Maryland Gov. Wes Moore in Could of this 12 months signed the Brighter Tomorrow Act into regulation. The measure expands the photo voltaic amenities that qualify for subsidy, and enhance the extent of subsidy, and incorporates sure miscellaneous provisions relevant usually increasing entry to subsidies—in addition to advantages to employees and individuals of low to reasonable earnings.
This regulation—coupled with ever-more-aggressive renewable portfolio requirements—displays the Maryland legislature’s aggressive efforts to fight local weather change by providing deep subsidies to renewable vitality technology amenities.
COMMENTARY
The Act expands subsidy created by the Maryland Photo voltaic Renewable Power Credit score (SREC) Program. In Maryland, load-serving entities supplying electrical energy to retail clients (together with non-utility retail suppliers and utilities offering commonplace supply service) should buy renewable vitality credit to fulfill the state renewable portfolio requirements (RPS), which is the brink set by the legislature governing the combination of renewable versus conventional vitality.
Photo voltaic amenities producing renewable vitality additionally generate SRECs, which may then be bought to load-serving entities for extra income to the renewable producing challenge. The Brighter Tomorrow Act gives that for sure photo voltaic electrical technology amenities, SRECs can be credited at 3 SRECS for each 2 MWh of renewable vitality (150%) generated, as a substitute of the standard 1:1 ratio, and can be accessible for the 15-year period of the improved subsidy. Whereas the Act gives the above enhancements, it doesn’t impair the prevailing net-metering and SREC program in Maryland. This system is capped at 300 MW for programs underneath 20 KW, and 270 MW for programs between 20 KW and 5 MW.
Initiatives wishing to make the most of this 150% SREC subsidy program should have their challenge and SRECs “licensed” by the Maryland Public Service Fee (PSC) after July 1, 2024, by demonstrating compliance with the next {qualifications} and standards: (1) Be situated in Maryland; (2) Be eligible for inclusion in Maryland’s RPS; (3) Be positioned in service between July 1, 2024 and January 1, 2028; (4) Be lower than 5 MW whole capability, and (a) 20 KW or much less of whole capability; (b) 20 KW-2 MW of whole capability if the system is used for combination web metering; or (c) 20 KW-5 MW of whole capability if the system is situated on a rooftop, a parking zone cover or a brownfield website.
Act Expands Actual Property and Property Tax Abatement Subsidy
Along with inflating the quantity of SRECs that may be bought, the Act additionally abates taxes for photo voltaic tasks by means of the next mechanisms:
1. The Act makes non-residential photo voltaic vitality producing programs authorised for a CPCN by the PSC, or authorised as an authorized SREC (after July 1, 2024), which might be constructed on the rooftops of buildings or on parking facility canopies not topic to Maryland state actual property valuation or company property taxes.
2. The Act extends the deadline for Neighborhood Photo voltaic Power Producing Methods to acquire eligibility for property tax exemption to December 31, 2030, and expands the dimensions of group photo voltaic tasks that may qualify for property tax exemption (group photo voltaic gives a automobile for electrical clients that can’t set up photo voltaic on their very own premises to subscribe to buy credit at a reduced price from a photo voltaic facility developed in the identical utility service territory that the client can then apply towards its electrical invoice).
3. The Act permits native governing our bodies to additional scale back evaluation of any actual property for functions of property tax if the true property features a parking facility with a photo voltaic vitality producing system on its cover.
Past increasing whole SREC and offering for tax abatement, the Act incorporates sure miscellaneous provisions that additionally impression, and in some situations will enhance the fee, of Maryland photo voltaic tasks:
First, the Act mandates that each one photo voltaic amenities with a technology capability of better than 1 MW should pay employees in extra of Maryland’s prevailing wage threshold.
Second, the Act permits tasks as much as 5 MW to qualify for web meter aggregation, though this subsidy stays restricted to farms, state and native governments, and nonprofits. (Web meter aggregation means paying “behind the meter” for vitality produced and consumed at non-contiguous properties owned or operated by the identical individual.)
Third, the Act gives grants for photo voltaic being developed by, or for low- to moderate-income households, or in low- to moderate-income neighborhoods. The Act requires the PSC to create a program and develop low to reasonable earnings standards to facilitate low to reasonable earnings individuals to obtain $750 per KW of nameplate capability for photo voltaic, as much as $7,500 per system. A 3rd get together could apply on behalf of the client by presenting the contract with the client and agreeing to undertake numerous shopper safety and reporting necessities.
Fourth, the Act mandates that native governments undertake automated photo voltaic allowing software program with wed-based platforms to cut back confusion and enhance the monitoring of residential permits for residential photo voltaic vitality programs, residential vitality storage programs, and panel upgrades.
Fifth, the Act expands the usable lifetime of an SREC from three years to 5 years.
Sixth, the Act gives for rights to put in boundaries on the roof of a home to guard towards animal harm to photo voltaic panels or the roof of the home.
Seventh, the Act Act expands tasks eligible for sure subsidies to five MW, tasks better than 2 MW should contemplate whether or not they may even want a Certificates for Public Comfort and Necessity from the Maryland PSC, and we will help with this nuanced evaluation.
Though the Act gives much more subsidy than new prices, all new photo voltaic builders should pay attention to the prevailing wage provision. Builders should carefully consider their tasks towards the eligibility standards for these new subsidies. The Maryland PSC has indicated that it’s going to promulgate guidelines for the SREC registration program within the close to future, however this has not occurred but. Though this program can be difficult to navigate at first, the extent of subsidy seemingly makes going by means of the method price it, notably for smaller tasks.
—Tom Prevas is accomplice with Saul Ewing within the agency’s Baltimore, Maryland, workplace.
