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Maryland Net-Metering Rules

Date Last Updated8/11/2014
Policy TypeNet-Metering Policy
State/FederalMD
Policy Administrator/Contact OfficeMaryland Public Service Commission
Policy Initiation Date1/1/1997
Policy SummaryMaryland's net-metering law has been expanded several times since it was originally enacted in 1997. The rules apply to all utilities, including investor-owned utilities (IOUs), electric cooperatives and municipal utilities. Customers 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 were included in HB 1057.

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 (~8% of peak demand).
  • System size is generally limited to 2 MW, except micro-CHP resources are limited to 30 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 kWh credit 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, non-profit organizations, and municipal governments or their affiliates. Utilities must install a meter at a customer's facility that measures the flow of electricity in both directions if necessary. Utilities cannot require customers to pay additional liability insurance or install additional controls or perform additional tests if all 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 are met.
CHP Eligibility RequirementsBoth fossil-fueled (for micro-CHP) and renewably-fueled CHP systems are eligible for net-metering.
Eligible Project Size (MW)Up to 2 MW (up to 30 kW for micro-CHP)
Minimum Efficiency Required/
Other Performance Requirements
Does Not Specify
Resource Website(s) http://www.dsd.state.md.us/comar/SubtitleSearch.aspx?search=20.50.10 exit EPA

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