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The Governor of Maryland currently has bill HB1435/SB0737 on his desk for signature. Named “The Brighter Tomorrow Act”, we have listed some of the changes that will take place if it is signed into law:
Only NEW solar installed from July 1, 2024 to January 1, 2028, before hitting total installed megawatt limits per category, will be classified as “Certified SRECs” and compliance buyers will be able to use them to satisfy 150% of their compliance obligation per Certified SREC.
All RECs will have a 5 year life. Currently, the life is 3 years.
The first 300MW AC of solar 20kW and less qualify.
The first 270 MW AC of solar 20kW to 5MW qualify.
The size limit can only be above 2 MW for rooftops, parking canopies, or brownfield sites.
The 150% multiplier for Certified RECs goes into effect after January 1, 2025
New solar installed after July 1, 2024, will earn legacy MD SRECS until December 31, 2024, and then produce Certified SRECS thereafter for 15 years.
For systems larger than 1MW in size workers must be paid the prevailing wage.
Low Moderate Income (LMI) households at or below 150% of the average median income for the State of Maryland can apply for a grant of $750 per kW with a maximum grant of $7,500 per system.
We expect to hear by early May 2024 if the Governor signs the bill into law.
Certified MD SRECs can be used for 150% of the compliance value by electricity suppliers toward meeting the renewable portfolio standard. These SRECs will command a premium to regular MD SREC. Based on this 150% multiplier we calculate the implied SACP and premium to regular MD SRECs per year:
You can find a copy of the Maryland Solar Bill – HB1435 / SB0737 here:
https://mgaleg.maryland.gov/2024RS/bills/sb/sb0783E.pdf
UPDATE May 13, 2024
Maryland Governor Wes Moore signed the Brighter Tomorrow Act (SB 783) into law. See Maryland's post here:
https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/sb0783