Governor Martin O’Malley Reaffirms Maryland's Commitment to Solar

Today, Maryland governor Martin O’Malley signed into law five energy bills that will drive the adoption of renewable energy and accelerate the creation of green jobs across the state. The main bills that will fuel the growth in the solar industry include an acceleration of the Renewable Portfolio Standard (RPS) and an extension of the renewable energy tax credits for residents who install home solar power systems.

Energy touches every aspect of our lives from the cost of heating our homes to sustaining our resources for future generations, said Governor O’Malley. In these last three years, we have made the choices that have transformed Maryland into one of the leading clean energy states in the nation. Each of the bills signed into law today will provide resources and incentives for our families and workforce, create jobs, and fuel innovation as we continue to strive for a Maryland that is truly Smart, Green and Growing.

• Currently Marylands Renewable Portfolio Standard (RPS), 2% of the state’s electricity must come from solar generation by 2022. The new Maryland Senate Bill (SB) 277, accelerates this timeline which means that utilities will need to install more solar generating capacity in the coming 5 years.
• In addition, SB 277 increases the penalty for utilities who fail to meet their RPS obligations. This penalty is known as the alternative compliance payment (ACP). The ACP currently stands at $0.40 per kilowatt-hour (kWh) and in 2011 this rate will increase by $0.05/kWh and increase again in 2013 by $0.10/kWh.
• Finally House Bill (HB) 464 extends the termination date of the clean energy incentive tax credit to December 31, 2015. In fact, HB 464 not only extends the Maryland solar tax credit, it also: (a) ensures that solar purchasers don’t receive an credit less than $1,000, and (b) makes the credit refundable, which means any unused credits will be returned to purchasers in the form of a check.