at 10mph for a whole month.

 The main reason for the chart is to show how much electricity can be produced each month which is a lot, and that’s in the present time, what will it be 5 years from now or 10-20 years from now.

The cost per kilo watt hour has risen 30% or more in much of the USA over the past 10 years, some places a lot more then 30% and costs will continue to rise as coal mines are shut down and demand continues to rise.

Take the numbers from the chart and add about 50% more to that total and that’s the amount of power Change Winds 36KW wind turbine will produce 10-15 years from now.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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